Will my Pennsylvania workers' compensation benefits always be reduced if I am receiving Social Security Disability benefits?

            No.  Eventually your entitlement to Social Security Disability benefits will expire and you will be entitled to receive full retirement benefits.

            Effective December 15, 2015, your entitlement to Social Security Disability benefits will end on your 67th birthday.  At that time you are entitled to full retirement benefits.  How will that affect my Pennsylvania workers' compensation benefits?  Under Pennsylvania law, your employer or its insurance company is entitled to reduce your workers' compensation benefits by an amount equal to 50 percent of your Social Security Retirement benefits, provided you were not already receiving Social Security Retirement benefits at the time you suffered your work injury.

            Let's assume that as a result you begin receiving Social Security Retirement benefits after you suffer your work injury.  Once again assume that you have an ACE of $4,000.00, a PIA of $2,200.00, and retirement benefit of $2,200.00. (For an explanation of these terms, see the prior FAQ).

            The workers' compensation insurance company will be entitled to reduce your workers' compensation benefits by $1,100.00 monthly, reducing your weekly workers' compensation benefits from $500.00 to $246.15 weekly.  You will thereafter be entitled to $1,066.67 in monthly workers' compensation benefits and $2,200.00 in monthly Social Security Retirement benefits (weekly workers'' compensation benefits $246.15 times 52 equals $12,800.00 in yearly workers'' compensation benefits divided by 12 equals $1,066.67 in monthly workers'' compensation benefits plus $2,200.00 Social Security Retirement benefits equals $3,266.67 in combined workers' compensation and Social Security Retirement benefits).

Greg Boles
Connect with me
Partner at The Boles Firm | Experience Matters