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Yes, i ndividuals who settle their Workers Compensation claim and are approved for Social Security disability or expect to be approved for Social Security disability need to include special language in their settlement with the insurance company. This important part of the settlement is referred to as offset language. The Social Security Administration will penalize disability recipients if they receive large lump sums from their Workers Compensation settlement so that they receive only a portion of their disability check. Offset language spreads large lump sums over a claimants life expectancy so that the penalty is reduced. Most Workers Compensation attorneys will know how to craft this language.

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Should my Workers Compensation settlement agreement include any special language?

 

A:

Yes, individuals who settle their Workers’ Compensation claim and are approved for Social Security disability or expect to be approved for Social Security disability need to include special language in their settlement with the insurance company.  This important part of the settlement is referred to as “offset language.”  The Social Security Administration will penalize disability recipients if they receive large lump sums from their Workers’ Compensation settlement so that they receive only a portion of their disability check.  Offset language spreads large lump sums over a claimant’s life expectancy so that the penalty is reduced.  Most Workers’ Compensation attorneys will know how to craft this language.



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Social Security Disability

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