Settling your workers’ compensation claim can result in an increase in your Social Security Disability benefits

by Ben Wiborg | October 7th, 2013

Our prior blog detailed how benefits received by a disabled worker from both workers’ compensation and Social Security Disability  are offset.  In this blog, I discuss how settling a workers’ compensation claim can actually result in an increase in the SSD benefits being received.

The key to settling a workers’ compensation claim for anyone who concurrently receives SSD benefits is to ensure that language in the settlement documents allocates the settlement proceeds over the disabled worker’s life expectancy.  Even though a settlement may be paid in a lump sum to the disabled worker, language in the settlement documents allocating the settlement proceeds over the disabled worker’s life expectancy can preserve, and in some cases increase, monthly SSD benefits for the disabled worker.

In each case, there are specific circumstances that must be known to determine the most advantageous course for a disabled worker to pursue.  Settlement of the workers’ compensation claim doesn’t necessarily result in an increase in SSD benefits.  This can be a very complicated and confusing situation for any disabled worker.  A thorough evaluation of all options available to the disabled worker must be explored before accepting or declining an offer to settle.