One common fear shared by a growing number of Social Security Disability Insurance (SSDI) recipients is that their workers’ compensation benefits or personal injury settlement agreement will negatively affect their monthly disability benefit. While it is true that disability payments from private sources, such as private insurance benefits or pensions, don’t have any effect on your SSDI, there are some payments from public sources that can reduce your monthly award.
Does A Personal Injury Settlement Affect Social Security Disability?
Individuals currently receiving Social Security disability benefits have already met the eligibility requirements and have been determined to be disabled by the Social Security Administration. Their SSDI benefit is usually based on the amount of time the individual worked prior to their disability rather than the income they receive. Therefore, accepting a personal injury settlement will not decrease their monthly SSDI benefit.
How Does A Workers’ Comp Settlement Affect Social Security Disability?
Public disability benefits, such as civil service disability benefits, state or local government retirement benefits based on disability, state temporary disability benefits, and Workers’ Compensation awards, may reduce your monthly SSDI benefit. The exception to this rule is if an individual receives SSDI and one of the following public benefits:
- State and local government benefits, if Social Security taxes were deducted from your earnings
- Supplemental Security Income (SSI) benefits
- Veterans Administration benefits
If you are receiving Social Security disability benefits and workers’ compensation or other public disability benefits, your total amount of monthly benefits cannot exceed 80% of the average earnings made before you became disabled. If the total amount of benefits exceeds 80% of your average current earnings, the excess amount will be deducted from your SSDI benefit. Your Social Security disability benefit will continue to be reduced until the month your other benefits stop, or the month you reach full retirement age, whichever comes first.
Fresno Social Security Disability Benefits Attorneys
Applying for Social Security disability benefits can be both a stressful and emotional experience. Our seasoned legal team at Peña & Bromberg, PLC will guide you through this complicated process and help you obtain the benefits you are entitled to. If your initial claim is denied, we will continue to fight diligently for you throughout the entire appeals process.
When you are represented by Peña & Bromberg, PLC, your case will be handled with superior knowledge and expertise, and you will be treated with dignity, compassion, and respect. For assistance in obtaining Social Security disability benefits for you or your loved one, call our office or complete the contact form here on our website.