An on-the-job accident may leave you out of commission for a few weeks or months, entitling you to Illinois workers’ compensation benefits to cover a portion of your lost wages. But what if your injuries are more permanent? What if you are unable to return to work at all following your accident? Can you apply for Social Security Disability Insurance (SSDI) if you already receive permanent disability benefits from workers’ compensation?
Social Security’s “Cap” on Combined Disability Benefits
It is possible to receive Illinois workers’ compensation and federal SSDI benefits simultaneously. There is, however, a catch. Any workers’ compensation benefits you receive may reduce your SSDI award. This is because federal law caps the total amount of SSDI benefits at 80 percent of the claimant’s average current earnings before the onset of their disability.
For example, let’s say Meredith earned an average of $5,000 per month before a job-related accident left her unable to work. Under Illinois workers’ compensation, she receives $3,330 per month in permanent total disability benefits. Normally, Meredith would also qualify for SSDI benefits of up to $2,650 per month based on her past work history. That would make Meredith’s combined benefits–workers’ compensation plus SSDI–$5,980 per month.
This is where that 80 percent cap comes into play. Under Social Security rules, Meredith’s combined monthly benefits cannot exceed $4,000, or 80 percent of the $5,000 she earned per month before disability. Since it does, Social Security will reduce Meredith’s monthly SSDI benefits by $1,980 (i.e., $5,980 – $1,980 = $4,000) as long as she continues to receive workers’ compensation.
Key Differences Between Workers’ Comp, SSDI
Even though both Illinois workers’ compensation and federal Social Security compensate workers who become “disabled,” the two programs have their own rules and qualifications for benefits. It is possible to receive workers’ compensation but not SSDI benefits, and vice versa. Here are just a few ways the two systems differ:
- Length of Service: Workers’ compensation covers you from the first day you work on any job. Social Security, in contrast, requires you to earn a certain number of “credits” before qualifying for SSDI benefits. You can earn up to 4 credits per year based on earnings, and the total number of credits to receive SSDI varies between 20 and 40 (i.e., 5 to 10 years of work) based on the age you became disabled.
- Non-Work Injuries: Workers’ compensation only provides benefits if your disability or injury occurred in the course of your employment. So if you were disabled in a non-work-related accident, workers’ compensation won’t help you. SSDI, however, will provide benefits regardless of where or how your disability occurred.
- Medical Benefits: Workers’ compensation does not just cover a portion of your lost income. It also covers all of your medical expenses arising from your on-the-job injury. Social Security does not directly pay for your medical expenses, although after 24 months of receiving SSDI, you can become eligible for Medicare.
Contact a Rockford Social Security Disability Lawyer Today
Dealing with both Social Security and Illinois workers’ compensation can be a daunting task, especially as you continue to deal with the consequences of a long-term, disabling injury. The Rockford Social Security Disability lawyers at Tuite Law can help. Call us today at (815) 965-5777 to schedule a free consultation.
