How Can Other Disability Benefits Impact Social Security Disability Benefits?
Some people have multiple insurance policies to protect themselves if they become disabled and are unable to work. Some policies can be obvious, such as disability insurance policies, or they can be indirect, such as workers' compensation insurance held by your employer. Whether or not you're claiming all the disability benefits you can, you should know that these policies don't necessarily put a stop to your Social Security Disability (SSD) checks.
What Benefits Will Not Reduce SSD Benefits?If you receive any of the following benefits, your SSD benefits will not be reduced or stopped:
- Veterans Administration benefits
- State or local government benefits
- Supplemental Security Income benefits
What Benefits Will Reduce SSD Benefits?If you receive workers' compensation benefits to help alleviate your financial strains, your SSD benefits may be lowered. Beneficiaries cananticipate their checks being reduced if all of their benefits added together are higher than 80% of their average current earnings. So if your workers' compensation and SSD benefits equal 92% of your average current earnings, then your SSD payment will be reduced so the check does not exceed 80% of your current earnings.
How Does SSD Benefit Reduction Work?
This example from the Social Security Administration's (SSA) website shows how your disability benefits may be reduced by workers' compensation:
"Before you became disabled, your average current earnings were $4,000 a month. You, your spouse and your two children would be eligible to receive a total of $2,200 a month in SSD benefits. However, you also receive $2,000 a month from workers' compensation. Because the total amount of benefits you would receive ($4,200) is more than 80 percent of your average current earnings ($3,200), your family's Social Security benefits will be reduced by $1,000."
If your other benefits stop or you reach retirement age, then your SSD earnings go back to their normal rate. This is why you need to report any changes to the SSA. If they don't know that your workers' compensation benefits have stopped, then they can't raise your benefits rate.
Need Help Coordinating Your Multiple Benefits?
The Coye Law Firm's attorneys and staff want to help you heal and get back to work. We know it is frustrating and stressful when you are unable to work and earn income for yourself and your family. If you were injured on the job or earning disability benefits from another source, your SSD benefits may change. Call our offices if you have any questions or concerned about the amount you receive each month to offset your lost wages.