IS MY SOCIAL SECURITY DISABILITY INCOME AFFECTED BY WORKER'S COMPENSATION INCOME BENEFITS?
YES
When a client receives Social Security disability income and Worker's Compensation benefits at the same time, normally Social Security benefits are off-set or lowered (dollar for dollar) by the amount of the worker's compensation benefits.
CAN I STOP OR REDUCE THIS REDUCTION TO MY SOCIAL SECURITY?
YES
This "off-set" of your social security can often be reduced (in other words you receive more social security income each month) by settling your worker's compensation claim and having the appropriate language in the agreement.
Note: you can often settle your worker's compensation for a lump sum of cash or with an Annutiy that will replace your worker's compensation benefits for your life time or sometimes longer.
SOCIAL SECURITY SET OFF:
The language set forth below is information provided to claimants by the Georgia State Board of Workers Compensation, which discusses Social Security “set-off’s” and contains language that may reduce the amount of said Social Security “off-set” because of worker’s compensation settlements.
LIKELY REDUCTION IN SET-OFF AGAINST SOCIAL SECURITY:
If you are receiving Social Security Disability benefits, OR have applied for Social Security Disability income benefits, then once your Workers’ Compensation claim is settled, there most likely will be a lesser set-off of against your Social Security benefits.
Once you settle your worker’s compensation claim, if the “Hartman” Language is contained in the settlement agreement, it should assist you in having the “set-off” amount reduced: resulting in your receiving a higher amount of Social Security.
The State Board of Workers’ Compensation requires this language in any settlment that involves Social Security income or elgibility.
No one can guarantee what the Social Security Administration may do now or in the future, however this language has been successful in the past..
Social Security (Hartman) Language Explained
Because Federal law contains an “offset” for workers’ compensation income benefits against social security disability benefits, it is beneficial to the employee to project the portion of settlement proceeds that represent income benefits over his or her remaining ife expectancy.
The "off-set" rule provides that no combination of workers’ compensation and social security disability benefits can exceed 80% of pre- injury earnings.
While there is no specific wording required by the Social Security Administration for off-set (Hartman) language, the following example is one that may be used:
Of the $_____________ settlement, $ _____ shall be paid as attorney’s fees(usually 25%) and $_____ for costs. The $_______________ to be paid to the employee/claimant, shall be calculated without commutation of interest, but shall represent the negotiated compromise Agreement that the claimant’s life expectancy is ____ years forward from this date, pursuant to the Annuity Mortality Table for 1949 Ultimate, as established by O.C.G.A. §24-4-45, Appendix, Title 24, and that the settlement herein reached represents the payment of approximately $___ per week to the claimant over the balance of the _______ weeks of life expectancy of the claimant into the future.
In the future,if you need an attorney, please feel free to call or email me.
Make it a great day!
Howard Spiva
Howard@spivalaw.com (email) www.Spivalaw.com (web page)
