Ohioans who have a work accident, have a work-related condition or injury, and are unable to work, need to understand how the Social Security Administration handles Social Security Disability (SSD) claims and how it might affect workers' compensation.
Workers' compensation and other benefits that a claimant might receive can influence how much they can get for SSD benefits. Sources, like private insurance and pensions, will not have an effect on SSD benefits. But, public benefits and workers' compensation could reduce what can be received through the SSD program.
Since workers' compensation benefits are paid to a worker who has been injured or became ill due to work, it might be paid federally or by the state. Disability payments provided by local government, federal or state agencies for issues that were not job-related might also effect SSD benefits. For those who are receiving workers' compensation or other forms of public disability, as well as SSD benefits, the benefits that are received cannot go beyond 80 percent of the individual's average earnings.
There are certain SSD benefits that will not be reduced, if public benefits are also being provided. These include benefits from: the Veterans Administration; from state and local governments if there were Social Security taxes taken out of the earnings when working; and Supplemental Security Income.
There is a way to calculate how much the reduction is going to be. The SSD benefits -- including what is paid to family members -- are added to the workers' compensation or other public disability benefits. If the total surpasses 80 percent of the average amount currently earned, the extra amount is will be subtracted from the SSD benefits amount.
There is no one specific way in which the average current earnings are calculated. It depends on every individual situation. Those who have received a lump sum in workers' compensation, instead of a monthly allotment, can also have their SSD benefits affected. The SSA must be informed if there was a lump sum paid for workers' compensation.
Those who are receiving workers' compensation or other public insurance payments need to be aware of how it can impact their SSD benefits. Some might be under the impression that they cannot receive Social Security Disability if they are getting workers' compensation. This is not the case. To have a full understanding of how this works, speaking to a legal professional well-versed in Social Security Disability benefits is imperative to the process.
Source: SSA.gov, "How Workers' Compensation And Other Disability Payments May Affect Your Benefits," accessed on Nov. 24, 2015
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