Balancing Workers’ Compensation and the Social Security Offset
In 1983, Congress amended the definition of full retirement age (FRA) for purposes of Social Security benefits. As a result of such changes, FRA changed from age 65 to age 67. Depending on the year of birth of the individual, a formula derived a new FRA. For those born before Jan. 2, 1938, FRA remained age 65. For those born thereafter, FRA increased. For example, for those born between Jan. 2, 1943, and Jan. 1, 1955, FRA became age 66. For those born after Jan. 2, 1960, FRA became age 67.
Despite these changes, however, the age that the Social Security Administration (SSA) was entitled to reduce benefits when an individual was also receiving workers’ compensation benefits never changed. Although there were proposed changes to do so in 2007 and 2008, they were not adopted by Congress. As a result, the SSA has been limited in its entitlement to reduce Social Security benefits when an individual is also receiving workers’ compensation benefits through age 65. Due to recently adopted legislation, however, SSA will soon be able to start offsetting Social Security benefits through age 67. Read more…