Im on disability with total amt payable is 30k . workers comp is offerring me 10k to settle will that stop my disability payment? I need the 10k for medical tx if my disability stops all that miney will go for living expenses . i cant go back to work till i get treatment

Hi,

I don't have enough information about your case to be able to answer your question. What effect, if any, that your Workers Compensation (WC) settlement would have on your Social Security disability (SSDI) benefits would depend in part on: a) the details of your settlement, b) your average earnings in the years prior to when you became disabled, and c) the State paying your WC.

SSDI benefits can be offset in whole or in part in some cases when the disabled individual also receives WC. The basic rule is that the combined amount that a disabled person can receive from SSDI and WC benefits cannot exceed 80% of their average current earnings (ACE). In the great majority of cases, a person's ACE is based on the person's average monthly earnings in their highest earnings year within the 5 year period leading up to the onset of their disability.

Say for example that a Bob became disabled in 2015. Bob's highest year of earnings during the period 2010-2014 was 2012, when he earned $60,000. Therefore, Bob's ACE in this example would be $5000 (i.e. $60000/12). As a result, if Bob was receiving both SSDI and WC, the total monthly amount of those payments couldn't exceed $4,000, or 80% of his ACE.

For WC offset calculation purposes, Social Security prorates lump sum WC payments into a monthly rate. The proration calculation is somewhat complex and depends on the specifics of the settlement, such as the weekly or monthly rate specified in the award, if any, in lieu of which the settlement is paid (https://secure.ssa.gov/apps10/poms.nsf/lnx/0452150060).

Some States have reverse offset provisions, which means that the State will in some cases reduce a person's WC payments if the person is also receiving SSDI, as opposed to Social Security reducing the person's SSDI if the person also receives WC. California does have a reverse offset plan, but I'm not sure how that may impact any potential offset of your benefits. You'll probably need to check with your nearest Social Security office to see if they can advise you as to what effect, if any, a WC settlement such as the one you've been offered would have on your SSDI benefits.

Best, Jerry