TN 1 (12-15)
DI 52101.005 Social Security Amendments with Workers’ Compensation/Public Disability Benefit (WC/PDB)
Offset Provisions
This chart shows the Social Security Amendments that contain pertinent WC/PDB offset
provisions. The disability onset date and month of entitlement may determine which
offset provisions apply. A change in onset date may affect which amendment provisions
apply.
|
Social Security Amendment
|
Significant WC/PDB Change(s)
|
|
1965
|
Introduced the WC offset provision.
Offset applied:
-
•
for months prior to the month the worker attained age 62; and
-
•
for months after the month SSA was notified (the notice provision) of the worker's
entitlement to WC.
-
•
Offset is not applied if the State WC law or plan provides for a reduction in the
WC because of the receipt of Social Security DIB (known as reverse offset).
Offset is effective when the following conditions are met:
-
•
DIB onset is 06/02/1965 or later; and
-
•
DIB month of entitlement (MOET) is 01/1966, or later.
|
|
1968
|
Allowed the use of earnings over the statutory limit of FICA coverage in the computation
of the average current earnings (ACE). Effective for benefits payable beginning 02/1968.
|
|
1972
|
Introduced the “High-1” ACE effective for benefits payable beginning 01/1973.
|
|
1981
|
Significantly changed offset provisions.
Offset is applied:
-
•
to Federal, State, and local PDBs in addition to WC. PDBs based on specific amounts
of covered service were excluded;
-
•
up to age 65 attainment; and
-
•
to any month a worker is concurrently entitled to DIB and WC/PDB regardless of when
SSA received notification of such entitlement (eliminating the notice provision).
Offset applies if all of the following conditions are met:
-
•
DIB MOET is 09/1981, or later; and
-
•
DIB onset is 03/01/1981, or later.
Reverse offset does not apply if the reverse offset plan was not in effect on 02/18/1981.
|
|
1986
|
Changed the exclusion test for a Federal PDB if the DIB onset is 05/01/1986 or later.
|
|
2015
|
The Achieving a Better Life Experience (ABLE) Act was enacted on 12/19/2014. A provision in the ABLE Act affects WC/PDB offset by changing
the age at which WC/PDB offset ends for DIB beneficiaries, from age 65 to full retirement age (FRA), effective 12/19/2015. This provision applies to any individual whose DIB benefit is currently offset for
WC/PDB and who attains age 65 on 12/19/15, or later (DIB beneficiaries with a DOB of 12/20/1950, or later).
|