Research & Analysis by Cecili Thompson Williams

Workers' Compensation, Social Security Disability Insurance, and the Offset: A Fact Sheet
from Social Security Bulletin, Vol. 65, No. 4 (released May 2005)
by Virginia P. Reno, Cecili Thompson Williams, and Ishita Sengupta

This article offers a brief summary of the workers' compensation and Social Security Disability Insurance programs. Information highlighted includes the differences between the two programs' types and terms of coverage. It compares the differing patterns in workers' compensation and Social Security disability benefits as a percentage of wages over the past few decades and considers the potential causes for such trends. The article also explains the offset provision included in the 1965 Social Security Amendments, the intention behind the offset, and how and when offsets are applied.