How to Navigate Overlapping SSDI, Workers’ Comp & LTD Benefits

Hundreds of thousands of disabled workers in the U.S. who are already on the Social Security Disability Insurance program also file for public disability benefits or workers’ compensation each year. This does not typically include the ones injured on the job who do not qualify for workers’ compensation or the ones who receive private insurance benefits.

It is possible to overlap Social Security Disability Insurance (SSDI), workers’ compensation, and even long-term disability (LTD) benefits. However, it is strongly recommended to trust in the expert guidance and insight of a Social Security disability lawyer to navigate those waters safely.

Contact Ascend Disability today at (855) 445-9787 to schedule a free consultation.

Understanding the Calculation of Workers’ Comp Benefits

Before you can fully understand the mixing bowl of overlapping benefits, you must focus on the calculation of workers’ compensation benefits. This is typically the first payment issued due to the quick turnaround in comparison to applying for SSDI or LTD benefits.

The amount is typically capped at about 80% of what the worker earned when he or she was injured. The evaluation can either focus on the prior 5-year period of average earnings or use the 80% limit against the highest single year of earnings. This calculation is an important piece of the puzzle because your SSDI benefit eligibility depends on how much money you will receive from workers’ compensation.

The Impact of Other Public Disability Payments

When calculating your applicable amounts, do not forget to consider any other public disability payments that you may receive from other sources. Keep in mind that these payments may come from your local government, state, or the federal government. For instance, are you collecting any temporary disability benefits from your state? What about civil service disability benefits?

Any retirement benefits offered by your local or state government based on disability can also affect your SSDI benefit amount. According to the Social Security Administration (SSA), the total amount of your benefits from SSDI, workers’ compensation, and other public disability benefits cannot be more than 80% of the average current earnings that you received before your disability period.

SSDI Social Security Disability Insurance

Navigating Through the Loops With Your SSDI Lawyer

A major benefit of investing in the services of an experienced Social Security disability lawyer is the opportunity to work through all the hoops and loops. For instance, you may already assume that your public disability payments will disqualify you from being able to overlap SSDI, LTD, and workers’ compensation benefits successfully.

However, your lawyer will analyze the specific sources of that income and educate you on the windows of opportunity you may not even know exist. For example, did you know that there are some public benefits that you can receive that do not impact your SSDI benefit calculation?

The SSA makes it clear that your SSDI benefit will not be reduced if you receive any benefits from the Veterans Administration or if Social Security taxes were deducted from your state/local government benefits. You could even consider any Supplemental Security Income (SSI) as being in this “safe space” as well.

You Must Report All Changes to Your Earnings

Once you start receiving your overlapping benefits, that is not the end of the road. Your Social Security disability or long-term disability lawyer will make it clear to you that analyzing your income must become a priority. You must report any changes to that income to the SSA as soon as possible. This includes a change in your benefit amount or even if the benefits stop.

You must inform the agency of the specific increase or decrease amounts related to your benefit(s). The increase or decrease will likely have an impact on the calculation of your Social Security benefits. Any delay in notifying the SSA in a timely fashion could possibly lead to unwanted consequences and repercussions that you can easily avoid.

Contact a Disability Lawyer to Explore All Options

The specific circumstances that apply to your case will likely differ from others, so it is important not to assume that the way one claimant’s process turned out will mirror your results. Fortunately, one of our experienced Social Security disability and long-term disability lawyers here at Ascend Disability can work with you along your unique, personal journey.

During our free consultation appointment, we can examine the pertinent details and applicable timeframes associated with your specific case. Call Ascend Disability today at (855) 445-9787 to schedule that appointment and let us help you to manage your overlapping benefits.

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