Understanding the Interaction Between SSD Benefits and Other Disability Benefits

On This Page

1. Workers' Compensation and SSD Benefits
2. Veterans' Disability Benefits and SSD Benefits
3. Reporting Requirements and Coordination of Benefits
4. Your Disability Benefits

REVIEWED BY

C. William Kenny

July 07, 2024

Board certified by National Board of Trial Advocacy

Workers’ Compensation and SSD Benefits

Navigating the rules and regulations of disability benefits can be difficult, especially when you are eligible for multiple types of support. One common question among individuals receiving Social Security Disability (SSD) benefits is how these benefits may be affected if they also receive other disability benefits, such as workers’ compensation or veterans’ disability benefits. Understanding the relationship between these different forms of support is important to ensure you receive the maximum benefits you are entitled to under the law.

Workers’ compensation benefits are provided to individuals who suffer a work-related injury or illness. If you are receiving both SSD benefits and workers’ compensation benefits, the Social Security Administration (SSA) applies what is known as an “offset” provision. This means that the combined amount of your SSD benefits and workers’ compensation benefits cannot exceed a certain percentage of your average pre-disability earnings.

The SSA calculates the offset to ensure that your total income from both sources does not exceed 80% of your average current earnings before you became disabled. If it does, your SSD benefits may be reduced accordingly. It is important to note that the rules governing offsets can be intricate, and the SSA may adjust your SSD benefits periodically to reflect changes in your workers’ compensation benefits.

Veterans’ Disability Benefits and SSD Benefits

Veterans’ disability benefits are provided by the Department of Veterans Affairs (VA) to veterans who have a service-connected disability. Unlike workers’ compensation benefits, veterans’ disability benefits generally do not affect SSD benefits. You can receive both SSD benefits and veterans’ disability benefits concurrently without a reduction in your SSD benefits. These benefits are considered separate and do not fall under the SSA’s offset provisions.

Reporting Requirements and Coordination of Benefits

When you receive multiple forms of disability benefits, you must understand your reporting obligations and how these benefits may interact with each other. Failure to report changes in your benefits promptly to the SSA could result in overpayments or underpayments, which may need to be repaid or adjusted later on.

Also, while veterans’ disability benefits do not affect SSD benefits directly, they may impact other means-based benefits you receive, such as Supplemental Security Income (SSI). Understanding these interactions can help you avoid unintended reductions in benefits or eligibility issues.

Your Disability Benefits

Receiving other disability benefits, such as workers’ compensation or veterans’ disability benefits, can affect your SSD benefits, but the extent of this impact varies depending on the type of benefits you receive. Understanding the rules regarding offset provisions and coordination of benefits is very important to ensure you receive the maximum benefits you are entitled to without any consequences.