Can You Get More than One Disability Benefit at Once? Understanding Offsets

If you’re dealing with a medical condition, navigating disability benefits can feel overwhelming, especially when there’s more than one option available. As a federal employee, you have access to different programs like Workers’ Compensation, Social Security Disability, and Federal Disability Retirement. But can you only get one, or is it possible to be approved for more than one?

Understanding the answer to this question is crucial, and can have a huge impact on your financial future.

While the answer is straightforward – yes, you can receive several benefits at once – understanding how can be complicated.

Receiving one type of benefit might reduce the amount you receive from another, which is called an “offset.” Offsets are common, and knowing how they work can help you maximize your support without unexpected surprises.

Let’s explore how these benefits can complement or affect one another, so you can make informed choices for your well-being.

Social Security Disability Insurance (SSDI)

Social Security Disability Insurance is a benefit for those who can no longer work due to their disability. It’s based on your work history – if you’ve worked long enough and paid social security taxes during the time you worked, then you may qualify.

The qualification requirements for SSDI are strict. You must have a serious medical condition that stops or limits your ability to work.

If you’re approved for SSDI, there are limits on what you can earn, which may affect your eligibility for other financial assistance programs.

SSDI and OWCP Workers Compensation:

• • If you’re receiving any Workers’ Compensation (OWCP) benefits and are approved for SSDI, you can only receive up to 80% of your salary.
  • For example, if your salary was $100,000, the most you could receive from both SSDI and OWCP would be $80,000.

SSDI and Federal Disability Retirement:

• • If you’re receiving Federal Disability Retirement and are approved for SSDI, your Federal Disability Retirement monthly payments will be reduced by a percentage of your SSDI benefit.
  • Check out this Social Security Disability Insurance Offset Calculation for an example of the breakdown between these two benefits.

SSDI and VA Disability:

• • You can receive VA Disability and SSDI without any offsets.

SSDI and Private Disability:

• • Disability payments from private sources, such as private pensions or insurance benefits, shouldn’t affect your SSDI benefits.

Office of Workers’ Compensation Programs (OWCP)

Workers’ compensation benefits are paid to those who were injured on the job. There are three types of OWCP benefits:

1. Wage Loss Payments: Wage loss is paid if you were injured on the job and have to be out of work due to your injury or illness.
2. Schedule Award: You may qualify for a schedule award if you’ve got an injury to an accepted body part that has reached “maximum medical improvement.”
3. Medical Coverage: OWCP Medical coverage covers any medical expenses related to your injury or illness.

Each one of these benefits interacts differently depending on what other benefits you’re receiving.

OWCP and SSDI:

• • You’re able to receive OWCP wage loss and SSDI up to 80% of your previous earnings, like we mentioned above. If your salary was $100,000, you could only receive $80,000 while receiving both benefits.

OWCP and Federal Disability Retirement:

• • You cannot receive OWCP wage loss at the same time as Federal Disability Retirement, but you can receive a schedule award or medical payments.
  • Expert Tip: You can apply for Federal Disability Retirement while on OWCP Wage Loss and place your disability retirement on hold until your wage loss runs out. You can then switch to disability retirement.

OWCP and VA Disability:

• • OWCP does not affect VA Disability payments.

VA Disability (VAD)

VA Disability is for military veterans who were injured during their service or developed a service-connected medical condition. If you’ve got a service-connected condition, you’ll receive a rating and receive payments from the VA based on that rating.

To be eligible for VA Disability, you need a current mental or physical medical condition, and must have served on active duty, active duty for training, or inactive duty training.

Additionally, at least one of these must be true:

• You became sick or were injured while serving in the military and can link this condition to your military service
• You had an illness or injury before you joined the military, and serving made it worse
• You have a disability related to your active-duty service, even if didn’t appear until after you ended your service

The good news is that VA Disability does not interact with any of the other benefits we’ve listed here.

Federal Disability Retirement

Federal Disability Retirement is an early retirement option for federal employees struggling to work due to a medical condition. If you meet the following requirements, you may be eligible:

• You must be a career FERS employee
• You must have 18 months of creditable service
• You must have a diagnosed medical condition that is impacting your ability to do at least one part of your job

From the time you’re approved until you turn 62 and start getting your regular federal pension, Federal Disability Retirement covers you in four primary ways:

1. You’ll get a monthly payment
2. You’ll continue earning years towards your pension
3. You can keep your health and life insurance
4. You’re able to find a new job in the private sector and earn additional income

Give our office a call to get a free benefit estimate and learn how much you could make on Federal Disability Retirement.

There are a few interactions with Federal Disability Retirement to be aware of.

Federal Disability Retirement and SSDI:

• • If you’re receiving Federal Disability Retirement and are approved for SSDI, SSDI will become your main benefit. Your Federal Disability Retirement monthly payments will continue, but be reduced by a percentage of your SSDI benefit.
  • In the first year that you get both Federal Disability Retirement and SSDI, your Federal Disability Retirement payments will go down by the full amount of your SSDI payment. After the first year, your Federal Disability Retirement payments will go down by 60% of your SSDI payment each year.
  • Check out this Social Security Disability Insurance Offset Calculation for an example of the breakdown between these two benefits.

Federal Disability Retirement and OWCP:

• • You cannot receive OWCP wage loss and Federal Disability Retirement at the same time, but you can receive OWCP medical payments or a schedule award with disability retirement.

Federal Disability Retirement and VA Disability:

• • You can receive VA Disability and Federal Disability Retirement together without any offsets.

This graphic provides the quickest breakdown of the most common benefit interactions we see.

Receiving more than one benefit at a time can help maximize your finances, but it also opens you up to interactions and offsets that you might be unaware of.

Our experienced team specializes in helping federal workers apply for Federal Disability Retirement and we know exactly how nuanced the overlap of these benefits can be. Get in touch with us today if you think you may qualify for Federal Disability Retirement, even if you’re not sure. We’re here to give you clarity and help guide your next steps.