Does a Workers Comp Settlement Affect SSDI?
While you can receive Social Security Disability Insurance benefits and workers’ compensation for the same disability, the amount of workers’ compensation can reduce your SSDI. That’s true whether you are getting workers’ comp in installments or as a lump-sum settlement.
In a lump-sum settlement, you agree to give up certain rights so that you can receive a one-time payment, instead of collecting your benefit award over time. There are a number of reasons you might do this.
For example, if a claim is in dispute, you may want to avoid the time and stress of an administrative hearing or court case and a possible adverse ruling. Or your employer’s insurance company may offer to pay now if you waive future compensation for medical expenses arising from your workplace injury — potentially a good deal if you (and your doctor) don’t expect the costs to be significant.
Like regular workers’ comp payments, the lump-sum amount is subject to an offset — a reduction of one benefit to meet the federal requirement that workers’ comp and SSDI payments combined be no more than 80 percent of your typical earnings before you became disabled. (In most states, SSDI is cut by the amount necessary to reach the 80 percent cap, but in certain states it’s the workers’ comp that is reduced.)
When you are getting workers’ comp in periodic payments, Social Security adds them to your SSDI to determine the amount of the offset.
See the full, original post here: https://www.aarp.org/retirement/social-security/questions-answers/workers-compensation-settlement-ssdi.html
About TriMark Legal Funding
TriMark Legal Funding was founded in 2003 and is one of the nation's leading legal funding companies. TriMark provides pre-settlement funding and post-settlement funding to injured plaintiffs nationwide on hundreds of different types of personal injury lawsuits, employment litigation, and work injury accidents including workers comps. We also provide post-settlement attorney funding and law firm financing for plaintiffs' attorneys and law firms.
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