Reduction of compensation by amount of federal disability insurance benefits received by employee.
1. If an employee who is entitled to compensation under chapters 616A to 616D, inclusive, of NRS for temporary total disability, permanent partial disability or permanent total disability becomes entitled to federal disability insurance benefits under section 202 or 223 of the Social Security Act, as amended (42 U.S.C §§ 402 and 423, respectively), the employee’s compensation under chapters 616A to 616D, inclusive, of NRS must be reduced by the amount of the federal benefits being received by him.
2. This section must not be applied to reduce the employee’s compensation under chapters 616A to 616D, inclusive, of NRS to any greater extent than his federal benefits would have otherwise been reduced by the Social Security Administration under section 224 of the Social Security Act, as amended (42 U.S.C. § 424a). After any reduction pursuant to this section, the combination of his state compensation and federal benefits must be at least as much as the greater of:
(a) The benefits payable pursuant to chapters 616A to 616D, inclusive, of NRS (without the reduction); or
(b) The benefits payable under the Social Security Act (without any reduction).
3. After a reduced amount of compensation for an employee has been established pursuant to this section, no further reduction in his compensation may be made because he receives an increase in his benefits under the Social Security Act as the result of an adjustment based on an increase in the cost of living.
4. No compensation may be reduced pursuant to this section until the Social Security Administration has determined the amount of benefits payable to the employee under section 202 or 223 of the Social Security Act and he has begun to receive those benefits.
5. If an employee:
(a) Fails to report the amount of benefits which he is receiving under section 202 or 223 of the Social Security Act, within 30 days after he is requested in writing by the insurer to make that report; or
(b) Fails to provide the insurer with a written authorization for the Social Security Administration to release information on the employee’s average current earnings and the amount of benefits to which he is entitled, within 30 days after he is requested to provide that authorization,
Ê the insurer may reduce by 50 percent the compensation which the employee would otherwise receive pursuant to chapters 616A to 616D, inclusive, of NRS. Any compensation which is withheld pursuant to this subsection must be paid to the employee when he has furnished the report or authorization as requested.
6. If the provisions of section 224 of the Social Security Act are amended:
(a) To allow an employee to receive more compensation under chapters 616A to 616D, inclusive, of NRS without any reduction in benefits payable under section 202 or 223 of the Social Security Act; or
(b) To lower the maximum sum of compensation payable under chapters 616A to 616D, inclusive, of NRS and benefits payable under section 202 or 223 of the Social Security Act,
Ê the reduction imposed by this section must be increased or decreased correspondingly.
7. No reduction in compensation may be made under this section for any period of entitlement which:
(a) Occurs before January 1, 1982;
(b) Occurs before the employee has been given a written notice by mail of the intended reduction; or
(c) Includes any week after the week in which the employee becomes 62 years of age.
Last modified: February 25, 2006