Michigan lawyer answers the question “how does workers’ comp affect social security retirement benefits?” and how you can collect both.
A question we get from some of our clients is “how does workers’ comp affect social security retirement benefits?” This is a complex question to answer as every situation is unique so it is a good idea to get a free consultation with an attorney before acting.
Our job as lawyers is to maximize the amount of money paid. This means getting the best possible settlement and making sure it has minimal impact on other potential benefits. We keep score by getting the most amount of money for our clients.
Does workers’ comp affect Social Security retirement benefits in Michigan?
So how does workers’ comp affect Social Security retirement benefits in Michigan? individuals who are receiving workers’ comp and later get Social Security retirement benefits are subject to coordination. It will equal 50% of the total monthly amount paid by the Social Security Administration.
This means that all workers’ compensation benefits for individuals with low weekly rates could end up getting wiped out.
Watch out for insurance companies who coordinate both retirement benefits and take a credit for old age (65+). Insurance companies can only choose one method of coordination and they frequently try to double dip. We also recommend trying to settle a claim before coordination lowers the weekly rate.
Individuals who are already receiving Social Security retirement benefit when injured on-the-job have slightly different legal rights and can’t have their workers’ compensation reduced to less than 50% of the amount otherwise payable. Insurance companies frequently screw this up and end up taking more money than allowed. This rule only applies to individuals hurt after December 19, 2011 when Michigan law was changed.
Can I collect workers’ comp and Social Security disability benefits?
No, you can’t collect workers’ comp and social security disability benefits. Social Security disability benefits (SSD/SSDI/SSI) can’t be coordinated under workers’ comp in Michigan. This means an insurance company can’t reduce what it pays regardless of how much is received from the Social Security Administration.
We tell our clients to apply for disability benefits instead of retirement benefits for this very reason. Unfortunately, disability benefits automatically convert to retirement benefits at a certain age.
It is possible for the Social Security Administration to offset if a person is receiving more than 80% of his or her past average current earnings when both workers’ comp and Social Security disability benefits are combined. This offset is even taxed like Social Security disability benefits were paid. Individuals who settle their case for a lump sum cash payment can prorate the amount over their lifetime and avoid offset.
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If you have any more question regarding how does workers’ comp affect Social Security retirement benefits then we think it is a good idea to speak with an experienced lawyer to make sure everything is paid correctly.
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) 316-8033 for a free consultation today.