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Showing posts sorted by relevance for query reverse offset. Sort by date Show all posts

Sunday, October 13, 2013

Social Security raise to be among lowest in years

Social Security payments are tightly kinked to workers' compensation disability payments. When there are increases in benefits, some "reverse offset" states are liberal in passing along the adjustments to injured workers'. The State of New Jersey does NOT pass along the benefit increase and the workers' compensation insurance company does NOT increase the disability award payment to the injured workers. Today's post is shared from the dallasnews.org.

For the second straight year, millions of Social Security recipients, disabled veterans and federal retirees can expect historically small increases in their benefits come January.

Preliminary figures suggest a benefit increase of roughly 1.5 percent, which would be among the smallest since automatic increases were adopted in 1975, according to an analysis by The Associated Press.


Next year's raise will be small because consumer prices, as measured by the government, haven't gone up much in the past year.

The exact size of the cost-of-living adjustment, or COLA, won't be known until the Labor Department releases the inflation report for September. That was supposed to happen Wednesday, but the report was delayed indefinitely because of the partial government shutdown.

The COLA is usually announced in October to give Social Security and other benefit programs time to adjust January payments. The Social Security Administration has given no indication that raises would be delayed because of the shutdown, but advocates for...
[Click here to see the rest of this post]

Tuesday, March 2, 2021

Supplement Benefit Bill for Surviving Dependents of Essential Coronavirus Workers Passed by NJ Legislature

The NJ Legislature has now passed S2476. It provides supplemental benefit payments to the dependents of essential employees who died in the course of employment due to the contraction of coronavirus disease 2019. 

Wednesday, September 1, 2021

Social Security to be Depleted by 2033

The Social Security Board of Trustees today released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to become depleted in 2034, one year earlier than projected last year, with 78 percent of benefits payable at that time. 

Monday, January 25, 2010

NJ Workers' Compensation Revenue Bills to be Shelved

Bolstered by a united chorus of favorable comments at recent NJ Legislative hearings, the transition team of NJ Governor Christie has urged opposition to any new benefit increases for workers' compensation. The hearings were in response to a series on investigative articles that appeared in The Star Ledger alleging problems existed in the present system.

The transition team has made the following recommendations:

Oppose A-5181 (Egan, Evans) / S-639 (Sarlo, Gill): Increases workers' compensation for loss of hand or foot.
Impact: $20 - $25 million in increased costs to the system.

Oppose A-2846 (Greenstein, DeAngelo) / S-785 (Sweeney, Madden): Extends supplemental disability and dependent benefits for post-1979 claims.
Impact: These added benefits would be paid entirely by employers through an increased surcharge in their Workers' Compensation policy. An analysis by the Office of Special Compensation Funds within the Department of Labor and Workforce Development projects the annual cost to New Jersey employers at $125 million with the potential to be significantly higher if this law change caused New Jersey to lose its "reverse offset" benefit from the Social Security Administration.

Oppose S-1982 (Sweeney): Establishes an ombudsman for injured workers in, but not of, the Department of Labor and Workforce Development.
Impact: This would create an entirely new department within the State government with its incumbent salary and administrative costs. This would also duplicate many of the responsibilities now handled effectively by the Division of Workers' Compensation.

Click here to read more about workers' compensation reform efforts.

Tuesday, July 26, 2011

7 Problems Facing Work Comp in a Credit Default

White House Photo, Pete Souza, 7/25/11
Workers' Compensation payments are so intertwined with the national system of workers' compensation that a potential US credit fault will impact the system significantly. Workers' Compensation is social remedial legislation and as the US government leaders struggle to find a political solution to the nation's financial crisis concern becomes focussed on how a shutdown will impact the national workers' compensation system.


The consequences of a US credit default will be significant. President Obama stated, "If that happens, and we default, we would not have enough money to pay all of our bills -– bills that include monthly Social Security checks, veterans’ benefits, and the government contracts we’ve signed with thousands of businesses. "


1. Centers for Medicare and Medicaid Services (CMS) and their contractor will be unable to provide conditional payment information under the Medicare Secondary Payer Act. Negotiations in workers compensation matters will come to halt.


2. CMS will be unable to approve compromises and releases in advance of workers' compensation disposition thereby halting the State systems.


3. CMS and their agents will be unable to review Medicare Set-Aside Agreements thereby stopping workers' compensation dispositions by compromise.


4. Chaos will erupt in those States where Social Security takes a reverse offset on permanency payments. Workers' compensation insurance companies and employers will become responsible for the entire amount to be paid.


5. The Veterans' Administration will be unable to provide information concerning medical treatment. Records will he held-up and will delay evaluations in adjudications in workers' compensation cases.


6. Tricare and other federal insurance providers will be unable to provide benefit information. The lack of reimbursement data will stymie evaluation of medica reimbursement issues slowing the disposition and settlements of workers' compensation claims.


7. The US Military will be unable to provide Personnel Records and prior medical treatment and claim information.


The potential fiscal impact of a US debt crisis is enormous.  Hopefully, the politicians in Washington will reach a compromise and the this crisis will be resolved and everyone can creatively focus on making the compensation system less complicated and more efficient.

Tuesday, January 30, 2024

Long Overdue Public Safety Worker Coverage

Legislation has been reintroduced to provide workers’ compensation benefits for certain public safety workers who developed an occupational illness or injury flowing from the September 11, 2001, terrorist attacks. A closer look at the legislation reveals that it removes defenses such as causal relationship, statute of limitations, and jurisdiction. Complicated statutory and regulatory challenges may ultimately offset the benefits offered. 

Friday, May 29, 2009

Proposed North Carolina Legislation Caps Benefits for Seniors

Proposed legislation in North Carolina seeks to cap workers compensation benefits for those over the age of 65 years old. HR1022. The legislation specifically states: " Temporary total disability compensation shall continue for a period lasting until the longer of (i) when the injured employee is eligible by age for full benefits under the Social Security Act, 42 U.S.C. § 401, et seq., or (ii) a period of 300 weeks from the date of injury."

If passed, the legislation would be more limiting than "reverse offset" language enacted pre-1980 by several states and would follow a recently enacted legislation in Utah to limit benefits for the aged which was declared unconstitutional.

Saturday, October 14, 2017

2018 Social Security Changes - COLA Increases

The Social Security Administration has announced based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2016 through the third quarter of 2017, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.0 percent COLA for 2018.

Wednesday, April 13, 2011

Workers Compensation Taxable Rules US Tax Court

Seal of the United States Tax Court. Source: h...Image via WikipediaThe US Tax Court has ruled that workers' compensation payments are not excluded from US income tax under Section 104(a)(1) if they are paid as a Social Security Setoff Section 86(d)(3).

The majority of the states permit Social Security to take the setoff. A minority of states allow a reverse setoff where the insurance carrier takes the setoff, and the workers' compensation benefits are reduced.

“Nevertheless, … we are duty-bound to apply the law as written by Congress to the facts as they occurred and not as they might have occurred. Because [the taxpayer's] Social Security benefits were reduced by the amount of workers’ compensation benefits received, that offset amount is treated as a Social Security benefit and is, therefore, taxable,” the court said.


For over 3 decades the Law Offices of Jon L. Gelman  1.973.696.7900  jon@gelmans.com have been representing injured workers and their families who have suffered work related accidents and injuries.

Sunday, December 28, 2014

Gov. Chris Christie and NJ Workers' Compensation: Declining Approval

What has NJ Gov. Chris Christie done for Workers' Compensation? It appears that he has done little to nothing except, complain it needs reform.

NJ continues with high unemployment, a failing infrastructure, steep taxes, a mass migration of both Industry and Labor out-of-the state, high debt, and declining public pension reserves. The State continues with a spiraling rate of income inequality that reflects high and almost unobtainable maximum workers' compensation rates for the vast majority of low and middle income wage earners.

The State's antiquated workers' compensation system continues with a reverse social security offset that favors insurance companies to the detriment of the nation's taxpayers. NJ administratively refuses to allow COLA increases under the Triennial Redetermination Social Security program to those totally disabled workers who receive benefits and NJ continues to allow insurance companies and employers to reap benefits at the detriment of injured employers. NJ still maintains an antiquate, objectionable, obsolescent and costly Second Injury Fund for pre-existing injuries when the vast majority of states have terminated such programs.

Additionally, NJ, that lacks a medical provider fee schedule, continues to control medical treatment by requiring injured workers to obtain only employer authorized medical care and prohibits injured workers freedom to choose their own medical providers.

Unproductive bullying of the public at the NJ Governor's "town hall meetings" has become a trademark of his administration. The excitement and approval of "the entertainment value" of those events in the past caught the attention of the public at the emergence of his administration and allowed him to gain popularity. That has now faded has Governor Christie's public approval, according to recent polls in NJ, is declining.



In the meantime, Gov. Christie criticizes NJ workers' compensation and lacks an announced plan to correct the ailing system.

“'We’re  going to be coming up with a package of proposals that’s going to work both sides of that,' Christie told a caller on his monthly NJ 101.5 FM radio show tonight.

'The employers who may not be stepping up and meeting their obligations and also the employees who are committing fraud on the worker’s comp system,' he said."



NJ Gov. Christie, April 2013

Today's post is shared from nytimes.com/

When the Chris Christie-for-president chatter first started, in 2011, voters in his home state of New Jersey took pride in having a celebrity governor. As Nancy Reagan escorted Mr. Christie to his speech at her husband’s presidential library, and hedge fund billionaires, The Weekly Standard and The Wall Street Journal’s editorial pages urged him to run, his approval ratings jumped. Voters told pollsters the national attention made him more effective, and improved their state’s long-maligned image.

Four years later, with Governor Christie again considering a run for president, his constituents appear to be tiring of the whole routine.

Polls taken over the last three months reveal a list of home-state complaints: Mr. Christie’s favorability is at its lowest point, with more voters disapproving than approving of his job performance. New Jersey residents think he is making decisions with an eye on his national standing rather than on what is good for their state. They do not think he should run for president — they are, as the slogan goes, ready for Hillary — but most expect he will, and want him to resign if he does. Political talk in New Jersey centers less on Mr. Christie running for president and more on which one of three Democrats quietly seeking to succeed him will win — even though that election is three years away.

Click here to read the entire NY Times article.

Friday, December 2, 2011

NJ Legislation Seeks To Increase Counsel Fees

Practicing workers' compensation law is difficult work, and not usually economically rewarding. Most lawyers who handle claimant's work have a passion to help people. In most, if not many cases, the time and effort that an attorney puts into the case usually just doesn't offset fee paid in the case.

Gone are the days when scores of cases were adjudicated on a daily basis in most jurisdictions. Many factors have caused the system to shift from high gear to what seems like reverse. The manufacturing workforce has dwindled, conditions have become safer, a good thing, and reforms to the system have thrown in hurtles that appear insurmountable to obtain benefits. The tightening of recovery procedures by collateral sources have changed the flow, from a tidal wave of dispositions, to a dribble through the funnel.

Fewer and fewer attorneys now participate in workers' compensation claims, even though other areas of the legal economy have gone into the tank. Those who are remaining are attempting to be even more selective in what representation they undertake. With limited assets to invest there needs to be a an economic certainty for recovery more than ever.

Legislation has been introduced in NJ to expand the recovery of counsel fees. The Senate Labor Committee will meet on Thursday, December 8, 2011 at 10:00 AM in Committee Room 6, First Floor, State House Annex, Trenton, New Jersey discuss a pending bill to increase the base for benefits. S2446 Concerns attorney fees for workers' compensation awards.

"This bill requires that in cases in which a workers’ compensation  petitioner has received compensation from an insurance company  prior to any judgment or award, the reasonable allowance for attorney fees will be based upon the sum of the amount of compensation already received by the petitioner, and the amount of the judgment or award in excess of the amount of compensation  already received by the petitioner. Currently, in cases in which a  petitioner has received compensation prior to a judgment or award, a reasonable attorney fee is based upon only that part of the judgment or award that is in excess of the amount of compensation already received by the petitioner."