Understanding the Termination Month for Disability Benefits: Section 404.325 Explained with Examples

The termination month plays a crucial role in determining the end of your disability benefits.

In this blog post, we’ll discuss Section 404.325 of the Social Security Administration’s regulations, which outlines the rules for determining the termination month for disability benefits. We will also provide two examples to help illustrate these rules.

The Termination Month:

According to Section 404.325, the termination month for your disability benefits can vary depending on whether you have a disabling impairment or not:

1. If you do not have a disabling impairment, your termination month is the third month following the month in which your impairment is no longer considered disabling.
2. If you continue to have a disabling impairment and complete nine months of trial work, your termination month will be the third month following the earliest month you perform substantial gainful activity or are determined able to perform substantial gainful activity. However, the termination month cannot be earlier than the first month after the end of the 36-month reentitlement period.

Example 1:

You complete your trial work period in December 1999 and work at the substantial gainful activity level throughout the 36 months following the completion of your trial work period and beyond. In this case, your termination month will be January 2003, the first month you performed substantial gainful activity after the end of your 36-month reentitlement period.

Example 2:

You complete your trial work period in December 1999, but you do not perform substantial gainful activity during your trial work period or throughout your 36-month reentitlement period. In April 2003, four months after your reentitlement period ends, you become employed at work that is determined to be substantial gainful activity. In this situation, your termination month will be July 2003, the third month after the earliest month you performed substantial gainful activity.

Conclusion: Understanding the termination month is essential when planning for the end of your disability benefits. Section 404.325 provides clear guidelines for determining the termination month based on your disability status and work activity. If you have any questions or need assistance, it’s important to consult with a legal or benefits expert to help you navigate the process and ensure you’re making the best decisions for your situation.

https://www.ssa.gov/OP_Home/cfr20/404/404-0325.htm