I-3-9-4. Reopening for Good Cause

Last Update: 9/08/05 (Transmittal I-3-36)

Citations:

A. Time Limitations for Reopening

The Appeals Council may reopen a determination or decision, which is otherwise final, for good cause as follows:

B. Good Cause Defined

1. Title II

Good Cause for reopening a determination or decision exists under the following circumstances:

  1. new and material evidence is furnished;

  2. a clerical error in the computation or recomputation of benefits was made; or

  3. there is an error on the face of the evidence on which the determination or decision is based.

2. Title XVI

Good cause for reopening a determination or decision exists under the following circumstances:

  1. new and material evidence is furnished;

  2. a clerical error was made; or

  3. there is an error on the face of the evidence on which the determination or decision is based.

C. New and Material Evidence

1. Definition

See I-3-3-6 A. for definition and general discussion of new and material evidence

EXAMPLES:

2. Effect of New and Material Evidence

The Appeals Council found that the 30 year-old claimant for disability insurance benefits was illiterate, unskilled, could no longer perform his heavy labor job due to his back impairment but had the residual functional capacity to perform light work. The Council issued a decision finding that pursuant to Rule 202.16, the claimant was not disabled. The Appeals Council's decision became final and binding upon the claimant's failure to commence a civil action. Two years later, the claimant requests the Appeals Council to reopen its decision and submits new and material evidence which established that in fact the claimant was limited to sedentary work. Even though the claim will still be denied under Rule 201.23, if the time limit criteria are met, the Council must reopen its prior decision, issue a revised decision and provide the claimant with court rights.

D. New and Material Evidence is Submitted after Expiration of Time to Reopen

If the claimant submits new and material evidence after the prescribed time for reopening has expired and the evidence warrants an allowance during the previously adjudicated period, the Appeals Council may establish the onset date as shown by the evidence, but can find entitlement to benefits or a period of disability on the basis of a current application only.

E. Effect of “Change of Position”

1. Definition

Change of Position: A “change of position” is a change of legal interpretation or administrative ruling on which a determination or decision was made.

2. Effect of Change of Position

A change of position is not “good cause” to reopen a determination or decision under the 2- or 4-year rules. Although a change of position may be a basis for reopening within 12 months of the date of the initial determination, such reopening is appropriate only if the result would be favorable to the claimant.

F. Effect of Change in Statutory Provision

If a statute has been amended, any reopening depends on the provisions of the amendment itself. The amendment will provide the effective date of the change and, thus, indicate its effect on any prior determinations or decisions.

G. Clerical Error

1. Definition

Clerical Error: A clerical error is a mathematical error or misapplication of benefit tables, etc., which resulted in an incorrect payment of a monthly benefit or an incorrect lump-sum death payment. It ordinarily occurs in the computation or recomputation of benefits.

2. Time Frames for Reopening for Clerical Error

  1. Title II: To revise for clerical error, the Appeals Council may reopen a determination or decision which is otherwise final within 4 years from the date of the notice of the initial determination. However, if a determination or decision was fully or partially unfavorable to the claimant due to a clerical error, see I-3-9-6, Reopening at Any Time.

  2. Title XVI: To revise for clerical error, the Appeals Council may reopen a determination or decision which is otherwise final within 2 years from the date of the notice of the initial determination.

H. Error on the Face of the Evidence on Which the Determination or Decision Is Based

1. Definition

Error on the face of the evidence: In general, it is the type of error which clearly caused an incorrect determination or decision to be made. The following are examples of “error on the face of the evidence”:

2. Time Frames for Reopening for Error on the Face of the Evidence

a. Title II

Within 4 years from the date of the notice of the initial determination, the Appeals Council may reopen an otherwise final determination or decision because of error on the face of the evidence on which the determination or decision is based. However, if the determination or decision was fully or partially unfavorable to the claimant, see I-3-9-6.)

b. Title XVI

The Appeals Council may reopen an otherwise final determination or decision because of error on the face of the evidence on which the determination or decision is based, within 2 years from the date of the notice of the initial determination.