What Happens if I Retire While on Workers’ Compensation?

What happens to my benefits when I retire?

Generally, if you voluntarily retire after being injured, your employer’s insurance company may file a petition to stop your wage loss benefits. This is because you are no longer in the work force, so the insurance company can argue that you are no longer disabled. These cases are rarely this simple, and we always recommend that you discuss retirement with your attorney if you are receiving workers’ compensation benefits. This is because it may not be in your best interest to retire while you are collecting workers’ compensation, and an experienced attorney can help guide you through that process and make the decision that is best for you and your family.

However, if your retirement is considered involuntary, then you may be able to continue receiving your benefits. If your work injury has disabled you to a point where you are no longer able to work, then that retirement would be considered involuntary. This means that you likely would not have retired at that time had it not been for your work injury. In these cases, having an attorney on your side is key to protecting your benefits.

Why do I need to discuss retirement with my lawyer if I am on workers’ compensation?

Your employer’s insurance company may try to argue that your retirement is not related to your work injury. These insurance companies tend to look for any excuse to stop paying your benefits, and retirement would be another opportunity for them to argue that they no longer have to pay. This is where having an attorney is key to protecting your rights. An experienced attorney, like our certified workers’ compensation specialist, can help make the case that your retirement is due to the injuries you sustained in the workplace. If you are experiencing complications with your work injury, an increase in pain, or a change in your mobility, these are all things that can lead to an involuntary retirement.

The Importance of Documentation

As you may already know if you’ve gone through the process of a workers’ compensation claim, documentation is everything. If your work injury is worsening or leading to other conditions and complications, seeking medical attention is key. For example, if your work injury starts to limit your mobility or function, go to your doctor and get their opinion. This is important not only for your health and to begin treatment, but to have that documentation that you did seek medical attention and that your condition is worsening. Documentation of your doctor or specialist visits, along with imaging such as x-ray, MRI, or other scans, can help support your case. These documents can help your attorney solidify the connection between your retirement and your work injury and prove that to a judge.

Other Workers’ Compensation Laws to Note

In the state of Pennsylvania, if you begin collecting retirement benefits after a workplace injury, your workers’ comp benefits will be reduced by 50 cents for every dollar you receive in retirement benefits. This does not apply to work injuries that were sustained after the time of retirement, like in cases of a retiree being injured at a part-time job they began after retirement. These laws were created to avoid a perceived “double dipping”, meaning being paid twice for the same injury. Medical benefits in your workers’ compensation claim are generally not affected by retirement. Whether your retirement is deemed voluntary or involuntary, your workers’ compensation insurance is still obligated to cover any medical expenses relating to your work injury.

Who can answer my workers’ compensation questions?

At O’Connor Law, we understand that these laws can be confusing and it can be difficult to determine what the best decision might be for you and your family. If you are currently collecting workers’ compensation benefits and are considering retirement, or if you have any other questions regarding how these laws can affect your case, please contact our office. Our experienced team of workers’ compensation attorneys can help guide you through these processes and help you make a more informed decision on what is right for you.