As you should know already, you cannot collect more than 80% of your pre-disability income when you add the amount of your SSD benefit to the amount of your WC lost income benefit. If the sum of these benefits is more than 80% of your pre-disability income, SSA reduces the amount of your SSD benefit. The amount of your WC lost income benefit is NOT reduced. This is known as the “WC offset” rule.
Until recently, the WC offset rule no longer applied when you reached age 65. In other words, if your SSD benefit was reduced because you were also collecting WC lost income benefits, your SSD benefit would go up to the full amount as of your 65th birthday.
Effective December 19, 2015, the law changed. If your SSD benefit is being reduced because you are also collecting WC lost income benefits, your SSD benefit will go up to the full amount when you reach your full Social Security Retirement Age [“SSRA”].
Your full SSRA depends on when you are born. For example, if you were born in 1961, your full SSRA is age 67. Thus, as a result of this change in the law, the WC offset for you would end at age 67 (two years later than before the law changed).
To find your full SSRA, check out: https://www.ssa.gov/planners/retire/agereduction.html
Bottom line. There is NO action that you need to take in response to this notice. When you reach your full SSRA, however, check with SSA to make sure that your SSD benefit goes up to the full amount.