Report Recommends SSA Access Workers’ Comp Data to Apply Offset

On September 18, 2023, the Social Security Administration (SSA) Office of Inspector General (OIG) released a report of its review of the Social Security Disability Insurance (SSDI) offset for workers’ compensation and public disability benefits. The report recommended that SSA

  1. Determine whether SSA made inaccurate WC/PDB offset determinations and improperly paid 13,033 beneficiaries with inaccurate WC/PDB information in its records.
  2. Negotiate with the states to establish data matches to obtain WC/PDB information to help ensure SSA correctly applies WC/PDB offsets.
  3. Establish system controls to identify cases likely to have incorrect WC/PDB offsets and/or reverse offset determinations.

SSA agreed with recommendations 1 and 3 but not with the second recommendation.  The issue of the offset is not new. UWC has met with Social Security staff and congressional staff in prior years to go over the federal and state law related to the SSDI and workers’ compensation offset and state reverse offset.

We have opposed the elimination or the reverse offset under which workers’ compensation awards are reduced in recognition of SSDI payments. Elimination of this “reverse” offset results in a shift of costs to employer funded workers’ compensation plans.

In prior discussions with SSA staff we have asked the agency to split out the offsets due to workers’ compensation and public disability benefits. The data has not been provided by SSA.

We have agreed that the current federal law with respect to the offset is complicated and difficult to administer. However, amendment to simplify administration should not negatively impact employer financed workers’ compensation.

It would be more effective for injured workers and to reduce costs for SSDI to adopt reforms that are similar to those adopted by states to assist individuals to recover from injuries sooner and return to work.

We are conferring with congressional staff to assure that they are aware of our concerns if federal legislation is developed to address the SSDI/workers’ compensation offset or the reverse offsets.