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Social Security Offset

An offset is a reduction in money benefits when two different systems are paying. A Social Security Offset is a money benefit reduction in either L&I or SSD benefits when an injured worker is receiving benefits from both systems.

An injured worker can receive both L&I and Social Security benefits. However when an injured worker qualifies for  benefits under both systems, it is the offset that often keeps this double dipping from resulting in doubling of benefits for some injured workers.

There is a statutory offset that will be taken when and if the total combined benefit is greater than 80% of the claimant’s average yearly earnings. Average yearly earnings are usually calculated by looking at the worker’s income during the five years prior to the onset of the disability.

The offset formula according to Social Security can be found in 42 USCA. and the Program Operations Manual System (POMS) at POMS DI 52120.265. Social Security pays full benefits and take the offset from your L&I time loss, pension, voc. money and PPD, when you are ages 62 – 65. The offset during this period can be brutal. Delays by SSA in taking an offset are not time limited and can wreak havoc with your benefits.

The offset formula according to L&I can be found in RCW 51.32.220. L&I pays full benefits and takes the offset from your Social Security benefits when you are less than age 62 or older than age 65. Offsets are technical and complicated. Delays by L&I in taking the offset are subject to a one year recoupment rule.

Social Security Offset Calculator (WA State)

To get help with a Social Security Offset and to learn more about the rules contact the L&I Social Security Offset unit at 360-902-5119.

What’s next?

Return to L&I Definitions
(FAQ) About L&I Time Loss
Pension Settlement Options

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