What Are My Retroactive Benefits, And Why Are They Taking So Long?

Retroactive benefits (or back-pay) are the benefits that accrue while you wait for your Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI) claim to be granted. In theory, you will begin receiving your monthly benefits and then the retroactive benefits are released within the next three months. However, we have been seeing extreme delays in the release of these retroactive benefits over the last year or so.

Some local Social Security offices are estimating that it is taking certain payment centers an additional eight to twelve months to release these retroactive benefits. The reason being cited is that the payment centers are extremely backlogged and understaffed, and that Social Security is concentrating on meeting the demands of getting the monthly benefit started as the first priority. Essentially, the processing of retroactive benefits is being pushed to the back burner.

If you can prove a “dire need” situation, then Social Security will try to release your retroactive benefits sooner. For example, retroactive benefits may be released sooner if you can show that you lack the resources to obtain food, critical medication or medical treatment, or shelter. You can submit eviction notices, foreclosure notices, shut-off notices, and other items to substantiate the claim that your case meets the “dire need” standard to expedite the retroactive benefit processing. Additionally, claimants who suffer from terminal illnesses or are designated “wounded warriors” from active duty injuries may also see their retroactive benefits processed more quickly than other beneficiaries.

Please contact us if you are interested in applying for disability benefits, or if you are looking for help with an existing claim!

By: Joyce Trudeau of Premier Disability Services, LLC^®

Social Security 2017 Trustees Report

On July 13, 2017, the Social Security Board of Trustees released its annual report on the current and projected financial status of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds.

The combined asset reserves of the OASDI trust funds are projected to become depleted in 2034, the same as projected last year, with 77 percent of benefits payable at that time.

In the 2017 Report to Congress, the trustees also announced:

-The combined trust fund reserves are still growing and will continue to do so through 2021. Beginning in 2022, the annual cost of the program is projected to exceed income.

-The DI trust fund will become depleted in 2028, extended from last year’s estimate of 2023, with 93 percent of benefits still payable.

-The projected actuarial deficit over the 75-year long-range period is 2.83 percent of taxable payroll – 0.17 percentage point larger than in last year’s report.

You can view the full 2017 Trustees Report at www.socialsecurity.gov/OACT/TR/2017/.

By: Thomas A. Klint of Premier Disability Services, LLC^®

Can I Reopen My Previous SSD Application?

If you are denied benefits and decide not to appeal your claim – or if you miss the deadline for your appeal – then the Social Security Administration (SSA) will close your case. However, you may be able to have the claim reopened at a later date if you file a new claim and it is related to the original one.

Your entitlement to benefits is tied to your application date. If you are awarded Supplemental Security Income (SSI), you are entitled to benefits beginning on either the date of your application, or the date you became disabled (whichever is latest in time); if you are awarded Social Security Disability Insurance (SSDI) benefits, you are entitled to benefits beginning either 12 months prior to your application date or five months after you became disabled (again, whichever is latest in time). If your prior claim is reopened, the SSA will use the date of your first application as the date from which you may be eligible for these back benefits. This means that you may be entitled to more back-pay if you claim is reopened.

To be reopened, a prior disability claim needs to be related to the current disability claim (for example, an initial claim for a herniated disc and a second claim for a herniated disc and spinal stenosis). The SSA will not reopen a prior claim that is based on a disability that is unrelated to the current claim. In addition, the onset date of your disability on your second claim must be within the timeframe covered by your first application. The SSA has not created a particular form or process for claimants who want to reopen a claim. To reopen a claim, you must file a new application for disability benefits and ask the SSA to reopen your old claim.

Whether Social Security will reopen a prior claim depends on how old it is:

Prior Claim Less Than 1 Year Old: A prior claim that became final after Disability Determination Services (DDS) or an administrative law judge made an initial determination can be reopened within 12 months of the date of the decision for any reason. After 12 months has passed, it becomes more difficult to reopen a claim.

Prior Claim 2-4 Years Old: The rules for reopening claims more than 12 months old are different for SSI and SSDI, but in either case, it is a difficult thing to do. The SSA can reopen an SSDI claim within four years if it finds good cause to reopen the old claim, and can reopen an SSI claim within two years if it finds that there is good cause to reopen the claim. For both SSI and SSDI, good cause is defined as having new and material evidence about the claim, finding a clerical error in the way benefits were calculated, or when the written DDS decision shows error “on its face.”

Prior Claim More Than 4 Years Old: The SSA will reopen a case that has been closed for more than four years only for a few very specific and rare reasons. SSI claims can be reopened at any time if there was fraud or similar fault. Examples are when someone knowingly made false statements or left out information that can affect the outcome of the decision. SSDI claims can be reopened at any time if there was fraud or similar fault, but also to correct a mistake in computing benefits, to correct an error that is evident on the face of the written decision, or for a few other unusual reasons, like if the denial was based on a criminal conviction that was later overturned.

If you or someone you know is trying to reopen an old SSD claim – or looking to file a new application – please contact us for a free case evaluation!

Sources: https://secure.ssa.gov/poms.nsf/lnx/0427501005; https://www.ssa.gov/OP_Home/hallex/I-02/I-2-9-40.html; https://secure.ssa.gov/poms.nsf/lnx/0427505001

By: Joyce Trudeau of Premier Disability Services, LLC^®