Do other types of settlements affect SSDI payments?

On Behalf of | Apr 23, 2021 | Social Security Disability

As is the case with other residents of New Jersey, you may wonder whether your SSDI payments can be impacted if you receive some other type of settlement payment. For example, like a notable percentage of recipients, you may qualify for payments both through SSDI and via a workers’ compensation settlement.

How payment offset works

Pursuant to federal law governing SSDI, there is an offset provision that governs a situation in which you receive money from certain other sources. Eligibility for both SSDI and workers’ compensation is a prime example of a situation in which a person qualifies for payments from more than one source.

The offset provision in the SSDI law mandates that a person can never be paid more than 80% of their income or wages if they become disabled. For this reason, if you qualify for SSDI and workers’ compensation, and the amount of money from both sources goes over 80% of your wages mark, an offset will occur. Your SSDI payments face a reduction of the amount needed to lower the overall benefit to you to a point at the referenced 80% mark.

Obtaining SSDI and other benefits to which you may be entitled can prove to be a complicated undertaking. While claiming and receiving workers’ compensation benefits is usually a straightforward procedure, the SSDI claims process is more complex, and initial claims are often rejected. As a consequence, if you are in need of disability benefits, you can be well served by engaging the services of an experienced lawyer.