Imagine you’ve been involved in an accident requiring surgery and time to recuperate. Though the injury and rehabilitation period leave you completely unable to work, your doctor believes you will eventually make a full recovery. You know that Social Security does not offer partial disability payments through either Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), so you think you’ll be ineligible for Social Security disability benefits.
Although this may end up being true, the Social Security Administration (SSA) allows something called a closed period of disability for scenarios similar to the example above. If you meet the SSA’s closed period requirements, you will temporarily earn some disability benefits.
What Is a Closed Period of Disability?
A closed period of disability means that, while you are no longer disabled, you were approved for disability benefits when you were completely unable to work. The closed period begins at the beginning of the disability and ends when you can return to work at a level that meets the SSA’s definition of substantial gainful activity (SGA). Unlike ongoing disability benefits, a closed period does not provide continuing monthly payments, but it does allow individuals to receive compensation for the time they were unable to work due to a medically verified condition. Individuals who receive this benefit usually experience a disabling injury or illness that prevents them from working for an extended time but recover enough to resume employment before their disability case is decided.
What Are the Requirements for Closed Period Eligibility?
To qualify for a closed period of disability, you must meet all of the same criteria as people who apply for regular ongoing disability benefits; you will still need medical evidence to prove you suffered from a disabling physical or mental condition. The difference is that you must be completely unable to work for at least 12 consecutive months rather than be permanently disabled or suffer from a condition that is expected to result in your death. Additionally, your claim must have been filed within 14 months following the end of the disability. If you miss this filing deadline but can show that you were unable to file within the required period because of your condition, you may be able to file an application anywhere from 15 to 36 months after your disability ended.
Closed Period Award Benefit
If you are awarded benefits for a closed period of disability, you will only earn benefits for the months (at least 12) you were completely unable to work. The benefit amount you receive is also affected by the type of benefits you initially applied for. If you were awarded closed period SSI benefits, you will receive the full award amount for the duration of the closed period. On the other hand, if you get SSDI benefits for a closed period, the SSA still requires a five-month waiting period. Therefore, five months’ worth of benefits will be subtracted from your full award amount for the closed period.
Closed periods also allow you to freeze your earnings record during the time you were unable to work, so even if you return to work, your Social Security retirement benefits will not be reduced by any zero-income years that otherwise would have been factored into your overall work history.
Not everyone who is awarded a closed period of benefits applies for a closed period. You may file a claim for ongoing benefits, but if an administrative law judge (ALJ) at your hearing determines that you have recovered and can resume your job duties, they will award you benefits only for the time they believe you were completely unable to work.
Speak With a Social Security Lawyer
Applying for SSDI or SSI benefits can be challenging, especially while contending with a severe physical or mental condition. Jeffrey Freedman Attorneys is here to help. Our attorneys will fight for the benefits and compensation you deserve. If you believe your situation falls under the SSA’s closed period but you are struggling to apply or obtain benefits, don’t hesitate to reach out to our office.