13.1.2.1 Social Security Programs

• Jurisdiction: Arizona

. Under § 224 of the Social Security Act,^[10] social security disability payments may be reduced for any month in which workers’ compensation benefits are paid. The statute does not allow the combined workers’ compensation and social security disability payments to exceed 80% of the worker’s average current earnings.^[11] The workers’ compensation offset from social security has been challenged on constitutional grounds but has been upheld.^[12] This is so even though there is no social security disability insurance setoff for FELA and unemployment compensation.^[13]

In addition to its disability benefits program, the social security system also operates a retirement pension program. If a worker is collecting workers’ compensation payments and applies for social security retirement...