How Does A Pension Effect Workers Compensation Benefits and Settlements?

by admin on May 8, 2012

In accordance with the Pennsylvania Workers’ Compensation Act, receiving a pension can mean a drastic reduction or possible termination of your right to weekly wage loss workers’ compensation benefits, and can also have the same effect on any leverage in regards to your workers’ compensation settlement.

Under the Pennsylvania Workers’ Compensation Act, an employer is permitted to take a credit “For the payment of pension benefits to the extent funded by the employer directly liable for the payment of compensation.” For instance, if a trucking company provided full funding for an injured employee’s pension, they would then be entitled to a dollar credit monthly pension benefits received against an employee’s workers’ compensation benefits payable.

Now, this would obviously reduce the total amount of received compensation as well as lower the sum of settlement and negotiating leverage for the injured employee.

In addition to this, a recent case law allows for termination of all weekly forms of compensation if the injured worker is considered to be retired (removed from the labor market by their own will), as well as permits the collection of pension benefits as evidence allowing the complete suspension of compensation. This is an essential reason as to why talking to an experienced workers’ compensation attorney is important.

At Calhoon & Associates, we are available to offer free legal advice in regards to workers’ compensation in Pennsylvania.

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