Part 1 of this blog dealt with how weekly workers’ compensation benefits and monthly Social Security Disability benefits can offset each other. But what happens if you settle your workers’ comp case?
In Part 1, we used an exmaple of someone in an “offset situation.” That individual was receiving both weekly workers’ comp benefits at the rate of $500 per week, and a monthly SSD check for $633.35. In this example, his full SSD rate, or PIA, was supposed to be much higher, at $1,200 per month. But, because of his receipt of weekly workers’ comp checks, he was in offset, and thus, his SSD benefit was reduced.
If this individual were to “settle” his workers’ comp case, he would cease to receive a weekly workers’ comp check. Rather, he would receive a final lump sum cash payment to close out/settle his case. The question then becomes, what effect does this settlement have on his ongoing Social Security Disability benefit.