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Can a workers’ comp settlement affect SSDI payments?

On Behalf of | Mar 9, 2022 | Personal Injury

Have you recently applied to begin receiving Social Security Disability Insurance (SSDI) benefits in New Jersey? You may already be getting workers’ comp benefits for the same disability. If this is the case, you should be aware that the amount of workers’ comp you are getting can reduce your SSDI payments.

What info must be disclosed when you apply?

There will be a number of facts that you are obligated to disclose when you apply for SSDI benefits. These will include whether or not you have already applied for workers’ compensation benefits. You will need to show documents of any payments that you may already have received. These include any lump sum settlement that has been agreed to.

Keep in mind that any lump sum payment that you receive may be subject to an offset. This means that one of your benefits may be reduced. This will be done in order to meet a Federal requirement. The total amount of your benefits cannot exceed more than 80 percent of your earnings before your injury.

What can you exclude from a deduction?

There are a number of factors that may be excluded from the total number of deductions that are made from the amount you are paid. These will be decided upon at the time that you file your claim. These will mostly be the legal or medical expenses that you have incurred during the time that you were seeking to file the claim.

The official term for these exemptions will be “excludable” expenses. Social Security will deduct these expenses from the total amount of your settlement. This will be done just before they tally up any offset that may be required. The remaining amount will be the total that you receive in the form of benefits.

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