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FAQ
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Are workers' compensation benefits affected by other benefits a worker receives?
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Answer:
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Section 354 provides for the coordination or reduction of workers' compensation benefits to the extent the worker receives other benefits paid for by the employer. Thus if a worker receives, or is entitled to receive, sick and accident benefits, pension benefits, or other similar benefits, his or her workers' compensation rate will be reduced by the after-tax value of other benefits.
Social security benefits are paid 50 percent by the employer and 50 percent by the worker. Accordingly there is a 50 percent reduction for social security retirement benefits. For injuries incurred on or after December 19, 2011, if the injured employee has been receiving old-age insurance benefit payments under the social security act, chapter 531, 49 Stat. 620, before the date of the personal injury or work-related disease, then in no event shall the weekly benefits payable after the reduction provided by this subdivision be less than 50 percent of the weekly benefits otherwise payable without the reduction.
Social security disability benefits are already reduced if an individual receives workers' compensation. Accordingly there is no reduction in Michigan workers' compensation for social security disability benefits.
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