Yes, you can collect Social Security Disability Insurance (SSDI) and workers’ compensation at the same time in New York. However, there are some important factors to consider:
Offset Rule (Reduction in SSDI Benefits)
- If you’re receiving both SSDI and workers’ comp, the total combined benefits cannot exceed 80% of your average earnings before your disability.
- If your combined benefits go over this limit, the Social Security Administration (SSA) may reduce your SSDI payments to stay within the threshold.
Types of Benefits That May Affect Workers’ Comp and SSDI
- SSDI (Social Security Disability Insurance) – Can be collected if you have a qualifying disability and enough work credits.
- SSI (Supplemental Security Income) – Needs-based, so receiving workers’ comp may reduce or eliminate your SSI benefits.
- Retirement Benefits – If you reach full retirement age (66-67), SSDI converts to Social Security retirement benefits, and there’s no offset for workers’ comp.
Lump-Sum Workers’ Comp Settlements
- If you receive a lump-sum settlement, SSA may prorate it over time to determine how it affects your SSDI benefits.
- Some settlements can be structured in a way to minimize reductions in SSDI payments—consulting a workers’ comp attorney can help.
Medicare Considerations
- If you qualify for SSDI, you’re eligible for Medicare after 24 months.
- Workers’ comp insurance may still cover injury-related medical expenses, so coordination between Medicare and workers’ comp is necessary.
Key Takeaway
Yes, you can receive both benefits, but your SSDI payments may be reduced depending on your total income. To maximize your benefits, consulting with a lawyer specializing in workers’ compensation and Social Security is a good idea.