As we have discussed in prior blog entries, the sweeping 1996 amendments to the Pennsylvania Workers’ Compensation Act (“Act”) included a credit of 50% of the Social Security Retirement benefit (known formally, yet indelicately, as “Old Age” benefit), against the receipt of the workers’ compensation benefit.
Unlike PA workers’ compensation benefits, however, Social Security Retirement (“SSR”) benefits have a “cost of living adjustment,” (“COLA”) to allow the recipients to keep pace with growing inflation (and don’t get us started on the ridiculous unfairness of the absence of a similar provision within the PA Workers’ Compensation Act). What had been unclear was whether the 50% offset against the workers’ compensation benefits included the COLA in the SSR. A recent decision from Commonwealth Court of Pennsylvania resolved this novel issue in favor of injured workers (not to mention justice and fairness).
In the case of Cheryl McCartney v. Commonwealth of Pennsylvania (Workers’ Compensation Appeal Board), Ms. McCartney suffered a disabling work-related injury in 1997, which was accepted by the issuance of a Notice of Compensation Payable (“NCP”). In 2017, the injured worker began to receive SSR benefits, and the workers’ compensation insurance carrier began taking the 50% credit.
Pennsylvania Workers' Compensation Lawyer Blog

