What disabled employees need to know about Michigan workers’ compensation and Social Security retirement benefits.
Yahoo.com published a good overview for people who want to collect Social Security retirement benefits. Full retirement age will increase to 66.5 starting in 2019. Individuals can also collect retirement benefits at age 62 but will end up getting much smaller monthly checks. Many factors should be considered when deciding about collecting Social Security retirement benefits.
Our clients want to know what happens to their workers’ compensation payments if they begin collecting Social Security retirement benefits. We thought it would be a good idea to revisit this issue and show how a potential offset applies.
Michigan law allows an employer or its insurance carrier to reduce workers’ compensation payments based upon Social Security retirement benefits. The amount to be offset is equal to 50% of the total monthly amount paid by Social Security. For example, an individual receiving $1,800.00 per month in Social Security retirement benefits can expect a $900.00 per month workers’ compensation offset.
The Social Security retirement benefit offset could end up wiping out all workers’ compensation payments for individuals with low weekly rates. Failure to apply for Social Security retirement benefits could result in an estimated offset being used.
Employees who are already on Social Security retirement benefits when hurt on-the-job have slightly different rights and cannot have their workers’ compensation payments reduced to less than 50%. This only applies to individuals with an injury date after December 19, 2011.
Watch out for insurance companies who use the age 65 reduction and Social Security retirement benefit offset. Make sure to contact an experienced workers’ compensation attorney if weekly payments are unfairly reduced.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.
Photo courtesy of Creative Commons, by kenteegardin.Tags: Michigan workers comp lawyers, Social Security