Does New Jersey Workers’ Compensation Affect Social Security Benefits?

It is not unusual for people to receive workers’ compensation benefits and Social Security Disability (SSD) at the same time – but it is important to understand how the “workers’ comp offset” works with SSD so that you make informed decisions.

Parisi & Gerlanc, Attorneys At Law, is a well-established workers’ compensation firm serving clients in Bergen County, New Jersey. Our firm’s founder, attorney Joyce Parisi, has been selected for inclusion to the New Jersey Super Lawyers list each year since 2005 for her extensive experience and ability to achieve results.

The Connection Between Workers’ Compensation And Social Security Benefits

Under federal law, when you receive both workers’ compensation and Social Security Disability benefits at the same time, the total amount you receive each month (including benefits paid to family members) cannot exceed 80% of your total monthly earnings before disability began. Your SSD will be reduced accordingly.

For example, if you earned $4,000 a month before your injury, 80% would be $3,200. If you are eligible for $2,000 a month in workers’ comp and $2,200 a month in SSD benefits, the total ($4,200) would be more than you are allowed. Your SSD benefits would be reduced by $1,000.

There are ways to minimize or eliminate the offset, however. Common approaches include:

  • Delaying the application for SSD benefits until workers’ compensation has been exhausted
  • Applying for retirement benefits, if you meet the minimum age requirement, because there is no workers’ comp offset for retirement
  • Obtaining a structured payment for a lump-sum workers’ comp settlement that includes an amortization provision to spread out how the income is counted

Given the complexities involved between workers’ compensation and Social Security benefits, you are better off seeking guidance from our experienced attorney.

Let Us Help You Make Informed Decisions About The Future

If you have questions about how workers’ compensation may affect your Social Security benefits, call Parisi & Gerlanc, Attorneys At Law, through 551-587-8915 for a free initial consultation.

We are dedicated to helping you navigate the complexities of workers’ compensation and Social Security, ensuring you receive the benefits you deserve.