Workers’ compensation awards provide financial support and medical coverage for employees who are made ill or injured as a result of their work-related circumstances. Unfortunately, receiving a workers’ comp award may affect eligibility for other types of benefits, including veterans’ benefits, Social Security Disability Insurance (SSDI) and survivor benefits.
As a result of this reality, understanding how these programs interact is going to be important if you are currently trying to plan for your long-term financial stability after suffering a work-related injury or illness.
Knowledge is power (and key to making informed decisions)
If you are a military veteran, you may be eligible for disability compensation through the Department of Veterans Affairs (VA). Workers’ comp and VA benefits can often be received at the same time, but they typically cover different kinds of injuries. VA benefits are for service-related disabilities, while workers’ comp applies to job-related injuries or illnesses in civilian roles. Still, receiving both types of benefits for the same condition could lead to an offset. This means one benefit may be reduced to avoid duplicate payments. The VA may adjust the monthly disability amount based on what you are receiving from workers’ comp, depending on how your injuries overlap.
Social Security Disability Insurance is another program that may be affected by workers’ comp. If you are approved for SSDI and receive workers’ comp at the same time, the Social Security Administration will apply an offset to prevent your combined benefits from exceeding 80 percent of your average current earnings before you became disabled. This can reduce your monthly SSDI payments until the workers’ comp benefits end or decrease. The rules are complex and based on the type and timing of payments, so working with an attorney or benefits advisor can help you avoid surprises.
Survivor benefits, such as those paid to dependents after a worker’s death, may also be impacted. If a worker dies as a result of a job-related injury, the family may be entitled to both workers’ comp death benefits and Social Security survivor benefits. However, the total amount received from these sources may be adjusted to stay within program guidelines. Coordination between these benefits is important when it comes to ensuring that families receive the full support they are entitled to without unintentionally triggering reductions.
Navigating multiple benefit systems is not easy. Seeking legal support can help you understand how your claim fits into the broader picture so that you can maximize your benefits while staying in compliance with program rules.