Butler’s story exposes many potentially explosive issues with the overall system, particularly where an intersection with workers’ compensation along with SSDI is concerned.
A career cut short by Injury
In 1994, Butler suffered a severe spinal injury while lifting boxes as a nurse for which she was 32 years old at the time of the injury. Throughout the following years, the injury deteriorated and eventually required several surgeries in order to regain partial mobility. As such, Butler had to forfeit her nursing career and received workers’ compensation for the first seven months.
The commencement of the conflict
Once she stopped receiving workers’ compensation, Butler filed for SSDI benefits. At the time she applied for SSDI benefits, she completed a questionnaire indicating that she was indeed receiving workers’ compensation; however, the payments had stopped. The SSA thus initially sent her a notice, in June of 1997, indicating that the amount she could receive for her Social Security benefits had to be offset so her total benefits from both programs didn’t exceed 80% of her former earnings, a common practice when workers’ compensation and SSDI are awarded to a claimant.
But Butler immediately informed the SSA that her workers’ compensation benefits had ended and she expected her SSDI payments to rise. The rise never came, and she has been underpaid $1,625 a month. Over 27 years, that’s in excess of $500,000 lost benefits. “I did as I was asked,” Butler said. “But to this date, it’s never been done or addressed.”
Difficulty seeking redress
Over the course of the nearly three-decade saga, Butler has repeatedly written to SSA officials and even called her senators in an attempt to get her matter squared away. The deductions, however, have never stopped. “Unheard of,” financial expert Kevin Thompson, with 9i Capital Group, called the miscalculation. He said, “It’s unlikely that SSA does a lump sum payment back to that individual. But there may be some sort of remuneration.”
The offset provision
The SSA offsets disability benefits for those receiving workers’ compensation to ensure that the combined total does not exceed 80% of the worker’s average current earnings. The policy behind that is to bar an individual from receiving more in disability benefits than she made while working. That policy does not explain why an offset would continue long after her workers’ compensation stopped – a situation that suggests failure to update her status after her workers’ compensation stopped.
Accuracy and accountability of SSA
The data provided by SSA for the year 2024 gives an accuracy of 99.9% in payment outlays without underpayment.
While this sounds quite impressive, the case of Butler shows that when such errors occur even if rarely, they are capable of causing lifetime damage to a person.
Possible ways of solution
People who land in similar situations are suggested to do the following:
- Documentation: Keep a record of all contact with the SSA, including dates, times, and names of representatives spoken to.
- Appeals: The formal appeals process with the SSA is the course through which disagreements of decisions or requests for amendments are made.
- Legal action: If necessary, retain an attorney specializing in Social Security issues to explore options for seeking relief through the courts.
- Legislative aids: Contact local congressional representatives who may intervene on behalf of constituents with bureaucratic setbacks.
