A Portland resident with a disability sometimes receives more than one kind of disability benefit. Depending on the circumstances, both workers’ compensation and non-job related disability benefits impact and sometimes reduce Social Security disability benefits.
Workers’ compensation, paid to those who have experienced a workplace illness or injury, are benefits paid by employers or for employers through insurance agencies. Public disability benefits are made to those who have medical conditions unrelated to work, including government temporary or retirement disability payments.
Social Security adds the total amount of non-exempt benefits a disabled person receives with its own disability benefits. If that figure goes above 80 percent of the income the individual received before becoming disabled, Social Security benefits are reduced.
Certain public benefits are exempt from SSA consideration. Those include benefits from the Veterans Administration, Supplemental Security Income (SSI) and some local or state government benefits.
When Social Security reviews combined benefits, it includes individual as well as family member benefits. If one family member receives workers’ compensation while another is getting Social Security disability, the benefits will be added together and the 80 percent income limit will apply.
When supplemental benefits end or a Social Security benefit recipient turns 65, disability reductions are discarded, but it is important to let the government agency know when these events occur either by contacting the agency online or by phone.
If workers’ compensation benefits stop, Social Security will then rework the disability benefit amount to reflect the change. The same is true with any other non-exempt public disability payment within a family. Any new non-exempt benefit, including lump sum payments or benefit stoppage, will increase or decrease Social Security.
Source: Social Security Online, “How Workers’ Compensation And Other Disability Payments May Affect Your Benefits.”