I am going to receive a $44,000 scheduled loss lump sum payment from workmen's comp for bilateral hearing loss. I never received any other workmen's comp benefits. i was told because it was a scheduled award that my SSDI would not be affected, I am waiting to get my settlement contract. if my settlement contract language says the settlement award is for my life time will my SSDI benefits be affected?

Hi. I can't give you a definite answer. Social Security prorates lump sum workers compensation settlements into a monthly rate when determining whether or not the settlement causes an offset to a person's Social Security disability (SSDI) benefits. The prorated monthly amount of the settlement is then added to the person's SSDI benefit rate, and if the total amount is more than 80% of the worker's average current earnings (ACE) then the person's SSDI benefit can potentially be fully or partially offset. Calculating a person's ACE can be complicated, and the process is explained in the following section of Social Security's operations manual: https://secure.ssa.gov/apps10/poms.nsf/lnx/0452150010.

Whether or not a workers compensation settlement is 'scheduled' or not makes no difference. The only difference that a 'lifetime' settlement makes is that it can extend the number of years over which the lump sum amount is averaged, lowering the prorated monthly amount. That could lessen or eliminate any resulting offset to the person's SSDI payment amount.

Also, some states have reverse offset plans that can affect whether or not workers comp payments and settlements can cause an offset to a person's SSDI benefit (https://secure.ssa.gov/apps10/poms.nsf/lnx/0452105001). So, whether or not a workers compensation settlement affects a person's SSDI benefit payment depends on the state they live in, their ACE, and the specific details of their workers comp award.

Best, Jerry