Under Act 57, 50 percent of Social Security retirement- or “old age” benefits shall be credited against the amount of benefits being received under the PA Work Comp Act- except for specific loss benefits or fatal claim benefits. The offset does not apply when the employee applies for and becomes entitled to receive those benefits prior to the Pennsylvania work-related injury.
Benefits under the Social Security Act for total disability (versus “old age”) do not reduce the workers’ compensation wage loss benefits. However, the SSD benefits may be reduced until age 65 such that the combination of net benefits received from workers’ compensation and Social Security will not exceed 80% of the pre-injury wages under Social Security.
Social Security disability benefits convert automatically to old-age SS benefits once a person reaches full Social Security retirement age. After conversion, the employer is entitled to the offset.
So what’s the bottom line here? Well, the receipt of Social Security benefits does not prevent receipt of Pennsylvania Workers’ Comp benefits. But coordination of the benefits is important and this should be reviewed by an attorney.
If you have more questions about Social Security and PA Work Comp, call or email PA Work Injury Attorney Michael W. Cardamone at 215-206-9068 or email@example.com for free and prompt consults 7 days a week