If you have been injured on the job and settled your workers’ compensation claim, you might wonder whether you’re still eligible for Social Security Disability Insurance (SSDI) benefits.
The answer is yes—but there is a catch. These two benefit systems can interact in ways that affect how much you ultimately receive. Navigating this intersection requires careful planning.
Learn more from Minnesota workers’ compensation lawyers at Kemmitt, Sanford & Kramer.
There are two disability benefit systems available for Minnesota workers: workers’ comp and SSDI. Workers’ compensation is a state-run program that provides benefits when you are injured on the job or develop a work-related illness.
It covers medical expenses, wage replacement, and vocational rehabilitation, regardless of who was at fault for your injury.
SSDI, on the other hand, is a federal program administered by the Social Security Administration (SSA). It provides benefits to workers who have paid into the Social Security system and can no longer work due to a qualifying disability—whether work-related or not.
Unlike workers’ comp, SSDI requires you to meet strict criteria and have sufficient work credits. The two programs serve different purposes and have different qualification requirements, but you may be eligible for both simultaneously.
To qualify for SSDI, you must have a medical condition that prevents you from performing substantial gainful activity and is expected to last at least one year or result in death.
The SSA maintains a list of impairments that automatically qualify, but many other conditions can also meet their disability standard if properly documented.
Common conditions that may qualify for disability benefits include:
When you receive both workers’ compensation and SSDI benefits, federal law limits your total compensation to 80% of your pre-injury income.
If your combined benefits exceed this threshold, the Social Security Administration will reduce your SSDI payments accordingly. This reduction continues until you stop receiving workers’ comp benefits or reach retirement age.
Minnesota is a reverse offset state, which adds another layer of complexity.
If you are receiving Permanent Total Disability benefits through workers’ comp, those benefits may not be offset for SSDI—but only after you have received $25,000 in weekly compensation benefits. Before that threshold, your SSDI benefits may be reduced.
The relationship between workers’ comp benefits and disability insurance can be complex, with potential offsets and coordination requirements that impact the benefits you receive.
A Minnesota workers’ compensation lawyer can help you structure your settlement in ways that minimize reductions to your benefits while maximizing your overall compensation.
Before agreeing to any workers’ comp settlement, consult with an attorney immediately. A knowledgeable lawyer can review the terms, explain the implications for your disability benefits, and help you make an informed decision that supports your financial future.
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