The Law Office of Kurt H King

October 18, 2012

Thoughts On The Social Security Offset Against Missouri Workers’ Compensation

Filed under: Missouri Workers Compensation — kurthking @ 4:38 pm
Tags: , ,

Take for example, a Permanent Partial Disability workers’  compensation settlement in a case where the injured worker will need to file for Social Security Disability benefits due to inability to engage in substantially gainful employment.  Not only do we have to worry about Medicaid taking the position that some of the settlement money was for future medical expenses and therefore Medicaid will not pay for them, but we also have to be concerned about Social Security offsetting/reducing its payments to the injured worker to the extent that the work comp and Social Security exceed 80% of the worker’s Average Current Earnings (ACE).

An attorney needs to run the numbers (particularly the workers’ ACE) on this offset for the injured worker, and structure the work comp settlement agreement/stipulation–including these two areas:

1) First allocate and subtract out that part of the award that goes for attorneys fees, litigation expenses, and medical expenses–these should be  “excluded”  which reduces the amount of work comp that Social Security factors in to determine if the Social Security plus work comp exceed 80% of the worker’s ACE.

2)  Find the worker’s life expectancy and divide the remaining work comp settlement by the total number of months of that life expectancy to arrive at what one would hope is a low amount of work comp per month so that when added to monthly Social Security the two do not exceed 80% of the worker’s ACE.

IMO, these are the two “biggies.”


Kurt H. King

Law Office of Kurt H. King, 20 E. Franklin, Liberty, Clay County, Missouri 64068; 816.781.6000

Workers’ Compensation, Personal Injury, Litigation

Chapter 7 Bankruptcy for debtors

Family Law–Dissolution of Marriage, Modifications, Child Custody, Child Support, Paternity

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