Q: How does a lump sum worker's compensation settlement affect future SSDI monthly payments? Please see details.

A: Social Security Administration will not permit individuals to receive more than 80% of pre-injury monthly gross earnings from combined Workers' Compensation (WC) and Social Security Disability (SSD) payments. This policy was enacted to avoid the situation where injured workers are making more than pre-injury earnings and have no incentive to try and return to gainful employment. Your lawyer properly settled your WC claim in a lump sum and then allocated the net sum you received over your life expectancy in order to push your monthly receivables below the 80% ceiling. Before SS can reduce your monthly SSD check, you will receive a written explanation of how they figured the reduction based on the 80% rule. My office has managed to resolve many of these claims by simply sending a copy of the final WC Order approving the lump sum and pro-rated distribution to local SS office. Many times, the SS office has only been notified of the lump sum amount and does not know about the pro-rata language that can push your countable income below the 80% ceiling permitted under SS law. If you have not received a written detailed explanation, you should make an appointment with SS and ask them to explain their calculation. You can appeal this decision if you disagree. You should also contact your local member of Congress or US Senator for help here. The staff in these elected official's office can often get an explanation faster than legal representatives can. From the numbers cited in your note, you may have a legitimate grievance.