Disability payments from private sources, such as private pension or insurance benefits, do not affect your Social Security benefits.
However Workers’ Compensation and other public disability benefits may reduce your Social Security benefits. Workers’ compensation benefits are paid to a worker because of a job-related injury or illness. They may be paid by federal or state workers’ compensation agencies, employers or by insurance companies on behalf of employers. Additionally receiving Workers’ Compensation benefits may reduce the amount you might receive from private insurance benefits such as long term disability insurance.
Note: Social Security Retirement payments are unaffected by Workers’ Compensation benefits.
Other public disability payments that may affect your Social Security benefit are those paid by federal, state or local government and are for disabling medical conditions that are not job-related. Examples are civil service disability benefits, state temporary disability benefits and state or local government retirement benefits that are based on disability.
If you receive workers’ compensation or other public disability benefits and Social Security disability, the total amount of these benefits cannot exceed 80 percent of your average current earning before you became disabled.
Some public benefits do not affect your Social Security disability benefits.
If you receive Social Security disability benefits, and one of the following types of public benefits, your Social Security benefit will not be reduced:
· Veterans Administration benefits;
· State and local government benefits, if Social Security taxes were deducted from your earnings; or
· Supplemental Security Income (SSI)
For more information go to Social Security benefits.
