Michigan workers’ comp lawyer explains what happens to weekly checks when a person reaches age 65.
Individuals on workers’ comp are entitled to receive lost wages. The amount paid should equal 80% of their after-tax average weekly wage at the time they got hurt. It is natural for people to wonder how long these payments will continue. A couple questions we get from a lot of our client is do workers’ comp wage loss benefits end at 65 in Michigan and what about if I take a voluntary retirement from my job? Wage loss benefits continue while a person is disabled but will be subject to offsets at retirement age.
It is important to have a plan in place so that no big surprises occur. Retirement is supposed to be a reward for a lifetime of hard work, but it often turns into a financial nightmare. For people concerned if workers’ comp ends at the age of 65 in Michigan, here is some information about potential offsets based upon age and retirement. Never quit the job or retire without speaking to an attorney first because it could have a significant impact on payments.
Though workers’ comp wage loss benefits do not end at the age of 65 in Michigan it is important to note that payments will be reduced by 5% each year beginning at age 65. This offset grows until it reaches a maximum of 50% at age 75. Payments should not be reduced further so be cautious of insurance companies who try to double dip using some other method.
Individuals can apply for Social Security retirement benefits starting at age 62. Workers’ comp is allowed to reduce payments based upon 50% of what SSA pays monthly for retirement benefits. Individuals who were already getting Social Security retirement benefits when they got hurt cannot have their benefits reduced by more than 50% of the amount otherwise payable. This offset does not apply to Social Security disability benefits. This offset cannot be combined with an age 65 reduction.
Does workers’ comp end at age 65 in Michigan?
In Michigan, workers’ comp wage loss benefits do not end at age 65. However, there will be an offset of 5% each year until age 75 for a total reduction of 50%. Watch out for insurance companies who double dip by also applying a Social Security reduction.
Though workers’ comp wage loss benefits do not end at age 65 in Michigan, insurance companies sometimes use this date as an official retirement age and will dispute further payments. This is not correct and should be challenged. A person who is age 65 or older can still get wage loss benefits provided they are disabled. A job search may be required to prove no work is available.
We recommend trying to settle a workers’ comp claim case before the age 65 offset is applied. Insurance companies look at overall exposure when calculating how much to offer. Sometimes they will overpay because they do not apply the automatic reduction that will occur. Our attorneys have been helping people get settlements for over 30 years and there is never a charge for a case evaluation.
Injured while on-the-job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and are wondering if workers’ comp wage loss benefits end at age 65 or have any other questions surrounding your claim, call now or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 35 years. Our attorneys can help you better understand Michigan work injury laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
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.