## Facts

- Dwayne L. Shepherd applied for Social Security disability benefits in April 1993, alleging disability stemming from injuries in a motorcycle accident.
- The agency awarded benefits only for a closed period: December 8, 1991 through December 31, 1992, and determined he was not disabled after that date.
- After reconsideration was denied, an administrative law judge (ALJ) upheld the closed-period award, effectively finding Shepherd capable of sedentary work after December 31, 1992.
- The ALJ treated a July 7, 1993 consultative examination as the sole evidence supporting improvement and post-1992 work capacity.
- The Appeals Council denied review, making the ALJ’s decision the Commissioner’s final decision.
- The district court affirmed, concluding the medical-improvement test did not apply because benefits were granted for a closed period.
- Shepherd appealed, challenging the absence of a medical-improvement analysis, the RFC finding, and the vocational expert (VE) hypothetical.

## Issues

1. Whether the medical-improvement standard in 42 U.S.C. § 423(f) and 20 C.F.R. § 404.1594 applies when disability benefits are awarded only for a closed period.
2. Whether the ALJ’s residual functional capacity (RFC) determination for the post-closed-period timeframe applied the correct legal standards and was supported by substantial evidence.
3. Whether the ALJ’s hypothetical question to the vocational expert was legally adequate, including whether it reflected all supported limitations.

## Decision

- The court held that the medical-improvement standard applies in closed-period cases where the agency finds disability ceased as of a specific date.
- The court rejected the district court’s conclusion that a closed-period award eliminates the need for a medical-improvement analysis.
- The court affirmed in part, reversed in part, and remanded for further proceedings.
- On remand, the Commissioner was required to apply the medical-improvement framework and then reassess RFC and any VE testimony as needed under that framework.

## Legal Principles

- In closed-period disability awards, the agency must apply the medical-improvement standard when it determines that disability ended at a later date.
- To end disability status after a prior finding of disability, the Commissioner must show medical improvement and that the improvement is related to the ability to work.
- Appellate review of Social Security decisions asks whether substantial evidence supports the decision and whether the correct legal standards were applied, considering the record as a whole, including evidence that detracts from the agency’s decision.
- A VE hypothetical must reflect a properly supported RFC and all limitations the ALJ finds supported by the record; errors in the legal framework for cessation can require reconsideration of RFC and VE evidence.

## Conclusion

The Tenth Circuit ruled that closed-period disability determinations cannot avoid the statutory and regulatory safeguards governing cessation of benefits: the Commissioner must prove medical improvement related to work ability before cutting off disability as of a specified date, requiring remand for reevaluation of improvement, RFC, and related vocational evidence.


Shepherd v. Apfel, 184 F.3d 1196 (10th Cir. 1999)