Benefits can be a critical source of financial support for people who rely on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). However, these benefits do not last indefinitely, and there are several situations where payments could be stopped. Based on the SSA guidelines, here are the most common factors that could lead to the termination of disability benefits.
1. Aging Out of Eligibility For SSDI/SSI. Once a person reaches full retirement age, Social Security disability benefits are automatically converted to retirement benefits. This transition is a common reason why disability benefits might stop. Although the amount of money you receive typically remains the same, the nature of the benefits changes. There’s no need to reapply for benefits; they simply switch from disability to retirement once you reach full retirement age, which is usually between 66 and 67, depending on your birth year.
2. Death. Another reason benefits may stop is the death of the beneficiary. Once a person passes away, their Social Security disability benefits are terminated. For families who rely on benefits due to a loved one’s disability, it is essential to notify the SSA of the death promptly, as this ensures that benefits are not mistakenly paid out after the individual has passed.
3. Medical recovery. Disability benefits are provided based on an individual’s inability to work due to a medical condition. If a person’s condition improves to the point where they can engage in substantial work again, their Social Security disability benefits can be terminated. The SSA regularly reviews cases to ensure that the individual continues to meet the medical requirements for disability benefits. If they no longer meet these criteria, their benefits may be stopped.
4. Work recovery. Similarly, if a person on Social Security disability benefits can return to work and earn an income above a certain threshold, their benefits may be terminated. The SSA monitors the work activity of beneficiaries and will stop payments if the individual is deemed able to engage in substantial gainful activity (SGA). For SSDI recipients, this generally means earning more than a set monthly amount, which changes annually. While the SSA allows individuals to attempt a return to work through work incentive programs, ongoing employment may eventually lead to the termination of benefits.
5. Termination of benefits for disabled widow(er)s and adult children. For individuals who receive benefits as disabled widow(er)s (DWB) or disabled adult children (DAC), there are additional factors that could result in a termination of benefits. One of the primary reasons for benefit cessation in these cases is marriage.
DWB benefits are based on the earnings record of the deceased spouse. If a disabled widow(er) remarries, they may lose their eligibility for DWB benefits depending on the age of the widow(er) when they remarry.
DAC benefits are based on the earnings record of the disabled child’s parents. If the disabled child marries, they would become ineligible for DAC benefits as the marriage would sever their claim to benefits off of the record of their parent. In addition, if an individual receiving DAC can sustain substantial work activity, it would similarly sever their claim to benefits off of a parent’s earnings record in most situations.
6. Incarceration. Disability benefits will stop for individuals serving over 30 days in prison or penal institution after being convicted of a crime and be reinstated the month following their release.
What About SSI?
The rules for terminating benefits under the SSI program are somewhat different. While death and medical recovery are still valid reasons for terminating SSI benefits, the SSA also has provisions for suspending payments for financial reasons. Payments may be suspended if the recipient has:
Excess earnings
Excess unearned income
Excess resources, or
A change in living arrangements (such as moving into a new household or receiving in-kind support).
It’s important to note that SSI benefits are not automatically terminated for these reasons. In many cases, payments are simply suspended. However, if the suspension lasts 12 months or longer, the individual is considered to have been terminated from the SSI program.
Secure Your Benefits with the Disability Attorneys of Michigan
There are several reasons why Social Security disability benefits might stop being paid. These can include reaching full retirement age, recovering medically, returning to work, or changing financial circumstances for SSI recipients. Understanding these rules is essential for individuals receiving benefits, as it can help them plan for the future and take proactive steps to maintain their eligibility.
At Disability Attorneys of Michigan, we are here to support you in understanding your rights and ensuring you receive the benefits you depend on.
If you are considering applying for disability benefits, or need to appeal a denial, contact us today by submitting a form or calling 800-949-2900 for a free case evaluation.
