Social Security and Minnesota Workers' Comp

Individuals who sustain on-the-job injuries in Minnesota are generally eligible for various workers’ compensation benefits, including medical expense benefits, wage loss benefits, permanent partial disability benefits, and/or rehabilitation benefits. If an individual’s injury is severe and prevents that individual from working for an extended period of time, he or she may also be eligible for Social Security Disability or Social Security Supplemental Insurance. 

At Meuser & Associate, we evaluate every workers’ compensation case to determine if there are additional benefits available to that injured worker, including social security benefits. My colleague, Jason Emery of Greeman Toomey PLLC has been kind enough to write a guest article for this blog providing some information about the types of Social Security benefits available and what it takes to qualify for those benefits.

"The Social Security disability process exists in order to provide assistance to individuals who are unable to work due to a physical or mental impairment or a combination of both. 

The Social Security Administration defines disability (for adults) as “the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment(s) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.” 

In other words, if you have been unable to work for at least 12 months due to a severe impairment, or expect to be unable to work for 12 months, you may be eligible to receive benefits. 

There are several different programs available to individuals who qualify. The two primary types of programs people qualify for are Disability Insurance Benefits (DIB) and Supplemental Security Income (SSI). 

Individuals who have paid into Social Security through taxes in the past may qualify for Disability Insurance Benefits if they have paid FICA taxes for at least five out of the last ten years. The amount an individual will be entitled to under this program will be determined by how much an individual has paid into the system. The Social Security Administration typically mails taxpayers a statement every year around their birthdays indicating how much they would receive if they were to be found disabled. 

Supplemental Security Income benefits are available to individuals who lack significant resources. Typically, an individual who is applying for SSI benefits cannot have more than $2,000 in resources and a couple cannot have resources in excess of $3,000 if one of the partners is applying for SSI benefits. The Social Security Administration will consider things such as cash, bank accounts, stocks, U.S. savings bonds, land, life insurance, personal property, vehicles and anything else which could be changed to cash in determining a person’s or a couple’s resources. The maximum monthly payment for SSI benefits in 2012 is $698 for an individual or $1,048 for a married couple (who are both found to be disabled). 

An individual can file applications for both Disability Insurance Benefits and Supplemental Security Income at the same time. This is called filing “concurrent” applications. The standard, or definition, for disability under both programs is identical. If an individual is found to be medically disabled under one program, he or she will be found disabled under the other program as well. However, a person generally cannot receive Disability Insurance Benefits and Supplemental Security Income for the same time period. Rather, the Social Security Administration will determine which amount is greater and issue that payment. 

The date an individual applies for Social Security disability has a significant impact on the amount he or she may be entitled to. Disability Insurance Benefits may be paid retroactively up to a year before an individual files an application. Supplemental Security Income benefits can only be paid as of the date of the application, regardless of when it is determined a person became disabled. Therefore, it is very important to file an application as soon as possible if an individual feels he or she may not be able to work for at least 12 months. 

To schedule a free initial consultation or ask about the Social Security disability process, feel free to contact attorney Jason R. Emery at Greeman Toomey PLLC at 1-877-332-3252 or by emailing jason@greemantoomey.com."

For a free, no-obligation legal consultation regarding your Minnesota workers' compensation rights, call Meuser & Associate at  877-746-5680 or click here to send us an email. 

 

Does Workers’ Compensation Affect My Social Security Disability Income (SSDI) Benefits?

Under the Social Security rules, the total amount of your workers’ compensation benefits and social security benefits cannot exceed eighty percent (80%) of your average monthly earnings before you became disabled.

If your combined benefits exceed 80% of your pre-disability average monthly earnings, your social security benefits likely will be reduced. Minnesota workers’ compensation wage loss benefits are paid at a rate of 2/3 or 66.6% of your average weekly wage (AWW) at the time of your injury. For most people receiving both workers’ compensation and Social Security Disability Income (SSDI) benefits, your social security benefits will be reduced, but not entirely offset.

When a workers’ compensation case is settled, we usually incorporate what we refer to as “Social Security” language into the Stipulation for Settlement, or the document that sets forth the terms of the settlement. In essence, this language prorates the lump sum settlement over the employee’s life expectancy. In determining whether and to what extent any offset is applicable, the Social Security Administration utilizes the prorated figures set forth in the language of the Stipulation for Settlement.

For example, assume we have a 55 year old male, born on January 1, 1956, that has settled his Minnesota workers’ compensation case for a lump sum of $35,000.00 for a close out of indemnity (monetary) benefits. According to the social security life expectancy tables, this gentleman has a life expectancy of 24.87 years, or 298.44 months.

In this case, the "Social Security" language would look something like this:

Of the $35,000.00 settlement amount, the sum of $7,200.00 is to be paid to the claimant’s attorney as fees. The claimant is currently 55 years old, having been born on January 1, 2956, and has a life expectancy of 24.87 years, or 298.44 months. The balance of $27,800.00 shall be paid to the claimant and shall represent a compromise payment of weekly indemnity benefits over the projected term of the claimant’s life expectancy of 298.44 months at the rate of $93.15 per month, or $23.29 per week. 

The advantage to incorporating this language is that the lump sum payment is stretched out over a longer period of time than most employees would be actually entitled to payment of benefits. By prorating the lump sum payment, or stretching it out over an employee’s lifetime, it minimizes any applicable Social Security offsets for the simultaneous receipt of Minnesota workers’ compensation benefits.

Individuals who are eligible for Social Security Disability Income (SSDI) benefits as the result of a work-related injury are also typically eligible for Minnesota workers’ compensation benefits. If you’re receiving SSDI benefits as a result of a disabling injury you received on the job, or if you’re currently receiving both SSDI benefits and workers’ compensation benefits, contact Meuser & Associate for a free, no-obligation case consultation. Call us at 877-746-5680, or click here to send us an email.

Can I Receive Social Security Disability (SSDI) and MN Workers’ Compensation at the Same Time?

People who sustain serious injuries at work in Minnesota may be eligible for BOTH workers’ compensation wage loss benefits and Social Security Disability Insurance (SSDI) benefits. In other cases, a work injury, in combination with other non-work related medical conditions may qualify an injured worker for both SSDI and Minnesota workers’ compensation benefits.

If you are pursuing a SSDI disability claim, based in whole or in part on a work injury or a medical condition caused by your work activities, you should strongly consider exploring a Minnesota worker’ compensation claim as well.

We routinely meet folks in our Minnesota workers’ compensation practice who pursue a SSDI disability claim and overlook their potential workers’ compensation claims. In many instances, you can receive both! Don’t leave money sitting on the table!

The Social Security Administration (SSA) allows simultaneous receipt of medical and disability benefits with workers’ compensation benefits, up to a maximum of 80% of the employee’s average current earnings (ACE) at the onset of his or her disability. The Social Security Administration will, however, “offset” or reduce SSDI payments if the combination of workers’ compensation and social security benefits exceed 80% of the ACE.

If you are receiving Temporary Total Disability (TTD) benefits, the employer/insurer does not get an offset from workers’ compensation benefits payable based on receipt of SSDI benefits. Instead, the SSA gets to reduce your SSDI benefits based on the amounts you’re receiving from workers’ compensation.

The situation changes if you’re receiving Permanent Total Disability (PTD) benefits. Minn. Stat. § 176.101, Subd. 4, permits the workers’ compensation insurance carrier to reduce the weekly compensation benefit dollar-for-dollar based on the receipt of SSDI benefits after paying $25,000.00 in Permanent Total Disability (PTD) benefits. The employer/insurer only gets the benefit of this offset if the SSDI benefits and the workers’ compensation benefits are based on the same injury or injuries.

If the injury causing your disability occurred before October 1, 1995, you may be eligible for “supplementary benefits” to cover the “gap” between your weekly benefit rate after adjusting for the receipt of SSDI benefits, and the minimum PTD benefit rate.

For injuries on or after October 1, 1995, the Minnesota legislature did away with supplementary benefits. Instead, the legislature has adopted minimum PTD rates. The amount of your monthly SSDI benefit is then subtracted from your compensation rate, or the minimum PTD rate, whichever is higher.

Annual adjustment of benefits may also come into play in PTD claims.

In many cases, you can receive both Minnesota workers’ compensation benefits, and Social Security Disability benefits. As you can see, correctly calculating your benefit rate when you’re receiving both types of benefits is complicated.

If you’ve applied for Social Security Disability benefits based in whole or in part on injuries you sustained at work, you may have a Minnesota workers’ compensation claim in addition to your SSDI claim.

For a free, no-obligation consultation with Jennifer Yackley or Ronald F. Meuser, Minnesota workers’ compensation lawyers, to discuss your potential workers’ compensation claim, call us at 877-746-5680 or click here to send us an email.

We work on a contingency fee basis, which means our attorney fees are based on the amount we recover on your behalf. It also means that there is no fee unless we recover benefits on your behalf.