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  1. #1
    Join Date
    Nov 2015
    Posts
    2

    Default Lump Sum Worker's Comp Settlement and SSDI Benefits Reduced

    I was approved for 2014.. but initially my benefits started this year March 2015. I received my back pay in April and then
    my benefits started each month.. Last Friday 11/06/2015 I received a letter from SSDI that my benefits are being cut.
    Due to lump sum settlement I received from Worker's Comp in 2012 my case was settled.

    All the correct wording was written into the settlement agreement. I only received weekly WCP until settled.
    I never collected any other monies. Not until 2015. When my benefits started in April 2015

    Ok let's say my settlement was $80.000 and the lawyer fee's were $22.500 that would leave $57.000.
    Ok let's say I was getting $1600 SSDI monthly and all of a sudden it's reduced to $300.00 starting in Dec 2015.
    The letter said because of the settlement my benefits are being reduced . I'm stressed and didn't see this coming.
    I appreciate any advice that I can get this is all new to me . Thanks in advance.

  2. #2
    Join Date
    May 2010
    Posts
    590

    Default Re: Lump Sum Worker's Comp Settlement and SSDI Benefits Reduced

    Quote Quoting Gspurgon View Post
    I was approved for 2014.. but initially my benefits started this year March 2015. I received my back pay in April and then
    my benefits started each month.. Last Friday 11/06/2015 I received a letter from SSDI that my benefits are being cut.
    Due to lump sum settlement I received from Worker's Comp in 2012 my case was settled.

    All the correct wording was written into the settlement agreement. I only received weekly WCP until settled.
    I never collected any other monies. Not until 2015. When my benefits started in April 2015

    Ok let's say my settlement was $80.000 and the lawyer fee's were $22.500 that would leave $57.000.
    Ok let's say I was getting $1600 SSDI monthly and all of a sudden it's reduced to $300.00 starting in Dec 2015.
    The letter said because of the settlement my benefits are being reduced . I'm stressed and didn't see this coming.
    I appreciate any advice that I can get this is all new to me . Thanks in advance.
    I'd go right to the lawyer who represented me.......Is the right language realy there?? I wouldnt know so I would have to trust him....now if it was done correctly???? IDK?

  3. #3
    Join Date
    Nov 2015
    Posts
    2

    Default Re: Lump Sum Worker's Comp Settlement and SSDI Benefits Reduced

    Yes my weekly compensation rate was broken down in weekly terms.
    My age was used with the life expectancy table using weeks/years.
    It was prorated to lessen the amount. Also the balanced reflected the amount
    I received after fee's were deducted also written in.
    My letter that I received from SSA said the whole settlement amount to the lesser.
    Thank you for your responce

  4. #4
    Join Date
    Feb 2007
    Location
    831 East Morehead St., Ste 355, Charlotte, NC 28202
    Posts
    3,760

    Default Re: Lump Sum Worker's Comp Settlement and SSDI Benefits Reduced

    I don't understand what you mean by "the whole settlement amount to the lesser."

    Sounds like SSA has not calculated your offset correctly, using the special language that the lawyer put into the agreement. Usually that language will either eliminate or greatly reduce the offset going forward, but it sounds like your offset was not affected much. You need to make an appointment to sit down with someone at SSA and ask them to show you how they calculated the offset. Get them to give it to you in writing if possible. The key number you need to know is, how much is the "ACE" or Average Current Earnings used to calculate your base award? If you have the ACE number SSA used, then the rest of the math is easy to check. So get that ACE number. It may be on the letter you got pertaining to your offset. The total of your SSD award and your WC cannot exceed 80% of your ACE, calculated on a monthly basis. If they used your original work comp TTD rate instead of the amount in the special offset language, that would possibly explain why they are taking such a big offset. But that is not the correct way for them to do it.
    Last edited by complwyr; 11-10-2015 at 06:20 PM.
    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 and Board Certified Specialist in NC Workers' Compensation Law

  5. #5
    Join Date
    Oct 2011
    Posts
    176

    Default Re: Lump Sum Worker's Comp Settlement and SSDI Benefits Reduced

    It took SSA over a year to adjust my monthly award after a settlement but my situation was reverse of yours. SSA took an offset right away since I was getting WC before getting SSDI. I settled case and my atty added the appropriate language to the C&R and it took a little over a year until SSA straightened out and readjusted my settlement which I now receive the full amount. Keep on them they are SLOOOOOOW! BTW your atty would need to have spread your indemnity amout out over your life for SSA not to count a lump sum as an offset. I would not be surprised if the law changes to disallow the use og life expectancy as a way to spread out a lump sum. I had a great atty and it still took over a year.

  6. #6
    Join Date
    Aug 2018
    Posts
    2

    Default Re: Lump Sum Worker's Comp Settlement and SSDI Benefits Reduced

    accident Feb 27 2018 fell backwards at work wrist broke it in two place along with knee and back the distal radius and styloid fracture and thumb wanting to decide if I want surgery but not comfortable it its going to be life time corrected if I don't have surgery is award less and can i. cop out knee and bk for settlement and leave wrist and thumb open for near future settlement. thank u or if I don't do surgery for wrist and thumb what percent for not having surgery will award be not much. thank you

  7. #7
    Join Date
    Feb 2007
    Location
    831 East Morehead St., Ste 355, Charlotte, NC 28202
    Posts
    3,760

    Default Re: Lump Sum Worker's Comp Settlement and SSDI Benefits Reduced

    Fractures are not worth much in NC workers' compensation cases. You should consider letting work comp pay for the surgery needed to try to correct the problems, as you will probably get more value out of the case by getting fixed rather than trying to maximize a fairly small settlement. I am assuming that your injuries do not prevent you from working. If you cannot work due to the injuries then you are asking the wrong questions.
    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 and Board Certified Specialist in NC Workers' Compensation Law

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