Tom McCutcheon – Attorney at Law
Q: I went to court and the Judge found me 90% disabled. Now I get checks from workers compensation but my Social Security amount was cut in half. I really didn’t benefit from my workers compensation case. Social Security says it’s because I am receiving workers compensation that they cut my social security check. Why did they do that?
Ray
Athens, AL
A: I do not know how old you are so I can only tell you that you are experiencing a social security off-set. When you reach retirement age for social security purposes, which is a moving target depending on what year you were born, the off-set will cease.
The rule for an off-set is based on the idea that we don’t want people who don’t work to do better, meaning make more money not working than working. Social Security rules provide that you can only receive 80% of your pre-injury earnings and above that amount your Social Security is decreased to the extent that the Social Security Administration believes to be 80% of your pre-injury earnings. Social Security can and will completely cut off your Social Security payments if necessary.
You are receiving payments from two different sources. Social Security law contains the off-set. Workers compensation in Alabama is based on 2/3 of your average weekly wage capped at approximately $755.00 per week. Social Security is based on how much you paid in and for how long. You are receiving permanent partial disability benefits from workers compensation. Permanent partial payments are capped by the legislature at $220.00 a week. When you add both your Social Security and your workers compensation payments together, they may not combine to total more than 80% of your pre-injury wages.
Lawyers who settle workers compensation cases by agreement can include language that can prevent or minimize the Social Security off-set, but a judge has no power to do so. I know that seems odd, but all a judge can do in a worker’s compensation case is decide a percentage of disability from 0 to 100% disabled. The amount of money that results from that determination is then paid weekly until paid in full. The Court has no power to prevent an off-set. This can greatly affect the negotiation strategy for a worker’s compensation case.
Oddly enough, the fact that a Social Security judge found you disabled has no real bearing on a Circuit Court State judge finding you disabled. The two systems use different rules and Social Security looks at all of your health issues that affect your ability to work while worker’s compensation typically only considers issues caused by an on-the-job injury.
Buckle up and drive safely.
McCutcheon & Hamner, P.C.
2210 Helton Drive
Florence, Alabama 35630
Telephone: 256-764-0112
Facsimile: 256-349-2529
