How does Worker's Compensation affect SSI benefits?

Worker's Compensation can have a significant impact on Supplemental Security Income (SSI) benefits. When an individual receives Worker’s Compensation benefits, it is considered unearned income. SSI benefits are designed to provide support for individuals who are aged, blind, or disabled and have limited income and resources.

When calculating SSI eligibility and the amount of benefits, any unearned income, including Worker’s Compensation, is taken into account. The SSI program has specific income guidelines, and when Worker’s Compensation is considered income, it typically results in a reduction of SSI cash benefits. This adjustment is made because SSI aims to provide a uniform level of support based on the individual’s overall need, and any additional income the person is receiving directly affects that level of support.

Thus, the reduction in SSI benefits when a person starts receiving Worker’s Compensation illustrates how these two types of benefits interact; SSI is intended to supplement income, but additional benefits from other sources can lead to lower SSI payments. This ensures that SSI funds are allocated to those who require them most while preventing recipients from receiving more in combined benefits than what the SSI program would offer alone.