Lifetime Disability Pension FAQs

What is a Washington State L&I Disability Pension?

An L&I Pension is the benefit paid to an injured worker who will never return to work. A pension is a Washington State L&I Claim Settlement with Lifetime Payments.

If you cannot work again because of a serious job injury, learn the L&I pension rules. A pension is a monthly payment for life. The dollar amount roughly equals your time loss payment for the rest of your life. A pension is the best settlement benefit L&I has to offer.

Any L&I Worker’s Compensation Claim Can End with an L&I Pension.

An L&I pension is not a retirement pension. It does not come from your company, and it doesn’t matter if your employer has a pension plan. This pension is L&I retirement.

L&I pensions come from L&I and not your employer. It is an Injury Pension. This is a pension you get because you have an L&I claim with a career-ending job injury. Pensions are a little-known and little-talked-about benefit. Few workers have heard of a pension in the L&I context. If you can get a pension, you owe it to yourself to ask questions and see if you qualify. It could be the smartest thing you have ever done.

How do you qualify for a Washington State L&I pension?

To get an L&I pension, you need good planning, good facts, good advice, and a little good luck.

The pension rules are straightforward and easy to understand. However, these pensions are not easy to get. Less than two percent of all L&I claims end up in pension.

The road to a pension is a long and winding journey. Along the way, you will meet claims managers, vocational counselors, employers, and independent medical exam doctors who don’t want you to get a pension.  They will try to derail your pension journey. Keep in mind that L&I has ruined many people’s pension journeys before you.  This could be your first trip down the pension road. You will want to look ahead and see where you are going. Learn the pension rules and be prepared for the problems you will encounter.

Do I Have a Good L&I Pension Claim?

Here is what you need to qualify for a total permanent disability pension in Washington State:

1. Open Washington State L&I Injury or Occupational Disease Claim
2. Favorable Medical Opinion. A helpful doctor is a must. In writing, your doctor will eventually need to say, “more likely than not, you cannot work in any substantial gainful occupation.”
3. Medical and Vocational Information.  Considering your age, education, and work experience, you must prove that you cannot obtain or work at any job.
   • Age – the older, the better
   • Education – for once in your life, less education is better
   • Work Experience -The less you have previously done, the better
   • You Cannot Work – at any substantial (full-time), gainful (for at least minimum wage) occupation.
4. Do you want us to evaluate your pension chances? We can do this for you.
   • Here is how to get started. Do I Have a Case?

I Have a Permanent Total Disability; I Can’t Work or Return to Work. Can I Get an L&I Disability Pension? 

Yes, you can get a pension if you prove your pension claim.  An inability to work because of a job injury qualifies you for an L&I disability pension.

L&I Pension Claims Look Like This:

• A Likely Pension Winner: A 60-year-old with a 10th-grade education who has only worked as a logger. He has both a severe back injury and depression. His doctor says he cannot work at any job.
• A Likely Pension Loser: A 35-year-old with a college education who has held many jobs, including being a cashier. His doctor is a wimp and afraid of L&I. His doctor agrees with the IME.

How Long Does Washington L&I Have to Review A Claim for Pension?

There is no effective deadline for a pension review. Pension adjudicators are busy and typically have a backlog. Sometimes, it seems like forever. Be patient. The important thing is that your L&I file has good and up-to-date medical and vocational information.

What’s the Difference Between an L&I Disability Pension and a Disability Pension?

An L&I Disability Pension is a lifetime benefit for an injured worker who will never return to work because of a job injury or occupational disease.

A Disability Pension is a general term used to describe any pension for medical reasons. It could be in any system, such as Social Security, Employer benefits, Insurance contracts, Private pension plans, or Boeing Pensions.

Do All Permanently Totally Disabled L&I Workers Want a Pension?

A pension is the best benefit L&I has to offer.

Yes, you want it if you can get it. The only people who do not want a pension are those who will return to work or are single and will die soon.

What is Better – L&I Pension or L&I PPD?

When comparing L&I Pension vs L&I PPD, look at your employability.

The L&I Pension Calculator. What’s a Pension Worth and How Much Does it Pay?

The pension calculator is the mathematical formula that yields the amount of your monthly pension payment.

A pension is roughly the same as time loss for the rest of your life. To get a working estimate of the lifetime pension value, multiply your time loss check by 26, then multiply that by how many more years you have to live. To be more precise, add in an annual cost of living adjustment. That calculation equals a rough approximation of the value of a pension for you. If you will be penalized with a Social Security Offset, factor that into your analysis. Get help figuring this out if you need it.

• L&I pension payments are made on the 15th of every month. If you do this right, L&I pension payments will be for the rest of your life.

Formula for how much a pension will pay:
(Time Loss Check Amount x 26) x Years Left To Live + Cost of Living Adjustment – Minus Social Security Offset = Lifetime Pension Value

Why is a Washington State L&I Pension Worth so Much?

A Permanent Partial Disability (PPD) award generally includes money only for physical and mental impairment.

A pension settlement is worth much more because instead of payment for medical impairment, it pays some loss of income for the rest of your life. This can be a lot of money over time.

If you will not work again because of your job injury, talk to our attorneys. See if you qualify for a pension.

Pension Cost of Living Adjustment – COLA

Pension payment amounts are scheduled to increase each year, effective July 1. The Cost of Living Allowance is determined by the state’s average wage change from the previous calendar year. This often amounts to a nice yearly increase.

Can I (DIY) “Do It Yourself”?

Yes, it can be done. The pension rules are the same for you, with or without a lawyer. You need to fit your facts inside the pension rules. Easier said than done, but it can be done. The important part is that you are prepared and ready at each step. You can’t DIY on a trial-and-error basis. One critical mistake will ruin your chance of getting a pension. Get it right, and you will be happy.

Do I Need a Lawyer to Get My Pension?

Good Pension lawyers cost money. A good lawyer is often the difference between winning and losing a pension. The good news is that an L&I lawyer who believes in your case will charge contingent legal fees.  Contingent legal fees mean that your disability pension lawyer will not charge an attorney fee unless he/she wins money for you.

Should I Hire an L&I Attorney?

Here is an excellent way to decide whether to hire an L&I attorney.  A lawyer is best used as a guide who gets you there and helps from start to finish. Could your L&I claim benefit from a guide?  You don’t need a guide for a walk in the park. It would be best to have a guide to cross the Okefenokee Swamp. What does your claim feel like, a park or a swamp?

Pension Claim Examples

• The claim goes smoothly. Is medical care on the right track? Do you have good facts? Has your doctor told L&I you will never work again because of your job injuries? Is your doctor strong and not afraid of L&I? If so, and you are brave, you could try to DIY.
• Claim problems? Tough medical situation? Unhelpful vocational counselor? Bad IME report? Is your doctor unwilling to stand up to L&I, or is the claims manager not on your side? If so, don’t pretend everything is OK. It is not. Talk to an L&I lawyer and see if they have advice for you and if he or she is willing to help with your case.

L&I Pension Attorney Fees

We have counseled thousands of injured workers about their L&I claims and helped many get their lifetime pensions.

We charge 15% of ongoing pension payments if we get a pension for you. Our firm is glad to offer you a free strategy session at no charge. We’ll talk to you about your case and your chances.

When I Die? Is there a Survivor Pension Benefit? 

Spousal Pension

What happens to your pension when you die? It depends. Whether or not there will be Spousal Washington State Labor and Industries pension benefits after death depends on your facts and the option choice you make.

• If you are married on the day a pension is granted, at that time you will be given the option to pass your pension on to that spouse. To do this you choose option 2 or option 3.  If you are still married to that same person on the date of your death, then the pension should pass to them.
• If you are not married on the day your pension is granted, you cannot marry and pass on your pension later.
• If you are not married before a pension is granted but are living with a partner or otherwise firmly paired up, you should consider getting married if you want your partner to benefit from your pension. This is good estate planning so long as you are willing to reduce your rate now to get a pension that will last for both of your lives.

Children’s Pension

If you are single with children on the date your pension is granted, you have the option to pass your pension on to your children. Most children can only receive this pension until they are 18 or 23 if they are in school full time. Totally disabled children can continue to receive a pension so long as they remain in that disabled status.

What is an Option 2 or an Option 3 Pension?

These pensions are simply the pre-planned continuation of a regular L&I pension after the worker’s death. Payments are made to a spouse or a child. This is planning for your family’s future; get it right. At pension award time, the worker is given the three pension options.

1. Option 1 – the worker’s pension ends with his or her death (unless the death is the result of either a job injury or occupational disease).
2. Option 2: For a reduced pension rate, the pension will pass on to the eligible surviving spouse or an eligible child.
3. Option 3: For a reduced pension rate, the pension will pass on to the eligible surviving spouse or an eligible child.
4. The reduced rate of these pension options applies only if and when the worker’s death is unrelated to the accepted injury-caused medical conditions. If the death is causally related to the job, see Widows Pension below for a better pension rate.
5. Option 2 & 3 spousal pensions last for a lifetime, even with remarriage.

Can I get Both PPD Settlement Money and an L&I Pension For the Same Claim?

The general rule is no, you cannot get both PPD and a pension for the same claim. However, if you are awarded a PPD settlement you can appeal that decision. How To Disagree With An L&I Decision. If you later win a pension, you can repay the settlement and keep the much more valuable pension. Some exceptions to the general rule per RCW.51.32.060(4) exist.

Job Training, L&I Pensions, and Permanent Total Disability (PTD).

L&I pensions are for injured workers who can never work again. L&I pensioners are permanently totally disabled. Successfully completing vocational training is evidence that you can work, so maybe there is no pension. Sincerely attempting job training and failing still allows for and encourages the award of a pension.

What if I Return to Work While Receiving a Washington State L&I Pension?

Trial Work Period.

You can try to work to see if you can handle it. You must coordinate this with your doctor and your claims manager. Your pension status will change if you return to work in the same or greater capacity as when injured. As a first step, L&I may suspend pension benefits while you try to work. If you are successful at your job attempt and “you can maintain gainful employment for wages,” then L&I may terminate your pension  RCW 51.32.160 (2). At that time, you may wish to apply for a PPD settlement.

Be Honest with the Department of Labor and Industries.

You are not allowed to work full-time and collect pension benefits. That is dishonest.  Remember that while you are on a pension, L&I looks at you. Be honest with L&I. They look at your reported social security earnings history, social media presence, and other community information. If they see something like work activity, they will follow up, sometimes with a private investigator. They also require you to certify your earnings and work activity each year.  Be honest with L&I. You cannot collect pension benefits and work full-time. If you work and don’t tell L&I, you are asking for trouble. If they figure out you are working and not reporting this work on your yearly declaration, they may charge you with fraud.

Can I Do Part-Time Work While on an L&I Pension?

The easy and safe answer is “no,” and many L&I attorneys will tell you exactly that. However, the law in this area is untested.  You can likely do a little part-time work while still keeping your pension. How much work, what you can do for work, and how much you can earn while still keeping your pension is fact-dependent. Your age, education, and work experience are factors. Your employment pattern (full or part-time) on your date of injury is a factor. Will your return to work be far fewer hours than your pre-injury employment pattern? Will your return to work be for fewer dollars than previous work? If called upon, would your doctor strongly support that these reduced hours are your maximum working capability? Every case is different. Every pension adjudicator is different. This is an untested area of the law. Read the L&I rule defining employability WAC 296-19A-010.  Talk to L&I or an L&I lawyer if you need guidance.

A pension is all or nothing; that is to say, there is no reduced pension similar to social security, where you can work a little and take a reduced payment. You can do a little part-time work while on a pension. However, there is a limit to how much work you can do and still keep your pension.  The limit is when part-time work becomes gainful employment for wages. If and when it does, then L&I may move to terminate your pension.  Be careful here and don’t do too much work.

Can I Volunteer While on a Pension? 

You can volunteer while on a pension; however, you should be careful and do it correctly. Get your doctor’s approval. Make it therapeutic, which is good for your physical and mental health. Don’t do so much that it rises to the level of work-type activity WAC 296-14-4123(1). Don’t receive wages for volunteering, and do inform L&I of the volunteer activity.

What is a Declaration of Entitlement?

A declaration of entitlement is the form you must use to certify your continued eligibility for your pension benefit money from L&I. Persons on a pension will be sent this form once a year. A signature in front of a notary is required. The Department of Labor and Industries will mail you your declaration of entitlement form around the same time every year. If you do not return this form, they will suspend the benefit. If you have a lawyer, they will help you with this procedure. Here is a link to the Declaration of Entitlement 

What is Voluntary Retirement?

Voluntary retirement is different. It is not volunteering when you are retired. Voluntary retirement is an artificial claim status made up by L&I, to keep from paying pension benefits. Don’t let them do this to you. If you get an order stating you have voluntarily retired. Appeal it. See Voluntary Retirement.

How Does the Surviving Spouse Get a Pension

Widow’s Pension Qualifications

A widows pension is a survivors pension for the widow or widower of the worker who dies because of the job injury.  The widows pension qualifications are:

• Worker dies as a result of a job injury or occupational disease
• Widow and worker were married on the date of death
• Widow files an application for pension benefits in time – you must file before the statute of limitations expires
  • File within one year with an open L&I claim
  • File within one year of an injury with a not-yet-opened injury claim
  • File within two years, maybe longer, with a not-yet-open occupational disease claim. 
  • Don’t quit or give up. To qualify, you have to get involved and do something. You can do this. Contact us if you want help. L&I Pension Help. 

What are Surviving Spouse Pension Survivor Benefits?

• Money is paid monthly to the surviving spouse for the remainder of their life.
• A one-time “immediate” payment if the worker’s death resulted from a workplace injury or disease
• A burial benefit if death is directly related to the job injury or occupational disease. The dollar amount is determined by the date of death.
• If you remarry, you may lose your pension

How Long Does a Widow Survivor Pension Last?

A survivor’s pension for a death that is related to the job injury will last for a lifetime unless the survivor remarries.

What is a Pension for Dependent Family Members?

This is not a Widow’s pension. This is different. A pension for dependent family members is a survivor’s pension.

How to Qualify as a Dependent if the Worker Dies Because of the Job Injury or Occupational Disease.

• The worker must die because of an L&I injury or occupational disease.
• The family members must be financially dependent on the worker’s wages

Who is a Family Member

A dependent family member can be parents, grandparents, grandchildren, sisters, brothers, nephews, and nieces.

What is a Statutory Pension?

A statutory pension is a different kind of pension. Many of the above rules don’t apply. To qualify for a statutory pension, the injured worker needs to lose two limbs or both eyes. God forbid this happened to you. If you do qualify for a statutory pension, you may be able to return to work, even full-time, and still receive the statutory pension benefit.

What is a Pension Reserve?

This is the amount of money L&I sets aside as an estimate of what your pension will cost them. It’s just an actuarial guess and is not important to you or your pension. Forget about it.

Can I get L&I Medical Care for Medication and Treatment While on a Washington State L&I Pension?

Most pensioners lose their L&I medical care when the pension is granted. A few lucky but seriously injured pensioners are able to get a treatment order for accepted job related conditions. The L&I supervisor has discretionary authority to deem treatment necessary to protect such workers’ life or provide for the administration of medical and therapeutic measures. RCW 51.36.010(4) and the L&I Policy Manual Chapter 15.   A good L&I lawyer can help with this.

Pensioners who do not have a treatment order when the pension is granted may apply for one later. There is no statute of limitations for this application.

Can I Cash Out my Pension?

Yes, but don’t do it. You only get pennies on the dollar. It is never worth it. NEVER.

Is a Washington State L&I  Pension Taxable?

A Washington State L&I disability pension is not taxable. Federal Tax Regulations 1-104-1(b) states that workers compensation benefits for personal injuries or sickness incurred in the course of employment are excluded from gross income. This means they are not taxable.

What Will it Cost to Get a Pension?

Consult with an L&I lawyer. They can look at the facts of your case and let you know what it will take and if it is worth trying to get a pension.

Lawyers who do L&I pension work charge contingent fees. That means there should be no attorney fees unless you get the pension. If your lawyer does get you a pension, the fee gets paid from the payments made by L&I and is not required upfront or out of your pocket.

Who Will Help Me Get this Pension

Don’t count on L&I to help you get a pension. We are here to help you. We will be happy to advise you and, if you qualify, help you get the pension you deserve.

Losing your ability to work again or losing a spouse is a major life setback, but it’s not the end of the story. Contact us, and we will try to give your story a happy ending.

A Final Word About L&I Pensions

If you will never work again because of your job injury, an L&I pension is for you.

Talk to us about your pension chances. It may be the smartest thing you ever do. Our attorneys and staff are ready to advise and to help. Contact Us for a free strategy session.