Will My Workers Compensation Benefits Lower My Social Security Payments?by Kristen White Blogger More often, you may find workers being eligible for both workers compensation and social security benefits. But in such cases, employees are always confused on hoe each benefit may affect the lout come of the other. Unfortunately, when one receives both benefits, the social security benefits may be reduced or offset to allow the employee to recover workers compensation. The good part is that ether is a way you can reduce the amount of the offset that may be applied to your Social Security benefits.
How To Reduce The Amount Of The Offset For Your Social Security Benefits
Your workers' compensation benefits can be paid by the state workers comp agencies, your employer or an insurance company on behalf of your employer. If you are to receive Social Security benefits and workers compensation benefits, you need to understand how the amount you receive for your workers' compensation benefits will reduce your Social Security payments. The amount will be reduced only when both benefits combined becomes greater than 80% of your average current earnings before the disability. Meaning, all your benefits must be added together. If the total benefits are more than your average current earnings, the excess amount will be deducted from your Social Security benefits. Most of the times, the offset may seem to be confusing since each case is different. However, one may contact Anchorage employment lawyers to help you determine the average current earning. The agency uses different formulas to determine your average current earnings as below:
- Calculation of average wage: The amount to receive for your disability will be based on your average monthly wage at the time of the injury
- High-five formula: this is used to determine an employee’s highest earnings during a five-year consecutive period.
- High-one formula: The average monthly wages from the year with the highest-paid during the five years.
If the above is used and both benefits exceed 80% of your average current earnings, the offset must be applied.
It’s also worth noting that if you are to receive a lump sum amount for your workers’ compensation benefits, the amount you will receive for Social security will be affected. To ensure this doesn’t offset the amount, you may argue that you want to spread the payments. If you contact Anchorage employment lawyers, they can help you express this correctly in your settlements agreement.
How To Spread Out The Lump-sum Payment
It’s not unusual for the insurance company to deny the settlement. In such away, you can only look for top Anchorage lawyer to help you proceed to trial. Your lawyer can draft a settlement document that may indicate your settlement as pro-rated until you reach your retirement age. This way, you may find that the offset has been dramatically reduced to eliminate it wholly. If you are receiving Social Security benefits, the offset for your workers' compensation will not apply. Remember that your workers’ compensation benefits will only apply to your working life; it is not spread over your entire life. However, if you are approaching the retirement age and have a disability, you may choose to file for early retirement and avoid the offset. Again, it would help if you had a lawyer to guide you on whether early retirement is necessary in your case.
Receiving workers compensation benefits is a process that requires one to have the help of seasoned top Anchorage lawyer. The lawyer can help determine the best strategy for you to reduce the offset.
Created on Jan 11th 2021 22:44. Viewed 91 times.
No comment, be the first to comment.