What is the effect of Worker's Compensation on Title II cash benefits?

The correct answer is that Worker's Compensation can lower Title II cash benefits if the combined income exceeds limits. Title II benefits, commonly known as Social Security Disability Insurance (SSDI), are designed to replace income lost due to disability. When a person receiving these benefits also qualifies for Worker's Compensation—essentially a form of wage replacement—the total income that the individual receives may reach a threshold that affects the Title II benefits.

Specifically, the Social Security Administration has rules regarding how much an individual can earn from various sources, including Worker's Compensation, without reducing their SSDI. If the total monthly benefits from both Worker's Compensation and SSDI exceed a certain amount, the SSDI benefits will be reduced to ensure that the total income remains within allowable limits. Thus, the interaction of these two income sources can result in a lower amount of Title II cash benefits, which supports the assertion in the correct answer.

Significantly, the other options do not accurately characterize the relationship between Worker's Compensation and Title II cash benefits. This complex interplay is essential for those navigating disability benefits to understand in order to manage their financial situation appropriately.