Today we'll break down what Social Security Disability (SSD) is, how it differs from workers' compensation, and why knowing the ins and outs can be crucial for your financial and legal well-being.
Social Security Disability (SSD) is a federal program that helps people with long-term disabilities who can’t work anymore. Unlike workers' compensation, which only covers work-related injuries, SSD has your back whether your disability happened on the job or not. The goal is to provide financial support to those who aren’t able to earn a substantial income because of their condition.
To qualify for Social Security Disability (SSD), your disability has to be serious enough that it’s expected to last at least a year or could even result in death. On top of that, you need to have worked long enough—and recently enough—in jobs that paid into Social Security. Generally, that means working at least five of the last ten years. So, it’s not just about having a disability; you also need to have contributed to the system through your payroll taxes.
To get approved, your physical or mental condition must prevent you from doing any kind of substantial work—not just the job you used to do, but any job that could earn you a decent income.
So, what kinds of conditions typically qualify? The Social Security Administration (SSA) has a detailed list of qualifying impairments. Some of the more common ones include:
If you think you might qualify, start by checking out the SSA’s website for more details. And if you’re serious about applying, it’s a good idea to talk to a lawyer who specializes in SSD claims to help you through the process.
Alright, let’s talk about whether you can get both SSD and workers' comp at the same time. The short answer? Yes, you can—but there are a few key things you should know about how they work together.
First off, if your work injury is serious enough to qualify you for SSD, you might be able to collect both benefits. But here’s the catch: there’s a cap on how much you can get in total. Your combined payments from workers' comp and SSD can’t be more than 80% of what you were earning before your disability. This is what’s called the 80% rule.
If the total amount goes over that limit, your SSD benefits will be reduced to bring it back down to the 80% threshold. This is known as an offset. Workers' comp payments usually stay the same, so any adjustments are made to your SSD benefits.
Another thing to keep in mind—if you settle your workers' comp case with a lump-sum payment, it could impact your SSD benefits. The Social Security Administration might spread out that settlement over time to figure out how it affects your monthly SSD checks.
Bottom line? It’s possible to receive both types of benefits, but the details can get tricky, so it’s a good idea to stay informed and maybe even talk to an expert to make sure you’re getting what you’re entitled to.
Alright, let’s break it down—SSD and workers' comp are pretty different when it comes to how they’re funded, who runs them, and how long they last.
First up, where the money comes from. SSD is funded by federal payroll taxes. If you’ve ever looked at your paycheck and seen deductions for Social Security, that’s part of what helps pay for SSD benefits. Workers' comp, on the other hand, is paid for by your employer. They cover the cost through insurance premiums they pay into a state-run system, and legally, they can't take that money out of your paycheck.
Then there’s the management side of things. SSD is a federal program run by the Social Security Administration (SSA), which means the rules are the same no matter where you live. Workers' comp, though, is run by each state, so the rules can vary a lot depending on where you are.
Another big difference? How long the benefits last. Workers' comp is usually meant to be temporary—it typically ends after a set period or once you’re well enough to get back to work. SSD, on the other hand, can last as long as your disability keeps you from working. Plus, once you hit retirement age, your SSD benefits usually switch over to regular Social Security retirement benefits, so you can keep getting financial support.
SSD benefits keep coming as long as you’re still disabled and can’t work. The Social Security Administration (SSA) will check in on your situation from time to time to make sure you still qualify, but as long as your condition hasn’t improved, you’ll continue getting your benefits.
So, what happens when you hit full retirement age? Don’t worry—you won’t lose your benefits. They’ll simply switch over from SSD to regular Social Security retirement benefits. The amount you get usually stays the same, but it just comes from a different bucket. No need to reapply or stress about a gap in your income—it’s a smooth transition.
Now, if your workers' comp payments end while you’re still on SSD, you might be wondering what that means for your disability benefits. The good news is, once workers' comp stops, the offset that was reducing your SSD payments goes away too. This could bump up your monthly SSD check a bit since they won’t have to keep you under that 80% earnings cap anymore.
Thanks for sticking with me through this overview of Social Security Disability and how it intersects with workers' compensation. Navigating these systems can be tricky, but you don’t have to do it alone. If you have any questions or need help figuring out your specific situation, I’m here for you.
Feel free to reach out to me, Rex Zachofsky, anytime at 212-406-8989. Whether you’re just starting your claim or dealing with a complex issue, I’m happy to chat and see how I can assist. Let’s make sure you’re getting the support and benefits you deserve.
