How Far Back Can Retroactive SSDI Payments Go?

If you struggle with a disabling medical condition that has rendered you unable to work and earn income as you otherwise normally would, you may be eligible to receive disability benefits from a variety of sources, including from the Social Security Administration. Depending upon the date that your disability began and the date you filed your application, you may also be eligible to receive retroactive benefits – also known as back pay.

Let’s examine the types of benefits offered by the Social Security Administration and the circumstances under which back pay might be awarded.

What Types of Disability Benefits Does the Social Security Administration Offer?

The Social Security Administration offers two primary types of disability benefits. These include:

• Social Security Disability Insurance (SSDI) Benefits: SSDI benefits are disability benefits that the SSA pays to individuals with a qualifying disability that has rendered them unable to work for at least one continuous calendar year or more. In addition, the person must be “insured,” – meaning that he or she worked a qualifying job for a sufficient amount of time and regularly paid a portion of the salary from that job into the Social Security system.
• Supplemental Security Income (SSI) Benefits: As with SSDI benefits, in order to receive SSI benefits, an individual must have a disabling condition that has led to an inability to work for at least one calendar year or more. Unlike the case with SSDI benefits, however, an individual need not be insured. Instead, the individual will have to have income and resources below a certain limit established by the Social Security Administration. That limit may change from year to year.

The amount of benefits paid to an individual will not depend upon the condition itself but instead, upon the individual’s work history, income level, and a variety of other factors. Regardless of whether SSDI or SSI is received, back pay may be an option.

How is the Time Period for Back Pay Determined?

The SSA handles retroactive benefits for SSI and SSDI differently. For those receiving SSI benefits, entitlement to benefits begins with the month the application is received. Therefore, even if you were disabled for several months before filing, you are only eligible to receive retroactive payments from the date your application was filed until the date it was approved.

Retroactive payments are handled differently in the case of SSDI benefits. Depending on the circumstances, the Social Security Administration may pay up to 12 months of retroactive SSDI benefits. These benefits are intended to provide financial support for the time period between the established onset date (EOD) when the disability actually began and when the application for benefits was filed.

For SSDI benefits, there is generally a mandatory five-month waiting period after filing an application. Ultimately, to receive an entire year of retroactive benefits, the established onset date must be within 17 months before the application was filed to account for that waiting period. SSI benefits have no such waiting period.

When Will I Receive My Retroactive Benefits?

Most people want to know the time period for which retroactive benefits might apply and when and how they might receive that payment. That’s an understandable question. After all, when you’re unable to work, circumstances can be difficult financially, and additional benefit payments can certainly make a substantial difference.

For SSI benefits, the SSA will typically provide the back pay in either a lump sum or in installment payments. Generally, if you are owed more than three times the maximum monthly benefit amount, you will receive those benefits as monthly payments.

For SSDI benefits, the Social Security Administration will pay a maximum of 12 months in back payments. The total amount will usually be your monthly benefit amount multiplied by the total number of months of retroactive pay owed. Often, these benefits are paid in a lump sum.

Understandably, issues of back pay can seem complicated and confusing. That’s why your first step should always be consulting an attorney who knows and understands the law and can offer advice regarding your particular circumstances. At Keener Law, we’re here for you.

Call Keener Law Today

At Keener Law, we’ve helped countless clients, just like you, to pursue the disability benefits they need and deserve. We know that living with a disability isn’t easy. We also know the huge difference these benefits can make in relieving the financial stress that often comes with being unable to work and provide for yourself and those you love as you otherwise normally would. We understand the law, and we have years of experience fighting to protect and preserve our clients’ rights. We would be honored to help you, too.

If you’re ready to get started, give us a call today. We look forward to speaking with you soon.