Information on Social Security

If you receive Social Security Benefits or expect to in the future be sure to read this and know your rights.

Many times after a person is injured at work, they apply for social security benefits.  Most of the time the injured worker applies for disability insurance benefits (DIB) based on the disability resulting from the very accident for which they are receiving workers’ compensation benefits.  There is nothing wrong with this, but it does create a potential trap for the unwary.

In a nutshell, you cannot receive more than 80% of what the Social Security Administration calls your pre-injury “Average Current Earnings” through a receipt of social security disability benefits and workers’ compensation indemnity benefits.  If you do (and assuming SSA and/or the work comp insurance company realize it), the Social Security Administration will reduce your monthly social security benefit to an amount, that when added to your weekly workers’ compensation benefit, results in you getting an amount no greater than 80% of your average current earnings.   This is called an “offset.”

In some cases, if you are found to be totally and permanently disabled, the insurance company can take what is called a “reverse offset.”  Many states, including Louisiana, opted into a federal loophole allowing workers’ compensation insurers to take this reverse offset.  This allows the workers’ comp insurance company to reduce the amount of your weekly checks and requires the Social Security Administration to increase your monthly benefits, so that the total of the two do not exceed 80% of your average current earnings.  This essentially shifts the offset right from the Social Security Administration to the work comp insurer, hence the term reverse offset.

These offsets and relationships between workers’ compensation and social security benefits become extremely important if you intend to settle your work comp case.  It is very important to have competent legal representation when dealing with the Social Security Administration.  If you are not very careful, settlement of your workers’ compensation case can lead to suspension, reduction or even elimination of your social security disability benefits, not to mention entitlement to Medicare.

Many careful considerations including how much you made before you were injured, the amount of your workers’ compensation indemnity benefit, the amount of your social security benefit, how many years you have left until your earliest retirement age and many other consideration must be carefully analyzed and addressed in the workers’ compensation settlement.  Choose your attorney carefully.  Ask them about the impact of workers’ compensation settlement on your social security benefits and what strategies they have to minimize the potential negative repercussions of settlement.

I would be happy to speak with you personally, on the telephone, or by email about your case.  I will explain what the insurance company owes you and why at no cost or obligation to you.  I am one phone call away.  Toll Free 1-866-712-2667 or in Baton Rouge 225-387-0293 or by email.  My firm represents injured workers all over the State of Louisiana.  Fill out this short case consultation form  and I will contact you at your convenience..