Anonymous asked in Politics & GovernmentOther - Politics & Government · 8 years ago

i get Social Security Disability and just won a law lawsuit well it mess up my ssd?

4 Answers

  • Judith
    Lv 7
    8 years ago
    Favorite Answer

    If you are actually receiving SSD and not SSI it has no affect on your SSD unless it is worker's comp.

    There is a federal law which states that worker's comp + social security cannot exceed 80% of a person's average monthly wage. When someone receives a worker's comp settlement you are required by law to report it to social security and present them with a copy of the settlement award. Social Security will then figure out what length of time that settlement represents and reduce your social security disability benefit for that period of time.

    Example: Suppose you win a $50,000 worker's comp settlement and your average monthly wage was $3000. The settlement could then represent payment for 17 months which means that your social security benefit would be reduced for 17 months. If you were receiving weekly or bi-weekly WC payments before the settlement you can divide the amount of the settlement by what you were receiving periodically to determine what length of time the settlement represents. It's not that simple but it gives you an idea of the effect it will have.

    If it's anything other than worker's comp it has no effect on your social security benefits.

    If instead you get SSI which is the federal welfare program it will make you ineligible for benefits if it is at least $2000 and you won't become re-entitled to benefits until it is "spent down" to under $2000. You would have to present proof that it has been spent down.

    Source(s): I was a social security claims rep for 32 years.
  • 4 years ago


    Source(s): Social Security Disability Evaluation :
  • 8 years ago

    Income over a certain level will require a reduction for that earning year to be reduced. Hire a good financial adviser or lawyer to handle the pay out so that it minimizes your loss.

  • 4 years ago

    Social Security Disability Benefits -

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