Effect of Workers’ Compensation
The relationship between Social Security and workers’ compensation depends on the type of benefits received.
Social Security Disability and Permanent Total Disability
Payment of Social Security Disability and permanent total disability compensation under the Ohio workers’ compensation system reduces the amount of the permanent total benefit by 1/3.
When an individual receiving both disability benefits reaches retirement age, Social Security will automatically switch them to Social Security retirement and workers’ compensation permanent total benefits should return to the full amount.
For some people, it may make sense to switch over to Social Security retirement early.
Social Security Disability and Other Workers’ Compensation Benefits
Individuals receiving other forms of workers’ compensation [such as temporary total, for example], need to report those amounts to Social Security. Social Security considers the amount of workers’ compensation an individual receves in determining the amount to pay. Workers’ compensation benefits may reduce the social security disability payment.
When the workers’ compensation benefits terminate, notify Social Security so they will know to reinstate the full amount of Security Disability payments.