One of the most common concerns for injured workers is that opting for a worker’s compensation might affect their social security retirement benefits.
If you think about it, their concerns are not unfounded. After all, worker’s compensation can affect your Social Security Disability Benefits.
So, does workers’ compensation affect your Social Security Retirement Benefits? Yes, it can. But the answer is more complicated than a simple “yes” or “no.” To start, you need to understand how Social Security retirement is computed.
HOW WORKERS COMP MAY AFFECT YOUR RETIREMENT BENEFITS
Social Security retirement benefits in the US are computed using the “credit” system. When you work, Social Security taxes are deducted from your pay, and these taxes earn you corresponding Social Security credits.
Aside from credits, your average indexed monthly earnings (AIME) during your career also determine how much you’ll get. If there are times when you stop working or earn much less, you’ll get reduced benefits.
This is another part where your workers’ compensation might affect your retirement benefits. Workers comp is granted on the assumption that your injury prevents you from returning to work or earning the same income from before the accident.
Even if you return to work after a while, there will still be months (or years) when you don’t earn any income. This can affect your AIME and consequently reduce your benefits.
CAN YOU CLAIM RETIREMENT BENEFITS WHILE RECEIVING WORKERS’ COMPENSATION?
Yes, you can as long as you qualify for both, except when you’re a federal worker.
The Federal Employees Compensation Act of 1916 provides that workers comp recipients who have reached the retirement age may opt between workers comp or retirement benefits.
Many federal workers opt for the former as workers comp pay up to 75% of an employee’s salary tax-free. Retirement benefits, on the other hand, pay only 60%.
OTHER BENEFIT OPTIONS
If your workers’ compensation makes it difficult to make ends meet, you can still file for other disability benefits.
Most workers’ compensation recipients also qualify for Social Security Disability Benefits. These benefits automatically convert to retirement benefits once you reach retirement age.
You can also check if you’re qualified for state welfare programs. In Florida, there are three kinds of state-sponsored assistance programs for the disabled:
Temporary Cash Assistance Program
Families with children below 18 may apply as long as they meet the program requirements.
Optional State Supplementation (OSS) Program
This is for disabled individuals and the elderly living in care homes and assisted living facilities.
Temporary Assistance for Needy Families (TANF) Program
This program requires ongoing work participation from beneficiaries.
In addition to Social Security Disability Benefits and state welfare programs like those in Florida, there are other benefit options worth considering:
Private Disability Insurance
This is additional financial protection in the event of a disabling injury that affects your ability to work. These policies can offer income replacement benefits that complement workers’ compensation and other government-sponsored programs.
Worker Rehabilitation Programs
Some states and employers offer worker rehabilitation programs aimed at helping injured employees return to work or acquire new skills for alternative employment. These programs may provide vocational training, job placement assistance, and other resources to support your transition back into the workforce.
Pension Plans
If you have a pension plan through your employer, it’s important to understand how workers’ compensation benefits may interact with your pension benefits. Consulting with a financial advisor or benefits specialist can help you navigate potential complexities and optimize your retirement income strategy.
WHY YOU NEED A LAWYER
Navigating our workers’ compensation and social security systems can be confusing and exhausting. Many Social Security benefits applications are routinely denied, and employers and insurance companies will do their best to avoid paying workers’ compensation.
You need an experienced workers’ compensation lawyer like Victor Malca. He has been helping injured workers in Florida for over two decades, and his extensive experience will help you get the benefits you rightfully deserve. Call us now for a free consultation.
VICTOR MALCA – Florida Workers Compensation & Social Security Disability Attorney
Victor Malca P.A. has over 27 years of litigation experience in Workers Compensation and Social Security Disability lawsuits. His experience and continued success when fighting for his clients puts him among the most trusted workers’ compensation attorney’s in Florida. He specializes in representing injured workers on compensation benefit cases and disabled individuals claiming lost social security disability benefits.
Book a free consultation today. Our unwavering advocacy for employee rights and privileges are recognized by our past clients across South Florida.