If you receive both Social Security disability (SSDI) and workers' comp benefits, federal law limits the combined total to 80% of your pre-disability earnings. Minnesota has a limited “reverse offset” that generally applies only to Permanent Total (PTD) benefits after$25,000 in PTD has been paid. For most other benefit types (like TTD/TPD), the standard federal offset applies.
- • Calculates the 80% Average Current Earnings (ACE) cap
- • Shows which benefit is reduced and by how much
- • Includes the PTD + $25,000 reverse-offset threshold concept
This calculator provides rough estimates only. Always consult an attorney for accurate offset calculations.
Updated 10/01/2025
Will My Social Security Be Reduced?
Enter your benefit amounts and wage information to estimate the federal SSDI offset (and Minnesota’s limited reverse offset for PTD after $25,000 in PTD paid).
Verification notice
SSDI offset rules are based on SSA POMS DI 52120.130 and federal 42 U.S.C. 424a. SSA POMS can lag statutory changes and the actual ACE calculation is more complex than this estimate. Consult SSA or an attorney for definitive numbers.
Rough estimates only — consult an attorney
Social Security offset rules are complex and depend on your specific earnings history, family composition, and benefit type. SSA's actual ACE calculation differs from this simplified estimate. Always consult a qualified attorney for accurate calculations.
Inputs
Your monthly SSDI or SS retirement amount
Your weekly TTD, TPD, or PTD rate (converted to monthly)
Used to estimate Average Current Earnings (ACE)
Minnesota's reverse offset applies only to PT benefits after $25,000 in PT has been paid
How Social Security offsets work
The 80% ACE cap (federal rule)
Under 42 USC 424a, combined SSDI + workers' comp benefits cannot exceed the higherof 80% of your “Average Current Earnings” (ACE) or your total SSDI benefits. If the combined amount exceeds this cap, SSDI is reduced by the excess. This is the default rule that applies to TTD and TPD benefits.
Minnesota's reverse offset (PT only)
Per SSA POMS DI 52120.130, Minnesota's reverse offset applies only to Permanent Total (PT) disability benefits, and only after $25,000 in PT has been paid (or benefits properly reclassified as PT). In that case, WC is paid in full and the SSDI reduction does not apply.
This does NOT apply to TTD or TPD. For temporary benefits, the standard federal offset applies and SSDI is reduced.
Important limitations
- SSA's actual ACE is notsimply AWW × 52 ÷ 12 - it uses the highest of three different earnings measures from your Social Security record.
- Family benefits, dependent allowances, and Medicare interactions are not modeled here.
- The $25,000 PT threshold and benefit reclassification rules have specific procedural requirements.
- This calculator provides rough estimates only. Consult an attorney for your specific situation.
This is an informational tool, not legal advice. Results depend entirely on the information you enter and may not reflect all statutory exceptions or fact-specific rules. Verify against the underlying statute and consult an attorney for case-specific decisions.
How the Social Security (SSDI) offset works
Federal law limits combined SSDI plus workers’ comp to 80% of your average current earnings (ACE). If the total is higher, SSDI is usually reduced.
SSA computes ACE in several ways; it is not simply AWW × 52 ÷ 12.
For permanent total disability after a threshold of PT benefits has been paid, Minnesota can apply a reverse offset so the comp benefit is reduced instead of SSDI.
Worked example
With ACE of $4,000/mo, the 80% cap is $3,200. If SSDI is $2,200 and workers’ comp is $2,000, the combined $4,200 exceeds the cap by $1,000, so SSDI is reduced by about $1,000.
When to call
Use your result as a screen. Most claims that are on track do not need a lawyer; the ones that are off track usually do.
Green — may be on track
Your combined benefits are under the 80% cap, so no offset is expected. Save this.
Yellow — worth watching
You are near the cap, or family SSDI benefits are involved (not fully modeled here). Watch your award letters.
Red — good reason to call
An offset is reducing your benefits in a way that does not match these numbers. Call.