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 in Michigan?
In Michigan, Social Security disability benefits (SSD/SSDI/SSI) can’t be coordinated under workers’ comp. This means an insurance company can’t reduce what it pays regardless of how much is received from the Social Security Administration.
In Michigan, another way workers’ comp can affect Social Security retirement benefits is the possibility for the Social Security Administration to offset the payout amount 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 workers’ comp case for a lump sum cash payment can prorate the amount over their lifetime and avoid offset.
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.
Injured on the job in Michigan and need help? Call our work injury attorneys now!
If you were injured on the job in Michigan and you have questions on how workers’ comp can affect your Social Security retirement benefits, call now to speak with an experienced attorney, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. We’re 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 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 (855) 221-2667 for a free consultation today.
Related information:
