By: Morgan Indek, Partner

Greetings,

Don’t yawn and go to sleep after reading the subject line.   A question recently came up regarding Social Security offsets, and when to take the offset.  

 We can only offset and reduce compensation benefits with SS Disability, there is no offset for SS Retirement benefits.   The SSD offset ends at age 62 because the SS Administration converts SSD payments to SSR payments at that age.   We can only calculate the offset once, and that is the amount we are stuck with moving forward.  Often it is beneficial to wait until a claimant is receiving PTD benefits because you can add in the PTD supplemental benefits in the formula, thus increasing your offset amount.

You can not take a SSD offset retroactively, its only from the point you calculate it forward, so timing is important.

Acouple of points to consider….if a claimant is nearing age 62, it may make sense to take the offset on TTD benefits.  If you can get a year and TTD offset versus only a few months of PTD prior to the offset ending at 62, it may make more sense.  You may not know when the claimant will be MMI but you can always estimate.  Do the math both ways and see what is more beneficial.   

And you can suspend benefits for any period of time the claimant refuses to return the DWC forms so you can request the SSD information from the SSA. (see below) 

As always, please let me know if you have any questions.

Morgan Indek | Partner

440.15 (9) EMPLOYEE ELIGIBLE FOR BENEFITS UNDER THIS CHAPTER AND FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE ACT.—

(a) Weekly compensation benefits payable under this chapter for disability resulting from injuries to an employee who becomes eligible for benefits under 42 U.S.C. s. 423 shall be reduced to an amount whereby the sum of such compensation benefits payable under this chapter and such total benefits otherwise payable for such period to the employee and her or his dependents, had such employee not been entitled to benefits under this chapter, under 42 U.S.C. ss. 402 and 423, does not exceed 80 percent of the employee’s average weekly wage. However, this provision shall not operate to reduce an injured worker’s benefits under this chapter to a greater extent than such benefits would have otherwise been reduced under 42 U.S.C. s. 424(a). This reduction of compensation benefits is not applicable to any compensation benefits payable for any week subsequent to the week in which the injured worker reaches the age of 62 years.

(b) If the provisions of 42 U.S.C. s. 424(a) are amended to provide for a reduction or increase of the percentage of average current earnings that the sum of compensation benefits payable under this chapter and the benefits payable under 42 U.S.C. ss. 402 and 423 can equal, the amount of the reduction of benefits provided in this subsection shall be reduced or increased accordingly. The department may by rule specify forms and procedures governing the method for calculating and administering the offset of benefits payable under this chapter and benefits payable under 42 U.S.C. ss. 402 and 423. The department shall have first priority in taking any available social security offsets on dates of accidents occurring before July 1, 1984.

(c) Disability compensation benefits payable for any week, including those benefits provided by paragraph (1)(f), may not be reduced pursuant to this subsection until the Social Security Administration determines the amount otherwise payable to the employee under 42 U.S.C. ss. 402 and 423 and the employee has begun receiving such social security benefit payments. The employee shall, upon demand by the department, the employer, or the carrier, authorize the Social Security Administration to release disability information relating to her or him and authorize the Department of Economic Opportunity to release reemployment assistance information relating to her or him, in accordance with rules to be adopted by the department prescribing the procedure and manner for requesting the authorization and for compliance by the employee. The department or the employer or carrier may not make any payment of benefits for total disability or those additional benefits provided by paragraph (1)(f) for any period during which the employee willfully fails or refuses to authorize the release of information in the manner and within the time prescribed by such rules. The authority for release of disability information granted by an employee under this paragraph is effective for a period not to exceed 12 months and such authority may be renewed, as the department prescribes by rule.

(d) If compensation benefits are reduced pursuant to this subsection, the minimum compensation provisions of s. 440.12(2) do not apply