Social Security Disability Insurance Return to Work Act of 2016

Social Security Disability Insurance Return to Work Act of 2016 This bill amends title II (Old Age, Survivors, and Disability Insurance) of the Social Security Act (SSAct) to: (1) establish specified new disability classifications, and (2) require periodic continuing disability reviews for beneficiaries classified as "medical improvement possible" or "medical improvement not likely." The bill revises the standard of review for termination of disability benefits regarding an individual engaged in substantial gainful work as part of a certain process. The Social Security Administration (SSA) shall promulgate or revise, as appropriate, regulations relating to the determination, classification, and review of the disability status of individuals who apply for or receive disability insurance benefits. SSAct title II is amended to: (1) prescribe time limits for disability benefits classified "medical improvement expected" or "medical improvement likely," and (2) direct the SSA to establish a process for an individual entitled to a disability insurance benefit to elect to return to employment and receive an adjusted disability insurance benefit amount. The SSA shall determine the amount of any reduction in expenditures from the Federal Disability Insurance Trust Fund during the preceding calendar year. 10% of that amount shall be made available for continuing disability reviews.