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How workers’ compensation payments affect retirement benefits

On Behalf of | Jan 13, 2021 | Social Security Disability Insurance |

Payments from private sources, such as insurance benefits or private pensions, will not affect your Social Security Disability benefits. However, public disability benefits in California, like workers’ compensation, could negatively affect your Social Security benefits.

Things that will affect your Social Security Disability benefits

A worker receives workers’ compensation benefits because of an illness or injury that occurred while on the job. Your employer’s insurance company could pay these benefits, but federal or California state workers’ compensation agencies may also pay them.

If you receive benefits for an injury or illness that is not job-related, those benefits can reduce the amount of Social Security benefits that you receive. For example, if you receive temporary state disability benefits or government disability retirement benefits, those could reduce your Social Security Disability benefits.

Things that won’t affect your Social Security disability benefits

There are some kinds of public benefits that will not reduce your Social Security benefits. These are, Supplemental Security Income, Veterans Administration benefits, and certain state and local government benefits. Here are some points to remember about your benefits:

  • The total amount of your benefits cannot total more than 80% of the average wage you earned before you were disabled.
  • Some kinds of benefits will reduce the amount of your Social Security Disability benefits, and other types won’t.
  • It is important to report any changes to other disability benefits to the Social Security Administration.

The landscape of Social Security Disability benefits can be difficult to navigate. An attorney with experience in Social Security Disability could answer your questions and help you determine how your various benefits could affect your Social Security Disability payments.