If you suffer a work-related injury or illness that prevents you from working, you may qualify for both workers’ compensation benefits and Social Security Disability Insurance (SSDI). Fortunately, receiving one type of benefit does not automatically disqualify you from receiving the other. However, collecting both benefits can affect the amount of money you ultimately receive.
Understanding how these programs work together can help you protect your financial interests while you are unable to work.
Can You Collect Both Workers’ Compensation and SSDI?
Yes. Workers’ compensation and SSDI are separate benefit programs with different eligibility requirements. Workers’ compensation generally provides benefits to employees who suffer qualifying injuries or illnesses arising out of their employment. SSDI, on the other hand, provides monthly benefits to individuals who have sufficient work credits and a medical condition that prevents them from engaging in substantial gainful activity.
You do not necessarily have to choose between these two programs. If your work-related injury or illness is severe enough to prevent you from maintaining substantial employment, you may qualify for both workers’ compensation and SSDI benefits.
How Does Workers’ Compensation Affect SSDI Benefits?
Although you can receive both types of benefits, the Social Security Administration (SSA) may reduce your SSDI payments under a rule known as the workers’ compensation offset.
Generally, the combined amount of your workers’ compensation benefits and SSDI payments cannot exceed 80% of your average current earnings before you became disabled. If the combined benefits exceed this threshold, the SSA may reduce your SSDI payments to keep the total within the allowable limit.
For example, if your average current earnings before becoming disabled were $5,000 per month, your combined workers’ compensation and SSDI benefits generally cannot exceed $4,000 per month. If your combined benefits exceed that amount, your SSDI payments may be reduced accordingly.
Importantly, the offset generally applies to the combined benefits, not to your eligibility for SSDI itself.
What Happens When Workers’ Compensation Benefits End?
If your workers’ compensation benefits eventually stop, your SSDI payments may increase because the offset may no longer apply. However, you must continue to satisfy Social Security’s disability requirements to remain eligible for benefits.
It is also important to understand that certain workers’ compensation settlements can affect SSDI payments. How a settlement is structured, including whether it provides for future periodic payments, may influence how Social Security calculates the offset.
Why Legal Guidance Matters
Coordinating workers’ compensation and SSDI benefits can be complicated. Mistakes in reporting benefits, negotiating a settlement, or calculating an offset can result in reduced payments or unexpected overpayments.
If you have suffered a work-related injury or illness and can no longer work, it is important to understand all the benefits available to you. An experienced disability attorney can help you pursue SSDI benefits while protecting your interests under the workers’ compensation system.
