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  1. #1
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    Default SSDI Offset of WC - if WC Goes on Holiday

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

    I am currently receiving SSDI and WC, with SSDI using the WC as an offset. If I settle my PI case and WC goes on holiday, is the offset eliminated since WC is not actually paying me anything or do they still consider the wages during WC holiday?

  2. #2
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    Quote Quoting WCBIGbiz View Post
    My workers compensation claim was made in the State of: NY

    I am currently receiving SSDI and WC, with SSDI using the WC as an offset. If I settle my PI case and WC goes on holiday, is the offset eliminated since WC is not actually paying me anything or do they still consider the wages during WC holiday?
    They will average your settlement over your life expectancy and offset from there - in other words there will be little no offset.

    Tony
    Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.

  3. #3
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    Quote Quoting tony View Post
    They will average your settlement over your life expectancy and offset from there - in other words there will be little no offset.

    Tony
    Tony, I was under the impression that SSDI does not offset a personal injury settlement. My concern is that with the personal injury settlement, WC goes on holiday and I am wondering how SSDI will treat that. Is your answer that SSDI will calculate the personal injury settle over my life expectancy and use that as a prorated WC offset amount?

  4. #4
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    May 2010
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    Quote Quoting WCBIGbiz View Post
    Tony, I was under the impression that SSDI does not offset a personal injury settlement. My concern is that with the personal injury settlement, WC goes on holiday and I am wondering how SSDI will treat that. Is your answer that SSDI will calculate the personal injury settle over my life expectancy and use that as a prorated WC offset amount?
    You use the word holiday, like WC goes on vacation, to me very confusing!...I had a 3rd party settlement, it did not effect my SSDI at all after 3party suit was settled...It did take 9 months for SS to go from offset to regular amount of SSDI.
    Now depeding what happens with WC, is were it gets tricky.

  5. #5
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    Quote Quoting airdale View Post
    You use the word holiday, like WC goes on vacation, to me very confusing!...I had a 3rd party settlement, it did not effect my SSDI at all after 3party suit was settled...It did take 9 months for SS to go from offset to regular amount of SSDI.
    Now depeding what happens with WC, is were it gets tricky.
    Thanks Airdale, 9 months is not bad from what I understand.

    Regarding holiday, I copied this from a post by Tony 7 years ago...
    If the claimant's third-party recovery is greater than the amount of workers' compensation benefits issued - then the employer/carrier get something more than just reimbursement - the employer/carrier has the right to credit against future payments to be made. (This credit is called a "holiday" by New York practitioners). Of course, this credit is reduced by the percentage of litigation costs assessed against the employer.
    http://www.greglois.com/files/4f2c8f...092ff-240.html

    Because of subrogation laws, WC is entitled to recovery from the 3rd party lawsuit. If I settle the 3rd party case first, then WC does not have to pay me until the lost wages and medical (less their pro-rata attorney share) covered by the 3rd party settlement is achieved because they would have recovered that from the 3rd party settlement. This is kind of my source of confusion. If I settle with WC, I know that it's going to be offset by SSDI by dividing the settlement amount by the # of months I have left until retirement age and then when I settle with the 3rd party, WC will get reimbursed for the settlement amount plus what they have spent to date. If I settle the 3rd party and don't settle with WC (I'll likely be put on LWEC by the judge), they simply stop making payments due to the "holiday", but I am wondering if SSDI still takes an offset even though WC will not be paying anything, simply accruing debits.

  6. #6
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    Quote Quoting WCBIGbiz View Post
    Thanks Airdale, 9 months is not bad from what I understand.

    Regarding holiday, I copied this from a post by Tony 7 years ago...
    If the claimant's third-party recovery is greater than the amount of workers' compensation benefits issued - then the employer/carrier get something more than just reimbursement - the employer/carrier has the right to credit against future payments to be made. (This credit is called a "holiday" by New York practitioners). Of course, this credit is reduced by the percentage of litigation costs assessed against the employer.
    http://www.greglois.com/files/4f2c8f...092ff-240.html

    Because of subrogation laws, WC is entitled to recovery from the 3rd party lawsuit. If I settle the 3rd party case first, then WC does not have to pay me until the lost wages and medical (less their pro-rata attorney share) covered by the 3rd party settlement is achieved because they would have recovered that from the 3rd party settlement. This is kind of my source of confusion. If I settle with WC, I know that it's going to be offset by SSDI by dividing the settlement amount by the # of months I have left until retirement age and then when I settle with the 3rd party, WC will get reimbursed for the settlement amount plus what they have spent to date. If I settle the 3rd party and don't settle with WC (I'll likely be put on LWEC by the judge), they simply stop making payments due to the "holiday", but I am wondering if SSDI still takes an offset even though WC will not be paying anything, simply accruing debits.
    I think it would be hard and not helpful to settel your 3rd party first?....Yes we paid back some of what we owed to WC( Illinois) nothing close to what I owed them....Then my 3rd party suit would be even larger, to make up the lose.
    I thought waiting for 9 months for a simple change in SS was rediculess?..And when its said and done they still have to pay for those 9 months you were not on WC.

    Sounds like you have some real good questions for you attorney?...And also ask why would you settle 3rd party suit before your even MMI?

  7. #7
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    Quote Quoting WCBIGbiz View Post
    Tony, I was under the impression that SSDI does not offset a personal injury settlement. My concern is that with the personal injury settlement, WC goes on holiday and I am wondering how SSDI will treat that. Is your answer that SSDI will calculate the personal injury settle over my life expectancy and use that as a prorated WC offset amount?
    Can you clarify this Tony?

  8. #8
    Join Date
    Oct 1971
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    Is your answer that SSDI will calculate the personal injury settle over my life expectancy
    I didn't say that.
    As along as you're collecting W.C, there will be an offset.
    If you're collecting money from the PI. settlement for medical or wage loss that comp is paying or has paid, comp will seek reimbursement.

    You guys need to ask specific questions about your case from your lawyer who knows the details of your claims, this place is for general info.

    Tony
    Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.

  9. #9
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    Quote Quoting tony View Post
    I didn't say that.
    As along as you're collecting W.C, there will be an offset.
    If you're collecting money from the PI. settlement for medical or wage loss that comp is paying or has paid, comp will seek reimbursement.

    You guys need to ask specific questions about your case from your lawyer who knows the details of your claims, this place is for general info.

    Tony
    Tony,

    I know that you didn't say, that, I was trying to clarify. I think this is a general question and a vital one that can cost an injured party $100,000 easily.

    Facts
    If I am at MMI due to being one-year post surgery and their IME pushed it, I am looking at SLU/LWEC or section 32.
    After the WC outcome is reached, there will be a personal injury settlement.
    SSDI, who is currently offsetting my SSDI based on weekly WC, will do so and recalculate with the LWEC or section 32.
    If WC goes LWEC and then I settle the PI, WC will go on "holiday" until the income replacement portion is exhausted versus the LWEC.

    Question
    If WC goes on holiday, does SSDI offset based on the established LWEC with WC even though WC is not paying anything.
    My attorney is unaware of how offset works at all and has no answer to this question. Who can I turn to for help on this when my attorney does not know the answer?

    Best Regards,

  10. #10
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    Default Re: SSDI Offset of WC - if WC Goes on Holiday

    If WC goes LWEC and then I settle the PI, WC will go on "holiday" until the income replacement portion is exhausted versus the LWEC.
    This Holiday you reference is a credit against future payments - you're still collecting comp, they're just being reimbursed.

    If WC goes on holiday, does SSDI offset based on the established LWEC with WC even though WC is not paying anything.
    They may or may not handle your case with this Holiday option, just because something's on the net doesn't mean it applies to your case.
    Worker comp is still paying, they're just being reimbursed.

    It all depends on how comp deals with it, if they pay and get reimbursed there will still be an offset.
    If they don't pay and wait until you've exhausted the wage loss payments from the PI settlement, there won't be an offset for that period.
    The offset will start again when comps starts paying or settles.

    My attorney is unaware of how offset works at all and has no answer to this question.
    Then you better look for another attorney, he's in the wrong business.

    Again, this is my opinion based on what you're posting - this response may be wrong based on the facts of your cases, only your lawer can give a definite answer.

    Tony
    Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.

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