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I have been receiving social security disability insurance benefits for some time. I am also in the middle of a “trial work” period. Recently, I was injured at work. Can I file for worker’s compensation benefits, and if I do, will I lose my social security benefits? Does it matter that I am only working about 28 hours a week?
This is an excellent question. Often individuals receiving social security disability benefits retain some ability to work despite their disabling condition and engage in part-time work. Certainly, if you were injured while working, you may file for worker’s compensation benefits. In Ohio, Social Security Disability Insurance (“SSD”) benefits may be reduced by worker’s compensation benefits depending on the amount of worker’s compensation benefits received. Let’s begin our discussion with a review of what it means to be “disabled”, what is a “trial work” period, and how social security benefits may be reduced by the receipt of worker’s compensation benefits.
A person may be found “disabled” under social security rules if that person is unable to engage in substantial gainful activity (“SGA”) as a result of a severe impairment. The severe impairment must be such that the individual cannot engage in his or her past relevant work or other appropriate employment.
An individual found disabled and entitled to benefits may work, producing earnings equaling or exceeding $900 (SGA) for 9 out of 60 months while continuing to receive SSD benefits. This 9 month period is known as a “trial work” period. During these 9 months the SSD recipient can make an unlimited amount of money, and remain eligible for SSD benefits. After this trial work period, so long as the individual’s earnings do not meet or exceed approximately $900 per month, he or she will remain eligible for SSD benefits through an extended period of eligibility. If the recipient’s income meets or exceeds $900 per month after this 9 month period, the SSD recipient is no longer entitled to SSD benefits based on work and the resulting earnings.
Since you are in a trial work period, you are able to earn as much money as possible through work activity and you will still receive the full social security disability benefit. Therefore you can work as many hours as you are able in this period. Your benefit will not be reduced based on any amount of money you are earning. However, your SSD benefits may be reduced depending on the amount of worker’s compensation benefits you receive.
Monies received from public sources as a result of your disability such as worker’s compensation benefits will reduce the social security benefit if the worker’s compensation benefit plus his total family SSD benefit exceeds 80% of the worker’s pre-disability earnings. Let’s use an example to illustrate this somewhat confusing rule.
Assume that Al made, on average, $3,000 per month before he became disabled and eligible for social security disability benefits. Assume that Al engages in part-time work once he is deemed “disabled” by social security. Al and his family now receive a total of $2,000 per month in SSD benefits. If Al returns to part-time work and is injured at work, he is entitled to worker’s compensation benefits. 80% of Al’s pre-disability income is $2,400 (80% of $3,000 = $2,400). Therefore, every dollar of money that Al receives for worker’s compensation in excess of $400 per month ($2,000 + $400 = $2,400) will directly reduce his SSD benefit by the same amount. If Al’s worker’s compensation benefit is $1000 per month, Al and his family would have received $3000 before the reduction. Since social security rules do not allow Al to receive this more than 80% of his pre-disability income, Al’s SSD benefit will be reduced by $600 to adjust for the receipt of worker’s compensation benefits, leaving him with a total of $2,400 from SSD and worker’s compensation combined.
In conclusion, you may work part-time while receiving SSD benefits. Worker’s compensation benefits received may reduce the SSD benefits depending on the amount. You can work as much as possible during the trial work period, but thereafter if you continue to exceed SGA ($900 per month) your SSD benefits will terminate.
Should you have any questions regarding social security benefits, or if you would like to consult with an attorney, please contact our office.