Part 3 of 3: Workers’ Comp Formula

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Calculation of wage loss benefits when a disabled employee reaches age 65 or obtains Social Security retirement benefits.

Employees on workers’ comp for an extended period will eventually see their weekly checks reduced. This usually happens when a person reaches age 65 or starts collecting Social Security retirement benefits.

Insurance companies get a 5% old-age reduction when a person turns 65. Benefits will continue to be reduced by 5% each following year. A maximum of 50% can be taken at age 75.

Employees who collect Social Security retirement benefits can also see their workers’ comp checks drop. Michigan law allows 50% of a person’s total Social Security retirement benefit to be coordinated. This can result in a complete loss of workers’ comp benefits.

Insurance companies cannot use both the old-age reduction and the Social Security retirement benefit reduction at the same time. Individuals who are on Social Security retirement benefits at the time of the work accident, if injured on or after December 19, 2011, cannot have their workers’ comp benefits reduced beyond 50%.

Example of old-age reduction

Rick is a disabled factory worker from Sterling Heights. He has been receiving workers’ comp benefits in the amount of $500.00 per week for the last 8 years. He saw a 5% drop in weekly benefits when he turned 65 and now get $475.00. Rick will see additional 5% reductions each year until age 75 when his weekly benefit rate will be $250.00.

Rick starts receiving Social Security retirement benefits when he turns 67. His monthly amount is $1,000.00. Workers’ comp can now coordinate 50% or $500.00 each month. His workers’ comp payments would now equal $387.59.

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.

Related information:

Workers’ Compensation and Social Security Disability Benefits

Photo courtesy of Creative Commons, by 401(K) 2013.

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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

Related Blog Posts

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.