SSR 65-62: SECTIONS 216(i), 222(c), and 223. -- DISABILITY -- CESSATION FOLLOWING TRIAL WORK PERIOD

20 CFR 404.1536, 404.1539

SSR 65-62

The worker, R, was injured November 19, 1961, at age 35 in an accident

which resulted in amputation of one leg above the knee, permanent hip

deformity, and other serious impairments. After filing of necessary

applications in September 1962, R was found to be under a disability

beginning November 19, 1961. A period of disability beginning that day was

established for R, and he was awarded disability insurance benefits

beginning June 1962, the first month after a 6-month "waiting period".

(See SSR 62-41, C.B. 1962, p. 105, concerning the "waiting period"

requirement.) His wife and three minor children were awarded wife's and

child's insurance benefits, respectively, on his earnings record, also

effective June 1962.

After 18 months of hospitalization, which included intensive orthopedic

treatment, R was able to stand and walk (with the help of an artificial

leg) for short periods, and to sit for extended periods without pain. His

impairments continue to be severe. R engaged in no remunerative activity

until April 1964, when the company for which he had been working at the

time of his accident rehired him on a trial basis as a production clerk

(he could no longer perform the duties of his former job as a machine

operator). When contacted in January 1965, R had been working regularly

and satisfactorily on his new job, since mid-April of 1964, receiving

wages of $80 for a 40-hour work week.

The question presented by these facts is what effect, if any, R's work

and earnings will have upon the benefits previously awarded to him, his

wife, and his children.

the duties of his former job as a machine

operator). When contacted in January 1965, R had been working regularly

and satisfactorily on his new job, since mid-April of 1964, receiving

wages of $80 for a 40-hour work week.

The question presented by these facts is what effect, if any, R's work

and earnings will have upon the benefits previously awarded to him, his

wife, and his children.

If, despite the handicap of severe impairments, the beneficiary

demonstrates by his work and earnings that he has regained the ability to

engage in substantial gainful activity, his disability will be found to

have ceased. Cessation of the beneficiary's disability requires

termination of his entitlement to disability insurance benefits and

(subject to an exception for blindness, not applicable here) of his period

of disability, effective with the end of the second month after the month

in which his disability ceased. Upon such termination of his disability

insurance benefits, any other benefits awarded on his earnings record must

be terminated simultaneously. Thus, a finding that R's disability has

ceased by reason of his demonstrated ability to work would require

termination of his period of disability, his disability insurance

benefits, and the benefits of his wife and children, effective with the

end of the second month after the month in which the disability ceased.

As an incentive to rehabilitation, section 222(c) permits a disability

beneficiary who returns to work despite his impairments, to continue to

receive his benefits during a designated period even though his work

otherwise is of a nature to constitute substantial gainful activity. After

a "trial work period," which may not exceed 9 months, it may be found that

he is able to engage in substantial work and no longer under a disability,

that is, his disability has ceased

y who returns to work despite his impairments, to continue to

receive his benefits during a designated period even though his work

otherwise is of a nature to constitute substantial gainful activity. After

a "trial work period," which may not exceed 9 months, it may be found that

he is able to engage in substantial work and no longer under a disability,

that is, his disability has ceased. This "trial work period" permits

beneficiaries who have not medically recovered from their impairments to

attempt work without the fear of losing their right to benefits before

they have demonstrated their ability to work for a significant period of

time. Under section 223, the beneficiary will receive his benefits for the

month in which his disability ceases and for the following 2 months.

A trial work period ends with whichever is earlier: the ninth month in

which the beneficiary works (the 9 months need not be consecutive), or the

month in which his condition has so improved as to justify a finding that

his disability has ceased. In the present case, there has been no such

improvement in R's impairments. R thus qualifies for the protection of a

trial work period. R did not begin work until April 1964, which is

accordingly the first of the 9 months of trial work. Since he worked in

each of the 8 months thereafter, his trial period ends with December

1964.

Therefore, it is held , that since R had regained his ability to

work, was working full time as a production clerk at substantial wages

despite his severe impairment, and is no longer entitled to a period of

trial work, he is now able to engage in substantial gainful activity. It

is further held that his disability ceased in January 1965, the

first month after the end of his trial work period

fore, it is held , that since R had regained his ability to

work, was working full time as a production clerk at substantial wages

despite his severe impairment, and is no longer entitled to a period of

trial work, he is now able to engage in substantial gainful activity. It

is further held that his disability ceased in January 1965, the

first month after the end of his trial work period. Accordingly, his

period of disability and his entitlement to disability insurance benefits,

and the entitlement of his wife and children to benefits of his earnings

record, terminate as of March 31, 1965, the end of the second month after

the month in which his disability ceased.