When you're approved for Social Security disability insurance (SSDI), you don't just start receiving monthly benefits. In most cases, you're also entitled to back pay—retroactive benefits dating back to when you first became disabled. But understanding how the SSA calculates and pays these past-due benefits can be confusing.
The legal team at Phillip M. Hendry Attorney at Law has helped numerous clients obtain SSDI benefits, including retroactive benefits. Our skilled Louisiana SSDI attorney is here to explain how back pay works and how having a lawyer on your side can help ensure you receive the maximum amount you deserve.
What Is SSDI Back Pay?
SSDI back pay, also known as retroactive benefits, covers the time between your disability onset date and your approval date. Essentially, it compensates you for the months you were unable to work due to your disabling condition but weren't yet receiving benefits.
When Back Pay Begins
Your SSDI back pay typically starts accruing either:
- The date you became disabled (your "alleged onset date")
- 12 months before your application date
You can receive retroactive payments for up to 12 months before your application date. So if your disability began two years ago but you didn't apply until last month, your back pay would only cover the 12 months before your application.
It's critical to have strong medical evidence documenting when your disability began and how it prevented you from working. A knowledgeable SSDI lawyer can help you build a compelling case for the earliest possible onset date, which can significantly increase your back pay.
5-Month Waiting Period
It's also important to note that SSDI has a five-month waiting period. This means the SSA won't pay benefits for the first five months after your disability onset date. Your back pay will exclude this waiting period.
However, if you have a previous period of disability within the last five years, you may be eligible for a disability "freeze." This can allow you to collect benefits without having to serve another waiting period. An experienced attorney can determine if you qualify and help you navigate this exception.
How the SSA Calculates Back Pay
SSDI back pay is calculated based on your monthly benefit amount and the number of eligible months you've been disabled before approval.
Let's say your onset date was January 1, 2020. You applied for SSDI on June 1, 2020, and were approved on January 1, 2021. Your monthly benefit amount is $1,200. Your retroactive benefits would be calculated as:
- Eligible Months: 7 (June 2020-December 2020)
- Monthly Benefit: $1,200
- Total Back Pay: $8,400 (7 months x $1,200)
Remember, the five-month waiting period would exclude January through May 2020 from your back pay calculation.
Other factors can also impact your back pay amount, such as:
- Previous disability periods
- Outstanding child support or alimony obligations
- Workers' compensation offsets
- Windfall Elimination Provision reductions
A seasoned SSDI lawyer can review your case, identify any applicable exceptions or reductions, and fight to maximize your retroactive benefits.
How the SSA Distributes Back Pay
Once your claim is approved, the SSA typically releases your back pay in one lump sum within 60 days. If back pay exceeds three times your monthly benefit amount, the SSA may split it into installment payments.
Back pay installments work like this:
- First payment. Your first installment equals three times your monthly benefit and is paid immediately.
- Second payment. Six months later, you receive another installment payment.
- Additional payments. The SSA continues paying in installments every six months until your back pay is fully disbursed.
An SSDI attorney can monitor the payment process, follow up with the SSA on any delays, and ensure you receive your full back pay promptly.
How a Louisiana Disability Lawyer Can Help
While back pay calculations may seem straightforward, many factors can impact your eligibility and the amount you receive. An experienced Louisiana SSDI attorney can:
- Ensure your alleged onset date is as early as medically supported
- Help you gather evidence to prove when your disability began
- Identify all eligible retroactive months based on your work history and waiting period
- Determine if you qualify for other back benefits, like dependent or widow payments
- Expedite the disbursement process and resolve any payment issues
- Fight for your full benefits if the SSA miscalculates your back pay
If you're applying for disability benefits in Louisiana or have been denied, you don't have to maneuver the SSDI system alone. The Law Office of Phillip M. Hendry will fight to maximize your back pay and secure the ongoing benefits you need to rebuild your life.