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Offset of Workers Compensation Claim
Anonymous2 views3 answers
How do I go about requesting an offset of my workers compensation settlement that this doesn't not affect my SSDI, I reside in California and would like partial payments per month, is this possible, I have been told if I settle my workers comp case, I will loose my SSDI monthly payments, however if I get an offset this will not happen, I spoke with my attorney he states that to his knowledge I would have to give up one or the other, when I told him that there is an offset letter that he could write, he states he is not aware of what I am speaking of, can someone let me know just how this offset works, thanks
Social Security has a rule that SSDI + WC cannot exceed 80% of what you were making before you were disabled. If you are settling your workers' comp case by Stipulations with Request for Award, there is likely no offset. The weekly payments through W.C. are low enough to probably keep you below the 80% level. If you are settling by Compromise and Release, then you are getting your money all in one big payment and that may well take you over the 80% level.
Your attorney should be aware of a Hartman formula. This is a formula he can use to lower the offset by SSA. it's not a guarantee to keep you out of offset territory but I've never had it fail. Tell your lawyer that if he's a member of CAAA (the association for attorneys here in California who represent injured workers in W.C.) that he can go on the CAAA listserve (LawNet) and someone will give him a Hartman formula. Good luck.
Make sure you explore this thoroughly with your attorney and share what you learn with him. If he is not a member of the group to which Mr. Borath refers, ask him to find someone who is or who is knowledgable and who can assist him in making sure you maximize your benefits, which includes what is put into the paperwork you sign. What is often done in PA is to have the paperwork for a settlement (called a C & R) characterize the settlement payment as representing the future life expectancy of the claimant, and thus having the payment represent the sum total of those small weekly payments for that life expectancy. This then usually makes the SSA treat the payments as the much smaller weekly payments rather than one total lump to be offset by them against your monthly benefit until that lump amount is exhausted. It makes a world of difference to you.
Gerald Gregory LutkenhausWorkers' Compensation LawyerRichmond, VA ·
I practice WC Law in Virginia. In every settlement I prorate the settlement over the claimant's life expectancy to eliminate future offsets. I have done over 100 settlements and I have eliminated the offset in every case. Perhaps, you need to talk to an attorney in your state that knows both WC Law and SS Law.
