I HAVE BEEN ON WORKMANS COMP SINCE I WAS AUG 12 2004.AND THEN I APPLY FOR SSD AND WON MY CASE FOR SSD.IN NOV 2007 THEY SENT ME 28,000.00.THEN OF COURSE I GOT OVER PAID. I STARTED TO RECIVE MY BENIFTS BACK IN 2014.I WAS RECIVEING WORKMANS COMP TOO. I GOT PAID EVERY TWO WEEKS UNTIL SEPTEMBER 19,2015.THEN MY NEW ATTORNY TOLD ME I NEED TO TAKE THE 100,000.00DUE TO THE NEW LAW IN MICHIGAN. I WAS GETTING 742.00FROM SSD MINUS MEDICARE,I GOT688.00 A MONTH.IVE CONTACTED MY CASE WORKER RIGHT AWAY. IN THE MEANTIME MY WIFE FILED FOR DEVORICE,AND IT WENT QUICK. NOV,02,2015 IT WAS OVER AFTER 33 YEARS.SHE TOLD ME THAT SHE DID NOT WANT ANYTHING.BUT ON NOV 02,SHE WANTED HALF OF THE HOUSE,IT WAS GIVEN TOO HER. I DID NOT HEAR FROM MY CASEWORKER UNTIL THE END OF MARCH 2016.HE TOLD ME I WOULD GET AS MUCH AS MY WORKMANS COMP WAS.WILL HEAR IT IS JUNE 05 AND I STILL ONLY RECEIVE 688.00 A MONTH. I AM 55 YEARS OLD AND I WOULD LIKE YOUR OPTION.THANK-YOU MICHAEL.

Hi Michael,

I'm assuming that the $100,000 you refer to is a lump sum settlement of your workers compensation case. When you receive a lump sum in lieu of periodic payments, Social Security prorates the lump sum over an extended period by calculating a monthly rate. They consider 3 different methods of proration, and apply whichever is the most favorable to you.

The bottom line is that your SS disability benefits may continue to be reduced for quite some time. For example, if you were previously receiving $2000 per month from worker's comp and then get a lump-sum settlement of $100,000, Social Security could prorate the $100,000 at a rate of $2000 over the next 50 months. In that case, the workers comp offset could continue to apply for that entire period of time.

The actual calculations involved for you depend on the details of your case, such as your prior weekly or monthly rate, any periodic rate specified in the award, attorney fees and other related expenses, etc. I assume that you've given Social Security a copy of the settlement, and proof of any attorney fees and related expenses, so they should be working on the calculations. That can take several months, and it may turn out that you won't be due an immediate increase in your benefits. Social Security should eventually send you a notice explaining how they prorated your settlement, and how it affects your current and future disability benefit amounts.

Here is a link to Social Security's pamphlet about workers compensation offset: https://www.ssa.gov/pubs/EN-05-10018.pdf

Best, Jerry