Workers Comp Offset Problems

      From a report by Social Security’s Office of Inspector General:

The Social Security Act (Act) requires that SSA reduce Social Security disability benefits when a beneficiary receives workers’ compensation (WC) or a Public Disability Benefit (PDB). However, WC/PDB does not reduce SSA retirement benefits. Thus, when disabled beneficiaries reach age 62, SSA employees must determine whether they are eligible for higher retirement benefits and notify beneficiaries as early as possible about their option to file. The application filing date sets the earliest month of entitlement, as SSA can only pay retirement benefits retroactively to that month. Delays may result in lost benefits. Starting February 13, 2026, SSA employees must present filing options without offering advice and document these discussions, as beneficiaries’ decisions can impact their benefits. 

From a population of 35,185 disabled beneficiaries, we reviewed a sample of 125 beneficiaries from the Master Beneficiary Record who attained age 62 from January 1, 2018 through December 31, 2022 and whose disability benefits were offset by WC/PDB. 

Of the 125 beneficiaries we sampled, SSA employees were not required to notify 53 (42 percent) because their disability benefits after WC/PDB offset were higher than the retirement benefits. Employees were required to notify 72 (58 percent); however, they did not notify 31 beneficiaries (25 percent). Employees were required to notify the remaining 41 (33 percent) beneficiaries and did so, as required. …

     This report concerns what claimants’ attorneys, at least, refer to as the RIB-DIB election. The usual assumption is that many workers comp off sets will be done incorrectly. I imagine that even most Social Security employees don’t understand the offset. That’s OK. The whole subject of workers compensation offsets is complicated. Most agency employees don’t have to deal with it. It’s one of those complications that can’t even be imagined by the current Commissioner who probably believes that Social Security is simple, its employees aren’t very bright (because if they were bright they wouldn’t be working in government) and that those employees are fungible.  In truth, the agency’s business is often complicated and its employees undertrained and lacking in the time needed to get everything right.