How Do Workers Compensation And Other Disability Payments Affect Your SSD Benefits


Disability benefits come from many sources if you are disabled while working. Of these,there are disability benefits from Social Security Administration, from private insurance and then there is the Worker's Compensation. You must understand that the disability benefits coming from private sources like private insurance and private pension plans does not impact the social security payments. However the Workers' Compensation does impact the benefits you may get from Social Security Administration.

What is Workers' Compensation?
Workers' Compensation is paid in case a person becomes disabled in the course of his job. There are Federal and state run agencies which pay these benefits. In some cases, this may be the employer himself or an insurance company paying the Workers' compensation as well.

Apart from this, some other disability benefits are also available. This includes State Temporary Disability Benefits, Civil Service Disability Benefits and the like, each of which may impact your disability benefits.

The Impact
The rule of thumb is that for anyone who is getting these disability benefits and Workers' Compensation, there is a cap that the total amount of benefits can not exceed 80% of the income that you were making at the time of becoming disabled. In order to calculate this figure, the SSA will take into account the total of social security benefits that you and and your family will receive. This figure will then be added to the Workers' Compensation that you will get as well as the sum of amount you will get from other disability benefit plans. After totaling the amount, the 80% of the income cap is applied. Whatever amount is going above the 80% cap will be cut from the social security disability benefits that you are poised to receive.

Please note that this payment cap will not remain active forever. It will only remain in force till you achieve the age of 65. As soon as you achieve the age of 65, you will start getting payments in full. In addition to this if your Workers' Compensation or any other benefits are stopped before your age is 65, the social security disability payments will revert back to full figures.

Calculating the 80% income cap
It must be understood that to calculate the 80% of your total income, the SSA will first determine your total income itself. This is done on a case to case basis based on certain parameters. It must be unders-tood that these parameters may also differ for different people So you have to contact the SSA and find out how they are determining your total income.

To conclude, you must understand that while temporarily, the Workers' compensation and other disability benefits do negatively impact your social security disability benefits.