Workers' Compensation, Retirement, and Other Benefits

If an injured worker terminates active employment and is receiving non-disability pension or retirement benefits, including old age social security benefits, paid by or on behalf of the employer, it shall be presumed that the injured worker’s loss of earnings is not the result of the work injury. If an employee is suffering from a work injury, it is critical that he gives notice to his employer and makes a claim for workers’ compensation benefits before taking a retirement.

If a worker receives sick and accident benefits, short-term disability benefits or pension benefits provided by his employer, workers’ compensation benefits will be reduced dollar for dollar with an adjustment for taxes paid on the other benefit. The employer or its insurance company can only take credit for the portion of the other benefit paid by the employer. Some disability policies require repayment in the event workers’ compensation is received. In such cases the employer or its workers’ compensation insurance company must reimburse the other insurance company if workers’ compensation benefits were reduced because of the receipt of the other benefit.

When an injured worker receives Social Security old-age benefits, his workers’ compensation benefits are reduced by fifty percent of the amount of Social Security old-age benefits received.

If the injured worker receives social security disability benefits, there is no reduction of the workers’ compensation benefit. However, Social Security disability benefits are often reduced if the injured worker receives both Social Security disability and workers’ compensation.