Tennessee Worker's Compensation - Help For Injured Tennessee Workers

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  1. #1
    Join Date
    Apr 2011
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    Tn
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    Default Do You Have to Repay Disability After Settlement

    I was told if you receive disability and then get a settlement, you have to pay back the disability from the settlement. That sounds odd to me. This is from an on the job injury, and employer has no work for dr restrictions.

  2. #2
    Join Date
    Feb 2007
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    Calif
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    Default Re: Disability

    What ''disability'' are you referring to ?
    If it's TTD, Temporary Total Disability indemnity benefits paid while you treat/recover from the injury, those benefits should not be reimbursed to or credit taken by the ER/IC.

    If you are paid weekly indemnity benefits after you are rated for PD, then negotiate a cash settlement, any benefits you have rec'd would be deducted from the settlement. You can't receive benefits twice for the same injury.
    PD indemnity is a predetermined number of weeks based on the injury/body part. Or whole person impairment. Once that is determined by % the number of weeks is paid out over time. Can't change the number of weeks due.

  3. #3
    Join Date
    Mar 2011
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    Tennessee
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    Default Re: Disability

    If you receive a workers' compensation settlement for permanent disability, and also are receiving (or later receive) Social Security Disability, then the Social Security Administration is entitled to take an offset against the Social Security disability benefits against anything you may have received for permanent disability benefits through workers' compensation.

    Just for round number's sake, say you received a workers' compensation settlement for $24,000.00 for permanent disability. If you are later found to be eligible for Social Security Disability benefits of $1,000 per month, then the Social Security Administration would claim an offset equal to two years of those Social Security Disability benefits. In other words, they would offset (i.e., not pay) your $1,000/month for 24 months, until that workers' compensation disability had been fully offset.

    Typically, you can include language into a workers' compensation settlement agreement that sets out a lifetime amortization of the workers' compensation disability settlement, that says, while you get a lump sum at the time of settlement, the monthly value of your settlement is calculated by taking the total amount and dividing it what a Life Expectancy table in the Tennessee Code states. The Social Security Administration would then only offset your monthly payments by the monthly value of your WC settlement.

    Using my prior numbers as an example: $24K settlement, $1K/mo SSD amount. If your life expectancy is 240 months, then you'd take the $24K divided by 240 months, and your offset amount would be $100/month. Instead of paying you nothing for 2 years from SSD, you'd get your benefits right away, but the $1K would be offset by $100/month, so that your SSD payment would be $900/month.

    Hope this helps.
    WCGuru

  4. #4
    Join Date
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    Default Re: Disability

    Just for round number's sake, say you received a workers' compensation settlement for $24,000.00 for permanent disability. If you are later found to be eligible for Social Security Disability benefits of $1,000 per month, then the Social Security Administration would claim an offset equal to two years of those Social Security Disability benefits. In other words, they would offset (i.e., not pay) your $1,000/month for 24 months, until that workers' compensation disability had been fully offset.
    Not sure I agree with that... or understand what you said actually.

    If you are not receiving SSDI at the time WC benefits are paid, OR, at the time of a cash settlement...there wouldn't be ANY offset taken by SSA to those SSDI benefits.

    And... there is no way to determine the amount of any offset taken to a IW SSDI benefit due to a 24K cash settlement. Any/all numbers would be specific to the applicant, and based on the lifetime contribution to SSA.

    Between WC and SSDI, you cannot receive more than 80% of the pre injury wage.
    Without knowing the wage, SSDI award/benefit, and WC benefit, there is no way to calculate any offset, or IF there is in fact an offset to be taken by SSA.

    The only time SSA would take or be entitled to offset is when you receive SSDI and WC for the same time period.

  5. #5
    Join Date
    Mar 2007
    Location
    Georgia
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    1,928

    Default Re: Disability

    Quote Quoting BvIA View Post
    Not sure I agree with that... or understand what you said actually.

    If you are not receiving SSDI at the time WC benefits are paid, OR, at the time of a cash settlement...there wouldn't be ANY offset taken by SSA to those SSDI benefits.

    And... there is no way to determine the amount of any offset taken to a IW SSDI benefit due to a 24K cash settlement. Any/all numbers would be specific to the applicant, and based on the lifetime contribution to SSA.

    Between WC and SSDI, you cannot receive more than 80% of the pre injury wage.
    Without knowing the wage, SSDI award/benefit, and WC benefit, there is no way to calculate any offset, or IF there is in fact an offset to be taken by SSA.

    The only time SSA would take or be entitled to offset is when you receive SSDI and WC for the same time period.
    BiVA, having just recently completed this process I assure you that WCguru is dead on the money about the calculation for SSDI stated as life expectancy. Hartman language incorporated into my settlement causes exactly a zero offset to my SSDI benefit.

    I did a lump sum stip agreement to keep open lifetime med for WC. Indemnity was paid for full 450 week entitlement although I had NOT yet reached that time frame, therefore I was paid my full PPD as well as my TPD as lump sum. Due to the 1000's plus weeks calculation for my life expectancy my SSDI benefits will be paid in full and as usual converted to retirement benefits 15 years from now.

    I was prepared for at least a small offset for the these first 15 years but it did NOT affect my SSDI entitlement benefits. So for some it works out that way. The biggest issue I see is making darn good and sure the WC attorney incorporates the correct "Social Security Language" into the settlement documents. Regardless of what they call it, it all amounts to "The Social Security Language".

    That is the single most important issues many IW entertaining settlement allows their WC attorney to overlook and hey lets face it the AA's are busy with hundreds of claims at a time and can't always keep up with who is or isn't SSDI approved or expected to be.

    Take care and Have a good day.

    Steel
    Last edited by SteelMagnolia; 04-05-2011 at 05:06 PM.

  6. #6
    Join Date
    Jun 2010
    Posts
    28

    Default Re: Disability

    Congratulations Steel M. I hope tobe right behide you soon.

    Thank you for the info it was informative.


    ''OTR DRVR''
    Last edited by clark k; 04-05-2011 at 05:08 PM.

  7. #7
    Join Date
    Mar 2007
    Location
    Georgia
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    1,928

    Default Re: Disability

    Your very welcome Clark. Just keep in mind it is a process that can and usually does take several weeks to months from the beginning of settlement demand to conclusion. Try to NOT let that time frame get to you and know there is an end in sight.

    Best of Luck to you.

    Steel
    "He who is his own lawyer has a fool for a client"
    Abraham Lincoln


    Take Care and Be Well.

  8. #8
    Join Date
    Feb 2007
    Location
    Calif
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    Default Re: Disability

    Hartman language incorporated into my settlement causes exactly a zero offset to my SSDI benefit.
    That's not what I was referring to. And, if you read thorugh the info at www.ssa.gov, you will find SSA does not recognize, or suggest using Hartman language. However they don't say not to either.

    If you'll go back and re read the post/s, I think the issue will become a bit clearer to what I object to.
    If you are not receiving SSDI at the same time a WC, SSA would not be taking an offset. Ever. Not even if an award of SSDI was made after a settlement. Which is what guru stated.

  9. #9
    Join Date
    Jun 2010
    Posts
    28

    Default Re: Disability

    Yes.. Again thank you for the good word and all the encouragement, I will try and hang in there for the last-round-trip load-hail.

    ''OTR DRVR''

  10. #10
    Join Date
    Apr 2011
    Location
    Tn
    Posts
    20

    Default Re: Disability

    Quote Quoting BvIA View Post
    Not sure I agree with that... or understand what you said actually.

    If you are not receiving SSDI at the time WC benefits are paid, OR, at the time of a cash settlement...there wouldn't be ANY offset taken by SSA to those SSDI benefits.

    And... there is no way to determine the amount of any offset taken to a IW SSDI benefit due to a 24K cash settlement. Any/all numbers would be specific to the applicant, and based on the lifetime contribution to SSA.

    Between WC and SSDI, you cannot receive more than 80% of the pre injury wage.
    Without knowing the wage, SSDI award/benefit, and WC benefit, there is no way to calculate any offset, or IF there is in fact an offset to be taken by SSA.

    The only time SSA would take or be entitled to offset is when you receive SSDI and WC for the same time period.

    Thanks for the info. Just reached my MMI. A friend from work was told I was going to be paid off and they considered me to now be on social security disability, which I'm not as of yet. But he was told I would have to pay it back out of my settlement. I've had 2 surgeries to my dominant arm and they say there is no work with my restrictions. I had to have surgery after hurting it doing heavy lifting, then they put me back on the same job and had to have another. I was also told they weren't going to offer much, but have an IME soon and hope I get a rating that will give me as much as possible since I may not get to return to my job.

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