Lump sum payment Social Security
Past due disability benefit

What are "Back Benefit Checks" or "Lump Sum Payments"
Payable in My Social Security Disability Case?

  You may know friends or relatives who have received large, lump sum payments  from Social Security. These lump sum payments represent past due benefits.  People receive past due benefits because it takes so long for claims to work  their way through the system.

  For example, in the Atlanta area, it can take two to three years from the time a person applies until he is approved and receives his check. It takes this long because Social Security Administration employees  are overworked and because thousands upon thousands of people apply every day and each claim must be evaluated.

Example of Past Due Benefit Calculation

  Here is an example of how the lump sum payment system works using the facts of a recent case I tried and won. Tony was a long-time employee of a local college who worked as a steam mechanic.  On the weekends, Tony and his adult son made extra money installing gutters on houses.  In August, 2002, Tony and his son were installing gutters on the second floor of a large house.  The ladder on which Tony was standing gave way and Tony fell 20 feet onto a concrete pad.

  Tony continued to work at the college for about six months before the pain became too overwhelming and he retired in March, 2003.  Since his accident, Tony has had 3 back surgeries and currently is treating with a pain management physician. Tony applied for benefits in April 2003 and used March 15, 2003 as his “onset date.”

  The hearing in Tony’s case was held in December, 2006, and he was approved for benefits based on his onset date of March 15, 2003.  Tony will be paid past due benefits as follows:

March 15- July 31, 2003 - no benefits paid - SSDI benefits are subject to a 5 month waiting period

August 1, 2003 - December 31, 2003 - $1,500 per month x 5 months = $7,500.00.

January 1, 2004 - December 31, 2004 - $1,550 per month x 12 months = $18,600.

January 1, 2005 - December 31, 2005 - $1,575 per month x 12 months = $18,900.

January 1, 2006 - November 30, 2006 - $1,600 per month x 11 months = $17,600.

December 1, 2006 - on-going - SSDI payments adjusted yearly for inflation

Total past due benefits payable to Tony: $62,600.  My fee, as Tony’s lawyer, was 25% of these past due benefits with a limit of $5,300.  So, Tony will receive a lump sum of $57,300.

  Obviously, your lump sum payment may be different than Tony’s. The factors that come into play include the amount of your monthly benefit and the number of months you have to wait for an approval of your case.

The Five Month Waiting Period

   SSDI cases are also subject to a five month waiting period.  In many cases this means that you do not get paid for the first five full months of your disability.  Click on the link to learn more about the five month waiting period and how it works.