Workers Compensation Settlement and Long Term Effects on Social Security
I have been offered a Lump Sum Settlement from workers comp for an injury. The injury has left me 25% permanently disabled.
The state has a formula that is used to determine a weekly sum for 425 week or I can elect for a very slightly reduced Lump Sum Settlement.
If i opt for either option what are the future ramifications on say social security. I am in my early 40's and the term of payment is only 425 weeks.
Thanks in advance.
Re: Workers Compensation Settlement and Long Term Effects on Social Security
It depends upon the laws of your state and whether we're talking about SSI or SSDI.
Re: Workers Compensation Settlement and Long Term Effects on Social Security
I am in Kentucky. I have no intentions of filing for SSI or SSDI anytime soon. The heart of the matter is i have concerns about 20+ years from now. I am of age and find out some benifit(s) are reduced because of this settlement.
Re: Workers Compensation Settlement and Long Term Effects on Social Security
Sorry, type faster than i think.... I don't want to get to that age and find out some benefit(s) are reduce because of this settlement.
Re: Workers Compensation Settlement and Long Term Effects on Social Security
Your eligibility for retirement benefits depends upon your work history, not on whether or not you've made a worker's comp claim.
Re: Workers Compensation Settlement and Long Term Effects on Social Security
Early 40's. 20+ years from now you may not yet be Full Retirement Age. But WC does not affect retirement benefits. However, there is ALWAYS that possibility that you may become disabled before then. 425 weeks is 8.17 years. If you become disabled in 8.18 years, then the WC should have no effect. But you will need to show the documents to SSA so they can figure it out. After you become disabled and file a claim. Which may never happen.