Will an injury settlement impact my Social Security disability income? 21 Answers as of May 28, 2013If I agree to a settlement amount, with all medical separate from the settlement, from Workers Comp, does this affect/how will it affect my monthly income from either long term disability or social security disability? Can I pay my bills with the settlement or do I have to live off it in place of either WC or SSD?
David F. Stoddard | David F. Stoddard
A workers comp settlement can offset part of your Social Security Disability benefits. There is language that you can include in your workers comp settlement to minimize the offset. A personal injury claim that is not from workers comp will not affect disability benefits. However it will affect SSI (title VI) benefits as opposed to disability (Title II) benefits.
Answer Applies to: South Carolina
Dressler & Peters, LLC | John Wagener
This is a complicated question and without seeing the exact numbers or how your Medicare Set Aside is set up, it is difficult to say. An attorney that specializes in social security disability can probably figure this out for you. Also, the terms of any private disability plan would need to be consulted in order to see if there is an offset for comp or SSI disability payments. Sometimes there is such an offset and this can impact your total recovery.
Answer Applies to: Illinois
Joel H. Schwartz, P.C. | Steven A. Schwartz
I am not certain how the receipt of a personal injury or workers' compensation ("WC") settlement would impact the receipt of long term disability payments. If you are currently receiving Supplemental Security Income ("SSI"), this monthly amount may be reduced if you reach any personal injury or WC settlement. Generally, the more income you have, the less your SSI benefit will be. Personal injury and/or WC settlements are typically determined to be "unearned income." If you have too much income, you may not be eligible for SSI. If you are currently receiving Social Security Disability Insurance ("SSDI"), the receipt of a personal injury settlement should not affect your monthly SSDI amount. However, WC may reduce your SSDI benefits. The general, albeit complicated rule is: if you receive WC or other public disability benefits and Social Security disability benefits, the total amount of these benefits cannot exceed 80 percent of your average current earnings before you became disabled. If the total amount of WC and SSDI exceeds 80 percent of your average current earnings, the excess amount is deducted from your Social Security benefit. For more information, try this is a helpful link: http://www.ssa.gov/pubs/10018.html#a0=4 Be sure to report any changes in your WC amount to the Social Security Administration. If you choose to pay off any bills using the WC settlement, retain the receipts, as the Social Security Administration may require proof of such a payment.
Answer Applies to: Massachusetts
Paul Whitfield and Associates P.A. | Paul L. Whitfield
Your bills will normally be paid from a comp settlement. There might be a set off by social security if you are to need future meds. If you don't have a comp lawyer, get one. You need help if your social security is to be involved.
Answer Applies to: North Carolina
Dwyer, Black & Lyle, LLP | Kevin Habberfield
It shouldn't effect it at all. SSDI is not an entitlement program like SSI. This is money you paid to the feds out your paycheck every week that the feds agree to give back to you should you become disabled. It is not income or asset dependent, just the feds giving your money back to you. Good luck.
Answer Applies to: New York
Law Offices of Andrew D. Myers | Andrew D. Myers
You need to discuss this with your workers compensation attorney ASAP. Workers compensation and disability benefits can dovetail together nicely if this requirement is anticipated and addressed up front and in any settlement. But this needs to be addresses while the case is open and before the settlement. With respect to other benefits you may need a special needs trust. However, not enough detail is included here. If you do not have an attorney now is the time to retain one to optimize your benefits and to anticipate your future needs.
Answer Applies to: New Hampshire
Lapin Law Offices | Jeffrey Lapin
An injury settlement may affect your Social Security disability benefits depending on the type of benefits you are received. If you are receiving Social Security Disability Benefits under Title II of the Social Security Act (SSDI), as opposed to Supplemental Security Income benefits (SSI), your injury settlement should not affect your SSDI benefits. SSDI benefits are based on what you have paid into the system; they are not dependent on your resources or assets. However, if you are receiving either Medicare or Medicaid, the settlement could have an effect on your entitlement to these benefits especially as it relates to these programs paying for treatment you need for your work-related injury. I cannot answer whether your injury settlement will affect your long term disability benefits. Whether the settlement would have an effect would depend on with the long term disability policy says about injury settlements. Under some policies, it may not have any effect while in others you may lose your long term disability benefits. I would suggest talking to an attorney about whether your settlement will affect any of the benefits you are currently receiving. DISCLAIMER: This response should be considered general in nature, for information purposes only and should be used only as a starting point for addressing legal questions and issues. It is based on the limited information provided and, in some instances, makes certain assumptions. It is intended only for cases involving Nebraska and Nebraska law and is not applicable to any other state or jurisdiction. The author does not warrant the accuracy or validity of the information contained within this response, and hereby disclaims any liability to any person for any loss or damage caused by errors or omissions. In addition, this response is not a substitute for professional legal advice and does not create an attorney-client relationship, nor should it be considered a solicitation for additional legal advice or legal representation. If you ignore this warning and convey confidential information in a private message or comment, there is no duty to keep that information confidential or forego representation adverse to your interests. You should seek the advice of a licensed attorney in the appropriate jurisdiction to fully discuss your case. You should be aware that there are Statute of Limitations (the deadline imposed by law within which you may bring a lawsuit) as well as other requirements and/or limitations that limit the time you have to file any potential claims you may have. This response may be considered advertising in some jurisdictions under any and all applicable laws and ethical rules. The listing of any area of practice that the author practices in does not indicate any certification or expertise therein, nor does it represent that the quality of legal services to be performed would be greater than the quality of legal services performed by other lawyers. It is merely an indication by the author of areas of law in which he practices. The determination of the need for legal services and the choice of a lawyer are extremely important decisions and should not be based solely upon advertisements or self-proclaimed expertise. Readers are urged to make their own independent investigation and evaluation of any lawyer being considered.
Answer Applies to: Nebraska
Norsigian Law Office | Hrant Norsigian, Jr.
It will affect your SS disability unless your settlement agreement is drafted properly. In order to protect yourself and ensure that the settlement has the least impact on your SS disability, the settlement agreement must contain certain language called "spread language."
Answer Applies to: Illinois
Steven Miller | Steven Miller
This is a fairly new area of the law. I know if you reach a certain age at the time of your settlement (not sure what it is but think it is somewhere between 60-65), a carve out provision needs to be made and a trust set up, with regards to some of your settlement, in anticipation that you could have future medical bills, and that the trust will protect ssi, from having to pay that. I am not a workers comp specialist, but suggest you contact one and discuss it.
Answer Applies to: California
Law Offices of Lee and Baghoomian, P.C. | Joseph Lee
This is a complex question, but yes there are things that can be done to protect your disability/ SSI. This needs to be structured very carefully, so make sure you retain an attorney that has some experience in this field. Please contact our office at 626 432 1699 for a free consultation. Keep in mind that everything should be in place BEFORE your settlement funds are disbursed.
Answer Applies to: California
Law Offices of David M. Blain | David Blain
Yes, a personal injury settlement can and most likely will affect your needs based and entitlement based government assistance. Without knowing all the facts of your situation, especially what types of government assistance you receive, I cannot give a more detailed answer.
Answer Applies to: California