By Robert J. Osborne, Esq.

Under the Social Security Act, the Social Security Administration can reduce your monthly disability insurance benefit if you are under age 65 and also entitled to workers’ compensation, due to a total or partial disability.

Generally, the Social Security Administration will reduce your monthly disability insurance benefit by the amount by which the monthly disability insurance benefits and the workers’ compensation benefits for that month are more than the higher of:

• Eighty percent of your average current earnings, as discussed below; or
• The total of your disability insurance benefit for such month and all other benefits payable for such month based on your earnings record, prior to reduction.

Your average current earnings are the largest of:

• The average monthly wage used to compute your disability insurance benefit;
• One-sixtieth of your total wages for the five consecutive calendar years that your wages were highest; or
• One-twelfth of your total wages for the year you had the highest wages in the five years before you became disabled.

Amounts you paid for medical, legal, or related expenses in connection with your workers’ compensation injuries are excluded in computing the reduction, to the extent they are allowed by law. The amounts have to reflect either the actual amount of expenses already incurred or a reasonable estimate, given the circumstances in your case, of future expenses.

If it appears that you may be eligible for a public disability benefit that requires a reduction, you may have to furnish evidence as requested by the Social Security Administration and to certify that you have filed or intend to file a claim for workers’ compensation. If you have filed, you may have to furnish evidence and certify whether there has been a decision on the claim.