Social Security Disability Insurance (SSDI) provides those unable to work at their jobs with a financial payment each month — once they are approved. In addition to that monthly amount, some former workers can be paid a lump sum payment too. This payment, known as back pay, can be welcome after months of waiting for Social Security benefits to be approved. If you are about to apply for Social Security, you need to understand how back pay works. Continue reading for more information.
Based on Your Previous Job
Unlike SSI (Supplemental Security Income), SSDI is aimed at former workers. The SSDI program is funded by payroll deductions. Every paycheck you earn, except under rare circumstances, puts a little bit aside for your retirement. That money, while you are still working, may be referred to as Social Security Insurance. If you become unable to work before you reach retirement age, however, you can begin receiving benefits because of a medical or mental condition. When you apply for SSDI, one of the first verifications is to check that you have earned enough in the last few years to get benefits.
Your Last Day of Work
The last day you work at your job before stopping due to a condition is known as your date of last insurance (DLI). That is the last date that any Social Security deductions are removed from your paycheck. When you fill out your application, be accurate about this date because it's used to determine your back pay. The Social Security Administration (SSA) will verify the date with your last employer.
About Back Pay
Once you apply for SSDI benefits, the wait begins. You might have to wait for many months before you even get a denial from the SSA. Once you apply, though, your back pay begins to accrue. The accrual goes back to your DLI and accumulates until your benefits are finally approved. You should note that there is a five-month waiting period before it begins to accrue, however. Back pay is what you would have been paid had your benefits been approved at once after you stopped working. Back pay, however, is only available if you get approved for benefits in the first place — and that can be a problem.
When Claims Are Denied
It's not unusual for applicants to be denied benefits. The best way to handle that situation is to speak to a Social Security lawyer as soon as you receive the denial letter. This type of lawyer can help you file for an appeal and be with you at the hearing. This often results in approval of benefits. Speak to a Social Security lawyer about your case as soon as possible so that the deadline does not pass you by.
For more information about Social Security Disability, contact a local attorney or law office.
