Disability payments from private sources, such as private pensions or insurance benefits, don’t affect your Social Security Disability Insurance (SSDI) benefits.
Workers’ compensation and other public disability benefits, however, may reduce your SSDI benefits. Workers’ compensation payments are made to a worker because of a job-related injury or illness. They may be paid by federal or state workers’ compensation agencies, employers, or by insurance companies on behalf of employers. Other public disability payments may affect your Social Security benefits. These payments are made by a federal, state, or local government and are for disabling medical conditions that are not job-related. Examples are civil service disability benefits, state temporary disability benefits, and state or local government retirement benefits that are based on disability. If you receive workers’ compensation or other public disability benefits, AND SSDI benefits, the total amount of these benefits cannot exceed 80% of your average current earnings before you became disabled.
If you get a lump-sum disability payment If you get a lump-sum workers’ compensation or other disability payment in addition to, or instead of a monthly benefit, the amount of the Social Security benefits you and your family 4 receive may be affected. You want to let SSA know right away if you receive a lump-sum disability payment.
It is very important to discuss with your Workers' Compensation attorney to make sure they have spoken with a representative/advocate to protect your benefits. If you need further information call KC Disability Advocates at 816.451.2020.
