Fact No. 1 - An employee can receive up to 80% of his or her ACE (Average Current Earnings) in combined SSD benefits and workers� compensation.

Fact No. 2 - If SSD is awarded and a workers� compensation award follows, SSD usually takes an offset against the compensation benefits when the total benefits exceed the 80%.

Fact No. 3 - There are 11 states where the offset is called a "reverse offset" and the offset is taken by workers� compensation. Those states are CA, CO, FL, LA, ND, NJ, MN, MT, OR, WA & WI. Specific rules apply and not all workers� compensation offset is reversed.

Fact No. 4 - Any cash settlement of a workers� compensation benefit is offset by Social Security except under special rules in the reverse offset states. Usually, the Social Security reviewer divides the amount of the settlement by the maximum workers� compensation benefit payable in the employee�s state. For instance, in Pennsylvania a settlement of $100,000 would be divided by the maximum weekly benefit of $561.00 and an offset would be taken for 178 1/4 weeks.

Fact No. 5 - Social Security Disability Benefits are calculated as though the person reached retirement age at the time of disability. The offset stops when the employee reaches retirement status at age 65.

Fact No. 6 - When SSD and workers� compensation have been awarded and the offset taken, the workers� compensation claim can be settled for the 80% less any SSD benefit before an offset is taken by Social Security (see attached exhibit).

Fact No. 7 - The workers� compensation settlement documents must be specific on every aspect of the settlement.

Fact No. 8 - The best way to settle a workers� compensation claim is to (1) use a structured settlement to provide the workers� compensation benefits as tax-free payments, (2) keep the SSDI in place with no offset, (3) consider professional SSDI service as part of the settlement to keep the SSDI in place until the claimant retires and (4) complete closing documents that will keep the SSDI and workers� compensation payments at the agreed level for the life of the claimant.

Fact No. 9 - Please see the attached case studies to see the empact of the coordination of benefits.

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