question to formerDE

[backless]

Thanks for your replies in these forums.Question is,has SSA been doing ofsets forever,or is this something fairly new.I'm hoping to get a positive answer to my SSDI case when I get my hearing.I have yet to be asked anything in regard to my 2001 W/C settlement.Would there be an offset for my case in 2001. Are there limits as to when they begin offsets ,like at a certain amout of money. Ive read a bit but its all confusing. I thought I read something about having to offset if its over $250,000,any info helps.Thanks again.Backless

[FormerDE]

Thanks for your replies in these forums.Question is,has SSA been doing ofsets forever,or is this something fairly new.I'm hoping to get a positive answer to my SSDI case when I get my hearing.I have yet to be asked anything in regard to my 2001 W/C settlement.Would there be an offset for my case in 2001. Are there limits as to when they begin offsets ,like at a certain amout of money. Ive read a bit but its all confusing. I thought I read something about having to offset if its over $250,000,any info helps.Thanks again.Backless

Hi Backless,

SSA has been doing W/C offsets of SSDI against both periodic W/C payments (before lump sum settlement) and against the final W/C lump sum settlement amount for many, many years. I'm retired from SSA, and I don't remember a time when SSA did not do these offsets.

There is no low amount of W/C settlement that is a deciding point for imposing the offset, but what you will find is that low settlement figures will simply expire sooner and full SSDI get paid sooner. You need to let the ALJ know about the lump sum settlement and the date of the settlement, when you go to hearing. Be sure SSA knows about your workman's comp; otherwise a large overpayment could come back to haunt you some months or years later.

The offsets don't get applied for ever, which is certainly a good thing about final settlement. The W/C offsets only apply until the lump sum settlement amount gets recouped over time. What should work to your advantage is the fact that your W/C lump sum settlement was way back in 2001, and the monthly pro-ration of offset will go that far back (get used up), even if your eventual award of SSDI benefits has an onset or beginning date later than the 2001 W/C settlement date.

One thing to remember is that a claimant can receive both SSDI and worker's compensation payments at the same time, and most claimants receive at least a partial payment of their SSDI during W/C offset. There are some who receive total offset, but that is much less frequent than partial offset of SSDI.

Some claimants even receive their full SSDI despite receiving W/C, if their wages were very high during the time before they become disabled. That is because of the way that the W/C offset is determined by SSA. In general, you are allowed to receive a combined benefit of both SSDI and W/C payments that total no more than 80 percent of your "averaged indexed monthly earnings," determined based on your years of work (usually based on one or more high years of earnings before you were disabled). If your combined SSDI and W/C payments total more than 80 percent of your average monthly earnings, then your SSDI benefit would only be reduced by the amount by which the combined total of monthly SSDI and W/C exceed that 80 percent monthly average wage figure, that you had when you were working.

So some high wage earners end up with no offset if their ACE (average current earnings) is high. And other lower (but still high) wage earners end up with very little offset. And if you want to look for a silver lining for low wage earners, consider that at least the W/C settlement amount will also be lower and result in a shorter period of offset after the lump sum W/C settlement.

FormerDE

[backless]

Thanks,another if your still around.Do they consider the full settlement,or do they break it down ,to say,1/3 settlement might be lost wages,1/3 pain and sufering or loss of mobility and then 1/3 for the medical. In my thinking,only the portion for future medical should be offset,I'm I on track at all. Thanks again.

[FormerDE]

Thanks,another if your still around.Do they consider the full settlement,or do they break it down ,to say,1/3 settlement might be lost wages,1/3 pain and sufering or loss of mobility and then 1/3 for the medical. In my thinking,only the portion for future medical should be offset,I'm I on track at all. Thanks again.

The full settlement amount as shown on your final W/C lump sum authorization document is considered for offset. That settlement is not broken down into types of settlement. However, as I indicated before, both your medical and legal expense amounts (usually shown on the lump sum authorization) are deducted by SSA from the total settlement amount, and therefore are not part of the total W/C lump sum amount to be offset by SSA.

FormerDE