Will the $250 federal stimulus payment to SSA and SSI recipients be subject to workers’ compensation offset?

A question has come up whether workers’ compensation programs will offset, as permitted by federal and state law for those who receive both workers’ compensation benefits and social security benefits, the one time $250 federal stimulus payment due to SSA and SSI recipients in late May 2009. At least in Washington State it appears that the federal stimulus monies will NOT be offset by the Department of Labor and Industries, the agency which administers both the state fund and self insurance programs. While it appears likely a workers’ compensation program COULD offset the $250 just like any other benefits received from Social Security, the Department of Labor and Industries, upon inquiry, has advised that it will NOT be offsetting the one time payment. It is quite likely that the costs of entering a separate order in each individual claim modifying the offset based on a one time payment was felt to exceed any benefit enjoyed from the one time $250 windfall, but for whatever reason, it appears that the stimulus monies are safe for now…

2 thoughts on “Will the $250 federal stimulus payment to SSA and SSI recipients be subject to workers’ compensation offset?

  1. Hi Dave~
    Thanks for the stimulus answer. I have a question for you…I fall under the LHWCA (Longshore) and am on SS Disability. As of last year, possibly longer, WC stopped paying me compensation. I notified the Social security office of the change. Social Security then paid me back pay based on the date WC stopped paying me. Currently, I rec’d a judgement in my favor and received back pay from WC, interest and a penalty fee as well as bringing me up to date with PPD payments. I know that I have to pay Social Security back for the “overpayment” when they paid me what WC didn’t. I don’t think that I will have to pay back everything I rec’d from WC, but will my Social Security benefits be affected by what’s left over after I pay them? I still need to pay my parents back for borrowing money to pay my bills during the time I wasn’t getting a WC check and SS wasn’t enough. I’m not sure how SS computes how much I need to pay them back but I still have other creditors to pay as well. Can you please help with any information about this situation?
    Any answers would be greatly appreciated.

    carmel

  2. Social Security Disability is not a “needs” based benefit – so it does not matter if you have ‘left over’ money after paying back the overpayment for the SSD benefits. If you were receiving SSI, it would be a different story, as continued receipt of those benefits turns on financial need, which would be affected by the money received from the workers comp litigation.

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