Social Security benefits can be affected by many factors, some of which you may not even be aware. In certain situations, if you are receiving workers compensation or other disability payments, your Social Security benefits may decrease.
What is the Difference between Workers Compensation and Other Disability Payments?
Federal or state agencies, employers or an employer’s insurance company typically pay workers’ compensation. If you are receiving this type of payment, you were likely hurt on the job or sustained a job-related injury or illness. Publicly funded disability benefits generally means the payments are made by the local, state, or federal government. If you’re receiving this type of benefit, your disability is likely not work-related. You might be receiving civil service disability or state temporary disability benefits, for example.
How Are My Benefits Impacted?
When the government calculates your income, it takes into account the value of all of your benefits. This means if you’re receiving Social Security benefits, any additional income you receive, such as workers’ compensation or other disability payments, will be added to that number.
This final lump sum amount is the number used to determine if your Social Security benefits will incur a reduction. Your benefits cannot exceed 80% of your earnings prior to becoming disabled; this percentage is calculated as an average using a formula designed for your situation.
If all of the income you’re receiving from benefits combines to be greater than 80% of your prior earnings, the difference will be deducted from your Social Security benefits.
Here’s an example:
- Average earnings before becoming disabled: $4,000 / month
- Social Security benefit eligibility: $2,200 / month
- Workers’ compensation benefits: $2,000 / month
Given the above information, you would receive a reduction in your Social Security benefits. Here is how the calculation would look:
- 80% of average current earnings: $4,000 * 80% = $3,200
- SS benefits + workers’ compensation: $2,200 + $2,000 = $4,200
- SS Reduction: $4,200 – $3,200 = $1,000
In this example, your final SS benefit would be $1,200.
If you are confused about the ways workers’ compensation and other disability payments are affecting your benefits, consider speaking with a Las Vegas personal injury attorney who can review your unique situation and discuss any possible options with you. To learn more about worker’s compensation in Nevada, contact Greenman, Goldberg, Raby, Martinez Law Firm at 702-388-GGRM (4476).