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).


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0452101005
DI 52101.005 - Social Security Amendments with Workers' Compensation/Public Disability Benefit (WC/PDB) Offset Provisions - 12/14/2015
Batch run: 12/14/2015
Rev:12/14/2015