Worker’s compensation and Social Security benefits are two different categories of monetary rewards. It is possible, however, that you are eligible for both. If you were injured n the job or have an illness that is related to work, you may be eligible to receive worker’s compensation. If you are disabled, you can also still qualify for Social Security benefits.
While you are able to qualify and receive both benefits, if you are receiving worker’s compensation, your Social Security benefits will be affected. Social Security will reduce the amount of benefits that you receive to offset the worker’s compensation. The total monthly amount that a person receives on both sets of benefits cannot be more than 80% of the amount that they received while they were employed. As a result, Social Security will adjust accordingly.
Worker’s compensation is state run and therefore differs from state to state, meaning that where you live will change the amount you receive. If you received a worker’s compensation settlement in a lump sum, Social Security will still divide it out and calculate it into monthly installments in order to figure out the amount that you will receive from them.
Do not let the presence of worker’s compensation deter you from applying to Social Security benefits. It is important to know that your benefits may be affected, but you are not barred from receiving them.