The claimant is a 52-year-old male and has injuries that resulted in a 7-year reduction in his life expectancy. At the inception of his disability, he was earning $30,000 per year and that amount is his Social Security ACE. He can receive combined SSDI and workers� compensation benefits of 80% of his ACE or $24,000 per year.

SSDI benefits of $1,000 per month ($12,000 per year) have been awarded and his attorney has filed a Motion for a PTD hearing and if he receives a PTD award it will be for $1,700 per month ($20,400 per year).

If that workers� compensation award is received, the Social Security Administration will take an offset of $700 per month because the claimant cannot receive combined benefits of more than $2,000 per month and in this claimant�s state, SSDI offsets workers� compensation.

The cost of an annuity to provide $1,700 per month for the rest of the claimant�s life is $244,666. If the claim is settled for workers� compensation payments of $1,000 per month and the SSDI benefit is kept at $1,000 per month, the employer saves $100,745 and the actual annuity/reinsurance cost is $143,921 instead of $244,666.

If the employer wishes, the annuity/reinsurance can provide a step-up at age 65 for there is no offset applicable to retirement Social Security benefits after age 65. The cost of that option is $37,887 so then a savings of $62,858 is realized.

The claimant is a 52-year-old male and has injuries that resulted in a 7-year reduction in his life expectancy.

At the inception of his disability, he was earning $30,000 per year and that amount is his Social Security ACE.

He can receive combined SSDI and workers� compensation benefits of 80% of his ACE or $24,000 per year.

SSDI benefits of $1,000 per month ($12,000 per year) have been awarded.

Workers� compensation has awarded PTD benefits to the claimant and he is to receive benefits of $1,700 per month ($20,400 per year) for the rest of his life.

The Social Security Administration has taken an offset of $700 per month because the claimant cannot receive combined benefits of more than $2,000 per month and in this claimant�s state, SSDI offsets workers� compensation.

The cost of an annuity to provide $1,700 per month for the rest of the claimant�s life is $244,666. If the claim is settled for workers� compensation payments of $1,000 per month and the SSDI benefit is restored to $1,000 per month, the employer saves $100,745 and the actual annuity/reinsurance cost is $143,921 instead of $244,666.

If necessary, the annuity/reinsurance can provide a step-up at age 65 for there is no offset applicable to retirement Social Security benefits. The cost of that option is $37,887 so a savings of $62,858 is realized.

It will be advisable to outline the settlement and have SSDI sign off on restoring the SSDI benefit to $1,000 per month before the workers� compensation settlement is submitted for approval.

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