The amount and number of installments vary with the amount of the retroactive payment owed. There may be up to 3 installments. The first 2 installments each total 12 months of the claimant's benefits, neither to exceed $7,500. The third and final installment is the balance of the retroactive amount.
The first installment is paid about 60 to 90 days after the claim is approved. The second installment is paid 6 months later. The third installment (the balance) is paid 6 months later. Be aware that since frequently the total back pay does not exceed $7,500, most claimants will be fully paid after the first installment.
SSA can increase the amount of each installment if the claimant has outstanding debts, including debts for food, shelter, and medical expenses.
The installment process does not apply in all situations. Only SSI,
not Social Security Disability Insurance benefits, are paid in installments.
If less than $7,500 is owed in SSI back pay, there are no installments.
If SSA does not intend to pay ongoing SSI monthly benefits - that is, if
a person is found disabled only for a closed period or will not get monthly
SSI payments because he will receive more than $640 in SSDI per month -then
it pays the entire retroactive payment at once. Finally, if the claimant
has a terminal illness, he can get the entire lump sum at once.