Workers’ Comp & Retirement

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Retaining Your Most Experienced Workers

As older employees consider retirement, employers, like you, often face a crossroads. Is this employee replaceable? Is there a way you can better meet their needs to help them remain at your company longer?
It’s often worth it to retain your employees. Not only does it save money, time and resources, but they can also train your younger employees. In fact, you want them to pass their wisdom on to as many employees as possible.
One option for retaining aging employees is to give them flexible work schedules, like allowing them to work from home more often. In many cases, retaining your critical employees outweighs the challenges that may come with their age. Not to mention, you already know you can count on their:
  • Low absenteeism
  • Strong work ethic
  • Reliability
  • Loyalty
  • Skills
  • Knowledge
As you work to accommodate older workers’ needs, you’ll want to consider any:
  • Diminishing physical abilities
  • Health issues
  • Injury or illness it may take them longer to recover from
Our Risk Engineering team can help you identify the best choice for your employee, your company and your future.

Can Your Employees Retire While on Workers’ Compensation?

For some, retirement can be a hard pill to swallow. For others, like tradesmen, CEOs and business owners, it’s a long-awaited reward for years of hard work and dedication to their craft.
So what happens if your employee gets injured on the job but is also about to retire? The answer is actually simple. If your employee retires while on workers’ compensation, your coverage will continue to pay their medical bills that are related to the injury. However, payments for lost wages are impacted by Social Security retirement benefits and the state your employee lives in. In most states, once your employee reaches retirement age, they can receive both workers’ compensation and Social Security retirement benefits. Although, some states may reduce the workers’ compensation payments.
There are some cases where a workers’ comp judge approves a lump sum settlement for an employee receiving workers’ compensation benefits. However, this depends on the legal issue at hand and the workers’ comp benefits provided.
To help you handle a work injury correctly, here are some tips:
  • Get help and ensure medical providers are on their way.
  • Take pictures of the injury and the scene of the incident.
  • Report the incident within 30 days to your insurance company and record it in your personal records.
Remember, workers’ comp doesn’t cover your employees’ personal injury if it happens outside of work.

Can Your Employees Get Both Workers’ Compensation and Social Security Retirement Benefits?

The quick answer is yes, your employees can receive both. However, your workers are only eligible for social security retirement benefits when they’ve reached the age of 61 years and eight months.1 There is no age limit for workers’ compensation. Depending on the case, Social Security retirement benefits may reduce workers’ compensation payments.

Average Cost of Workers’ Compensation Insurance

A number of factors can affect your workers’ compensation insurance costs, including the: 
  • Laws in your state: Each state has different requirements for minimum coverage that can increase your cost.
  • Size of your payroll: The more employees you have, the higher your cost can be.
  • Type of work your employees do: If they have jobs that involve more risk, it could increase your rate.
  • Number of full- or part-time workers you have: Different types of workers will require different coverage amounts.
To determine the amount of risk your employees face, you can look at the National Council on Compensation Insurance (NCCI) class codes. The NCCI uses industry data and trends to assign risk levels or class codes to different jobs. For instance, a construction worker has a different code and higher rate than a retail worker.
Depending on your state, your business may also receive an experience modification number. The NCCI determines this number by comparing your business’ claims history with other similar companies. If you have a lower experience modification number, you can have a cheaper premium.
Once you have all your information, you can then determine an estimate for your premium using this simplified formula:
Workers’ Classification Code Rate X Experience Modification Number X (Payroll/$100) = Premium**
To get a more exact estimate, get a workers' comp quote today or call one of our representatives at 855-829-1683.
** This is a simplified formula only for reference. An actual workers’ comp premium calculation can be more complicated. Experience mods are subject to state requirements and do not apply to every policy.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.
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