If you are a recipient of both Workers’ Compensation (WC) and Social Security Disability (SSD) benefits, you have likely heard the term “offset” when it comes to the two benefit programs. SSD benefits are offset, or reduced, by the receipt of WC. This is why it is important to be sure Social Security has all of the Workers’ Comp info at the time benefits are calculated and awarded; otherwise, overpayment issues can arise.
Social Security Retirement (SSR) benefits are not offset. Typically, a claimant’s WC/SSD offset would end once the worker reached age 65 and they could switch to SSR. However, in order to keep up with the increase in official retirement age, Congress has increased the age at which offset can end, and SSR benefits begin.
It is important to remember that only SSD benefits are offset. Depending on individual circumstances, it may be more beneficial to take decreased, early retirement benefits beginning at age 62. This reduced retirement benefit may exceed the offset SSD benefit amount. There are other factors to consider, however, such as Medicare eligibility. Because Social Security is such a large, complex system, it is important to know your options and put yourself in the best position possible to plan for your future.
Talk to the knowledgeable team at Zea Proukou about the specifics of your claims.