SSD: Difference Between Back Pay and Retroactive Pay
Once a person’s Social Security disability (SSD) application has been approved, he/she may be eligible for back pay or retroactive pay. Knowing the “how much,” “when,” and “how many months” is important, as these benefits may total thousands of dollars.
Back pay. There is a five-month waiting period from your application date for SSD benefits, during which you are owed zero benefits. Once that waiting period expires, you are eligible to receive your SSD benefits. However, the Social Security Administration is a busy place and sometimes gets backlogged. If you only start receiving your benefits seven months after your application date, you are entitled to two months’ back pay (seven months minus five-month waiting period). Back payments are payable for both SSD and SSI (Supplemental Security Income) claims.
Retroactive pay. Retroactive payment of SSD benefits is based on the alleged onset date of your disability (not your application date), up to the date of your application for SSD benefits, and includes a five-month waiting period. For example, if your disability began 12 months prior to your application date for SSD benefits, you would be eligible for seven months’ retroactive pay (12 months minus five-month waiting period). Only SSD applicants are eligible for retroactive pay, and are generally limited to 12 months of payments prior to their application date.
Back payments and retroactive payments are typically doled out as lump-sum payments. There is no interest added on.
Applying for and receiving SSD benefits can sometimes be a challenge. Contact a Social Security disability attorney to protect your rights.
