Is there any interplay between a lump sum workers compensation settlement and social security disability benefits? Yes, there is. And your workers compensation attorney better be aware of it.
Social Security is still entitled to an offset. It is statutory, meaning, it is a legal requirement. So what is the best process to deal with a potential offset when settling a workers compensation case? Your attorney should ensure that any future offsets are either minimal or eliminated. It should be done by spreading your settlement over your lifetime expectancy. This is done through special social security offset language in Paragraph 13 of the Compromise and Release Agreement, otherwise known as the “Sciarotta Allocation.” The allocation is based on the case Sciarotta v. Bowen. (more…)