I am 65 years old and receiving DSSI I will be recieving Workmans Comp Settlement Will I have to report the workmans comp to Social Security since I am 65

Hi,

Yes, you definitely need to report the details of your Workers Compensation settlement to Social Security since it could potentially affect your disability benefit (SSDI) payments. There is a Workers Compensation (WC) offset provision in the Social Security regulations that can cause benefit payments for people receiving SSDI benefits to be reduced in some cases if they also receive WC or a WC settlement in lieu of periodic payments (https://secure.ssa.gov/apps10/poms.nsf/lnx/0452101001).

The potential for WC offset used to end at age 65, but the 2015 Social Security amendments extended that potential to a person's full retirement age (FRA) for people who turned age 65 after December 18 2015. I don't have enough information about your case to be able to tell you whether or not WC offset will apply in your case, but you are required to notify Social Security of any changes in your WC status.

If your SSDI benefits do end up being offset because of your WC settlement, the offset will end when you reach your FRA at age 66. Your SSDI benefits will convert to regular Social Security retirement benefits at that time. Also, keep in mind that if your SSDI benefits are offset as a result of WC offset, you could potentially file for reduced Social Security retirement benefits prior to FRA if that would result in you receiving a higher net benefit rate. And, although your benefit rate would be reduced for age if you filed for regular Social Security retirement benefits prior to FRA, that reduction would be removed at FRA provided that you remain technically entitled to SSDI until then.

Best, Jerry