Can You Collect Workers’ Compensation and Retirement

Injuries at work can take a serious toll on an individual, both physically and financially. Fortunately, workers’ compensation is available to help cover lost wages and medical bills for those who are injured while on the job. But what happens if you are also collecting retirement benefits? Can you still collect workers’ compensation while also receiving retirement benefits?

What do you need to know if you’re collecting retirement and you qualify for workers’ compensation?

Workers’ Comp vs. Retirement

First, let’s define workers’ compensation and retirement benefits.

Workers’ compensation is a form of insurance that provides employees with wage replacement and medical benefits in case of a work-related injury or illness. On the other hand, retirement benefits are financial rewards that individuals receive after they have retired and have reached a certain age.

Can you collect both simultaneously?

Yes, it is possible to collect workers’ compensation and retirement benefits at the same time. However, how much you can receive and the procedures you need to follow may differ depending on your state and your specific situation.

State Laws Vary

One key factor to understand is that the laws and regulations surrounding these benefits vary from state to state. Some states may allow you to receive full retirement benefits while also receiving workers’ compensation payments, while others may reduce your retirement benefits based on the amount of workers’ compensation you are collecting.

Maryland workers might be eligible for a specific type of retirement benefit – disability retirement – if they are injured on the job. You can read more about this benefit here and learn if you can collect it while receiving workers’ compensation.

Various Types of Retirement Benefits

Another consideration is the type of retirement benefits you are receiving.

If you are receiving Social Security retirement benefits, the state could reduce your benefits if you also receive workers’ compensation payments. This is due to a federal law called the Social Security Offset which reduces Social Security benefits for those receiving workers’ compensation.

If you are receiving retirement benefits from a private employer, the potential reduction of benefits depends on the laws in your state and the specific language in your retirement plan.

Semi-retired people injured at work could receive both workers’ compensation and retirement benefits. However, the laws and regulations surrounding these benefits can be complex and may vary depending on your state and specific situation. An experienced workers’ compensation attorney helps you navigate these laws.

To speak to someone about injuries you sustained while on the job or if you’re ready to schedule a consultation to discuss your case, contact Shugarman & Mehring at (410) 783-4200 or toll-free at (888) 342-7200.