The federal government, through the Social Security Administration (SSA), administers two disability programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Depending on your situation, you may qualify for one or both programs.
Getting approved for SSDI and/or SSI benefits can be a lengthy process, particularly if you have to appeal a denial of Social Security benefits. However, if you are ultimately approved for disability benefits, then you will receive back pay. This lump sum payment will cover the period of time between when you applied for benefits and when your claim was ultimately approved. Your retroactive benefits could be hundreds or even thousands of dollars, based on how long it took for your claim to be approved.
Bross & Frankel works with people with disabilities throughout New Jersey and Pennsylvania, helping them get the benefits that they are entitled to under the law. We have significant experience in Social Security disability claims, from initial applications through each stage of the appeals process. To learn more or to schedule a free claim review with a New Jersey Social Security disability lawyer, give our law offices a call today.
When Can I Get Back Pay for My SSI Claim?
A disabled person can apply for Social Security disability benefits when they are unable to work due to a disability. This disability must be expected to last for a period of 12 months or longer or be a terminal illness. Importantly, applicants are not required to wait until they have been out of work for a full year before they apply for benefits as long as their disability is expected to last for at least 12 months.
The reason this matters is because of “back pay.” This is an amount of money that the SSA will pay an applicant for the period of time between their initial application and the final approval of their claim. Given that the average processing time for Social Security disability claims is 7 months – and that the appeals process could take over a year – this could represent a significant amount of money.
Retroactive benefits for SSI and SSDI are handled differently. For SSDI you can receive up to twelve months of back pay prior to the date of your application or backpay calculated based on the date your disability began, whichever is later. In order to receive a full 12 months of backpay for SSDI prior to the date you apply, you must have become disabled at least 17 months prior to the date you file to account for the five-month waiting period from the date of disability until the date of entitlement.
For SSI, you are only entitled to benefits beginning the month after you apply for benefits. For this reason, you will not received retroactive (backpay) benefits prior to the date you file. In other words, if you were disabled for 18 months before you applied, you won’t get back pay for those months. Retroactive benefits only cover the period of time between your application and approval.
The rules regarding back pay are different for SSDI and SSI. For example, there is a five-month waiting period for SSDI, but SSI has no such waiting period. In addition, SSI back payments may be paid as either a lump sum or in installments depending on the amount of back benefits, while SSDI is always paid as a one-time payment.
Will I Get a Lump Sum Payment?
Under Social Security Administration rules for SSI back pay, you may either receive your back pay in a lump sum or in installment payments. If you are owed more than 3 times the maximum monthly benefit amount, then SSA will pay you in partial installment payments. In 2023, the maximum federal SSI monthly benefit is $914, so if you are owed more than $2,742 in retroactive benefits, then you won’t get it all at once.
Instead, the back pay installments will be paid out to you over time. Your total back pay will be split into 3 installments, paid at 6-month intervals. Depending on how much you are owed, these payments might not be split evenly in 3 because the first 2 payments cannot be more than 3 times your monthly benefit amount.
For example, if you receive the maximum monthly payment of $914 from the federal government and the SSA owes you $8,000, then the first 2 payments will be $2,742 each. Your final payment will be $2,516 – the remaining amount owed to you for your back pay award.
There are some situations where your initial installment payments may be larger. You can request that the SSA increase these payments if you need to buy a house, pay for medical necessities, or pay off certain debts. A New Jersey Social Security disability lawyer can help you reach out to the SSA to request larger installment payments.
If your total back pay amount is less than 3 times the maximum monthly benefit, you will receive the full amount of retroactive benefits in a one-time payment. You may also get a lump sum payment if you are not expected to live for more than 12 months or if you become ineligible for SSI after being approved for benefits.
When you get your award letter for SSI, it will state the amount of back pay that you are eligible for and when you will receive it. In most cases, you will be required to receive both your retroactive payment and monthly payments through direct deposit. Your back payments may even start before you get your first regular monthly benefit payment.
How Our Law Firm Can Help
Being approved for SSI benefits can be difficult, particularly if you aren’t familiar with the rules surrounding this program. A seasoned disability benefits lawyer can help you put together a strong application for SSDI and/or SSI, complete with the necessary medical records, proof of income and assets, and other documentation. If your claim for SSI is approved, your attorney can also help you understand your options when it comes to back pay awards.
At Bross & Frankel, we provide high-quality legal representation to people with disabilities seeking benefits from their insurer or the federal government. We offer free claim reviews, where we will help you understand your rights and options for filing a claim or appealing a denial To learn more or to schedule a claim review with a New Jersey Social Security disability attorney, give us a call at 866-311-3786 or fill out our online contact form.
Rich Frankel is the managing partner of Bross & Frankel. He is a member of the New Jersey and Pennsylvania bars. He has focused exclusively on disability and social security benefits since 2005.
Mr. Frankel joined what is now Bross & Frankel after having watched his father struggle with disability, fighting a lengthy illness. Mr. Frankel founded the firm’s veteran’s law practice and substantially grew the social security disability practice, focusing Bross & Frankel’s ability to fight for all of the disability benefits available to his clients.
Mr. Frankel additionally fights for clients in court, obtaining frequent victories in Social Security appeals and against insurance companies in Federal court.