Were you hurt while on the job in Arkansas? You may be entitled to receive no-fault benefits through a workers’ compensation claim. If you have a significant long-term disability related to your work injury, you may also be entitled to receive benefits through the Social Security Disability Insurance (SSDI) program.
This raises an important question: Will workers’ compensation benefits impact your SSDI benefits? The short answer is “yes”—your SSDI benefits may be reduced to account for workers’ comp or other public disability benefits. Here, our Arkansas Social Security disability attorney explains key things to know about how workers’ comp benefits can affect your SSDI benefits.
Workers’ Comp Benefits Can Affect Your SSDI Benefits
It is important to emphasize that Arkansas workers’ comp benefits can have an impact on your SSDI benefits. As simply explained by the Social Security Administration (SSA), the workers’ comp payments that you receive from Arkansas (or another state) “may reduce your SSDI benefits.” Here is a more detailed overview of four points to understand about the impact that workers’ comp benefits can have on your Social Security disability claim:
- There is a Workers’ Comp Offset (If Total Benefits Exceed 80 Percent of Earnings): If the combined amount of your Arkansas workers’ compensation benefits and SSDI benefits exceed 80% percent of your average pre-disability earnings, the Social Security Administration (SSA) will reduce your SSDI benefits accordingly.
- SSA Will Consider a Lump Sum Workers’ Comp Payment: In some cases, workers’ comp benefits in Arkansas are paid as a lump sum. If so, the SSA can still take those benefits into account when determining your eligibility for SSDI benefits. Indeed, the SSA may divide the lump sum to reflect a monthly benefit and may adjust your SSDI benefits.
- The Offset Ends When Workers’ Comp Benefits End: The SSA will only apply the workers’ compensation offset while a worker is actually receiving their benefits. If your workers’ comp benefits in Arkansas stop, then you will no longer be subject to an SSDI offset. You will then receive the full SSDI benefits that you would be entitled to under the law.
- Claimants are Subject to Strict Reporting Requirements: It is vital to report any changes in the amount of your Arkansas workers’ comp or any lump sum settlements to the SSA to avoid overpayments or penalties. The SSA’s regulations are clear: The claimant seeking Social Security disability benefits is the party responsible for ensuring that the agency has full and accurate information on their financial circumstances, including any workers’ comp benefits that they receive.
Set Up a Free Case Review With an Arkansas Social Security Disability Lawyer Today
At Gallo Cazort & Co. Law Firm, our Arkansas Social Security disability lawyers are devoted to putting the rights and interests of our clients first. Have questions about an SSDI claim? Call us now or contact us online to set up your free, no commitment initial appointment with an attorney. We handle Social Security disability claims and appeals throughout all of Arkansas.