SSDI and Worker's Comp Benefits

[nomoneywoman]

In Michigan when they say 80% of net income between comp and ssd is there a max? Other then a family max # from ssd.

ssd for me 1858/per month
3 kids 927/per month
comp 2824/ per month

my comp is at max for state of mich. but it's not 80% of net. So do I get to add some of my ssd to comp to reach my 80% or is limited to the workmans comp max of 2824.


my background
Last worked dec. 2006
comp cut me may 2007
got lawyer may 2007
applied for ssd by myself on line sent in doctors reports june 2007
was approved August 2007
(it can happen in a short time I'm proof)
court date Oct. 16 2007 for workmans comp.

[numbskull]

So you're the 1% that gets it the first time. What is your medical condition disabling you?
I can't help you with your benefits problem, you said you had a lawyer he should know.

[nomoneywoman]

Hi Numbskull,
I have a post under disability benefits diff. question but I give details. Yes I know my lawyer knows but I don't see him till 1st Oct. I know I could call him but since I was at the site though I'd ask.

[Charles Stevens]

NoMoney, you are entitled to the max allowable TTD benefits from Workers Compensation. SSDI does NOT TOUCH your TTD...your TTD benefits may or may not be 80% of your average weekly wages/salary at the time of injury--it depends on the TTD schedule in your state.

I think you may be confusing the 80% with what SSDI says you are allowed to receive from "ALL OTHER SOURCES OF INCOME", which includes what you are recieving from WC , and what you are receiving from SSDI and "other sources of income".

IF you are receiving MORE than the 80% of your "basis" as determined by SSDI, then SSDI will apply an "off-set" and REDUCE the amount of your monthly SSDI checks.

SSDI REQUIRES that you report ALL SOURCES OF INCOME to them so that they can determine the amount of your SSDI off-set. If you do NOT do this, then at some point down the road, you may just find that SSDI will be REQUIRING that you pay them back a "chunk of change", should off-sets SHOULD have been applied, but WERE NOT.

Similarly, if your TTD benefits end, or "other sources of income" CEASE, you should report this to SSDI as well. IF off-sets have been applied by SSDI, because TTD or other income has CEASED, the off-sets my no LONGER apply, and your monthly SSDI checks might be increased.

[nomoneywoman]

Thanks Steve, I think I got it. See if this seems rt.

comp-706.00 week. comp said my income was average at 1,416.00 per week gross. so comp pays only 2,824.00 month because that is max for Michigan at that time.

SSD pays family benefit of 2,781.00 per month weekly would be 695.25


so do I take 80% of 1,416.00 as base = 1,134.00 per week 4,914.00 per month.

so comp 2,824.00 ssd 2,781.00 = 5,605.00 -4,914.00 =691.00

so comp 2,824 + ssd lowered from 2,781.00-691.00 =2090.00

comp- 2,824.00
ssd- 2,090.00

total 4,914.00 per month

so really the question is then what is my base? If not that.

[Charles Stevens]

Ok, lets start from the beginning. The "base" is determined by SSDI. SSDI goes back 10 years from the date you last work to see what your highest earnings quarters were in that time frame. For MOST people, it is what they were making at the TIME of their injury.

So, HYPOTHECICALLY, let's say that at the time of your injury, you were earning the most you ever have in the last ten years. Lest's say your average monthly salary at the time you were injured was $4,000 per month. 80% of that is the "basis" that SSDIwill use to determine IF you will be subjected to off-sets.

So, 80% of 4k is $3,200. IF between SSDI, WC and an "other sources" of income, you are actually receiving MORE between all sources of income above and beyond the SSDI'S basis of $3,200, SSDI will REDUCE your SSDI montly benefits accordingly, so that you are NOT receiving more than the $3,200 per month basis. For example, if you are receiving 2,200 in SSDI, 2,000 in WCm you are OVER the $3,200 per month basis by $1,000. Your SSDI monthly benefit will be REDUCED by$1,000 per month, so your SSDI check with the off-set applied will be $1,200 per month. You will continue to receive your WC checks, as they are not affected. You will now receive $1,200 from SSDI and continue to recive $2,000 per month from WC, totalling $3,200, the amount determined by SSDI that you can receive between "all other sources of income".

Without knowing WHAT EARNING QUARTERS SSDI is using to determine your "basis", there is NO way to provide you with accurate information as to what, if any off-set may apply to you.

We might be able to give you a "general idea" of how the off-sets are calculated and estimate your "basis", but again, without knowing what your highest earning quarters were from which SSDI derives THEIR information on, its just a "rough guesstimate".

You should contact SS and get the actual figures from THEM, and also be sure that they know of ALL your sources of income, so that your monthly SSDI checks are correctly computed.

A while back, one of the posters has had quite a PICKLE in owing a chunk of change, because evidently, the off-sets were NOT taken It is going to be a MESS for him to try and figure out how to unravel everything. Meanwhile, SSDI wants reimbursement in its ENTIRETY...they don't do "montly installments" plans for YOU to repay THEM...

It is best to determine your status IMMEDIATELY by contacting SSDI DIRECTLY for this information, and also to make sure SSDI has ALL the info concerning "other sources of income" so that the off-sets can be properly calculated by SSDI for you.

That way, you won't have a "nasty surprise" when your case settles.

[nomoneywoman]

Thank you so much Charles. I got it. It's SSd that decides the amount. Yes this last year was my highest income and the last 6 months gross per week was higher then 1416.

Yes I'm going to call tomorrow I would like to the know that number.

yes I'm in dispute w/comp. I have learned from this site to not take a lump sum because of ssd would take there chunk. I did get a letter today from them asking if I was getting comp. I said not yet. I will let them know I do not want a big bill. I did tell my lawyer I want comp for life so that meant weekly payments and med. which I don't think they will want to pay 1.61 mil. plus health and that's only to age 65 so it be more- hope to live longer. Most people say the most my company has paid out is like 7 years of wages. I hope to change that.

Due to this site I will learn if my lawyer as good as they say he is. I think he is.

Thank you again, Nomoney

[SteelMagnolia]

Hey Nomoney, you can find the number you are looking for here as well as any and all information regarding SSDI. http://www.ssa.gov/

Good Luck to you,

Steel

[numbskull]

I see your court date is only 5 months after you were cut off. Is this your first scheduled court date? Cause I was cut off 7-06 and my first date was 6-07, second, 9-07, now I have a 12-07. Its outrageous. What state/County are you in?

[Charles Stevens]

NoMoney, IF you choose to settle your WC claim in its entirety vis-a-vis a Compromise & Release, although a Medicare set-aside will be required for your Future Medicals, there IS a way to MINIMIZE what SSDI will want to potentially deduct for their "off-sets" against your Permanent Disability Award.

Basically, your attorney needs to SPECIFY in the settlement papers that your PD award is "montly benefits". To do this, he calculates your Life Expectancy (Age 79 for females based on the Life Insurance Actuarials).

So, lets say at time of settlement, you are 49...you have thirty more years to reach the LE of age 79. Thirty years = roughly 720 MONTHS.

Divide the amount of your PD and incidentals (EXCLUDING the set-aside monies) by 720 months, and THAT figure is your "monthly benefit".
This will GREATLY reduce, or in some cases, ELIMINATE an SSDI off-set.

BUT, it is CRITICAL that the settlement papers are prepared and specified this way...Medicare MUST review not only the set-aside amount for adequacey, but the SETTLEMENT papers, as well. If your settlement proceeds are NOT characterized as "monthly benefits" payable over the appropriate number of MONTHS in "such and such an amount" as illustrated above, SSDI WILL more than likely want a chunk oc change UP FRONT for off-sets...