Transition & Work Incentives

1. Transition & Work Incentives Suzie Paulson, MS,CRC

2. Importance of Work before Age 18 • Creates an expectation of working • Encourages independence • Establishes Network for future jobs • Qualifies them for an SSDI benefit which could make them eligible for PASS

3. Under age 18 • Student’s development • Household income or resources • Redetermination will occur automatically at age 18 • Student’s expectation of continued benefits • Parental fear of loss of benefit due to work activity • Student’s expectation of post high school training • Student’s lack of understanding related to necessary accommodations post high school

4. Student Earned Income Exclusion • Must be under 22 • regularly attending school College - 8 hrs a week Grades 7-12 12 hrs a week Training Course 12 hrs a week Home study due to disability can also be considered • Allows student to exclude $1,640 per month/maximum of $6,600 per year and their SSI is not reduced in 2011

5. Age 18 Redetermination • Automatically occurs at some point before their 19th birthday • Parents expectations of continued benefits • In Iowa about 600 students go through the redetermination process each year and over 67% do not meet the adult criteria for disability. WHAT DOES THAT MEAN??????

6. Section 301- Continued payment under a VR or similar program • Allows for the continuation of benefits while the beneficiary completes an appropriate Vocational Rehab program or similar services. • Been determined by SSA to be medically recovered or to no longer meet the medical qualification through a medical CDR or age 18 re-determination

7. Facts about Section 301 • Only offers extended benefits to those that would have terminated due to medical recovery • Allows continued payment to any auxiliaries drawing off the insured worker • Medicare and/or Medicaid continues • Applies to both SSI and SSDI • SSI must continue to meet all SSI eligibility criteria

8. Basic Requirements Participation in an approved program (work plan, IPE, IEP, provider agency, employment plan with government agency, ILC) Participation began before the disability ceased Continuation in the program will increase the likelihood that the individual will not return to the disability rolls

9. Definition of Disability Over 18 • Same for SSDI & SSI • The inability to engage in any substantial gainful activity (SGA) because of a medically determinable physical or mental impairment that can be expected to last for at least 12 months or that ends in death. So over age 18, the question is “Can you Work?”

10. When should I apply for benefits? • In the month that you turn 18 years old • Remember that they are looking at how your disability creates barriers to full employment. • Can be working but earning less than SGA ($1,000 in 2011)

11. What are the differences between SSI & SSDI(CDB)? • SSI • Is needs based. That is why all your resources and income are monitored. • You receive Medicaid (Title 19) • SSDI • Is insurance paid through taxes. Must have work credits. Resources are not an issue, but income is. • Receive Medicare after a 24 month waiting period. • CDB • Disabled before the age of 22 and the child of an insured worker who is either disabled, retired or deceased. • Same as SSDI • If SSDAC marries, benefits end unless to another SSDI/SSCDB beneficiary.

12. Work Incentives

13. SSI Work Incentives • Basic Earned Income Calculation • Impairment-Related Work Expenses (IRWE) • Plan for Achieving Self-Support (PASS) • Student-Earned Income Exclusion (SEIE) • 1619 (a) & (b) • Blind Work Expense (BWE) • Property Essential to Self Support (PESS) • Expedited Reinstatement

14. Earned Income Exclusion 400 Gross earnings -20 General Exc. 380 -65 Earned Income Exc. 315 315 /2 remainder divide by 2 157.50 Countable Earnings

15. Earned Income Exclusion cont. 674 2011 Federal Benefit Rate 157.50 Countable Earnings 516.50 Reduced SSI payment + 400 Gross Income $916.50 Total monthly gross income

16. 1619 b – Extended Medicaid • Meet all the other requirements for SSI • Need Medicaid in order to work • Questions????? • State Threshold (2011 – $30,811)

17. Impairment-Related Work Expense Cost of impairment related items and services that a person with a disability needs to work can be deducted from gross earning.

18. IRWE Criteria • related to disability and is needed in order to work • cost is paid by the individual • expense is reasonable • Approved by SSA

19. IRWE Examples • Supported employment services • Attendant care services • Special transportation • Medical support devices • Counseling and medication • Work equipment • Medication/Co-pays • Etc.

20. Plan for Achieving Self-Support (PASS Plan) Allows an individual to set aside income and/or resources for a specified period of time to achieve their work goal.

21. PASS facts • Already receiving SSI or must meet eligibility requirements • Must have income/resources to set aside • To increase or maintain income producing capability • A chance to achieve a vocational goal • To make it financially feasible to set aside or save income/resources • PASS can start as early as 14 years old.

22. Examples of PASS Expenditures • Supported Employment services • Items & Capital for a Business • Educational & Training expenses • Attendant Care • Child Care • Equipment or tools • Uniforms or special clothing • Etc

23. Social Security Disability Insurance Social Security Childhood Disability Benefits (CDB) Have worked and paid Social Security taxes (FICA), be a qualified worker, or an adult disabled child of a qualified worker.

24. Medicaid for Employed People With Disabilities ~ Title 19 • Must be disabled • Must have earned income from employment • Must be under age 65 • Must meet income and resource requirements (higher than SSI requirements) • Same as Title 19 - administered by DHS • Some individuals may pay a premium

25. Iowa Work Incentive Planning and Assistance (IWIPA) Funded under a cooperative agreement with the Social Security Administration known as Work Incentive Planning and Assistance Overseen by the Governance Group of Iowa, which includes: • Iowa Vocational Rehabilitation Services • Iowa Workforce Development • Iowa Dept for the Blind • Iowa Governor’s Developmental Disabilities Council • Iowa Dept of Education • Iowa Dept of Human Rights • Iowa Dept of Human Services

26. Suzanne R Paulson, MS, CRC Iowa Work Incentive Planning and Assistance 430 E Grand Avenue Des Moines, IA 50309 (515) 281-9009 866-528-4019 suzanne.paulson@iwd.iowa.gov