Will A Personal Injury Or Workers Compensation Settlement Affect My Social Security Disability Benefits?
Question: Will a personal injury or workers compensation settlement affect my Social Security disability benefits?
Answer: Very possibly. You need to be careful.
There are two types of Social Security disability benefits that are most involved, Supplemental Security Income (SSI) and Disability Insurance Benefits (DIB). SSI is a needs based program. Any income you receive and any money you have in the bank can affect your benefits. A workers compensation or personal injury settlement can affect your SSI benefits in the same way as any other income or resources. If you are on SSI or hope to soon be on SSI and you’re about the receive a personal injury or workers compensation settlement, don’t give away the money. You can contact us for help. There are ways of handling this situation that will make sure that you get the benefit of that settlement while maximizing your SSI. It does not matter for DIB purposes if you settle a personal injury case. It does not matter if you are a millionaire. However, it does matter if you settle a workers compensation case since there is an offset in DIB for workers compensation benefits. Make sure that you have an attorney, that the attorney knows that you have filed for DIB or intend to do so. It greatly affects how the settlement is drafted. If your attorney is unfamiliar with drafting a workers compensation settlement to protect your Social Security disability benefits (and that is unlikely) don’t walk, run to another attorney who is familiar.