In South Dakota, when a worker suffers an injury and seeks workers’ compensation benefits, they should be aware that they might also be able to receive Social Security Disability benefits at the same time. To simultaneously be approved for workers’ comp and SSDI, there are certain rules that must be followed.
It is important for workers who want to receive both to know the conditions under which they can do so and what the financial ramifications might be. For these cases, both workers’ comp and SSDI can be confusing. It is made more difficult by a person having suffered and injury and being fearful about their professional, personal, and financial future. Therefore, it is wise to have comprehensive guidance when moving forward with a simultaneous claim.
Know the facts about getting workers’ comp and SSDI at the same time
Injured workers need to be up to date on the necessary steps when they are injured on the job and apply for workers’ compensation benefits. In addition, many might not know that while they are receiving workers’ comp, they could also be eligible for SSDI. The most important aspect to understand is the offset and the accompanying percentages.
Workers can receive workers’ comp and SSDI. To do so, they must qualify for both. For workers’ comp, that includes an injury or illness that came about because of their work. A construction worker, for example, who suffers a back injury can seek benefits while they are receiving treatment. With SSDI, they must have been unable to work for a minimum of 12 months. If the construction worker’s back injury was of sufficient severity that it left them unable to work at all, then SSDI could be an option.
Before proceeding, the worker needs to know that there is a cap of 80% of what they were earning at the time the injury or illness happened. The amount the worker receives from workers’ comp and SSDI are combined. When the amount goes beyond 80%, there will be an offset. If there is an excess, it is deducted from SSDI.
Some workers choose to accept a lump sum settlement in lieu of a regular workers’ comp payment. This can also affect their SSDI payments if they are getting both at the same time.
The same general principles for an offset apply with a lump sum. The primary difference is that the Social Security Administration will calculate how much the monthly amount would be based on the lump sum. Again, if it goes beyond 80%, there will be an offset. Medicare is impacted when a person is approved for SSDI. The person must wait for 24 months before getting Medicare after they started getting SSDI.
It is important to have help when seeking simultaneous benefits
After a work injury, a person’s future will be uncertain. Medical costs, lost time at work, the possibility of not being able to return to work at all, and other challenges will come up. Dual disability benefits might seem daunting, but it is possible to receive both.
Workers’ compensation and SSDI will have an offset, but that is still 80% of the wages at the time of the injury. A crucial aspect to receiving both is to have assistance to ensure the forms are filled out properly and issues can be addressed as they come up. This is key from the start.