How a workers comp settlement could increase other benefits

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You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and we pride ourselves on providing you with care, trust, and responsiveness.

Michigan workers comp lawyer explains how a workers comp settlement can increase your Social Security disability benefits.

Workers comp is a no-fault system and you don’t have to prove any negligence on the part of your employer to get benefits. Workers comp pays wage loss, vocational rehabilitation, and medical treatment.  You can trade the future value of these workers comp benefits for a lump sum settlement.  This is known as a redemption.

How to increase your Social Security disability benefits

You can get workers comp and Social Security disability benefits at the same time. Social Security will however reduce your monthly benefit if your combined workers comp and Social Security disability benefits exceed 80% of your average current earnings.  The intent of this offset is to ensure that your combined benefits are not excessive.

An example of how the workers comp offset works

Bob Smith  gets $3,000 per month in workers comp benefits.   Bob Smith also gets $1,500 per month in Social Security disability benefits.

Social Security determines that Bob Smith’s average current earnings are $5,000 per month based upon his best year in the last five prior to his disability.

The combination of Bob Smith’s workers comp and Social Security disability benefits equals $4,500.00 ($3,000 + $1,500)  and 80% of his average current earnings is $4,000.00 ($5,000 x .80). 

Since Bob Smith’s combined workers comp and Social Security disability benefits ($4,500) exceed  80% of his average current earnings ($4,000), his monthly Social Security disability benefit is reduced by $500 per month.

Avoid the offset with a workers comp settlement

You can avoid this offset by settling your workers comp case for a lump sum payment. The law allows you to prorate the workers comp settlement over your lifetime reducing or in most cases eliminating the offset.

Using the example above, Bob Smith is 50 years old and has a life expectancy of 28.78 years according to the CDC.  If Bob Smith settles his workers comp case for a lump sum payment of $200,000 then it can be allocated at the rate of $579.10 per month for his life. 

Bob Smith has now eliminated any offset because his total monthly workers comp and Social Security disability benefits ($2,079.10) are below his average current earnings ($4,000).   Bob Smith will now get a great workers comp settlement and his full Social Security disability benefits.

Get help from an experienced workers comp lawyer

The goal should always be to maximize the amount of benefits that you receive.  You can get a lump sum settlement from workers comp and continue to get Social Security disability benefits.

To speak with one of our workers comp lawyers, call (855) 221-2667 for a free consultation. There is no fee unless workers comp benefits are recovered for you.

Alex Berman is the founder of the law firm. He’s been representing injured and disabled workers exclusively for more than 30 years.  Alex has helped countless people obtain workers comp benefits and never charges a fee to review a case.

Related Information:

Can I get workers comp benefits and Social Security Disability at the same time?

How much is my workers comp case really worth?

Photo courtesy of Creative Commons, by Dave Dugdale.

03/01/2011
Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.