Social Security Disability and Workers Compensation in Pennsylvania

The Difference Between Workers’ Comp and Social Security Disability

Social Security Disability is a monthly benefit for individuals who are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. 42 U.S.C. 423 (d) (1) (A).

The amount depends on the money you have paid into the system. You must have been insured for 20 out of 40 quarters. (you have worked for at least 5 out of the last 10 years)

Pennsylvania Workers Comp is a benefit (reasonable, necessary and related medical bills, and 2/3 wage loss) for the inability to perform one’s pre-injury job. Work Comp is paid by the employer’s work comp carrier or if they are self-insured, then by the employer itself. In Social Security Disability, (paid by our Federal Gov’t) the question is broader and focuses on whether a person can work at all. In Pennsylvania Workers Comp, a person can be deemed partially disabled if they have an earning power, but one that is less than pre-injury. In the Social Security Disability arena, the issue is whether the person is totally disabled from “substantial gainful activity”.

Can a person who is receiving Pennsylvania workers comp benefits, still apply for Social Security Disability benefits? Yes. In some cases, however, it is wise to wait until the Pennsylvania Workers Comp case is settled or over, before applying for SSD because complex Medicare issues can arise.

Your SSD monthly amount will be reduced depending on the amount of workers comp you may be receiving.

SSI is for those who are disabled and poor- the max benefit is $637 per month. Generally speaking, if one qualifies for welfare, then one should qualify for SSI.

Reach out to the Certified Pittsburgh Workers’ Compensation Lawyer at Cardamone Law at (267) 651-7945 for a free case evaluation.

Can You Receive Both Social Security Disability (SSDI) and Workers Compensation in Pennsylvania?

Yes. However, this can sometimes delay settlement of your work comp case if Medicare approval is needed – which applies in certain circumstances.

With respect to Social Security Old Age Benefits, if you were already receiving such benefits before the work injury, then there is no offset. However, if you started receiving old age benefits after the work injury, then the workers’ comp insurer is entitled to a 50% offset of your wage loss benefits.

With respect to Social Security Disability Benefits, you can also receive that simultaneous with workers’ comp- but your SSD entitlement/amount will be reduced commensurate with the amount of work comp wage loss benefits. Once you settle your workers’ comp case, the SSD amount should increase subject to a monthly offset (your portion of the settlement spread out over the rest of your expected life- converted into a monthly amount).

Can You Receive ‘Old Age’ Social Security and Workers’ Compensation?

Under Act 57, 50 percent of Social Security retirement- or “old age” benefits shall be credited against the amount of benefits being received under the PA Work Comp Act- except for specific loss benefits or fatal claim benefits.  The offset does not apply when the employee applies for and becomes entitled to receive those benefits prior to the Pennsylvania work-related injury.

Benefits under the Social Security Act for total disability (versus “old age”) do not reduce the workers’ compensation wage loss benefits. However, the SSD benefits may be reduced until age 65 such that the combination of net benefits received from workers’ compensation and Social Security will not exceed 80% of the pre-injury wages under Social Security.

Social Security disability benefits convert automatically to old-age SS benefits once a person reaches full Social Security retirement age. After conversion, the employer is entitled to the offset.

So what’s the bottom line here? Well, the receipt of Social Security benefits does not prevent receipt of Pennsylvania Workers’ Comp benefits.  But coordination of the benefits is important and this should be reviewed by an attorney.

Make sure to reach out to a trusted Bethlehem workers’ compensation lawyer to help review your benefits.

Does the Order in Which I Apply for Each Type of Benefit Matter?

If you receive social security retirement benefits after the date of the work injury, then the insurer/employer gets a 50% credit.

If you get on social security disability, your work comp checks do not go down. But the SSD check will be lower due to the receipt of the work comp.

Talk to your Philadelphia workers’ comp lawyer before applying for benefits so that you can understand the impact of the benefits on each other.

Short-Term and Long-Term Disability and Workers’ Compensation

In Pennsylvania, you can receive both short-term or long-term disability as well as Workers’ Compensation. However, the insurer gets a credit for the STD or LTD benefits to the extent funded by the Employer. So, if the employee pays for the entire premium of the STD or LTD coverage, then there is no credit against the work comp benefits. But if the employee only pays 20%, then the insurer gets a credit for 80%.