A closed period of disability is awarded to a claimant whose medical evidence proves that they have been unable to engage in Substantial Gainful Activity (SGA) for at least a twelve month period of time, but later shows medical improvement according to the Social Security Administration’s (SSA) rules. If SSA finds medical improvement, it means the claimant was hypothetically able to work above SGA after a certain date, that SSA chooses based on the medical record. Currently SGA is $1010 gross income per month.
Many claimants file applications with the intention of receiving ongoing disability benefits from the SSA but due to the lengthy processing time of these claims find that their conditions have improved enough to begin working prior to a decision being issued.
The Administrative Law Judge (ALJ) may determine that the claimant is only eligible to receive back pay and no future benefits if the claimant has started to work above an SGA level. However, sometimes an ALJ may decide to award a closed period based upon the medical evidence showing improvement according to the SSA’s medical improvement standards, even without the claimant having actually returned to work.
If you have already returned to work and have not already filed an application for disability with SSA you may still be eligible. According to POMS Section: DI 25510.010, the claimant must file an application within 14 months of the disability ending. If you miss this deadline you must show that your physical or mental health conditions prevented you from filing an application on time and you must request the closed period within 36 months of the disability ending.
If approved for a closed period you would only receive back pay for the period of disability and no future benefits. If the claim is for Social Security Disability (Title II) benefits you must meet insured status during the time period in which you’re found disabled. You become insured by paying into the SSA and earning work credits. If the claim is for Supplemental Security Income (Title XIV) you must meet the financial eligibility requirements during the period of disability because this is a needs based benefit program.
