Virginia Workers’ Compensation and Social Security Compensation

In Virginia, you can get workers’ compensation if you are unable to do your job due to injury or illness. You may also be able to get Social Security Disability if you are disabled. But Social Security disability benefits can be reduced if you receive Virginia workers’ compensation payments. There are a few ways to avoid this “negative impact” on a disabled person’s benefits.

THE STORY OF COMPENSATION

Congress decided many years ago that if a worker received workers’ compensation and Social Security Disability at the same time, this would be a “double payment” of benefits. Workers’ compensation in Virginia pays an injured worker two-thirds (2/3) of their average weekly wage when they are out due to injury or illness. Social Security, on the other hand, pays the disabled worker a benefit based on their lifetime earnings. Congress decided that if the combination of the two benefits exceeded 80% of what was considered the worker’s wages then the Social Security benefit should be reduced for every dollar its payment exceeded 80% of the injured worker’s wages.

NO COMPENSATION FOR RETIREMENT BENEFITS

The aforementioned reduction does not apply to early retirement benefits. Therefore, if the injured worker is claiming Social Security retirement benefits, there would be no compensation. Therefore, if one is age 62 or older, in some circumstances it may be appropriate to claim retirement benefits to avoid compensation. This is a strategic decision that should be discussed with a lawyer specializing in the matter.

HOW TO AVOID COMPENSATION THROUGH A LUMP SUM SETTLEMENT

An experienced lawyer can avoid compensation in another way. This is done by establishing the disabled worker’s workers’ compensation case. But in the agreement, the money is prorated over the person’s life expectancy. For example, if the person is 40 years old, the person may have a life expectancy of 40 more years or 2,080 weeks. Then one can take the $100,000 payment (for example) and divide it over the 2,080 weeks. This would produce a weekly amount of only $48.07. This amount of only $48.07 per week would be too small to reduce the federal disability benefit.

THERE IS NO EXCUSE NOT TO USE AN EXPERIENCED ATTORNEY

When a settlement is submitted to the Commission in Virginia, the Commission will try to make sure it is in the best interest of the claimant. But you should use a lawyer who is a specialist in this field.