Termination of Social Security Disability benefits is the end of payments made by the Social Security Administration (SSA). This happens after the SSA has decided that a recipient does not fit the legal definition of disability. The approval process is long for the millions of people who rely on these benefits. Do those benefits become permanent as soon as you are approved?
This blog details the situations under which your Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), or SSI benefits can be suspended or terminated. The analysis is based on the rules and regulations established by the SSA, such as the structures of work activity and Continuing Disability Reviews (CDRs). Knowing these rules is the only way to guard against a sudden loss of benefits.
Returning to Work
Since the definition of disability is deeply connected with the incapability to work, getting back to work is one of the most widespread reasons why your benefits can be checked and eventually terminated. Nonetheless, the SSA has developed work incentives that would allow you to test your capability of returning to the workforce without endangering your financial sustenance in the short term. The most important thing to know is that the conditions for returning to work are vastly different in the SSDI and SSI cases. Confusion about them can be catastrophic to your future eligibility.
The Trial Work Period and Extended Eligibility
When you are on SSDI, the SSA offers a strong safety net known as the Trial Work Period (TWP). This program allows you to work up to nine months and still receive your full monthly disability benefit regardless of your level of earnings.
It is necessary to understand that these nine months need not be consecutive. They may be distributed over a rolling 60-month period. The number of months that qualify as a trial work month is when your income goes above a certain threshold, which is predetermined by the SSA and changes yearly.
When you exhaust all your nine trial work months, you proceed to the next stage of work incentives, the 36-month Extended Period of Eligibility (EPE). In this 3-year window, you will continue to get your SSDI benefit for any month your income is less than what the SSA regards as Substantial Gainful Activity (SGA). But exceeding the limit of SGA per month, you will get no benefit payment. If your income continues to exceed the SGA level once these 36 months are over, you will lose your disability benefits.
Stringent Income and Asset Thresholds
In contrast to SSDI, Supplemental Security Income is a needs-based program, which implies that your eligibility depends directly on your financial condition. Employment may have very different impacts on your benefits. The SSA has put very rigid restrictions on the amount of income and assets you can possess to be eligible for SSI. In 2025, the income threshold will be $967 per month as an individual and $1450 per month as a couple, whereas the asset threshold will be $2000 as an individual and $3000 as a couple.
Luckily, the SSA does not include every dollar you earn in this limit. The agency will not consider the first 65 dollars of your monthly income and half of your income, so you can work part-time and still get a benefit. But when your countable income, which comes from your work and any other unearned income, is above the monthly limit, your SSI benefits will be cut or cease altogether.
Moreover, since SSI is needs-based, there are direct effects to changes in your household. In case of marriage, part of the income of your spouse may be considered as your own, thus pushing you above the income threshold and terminating your benefits.
Medical Improvement
The main assumption of your disability benefits is that you cannot work due to a medical condition. As such, if the SSA finds out that your health has been restored to a level where you can work again, your benefits will cease. The SSA decides this by conducting what is called a Continuing Disability Review. When you notice that your case is under review, it may be a cause for alarm; however, knowing how it works can help you prepare.
What is the Frequency of the SSA Review of Your Case?
The rate of your CDRs is solely determined by the SSA's determination of your chances of medical improvement. There are three categories that your case will fall under. If medical improvement is anticipated, you should be reviewed between 6 and 18 months before your benefit commencement date. If medical improvement is possible, your case will be reviewed approximately every three years. Lastly, when medical improvement is not anticipated, your reviews will be conducted at a lower frequency, that is, every five to seven years. The younger people tend to be reviewed more frequently than the older beneficiaries.
What Happens During a CDR?
The CDR process starts with a form sent by mail by the SSA. It can be a brief Disability Update Report or a more detailed Continuing Disability Review Report. You will be requested to provide new information regarding your medical treatments and physicians, as well as the impacts of your condition on your everyday life. A disability claims examiner will then request and review your new medical records to determine whether there is any evidence of improvement.
Here, it is imperative to note that your benefits can be terminated only if the SSA demonstrates that your medical condition improved and that this improvement is directly related to the fact that you can work at the SGA level. If the examiner does not determine any meaningful medical improvement, the review will be terminated, and you will not be subjected to any lapse in benefits. But if they notice you can work, you will be notified of cessation.
Major Life Events That Can Stop Your Benefits
In addition to the fact that you will resume work or improve your health, other important life events can cause your disability benefits to be suspended or terminated. Others apply to SSDI and SSI, whereas the rest are specific to the needs-based SSI program. You must report such changes to the SSA as soon as possible to prevent any potential problems, such as overpayments you would have had to pay back.
Achieving Full Retirement Age
SSDI benefits are not permanent when you collect them. Upon reaching your full retirement age, which is between 66 and 67, depending on your birth year, your disability benefits would automatically transform to Social Security retirement benefits. It is a smooth transition, which does not require an application. Your monthly payment will not be reduced in most instances. The first alteration is that your benefit has been renamed from disability to retirement.
Imprisonment or Legal Confinement
The disability benefits shall be suspended in case of confinement in jail, prison, or any other correctional facility for not less than 30 consecutive days after the conviction of a crime. This applies to SSDI as well as SSI. In the case of SSDI recipients, they are suspended and not terminated and can be reinstated shortly after their release, usually beginning the following month. The regulations are, however, even stricter on SSI. If you serve 12 months or more in custody, you will no longer be eligible to receive SSI. You must submit a new application to reinstate your benefits when you get out.
Changes that Only Affect SSI
Since SSI is one of the programs that has strict financial boundaries, some life changes that do not influence SSDI will make you lose your SSI benefits. Marrying someone is a big affair, because the wages and resources of your new family member might be added up, and you might have to provide a home that exceeds the eligibility requirements.
It also depends on how you live. If you live with friends or relatives who feed and shelter you, the SSA treats this as in-kind support and maintenance, and you will be paid less than the full benefit. Benefits can also be ended by exceeding the asset limit of $2000 for an individual or $3000 for a couple. This may occur when you inherit someone, get a significant cash gift, or even get a personal injury settlement, and spending your financial resources wisely is essential.
For SSI in Children
At the age of 18, the law stipulates that a child receiving SSI is to be subjected to a review known as age-18 redetermination by the SSA. This is not a standard CDR. Instead, the eligibility of the young adult is reconsidered under the much stricter disability provisions that apply to an adult. The disability of the child now renders him unable to engage in a gainful activity of a substantial amount.
This standard is more demanding than the childhood standard of marked and severe functional limitations. This redetermination process has led to the termination of the benefits of many persons who would have been considered as having SSI during their childhood, even though their medical condition has not changed at all.
Why Your Compliance with the SSA is Important
Your disability benefits may also be terminated on grounds that do not allude to your health or income but are just administrative. The Social Security system is based on rules and procedures, and not following their demands can be viewed as a refusal to demonstrate that you remain disabled. Thus, you need to keep the channels of communication open and cooperate with the SSA to the full extent to secure your benefits.
Responding to SSA Requests
The SSA requires that you respond comprehensively and quickly when they give you a notice or a form, such as a CDR questionnaire. Refusal to provide information or even to show up in a scheduled consultative medical examination may result in the SSA concluding that you have been incapable of cooperating. This may lead to an immediate suspension or loss of benefits. It is always important to remember to provide the SSA with your current mailing address so that you do not miss any critical letters that may compromise your eligibility.
Adherence to Recommended Medical Treatment
One of the most important aspects of showing that you continue to be disabled is that you are actively taking care of yourself. If you are not under some course of treatment prescribed by your physician and have no good reason why you are not so treated, like the inability to afford treatment or side effects so debilitating, the SSA can conclude that your condition is not as severe as you are saying. If the agency determines you can return to work by taking the prescribed treatment, your benefits may end due to non-compliance.
Your Benefits Termination and The Right to Appeal
It can be devastating to get a notice that the disability benefits provided by Social Security will cease, but one must remember that this is not the final decision. The determination of the SSA can be appealed in court. The deadlines concerning the appeals process are stringent. In most cases, the period for requesting reconsideration is 60 days after you received the cessation notice.
Importantly, if you would like to ask that your benefits be continued while deciding on your appeal, you must do so in writing within 10 days after receiving the notice. Note, though, that if you lose the appeal, you will most likely be subjected to the repayment of benefits received within this term. The process of appeal may be complicated and entails several levels, from reconsideration to hearing by an administrative law judge. Success in the process may take the assistance of a professional.
Locate a Disability Attorney Near Me
To continue receiving your Social Security disability benefits, you need to understand your obligations as a beneficiary. The benefits may be terminated for several reasons, such as returning to the workforce and earning more than the legal cap, medical recovery, significant life changes such as marriage or imprisonment, or not cooperating with the administrative processes of the SSA. Knowledge and proactive communication are the best tools to protect the financial support you depend on.
The rules of Social Security may be confusing, particularly when it comes to your life's financial security. If SSA has notified you or is worried about your further applicability in California, do not do it alone. Get in touch with Leland Law now at 866-449-6476 to have your rights and benefits safeguarded.
