Social Security Disability: "Closed Period"

A closed period exists when a claimant for Social Security disability benefits or SSI is found to be ineligible for ongoing benefits, but yet eligible to receive benefits for a period of time in the past. If you were disabled for a time but were able to return to work while you awaited a decision about whether your claim for disability benefits was approved, you may qualify for a closed period of disability benefits.

Qualifying for a Closed Period Benefit

A closed period of disability benefits is defined as the time between the onset of a disability and the time when the claimant can return to work. In other words, the date you became unable to work opens the disability period and the date you are able to return to work closes the period of disability. Therefore, unlike an open period of disability benefits, a closed period of disability benefits has a definite beginning and end date.

To qualify for closed period disability benefits, the disability must persist, or must have persisted, for at least twelve months. A closed period of disability may occur while the claimant is waiting to hear from the SSA about qualifying for disability, or a new treatment may develop that allows the claimant to return to work.

For example, when the SSA is determining whether a claimant has a disability, after reviewing a claimant's medical evidence at an appeal hearing, the judge may find that the claimant's condition has significantly improved since filing the initial disability application. The judge denies the claimant ongoing benefits, but can award past-due benefits (that is, backpay) for a 13-month closed period, if the evidence verifies that the claimant met the disability criteria for the 13-month period.

SSDI vs. SSI Closed Period

If the claimant's application, in the above example, is for SSI (Supplemental Security Income), the claimant is entitled to receive the full 13 months of benefits.

But if the claimant's application is for Social Security disability benefits (also known as Title II, SSD, or SSDI), the claimant is subject to a five-month waiting period. In other words, the SSD claimant will receive only eight months of actual benefits despite being awarded benefits for the 13-month closed period. (SSDI recipients don't get benefits for the first five months of a disability.)

Closed Period Claim vs. Open Period Claim

It may be easier for a claimant to receive closed period disability benefits than it is to receive open period disability benefits. If the SSA approves an open period disability, it can be extremely costly because it is likely the claimant will continue to receive disability benefits. Approving a closed period claim involves less of a financial risk for the SSA. In addition, for some employees at the SSA, it is strong evidence of the fact that you honestly suffered a disability if you were unable to work for a period of time but then your condition improved and you were able to return to work.