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  1. #1
    Join Date
    Oct 2008
    Posts
    22

    Angry Proration of Lump Sum, Workers Comp and SSDI

    My workers compensation claim was made in the State of: ny

    I've been offered a lump sum payment and I get SSDI. I will be 65 in 2 1/2 years. I asked my lawyer several time to prorate the lump sum in the Section 32. I sent my lawyer a letter asking about this (including hartman language). He said that I don't need this clause because SSA will automatically do this. I been reading the posts about this proration clause and it seems like I do need to put this clause in. This is causing me a lot of anxiety as I want to take the settlement. I called the workers comp. advocate and was told that this between me and my lawyer.

  2. #2
    Join Date
    Oct 2006
    Posts
    9,109

    Default Re: Problem with Lawyer Wc/SSDI

    get a written agreement from your lawyer that he will handle the issue with SSA without fee if it becomes an issue with your SSDI payments.

  3. #3
    Join Date
    Feb 2007
    Location
    Calif
    Posts
    18,021

    Default Re: Problem with Lawyer Wc/SSDI

    While it's true SSA will help with the language if necessary...they do not recognzie any specific language, Hartman included.
    If you dislike the atty handling your claim... you can change any time ... just find another one.

    Know too...if you take a section 32 cash buyout...you must take Medicare interests into consideation...even tough you will reach full retirement age soon. That includes a WCMSA.... has your atty discussed this with you?

  4. #4
    Join Date
    Oct 2008
    Posts
    22

    Default Re: Problem with Lawyer Wc/SSDI

    Quote Quoting BvIA View Post
    While it's true SSA will help with the language if necessary...they do not recognzie any specific language, Hartman included.
    If you dislike the atty handling your claim... you can change any time ... just find another one.

    Know too...if you take a section 32 cash buyout...you must take Medicare interests into consideation...even tough you will reach full retirement age soon. That includes a WCMSA.... has your atty discussed this with you?
    The Section 32 has provisions for the WCMSA but not for the SSDI.

  5. #5
    Join Date
    Feb 2007
    Location
    Calif
    Posts
    18,021

    Default Re: Problem with Lawyer Wc/SSDI

    get ahold of someone at SSA familiar with comp settlements and what the language is necessary to limit or avoid potential offset to your SSDI benefits.
    Once you do reach full retirement age....the SSDI automatically converts to retirement, and any offset is no longer applicable...however, the monthly rate of your SSDI does not normally change....

    The lumpsum of your indemnity is prorated based on your rated life expectance, SSA has the tables used for this. The WCMSA should also contain the numbers applicable to you, taking into consideration your injury, meds/medical care etc.

  6. #6
    Join Date
    Mar 2007
    Location
    Georgia
    Posts
    1,928

    Default Re: Problem with Lawyer Wc/SSDI

    LisaBlue, your AA is blowing smoke! IF you do not have the appropriate SS language in your settlement documents, and it MUST include the exact dollar figure, expressed as # of weeks and in $'s/week in payment your entire settlement can and likely will be used as an off set to your SSDI. That IS the proration and The SSA will NOT figure it for you. You carry those settlement documents to The SSA and IF there is NO proration and the correct language they will use the entire settlement amount as an set-off.


    I just went through this in the past few months and the SSA worker told me in no uncertain terms that had my attorney not wrote my documents up that way I would NOT see a dime of SSDI until the entire settlement was OFF SET by them.
    "He who is his own lawyer has a fool for a client"
    Abraham Lincoln


    Take Care and Be Well.

  7. #7
    Join Date
    Aug 2011
    Location
    Georgia
    Posts
    800

    Default Re: Problem with Lawyer Wc/SSDI

    SteelMagnolia is correct. If the SS language is not in the settlement agreement, SSDI will consider your usual weekly SSDI benefits offset by the number of MONTHS that the settlement represents. In other words, if the settlement is $50,000 and you're entitled to $500 a month SSDI, they won't send you a check until 100 months has passed. That would be almost 9 years.

  8. #8
    Join Date
    Feb 2007
    Location
    Calif
    Posts
    18,021

    Default Re: Problem with Lawyer Wc/SSDI

    Actually... SSDI offsets are specific to the applicants numbers... there is no way anyone here can predict the offset as we don't know your benefit entitlement. You may have a 100% reduction in your SSDI monthly entitlement, or none at all...

    BUT... the language MUST be included in the settlement documents to show a proration in the lump sum payment just as though you were receiving the cash in weekly benefit payments.

    Also... IF there is no appropriate allocation in the settlement to PD indemnity, and future medical care... SSA will declare the ENTIRE amount of the settlement a future medical reimbursement, not indemnity. Medicare won't pick up the cost of care until that dollar amont is exhausted.

  9. #9
    Join Date
    Feb 2007
    Location
    Charlotte, NC
    Posts
    2,959

    Default Re: Problem with Lawyer Wc/SSDI

    Your lawyer has to take care of this now, before your settlement agreement is approved by your state work comp agency. If it is not dealt with in the initial settlement agreement then you can't really fix it after that occurs, and your recourse then will be a malpractice claim against your lawyer.

    Is this your lawyer's very first workers' comp case?

    The Social Security administration absolutely will not fix this for you. Keep in mind that this offset language is allowed by SSA but it is not in their interest to encourage it.

    ---------- Post added at 06:45 PM ---------- Previous post was at 06:41 PM ----------

    SH suggested you get a written agreement from your lawyer to take care of it without additional fees. I have a better idea--get a written agreement from your lawyer that he will reimburse you monthly for any offset taken by SSA as a result of your lawyer not putting the offset language in the settlement agreement.
    The North Carolina Court of Appeals has held that "In contested Workers' Compensation cases today, access to competent legal counsel is a virtual necessity." Church v. Baxter Travenol Labs, Inc., and American Motorists Insurance Company, 104 N.C. App. 411, 416 (1991).

    Bob Bollinger, Attorney at Law

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