Workers' comp settlement and retirement
Settlement and retirement
A settlement decision lasts longer than the case.
Five things to think about before you settle
- Your retirement date. If retirement is close, the timing of a settlement can matter. Raise it with us before anything is signed.
- Social Security. A workers' comp settlement can interact with Social Security Disability or retirement benefits. How it is written matters, so we look at it before you decide.
- Medicare. If a Compromise and Release closes your future medical care and Medicare is in your future, part of the settlement may need to be set aside for that care.
- Future medical care. Keeping it open with the insurance carrier and cashing it out are different choices with different risks. We walk through both with you.
- Your pension and other income. Permanent disability paid over time sits alongside a pension or other retirement income. We help you see the whole picture.
Two ways a case can settle
- Compromise and Release
Often called a C&R
- Usually one lump-sum payment
- Often closes future medical care through workers' comp
- The exact terms depend on the agreement
- Stipulations with Request for Award
Often called Stips. Also called Findings and Award, or F&A.
- Permanent disability paid over time
- Awarded future medical care stays open with the workers' comp insurance carrier
Questions to think through
Should I settle my future medical care?
That depends on your injury, the treatment you may need, the strength of the medical evidence, and your willingness and ability to manage future care on your own. Closing future medical care can give you finality and a lump-sum settlement, but it also shifts responsibility for your future treatment away from the workers’ compensation insurance company. Medicare or other benefit programs may also affect how your settlement must be structured.
Before you agree to close medical care, make sure you understand your likely future medical needs and the practical risks.
What is the difference between a Compromise and Release and Stipulations with Request for Award?
A Compromise and Release usually resolves your case with a lump-sum payment. It often closes your right to future medical treatment through the workers’ compensation system, although the exact terms depend on the agreement.
Stipulations with Request for Award, also called Findings and Award (F&A), generally pay your permanent disability over time. Awarded future medical care stays open with the workers' comp insurance carrier.
Neither option is automatically better. The right structure depends on your medical needs, your benefits, how much risk you're comfortable with, and your goals.
What happens if I cannot return to my regular job?
Your treating doctor or medical evaluator may give you permanent work restrictions. Your employer then decides whether regular, modified, or alternative work is available.
If your employer can't offer qualifying work, you may be eligible for a Supplemental Job Displacement Benefit voucher and other benefits. Your options depend on your date of injury and the circumstances of your case.
What is a Supplemental Job Displacement Benefit voucher?
A Supplemental Job Displacement Benefit, often called an SJDB voucher, may be available to you if you're eligible and your employer doesn't offer appropriate regular, modified, or alternative work. You can generally use the voucher for approved education, retraining, licensing, testing, computer equipment, and certain related expenses. It isn't ordinarily paid to you as unrestricted cash.
For most injuries since 2013, the voucher is $6,000. It must be used within two years of when it's issued, or it expires.
What is the Return-to-Work Supplement Program?
If you receive an SJDB voucher, you may also qualify for a one-time $5,000 payment from the State of California, not the insurance company. It's paid to you in cash, not as a voucher. You apply online, separately from your case, and you must apply within one year of when the voucher was served on you, or you lose it.
Talk with us about your claim.
A real person in our office reads every inquiry and responds within two business days.
Have a deadline in the next few days? Say so in your message, and we'll look at yours first. You can also call us Monday through Thursday, 9 to noon or 2 to 4.
Office hours: Monday through Thursday, 9 a.m. to noon and 2 to 4 p.m. Closed Fridays.