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Social Security Work Incentives

Social Security Work Incentives. Review of 2 disability income programs. SSDI – Title 2 (II) For adults who have worked then become disabled Also their disabled children or widow(er)s $ from “Trust Fund” (FICA contributions) SSI – Title 16 (XVI) For disabled children of low income parents

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Social Security Work Incentives

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  1. Social Security Work Incentives Cathy Chambless, Utah State University

  2. Review of 2 disability income programs • SSDI – Title 2 (II) • For adults who have worked then become disabled • Also their disabled children or widow(er)s • $ from “Trust Fund” (FICA contributions) • SSI – Title 16 (XVI) • For disabled children of low income parents • For disabled adults who are low income and have not worked very much, or at all. • $ from general tax fund Cathy Chambless, Utah State University

  3. What are Work Incentives? • Special rules for employment support that help preserve benefit eligibility, including health insurance • Serve as a safety net to make the transition from benefits to work • Are available under SSDI and SSI – but some rules are quite different between programs Cathy Chambless, Utah State University

  4. Impairment-Related Work Expenses (IRWE)-- for SSDI and SSI • Items or services, related to the disability, that are necessary for an individual to work • Must be paid for by the individual with no reimbursement expected • Be of reasonable cost • Cost can be used to reduce countable income Cathy Chambless, Utah State University

  5. Examples of IRWE • Medications prescribed to treat the impairment • Attendant care services • Work-related assistance devices • Modifications to vehicle • Some transportation costs Cathy Chambless, Utah State University

  6. Ticket to Work Program -for SSI and SSDI • Age 18-64 in current pay status for SSDI or SSI • Ticket can be used to receive employment, vocational or other services to help in going to work • Services are provided by approved Employment Networks (EN) • State VR agencies are ENs • Goal of the program is to help individuals earn enough money to no longer need Social Security cash benefits Cathy Chambless, Utah State University

  7. Advantages of Using the Ticket • Using the Ticket gives more choices in where to go for needed services • Medical Continuing Disability Reviews (CDR) are suspended for an individual who is participating in the Ticket Program and making timely progress toward self-sufficiency Cathy Chambless, Utah State University

  8. Earnings disregard-SSI only • Earnings disregard • $85 plus ½ of remainder is not counted • Countable earnings subtracted from SSI check SSI check $548 Earns $600 per month gross • Subtract $85 from $600 earnings = $515 • Divide remainder of 515 by 2 = $258 is countable earnings • $548 subtract $258 = $290 is amount of SSI check • Person has more income by working • An additional $1 for every $2 in work earnings. Cathy Chambless, Utah State University

  9. Plan for Achieving Self-support (PASS) -for SSI only • To set aside income and/or resources, for use in reaching a specific work goal • Plan must be in writing listing the steps and costs necessary to reach goal • Plan must be approved by SSA • Monitored for progress Cathy Chambless, Utah State University

  10. Student Earned Income Exclusion --for SSI only • Definition of student: • under age 22, not married or head of household, and attending school regularly • SSA will exclude up to $1,370/mo (2004) in earnings when figuring countable income • yearly maximum of $5,520 • exclusion is taken before the earned income exclusion or general exclusion Cathy Chambless, Utah State University

  11. 9 month Trial Work Period-for SSDI only • If beneficiary goes back to work and earns above Substantial Gainful Activity (SGA) • SGA is $900 per month ($1460 if blind) • Amount changes every Jan 1 with COLA • Person receives full SSDI benefits for 9 months • regardless of how much they earn Cathy Chambless, Utah State University

  12. Extended period of eligibility (EPE) -for SSDI only • Begins after trial work months are used up • 36 months during which person can work and receive benefits for any month that earnings are below SGA Cathy Chambless, Utah State University

  13. Expedited Reinstatement of Benefits -for SSDI • After benefits stop because earnings are above SGA, persons have five years during which they may ask to restart benefits immediately • if person is unable to continue working because of the same disability Cathy Chambless, Utah State University

  14. Benefits Planning Assistance and Outreach (BPAO) • Now being called “Work Incentives Planning Assistance” (WIPA) • not intended to help people apply for benefits. • Is for people who are already eligible for SSI or SSDI. • program is mostly supported with SSA funding. Cathy Chambless, Utah State University

  15. Benefits planning • VR counselors use BPAO / WIPA benefits counselors whenever they can • Focuses on helping person make informed choice about working • Looks at all benefits, not just SSI/SSDI • Medicaid, Medicare, private health insurance, CHIP for kids • Housing, food stamps • Admin by different agencies in each state Cathy Chambless, Utah State University

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