My niece told me that her Social Security disability benefits were being “offset” by her Worker’s Compensation benefits. What does that mean?
The term “offset” means that the amount a person would ordinarily receive for Social Security disability benefits is being reduced because of another disability payment that person is receiving. Normally, Social Security disability payments would not be affected by a disability payment from another source, but if the additional source is a worker’s compensation payment or a payment by another public disability program, then the Social Security disability payment is affected. The payment is reduced so that the combined amount of the two does not exceed 80% of the recipient’s average current earnings.
