Workers’ Compensation Benefits Introduction to the Workers’ Compensation Program The purpose of this section is to provide information on the Workers’ Compensation Program, and in particular, the impact of Workers’ Compensation benefits, as well as other public disability benefits (PDB), on Social Security Disability Insurance (SSDI) and SSI. It’s important to identify general provisions of the Workers’ Compensation Program that are common across states. First, under the Workers’ Compensation Program, states authorize benefits for accidental, job-related injury. Employees are entitled to Workers’ Compensation benefits from the business only when they suffer a personal injury that arises out of an accident they incurred on the job. The injury or illness must not be or caused by intoxication or substance abuse. If it’s self-inflicted, or caused by intoxication or substance abuse, the individual won’t be eligible for a Workers’ Compensation benefit. Secondly, the types of Workers’ Compensation benefits employers provide include partial replacement of the individual’s lost wages as well as payment for medical costs and death benefits. Third, each state defines the covered businesses as well as the types of jobs that are covered under the Workers’ Compensation Program. In other words, for businesses, the Workers’ Compensation Program essentially limits their liability for on-the-job injury or illness to the remedies and benefits that are available to the individual under the workers’ compensation statutes in their particular state. It’s important to keep in mind, however, that while employees generally give up their right to sue their employer, they still retain the right to sue negligent third parties. If a third party is liable for the illness or injury, the proceeds from those lawsuits reimburse the business for benefits that they paid to the injured worker. Public Disability Benefits (PDB) Other than Workers’ Compensation A Public Disability Benefit or PDB as defined by Social Security is a benefit employers pay a federal, state, or local law or plan to workers for temporary or permanent disabilities. PDBs usually are not based on a work- related injury or illness and may be in the form of periodic
Postsecondary education or training Expenses are paid to an eligible educational institution. The institution is either a college/university or a vocational school as defined by the Higher Education Act or by the Carl D. Perkins Vocational and Applied Technology Education Act. Course fees Books and supplies Test fees Costs of courses for preparations for professional licensing examinations Special equipment, including a computer and software Tuition and fees (associated with enrollment or attendance at the school) Source: AFI Office of Community Services Asset Building – AFI Project Builder AFI Participant Disregard Letter: To Whom It May Concern: [name] an Individual Development Account (IDA) administered by [grantee name] with a grant from the federal Assets for Independence Program. An IDA is a matched savings account that allows a low-income individual or family to save for a specific purpose, such as attaining higher education, purchasing a home, or starting a business. Under federal law, ANY and ALL resources in an Assets for Independence Program IDA must not be considered when determining eligibility or benefit levels for any federal benefit program that considers an