How Retirement Affects Workers’ Compensation in Georgia

For some injured workers, retirement arrives while recovering from an on-the-job accident. This complicates workers’ compensation claims, especially if pension payments or Social Security benefits start.

Making improper decisions can jeopardize future compensation payments or result in overpayments that you have to pay back. You may need an Atlanta workers’ compensation lawyer to explain how retirement impacts workers’ compensation in Georgia.

Our attorneys have seen many cases of retirement-aged workers still withdrawing workers’ comp and how it affects their payment. Here’s what you need to know if you’re in this situation.

Should I Finish My Recovery Before Retiring?

In some cases, it’s best to avoid retirement until you’ve recovered as much as you’re able to do so. As you recover and work with the doctor, they can assess your level of disability at the end of recovery. If your doctor declares that you are disabled, inform your employer right away.

Their assessment can have a big impact on how your benefits are affected after you retire. It’s best to speak with a workers’ compensation attorney for advice on this matter, as it can drastically impact how much compensation you get after retirement.

Voluntary vs. Involuntary Retirement

A big factor in how retirement impacts workers’ compensation is whether you retired voluntarily or involuntarily. This is not based on the age you reach but on your decision to retire. Voluntarily retiring can affect some benefits or could remove your workers’ compensation coverage.

Involuntary retirement happens when your injury disables you to the point that you can no longer work. Usually, in these cases, you can continue receiving workers’ compensation benefits since you did not retire by choice.

This is a general rule and could be affected by your circumstances. We encourage you to speak with a personal injury lawyer in Atlanta who has experience in these matters.

How Are My Benefits Affected if I Retire?

Retirement does not typically stop all of your workers’ compensation payments, but parts of your payments may get adjusted. Here’s how retirement may affect your payments.

Medical Benefits and Retirement

Even if you retire voluntarily, companies are still responsible for paying medical benefits. These cover the costs of treatment. Your retirement does not affect the fact you were hurt on the job, so you are entitled to these.

Wage Replacement Benefits and Retirement

Wage replacement benefits cover the lost wages caused by your injury. Retirement will likely affect these benefits since you are no longer losing wages because of your injury. However, your circumstances may affect this.

Disability Benefits and Retirement

Disability benefits can be temporary or permanent. If they are temporary and you retire voluntarily, they may expire or be reduced. However, the employer will have to prove to the Workers’ Compensation Board that you’ve left the workforce.

If you are permanently disabled, then things change. If you voluntarily retire, you may see a reduction or an elimination of this benefit. However, if you were involuntarily retired, you may continue to receive these benefits in many cases.

How Will a Pension Affect My Workers’ Compensation Amount After Retirement?

If you can draw upon a pension after retirement, this may affect your workers’ compensation in Georgia. Georgia does not want to see people getting duplicative benefits, especially if they would exceed your pre-injury average wage.

Your worker’s comp check may be reduced dollar-for-dollar for the amount you get from your pension. However, the rules of your pension may affect this. If you are collecting workers’ comp and start getting pension payments, you need to let the insurer or your employer know so they can adjust payments.

If you are caught receiving more benefits than you’re entitled to, you could be forced to pay them back. So, get clarification by speaking with a workers’ compensation lawyer. The laws surrounding this can be very complex, so it’s best to speak with someone experienced.

What About Social Security Retirement Benefits and Social Security Disability Insurance?

Social Security programs cover a lot of the same costs that workers’ compensation does, which means their interactions with workers’ comp law can get complicated quickly. Here is a very brief overview.

Social Security Retirement Benefits

These are separate benefits that should not affect your workers’ compensation payments. However, the age of your retirement can greatly affect how much you get from your retirement benefit. A visit to your local Social Security office can tell you what you would get upon retirement.

Social Security Disability Insurance

In Georgia, SSDI payments do not reduce your workers’ compensation. However, your SSDI payments will be offset by some of your workers’ comp payments so that you stay at 80% of your pre-disability “average current earnings.” 

The Social Security Administration has several formulas that it uses to calculate this amount. A lawyer can work with you to minimize the offset and extend your benefits as long as possible.

Contact a Lawyer for Further Advice

Retiring when you have a workers’ comp claim or are collecting benefits can make your payments unpredictable. The intersection of many different benefits programs creates a complicated legal situation that needs the attention of a lawyer.

If you’re in a situation where retirement may impact your workers’ compensation in Georgia, contact John Foy & Associates for a free consultation.