Florida's Disability, Workers' Compensation and Wage Loss Benefits

Section 224 of the Social Security Act requires an offset of disability insurance benefits if the disabled worker receives workers' compensation benefits. By statute, this reduction does not apply if the workers' compensation law or plan provides for a reduction of the workers' compensation benefit if the worker receives disability insurance benefits and the reverse offset law or plan was provided for on February 18, 1981. This is referred to as reverse offset. The Florida workers' compensation law contains a reverse offset plan, for weekly workers' compensation benefits, that was provided for on and prior to February 18, 1981. This reverse offset law precludes the Social Security Administration's (SSA) offset of disability insurance benefits. The Florida workers' compensation law also provides for monthly wage loss benefits, which SSA can use to offset disability insurance benefits. Section 440.15(9) of the Florida Statutes Annotated contains a reverse offset provision that requires a reduction of the weekly workers' compensation benefit if the worker is receiving disability insurance benefits. When this reverse offset applies, disability insurance benefits are not reduced. Section 440.15(3) of the Florida workers' compensation law contained a provision that paid a monthly wage loss benefit. For years, the position of the Florida Division of Workers' Compensation and, later, of the State courts was that the wage loss benefit was not subject to State offset (the reverse offset) because it was a monthly, not a weekly, benefit. Therefore, SSA reduced the disability insurance benefits due to the individual's receipt of monthly wage loss benefits.

In the Florida laws of 1989 (C.89-289, § 12), section 440.15(3)(b)(1), which provides for wage loss benefits, was amended to substitute "weekly" for "monthly" throughout the subparagraph. The effective date of the amendment was October l, 1989. Pursuant to section 224(d) of the Act, quoted above, and our regulation at 20 CFR 404.408(b)(2)(i), this revision of Florida law cannot be recognized by SSA for purposes of removing offset of disability insurance benefits since the amendment became effective after February 18, 1981.