Oregon Revised Statutes

Or. Rev. Stat. § 656.209 (2026)

Offsetting permanent total disability benefits against Social Security benefits

✓ current as of May 2026
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      656.209 Offsetting permanent total disability benefits against Social Security benefits. (1) With the authorization of the Department of Consumer and Business Services, the amount of any permanent total disability benefits payable to an injured worker shall be reduced by the amount of any disability benefits the worker receives from federal Social Security.

      (a) If the benefit amount to which the worker is entitled pursuant to this chapter exceeds the worker’s federal disability benefit limitation determined pursuant to 42 U.S.C. 424(a), the reduction in worker’s compensation benefits authorized by this subsection shall not be administered in such manner as to lower the amount the worker would have received pursuant to this chapter had such reduction not been made.

      (b) If the benefit amount to which the worker is entitled pursuant to this chapter is less than the worker’s federal disability benefit limitation determined pursuant to 42 U.S.C. 424(a), the reduction in worker’s compensation benefits authorized by this subsection shall not be administered in such manner as to lower the amount of combined benefits the worker receives below the federal benefit limitation.

      (2) No reduction of permanent total disability benefits shall be made pursuant to this section unless authorized by the department.

      (3) No reduction of benefits shall be authorized pursuant to this section except upon actual receipt of federal Social Security disability benefits by the injured worker.

      (4) The effective date of the operation of any offset provided in this section shall be the date established in the authorization provided in subsection (1) of this section, whether the authorization was issued prior to or subsequent to May 8, 1979. [1977 c.430 §5; 1979 c.117 §3]

Notes of Decisions
Cited in 6 cases, 1980–2002 · leading case: Cutright v. Weyerhaeuser Co., 702 P.2d 403 (Or. 1985).
Cutright v. Weyerhaeuser Co., 702 P.2d 403 (Or. 1985). · cites it 2× “In ORS 656.209 the legislature has addressed the case of the worker who is receiving "disability" benefits from federal social security.”
Hayden v. Workers' Comp. Dep't, 713 P.2d 612 (Or. Ct. App. 1986). · cites it 6× “In August, 1983, pursuant to ORS 656.209, 1 defendants authorized employers and insurers responsible for plaintiffs’ PTD benefits to offset their federal disability payments from their workers’ compensation benefits to a greater extent than had previously been authorized.”
Johnson v. Capitol Car Wash, 871 P.2d 473 (Or. Ct. App. 1994). · cites it 4× “The Department of Insurance and Finance (DIF) authorized SAIF to reduce the monthly PTD payment by the amount of claimant’s monthly social security benefit, pursuant to ORS 656.209. It ordered that claimant’s attorney fee of 25 percent be paid monthly from the remainder of PTD.”
Am. Bldg. Maint. v. McLees, 679 P.2d 1361 (Or. 1984). “This holding is not inconsistent with the fact that the legislature has demonstrated that when it chooses to require the consideration of other sources of compensation, it does so specifically.”
Reynolds v. Hydro Tech Inc., 49 P.3d 827 (Or. Ct. App. 2002). “”); ORS 656.209 (describing reduction for social security benefits in permanent total disability benefits payable to an injured worker); ORS 656.”
Fletcher v. State Accident Ins. Fund, 617 P.2d 945 (Or. Ct. App. 1980). · cites it 5× “This is an appeal from a Workers’ Compensation Board decision interpreting ORS 656.209. 1 That statute provides: "(1) With the authorization of the department, the amount of any permanent total disability benefits payable to an injured worker shall be reduced by the amount of…”
— Or. Rev. Stat. § 656.209(1) — 2 cases
Hayden v. Workers' Comp. Dep't, 713 P.2d 612 (Or. Ct. App. 1986). “In August, 1983, pursuant to ORS 656.209, 1 defendants authorized employers and insurers responsible for plaintiffs’ PTD benefits to offset their federal disability payments from their workers’ compensation benefits to a greater extent than had previously been authorized.”
Johnson v. Capitol Car Wash, 871 P.2d 473 (Or. Ct. App. 1994). “The Department of Insurance and Finance (DIF) authorized SAIF to reduce the monthly PTD payment by the amount of claimant’s monthly social security benefit, pursuant to ORS 656.209. It ordered that claimant’s attorney fee of 25 percent be paid monthly from the remainder of PTD.”
— Or. Rev. Stat. § 656.209(l)(b) — 1 case
Johnson v. Capitol Car Wash, 871 P.2d 473 (Or. Ct. App. 1994). “The Department of Insurance and Finance (DIF) authorized SAIF to reduce the monthly PTD payment by the amount of claimant’s monthly social security benefit, pursuant to ORS 656.209. It ordered that claimant’s attorney fee of 25 percent be paid monthly from the remainder of PTD.”
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