When an ALJ changes his or her decision from fully favorable to partially favorable
after AC own motion review, SSA will not consider any interim benefits paid during
an unfavorable period as an overpayment. SSA will adjust for payments previously released
against payments currently due, only for entitlement concurrent with payments due
during the interim benefit period.
Example: A fully favorable decision grants a claimant entitlement beginning October 2011.
SSA began paying interim benefits August 2015. After the AC’s own motion review, the
decision becomes partially favorable. The claimant is granted a closed period of disability
beginning October 2011 and ending January 2013. Because SSA paid interim benefits
beginning August 2015 outside of the new favorable period, SSA will not create an
overpayment for any interim disability payments. SSA will release any underpayment
due during the favorable closed period, since no payments due were payable during
entitlement to interim benefits.