SSI Work Incentives: Make Disability Benefits Work for You!

1. SSI Work Incentives: Make Disability Benefits Work for You! SSI Work Incentives: Make Disability Benefits Work for You! Karla Bell, Program Manager CHIIP/SDSU Interwork Institute

2. Getting Started • To use the Captioning window: • Click the Window pulldown menu and select Show Closed Captioning • A Captioning window will appear at the bottom of your screen • You may resize and move this window to meet your viewing needs • Asking Questions: • The presenter will take your questions at the end of the presentation using the Chat window • We will provide links to the CRC quiz and survey at the end of the Webinar

3. Overview • Myths about SSI and Work • Social Security Disability Benefits Overview • How earned income affects SSI • Ways to maximize SSI benefits • Keeping Medi-Cal and IHSS while working • Tools and Resources for benefits and employment planning

4. Myths If I go back to work: • I’ll lose my cash benefits • I’ll lose my Medi-Cal and IHSS • If my disability worsens and I can’t continue to work, I won’t be able to get back on benefits

5. SSI? SSDI? What’s What?

6. 2012 California SSI payment rates 2012 California SSI Monthly Payment Rates • $854.40 (Individual-own household) • $625.17 (Individual-household of another) • $938.40 (Individual-no cooking facilities) • $909.40 (Blind individual) • $680.17 (Blind-household of another) • $1444.20 (Couple) • $1591.20 (Blind Couple) Rates effective January 2012 SSI Resource Limit: • $2000 (individual) • $3000 (couple)

7. How do I find out what benefits I receive? • Benefits Planning Query (BPQY) • A brief report with details about your SSI and/or SSDI benefits, health coverage and work and earnings history • Request from your local Social Security Office • Call the Social Security Administration (SSA) at: 800-772-1213 (voice); 800-325-0778 (TTY) • Learn more about the BPQY on Disability Benefits 101: http://ca.db101.org/news/news_1685.htm • A Community Work Incentives Coordinator (WIPA projects) will request a BPQY for you as part of benefits counseling

8. SSI Work Incentives • Going to work can increase overall income • Your SSI payment amount is adjusted when a person has other sources of income (earnings, SSDI, etc.) • Work Incentives allow income to be excluded in order to maximize the SSI amount when a person is returning to work • To use most work incentives: • Tell Social Security that you have gone to work or • Report changes in your earnings • Some work incentives require you to ask Social Security to determine if you can use them

9. How Earnings Affect SSI Payments • Social Security counts less than half of your earned income • Social Security uses gross earnings (before taxes) to decide how much to subtract from SSI check • The first $85 of earnings is not counted ($20 General Income Exclusion and $65 Earned Income Exclusion) • After subtracting these amounts from gross earnings, Social Security divides the remaining earnings by two • The remainder, called “countable income”, is then subtracted from the amount of the original SSI check • The amount left over is the person’s adjusted SSI payment

10. How Amount of Adjusted SSI Check is calculated:

11. Available Income Compared to $854.40/month without income from work

12. Using Work Incentives to Maximize Benefits • Impairment Related Work Expenses (IRWEs) • Blind Work Expenses (BWEs) • Student Earned Income Exclusion (SEIE) • Plan to Achieve Self-Support (PASS)

13. Impairment Related Work Expenses (IRWE) • Documented expenses for services or items that are related to one's disability, needed in order to work and are paid out of pocket and not reimbursed • The cost may be pro-rated over a 12-month period for nonrecurring expenses • Examples: • Personal assistance services • Assistive Technology • Prescription drug co-payments • Costs related to service animals • Supplements or expendable medical supplies • No fixed list-negotiate IRWEs with Social Security

14. Example: IRWE and SSI • Jack is 24 years old and lives in his own apartment • He receives $854.40/month from SSI • He begins a new job that pays him $1000 in gross monthly earnings • He has a physical disability and he cannot use available public transportation and cannot drive himself • He pays a driver to transport him to his job • He also pays out of pocket for medical supplies and supplements • These services and items cost him $300/month and qualify as IRWEs

15. How Jack’s Adjusted SSI Check is calculated:

16. How Jack’s Adjusted SSI Check is calculated:

17. Blind Work Expenses (BWE) • For SSI beneficiaries whose primary diagnosis is blindness • Allows the exclusion of any work related items that are paid out of pocket and not reimbursed • BWEs do notneed to be related to blindness or any impairment • Examples: Service animal expenses, fees, State, Federal & local taxes, visual & sensory aids, driver services, transportation to and from work, childcare, meals consumed at work, union dues, uniforms, reader services, vehicle modification, mandatory pension contributions, training to use an impairment-related item, translation of materials into Braille

18. Example: BWE and SSI • Jill is 30 years old, blind and lives in her own apartment • She receives $909.40/month from SSI • She begins a new job that pays her $1800 in gross monthly earnings • She can deduct the cost of transportation to work regardless of whether her blindness required any specialized arrangement • Costs related to blindness are also included so she can deduct expenses for adaptive computer software or service dog expenses • She also can deduct income taxes, union dues and meals at work • Her expenses cost her $500/month and qualify as BWEs

19. How Jill’s Adjusted SSI Check is calculated:

20. How Jill’s Adjusted SSI Check is calculated:

21. IRWE & BWE • All Blind and Impairment Related Work Expenses must be verified by your local Social Security field office • Provide them with original receipts or canceled checks of the expenses • Social Security will determine if the expense may be deducted • Request in writing in order to use appeal rights (if necessary)

22. Student Earned Income Exclusion (SEIE) • SEIE allows young people who are in school to test their ability to work without any reduction in their SSI check • For SSI recipients under the age of 22 and regularly attending school, college or training to prepare for a paying job • Social Security can exclude up to $1640 of earned income per month from the student’s countable earnings when calculating their SSI payment • 2012 monthly exclusion will be $1,700/month • Maximum yearly exclusion: • $6600 in 2011 • $6840 in 2012

23. Student Earned Income Exclusion (SEIE) • “Regularly attending school” means taking one or more courses of study and attending classes: • In college or university for at least 8 hours a week • In grades 7-12 for at least 12 hours a week • In a training course to prepare for employment for at least 12 hours a week (15 hours a week if the course involves shop practice) • May be approved for less time if it is due to a reason beyond student’s control, such as illness

24. Student Earned Income Exclusion (SEIE) • School enrollment can be verified with an ID Card, tuition receipt, or other evidence • Social Security can contact the school to verify attendance • It is recommended that student status is clearly indicated in writing when notifying Social Security of employment • SEIE should be applied automatically when earnings and student status are reported

25. Example: SEIE and SSI • Lola is 20-years old and she lives with her parents • Starting in January 2012, she will be a full time student at her local community college • Because she still lives at home and is not paying rent, she receives a monthly SSI check of $625.17 • Starting in April of 2012, she will be working ten hours a week at the rate of $15/hour as a peer mentor at her local independent living center • Her gross monthly income from work is $645.00 • Because she is a student, she can use the SEIE, which allows her to exclude her earnings up to $1700 per month (up to a total of $6840 per year) from her countable income for SSI

26. Example – SEIE and SSI Calculation:

27. SEIE Yearly Exclusion • Maximum yearly exclusion is $6840 in 2012 • If Lola earns $645.00/month, and works 9 months (April-December) she could exclude the entire $5805.00 total earnings • Can remain in effect even when you are on summer break as long as you resume school when school reopens

28. Plan to Achieve Self-Support (PASS) • A written plan that allows recipients of SSI to set aside income and/or resources for a specified period of time to be used to achieve a chosen occupational goal • SSI recipients are eligible • PASS may allow SSI eligibility for SSDI beneficiaries • A way that SSA assists people with disabilities in their own efforts to join or re-enter the workforce • Examples of PASS expenses: training, transportation, equipment and tools, child care, assistive technology, job coach, business start up funds, vehicle modifications, professional attire

29. Plan to Achieve Self-Support (PASS) • You must have some form of countable income and/or resources to set aside in the PASS • Funds set aside in a PASS are not counted as income when determining SSI payment • Funds set aside don’t count toward SSI resource limits • A PASS is intended to encourage SSI recipients to eventually become self-supporting (i.e. occupational goal will lead to a significant reduction in SSI) • To learn more watch our archived PASS webinar: http://interwork.sdsu.edu/chiip/training.php?page=webinars

30. Example: PASS and SSI • Keiko receives $854.40/month in SSI • She is earning $550.00/month working part-time at a local coffee house • She attends college full-time and she has been using the Student Earned Income Exclusion, but she is turning 22 next month • Her goal is to become a licensed practical nurse which includes state certification testing • She has been saving money to buy a car and she has almost $1,800 in her savings account, but she knows that she cannot save much more without losing her SSI • She would like to write a PASS for: • School and employment expenses • To buy a used car since there is no public transportation available to or from any local hospitals or nursing homes

31. Example—SSI and PASS Calculation:

32. Example—SSI and PASS Calculation:

33. Benefits of a PASS Plan Often notice no difference in available income with or without a PASS (depending on amount set aside) Ownership of items purchased Personal investment in employment goals Ability to supplement services from other agencies; cover costs that other agencies cannot Viable option for self-employment goals Offers alternative or supplement to traditional Department of Rehabilitation services Allows for self-directed employment plan

34. Keeping Medi-Cal and IHSS While Working • Section 1619(b) • Medi-Cal Working Disabled Program

35. SSI and Medi-Cal: 1619(b) • 1619(b) is a work incentive that allows working SSI recipients to keep FREE Medi-Cal (No Share-of-Cost) • Medi-Cal retained when SSI payment is reduced to $0.00 per month due to earned income • Free Medi-Cal coverage continues until earnings reach a threshold amount: • $36,423.00 (non-blind) • $37,743.00 (blind) • These are 2012 amounts for California • People with high medical costs or publicly funded attendants (i.e. IHSS) can earn even more (Individualized Threshold) • Benefits can start again if you stop working or your earnings decrease (Reinstatement)

36. 1619(b) Qualifications To qualify: • Have been eligible for an SSI cash payment for at least 1 month; • Would be eligible for cash payment except for earnings; • Still be disabled or blind; • Still meet all other eligibility rules, including the resources test; • Need Medi-Cal in order to work; • Have gross earned income that is insufficient to replace SSI, Medi-Cal, and any publicly funded attendant care (IHSS)

37. 1619(b): Individualized Threshold • Individualized Threshold: threshold can be adjusted on a case-by-case basis • Higher Individualized Threshold if: • Blind Work Expenses (BWE) • Impairment Related Work Expenses (IRWE) • Plan to Achieve Self-Support (PASS Plan) • Publicly Funded Personal Attendant (i.e. In-Home Supportive Services) • Medical Expenses above State Average • Social Security’s Programs Operation Manual reference: • SI 02302.050 Individualized Threshold Calculation • https://secure.ssa.gov/apps10/poms.nsf/lnx/0502302050 • Area Work Incentives Coordinators • http://www.ssa.gov/sf/awic.htm

38. Medi-Cal Working Disabled Program • The Medi-Cal Working Disabled Program allows individuals to earn up to $55,476/year and keep their Medi-Cal! • Eligible couples can earn up to $74,580/year • Even higher wages are allowed with IRWEs • Affordable monthly premiums to access Medi-Cal and IHSS without a share-of-cost • $20-$250 for individuals • $30-$375 for couples • IRS approved Retirement Plans allowed and not counted towards asset limit • Save your earned income in a separate identifiable account with no cap

39. Getting Back on Benefits • 1619(b) - SSI cash benefits can start again if you stop working or your earnings decrease (Reinstatement) • Expedited Reinstatement (EXR): • 5 year period after SSI benefits and payments stop due to work and earnings • If a beneficiary stops working their benefits can be reinstated without having to file a new application • Up to 6 months provisional benefits payable during EXR decision making process • Medical decision needed

40. Benefits Planning Tools, Skills and Resources for Results • The Benefits Binder: your notebook and log of phone calls, office visits, and names of service staff you contact. File original paycheck stubs, government letters and receipts here. • Reporting Requirements: Who is responsible, when? If you have a payee, the payee is responsible to report changes to Social Security. If not, it’s the beneficiary. Report income and other life changes timely • Know your appeal rights. A Notice of Action explains them. • Utilize Benefits Planning Tools and Resources: Disability Benefits 101 website (www.db101.org), and local benefits planners. These tools, rules and skills can result in timely and improved customer service with benefit programs

41. Resources • Disability Benefits 101 www.disabilitybenefits101.org • SSA Red Book-Guide to Work Incentives www.ssa.gov/redbook • Work Incentives Planning and Assistance (WIPA) Projects • Free benefits counseling by Community Work Incentives Coordinators (CWIC) • For SSI, and SSDI recipients ages 18-64 https://secure.ssa.gov/apps10/oesp/providers.nsf/bystate

42. Resources Area Work Incentives Coordinators (AWIC) • Social Security’s work incentives experts • Help SSI and SSDI beneficiaries who are having trouble getting accurate information and application of work incentives at local SSA offices www.ssa.gov/sf/awic.htm Disability Rights California • Protection and Advocacy for Beneficiaries of Social Security (PABSS) • Assistance with appeals, overpayments, problems with Employment Networks, workplace discrimination http://www.disabilityrightsca.org/ 800-776-5746 TTY 800-719-5798

43. Resources Plan to Achieve Self-Support Find your PASS Cadre: www.socialsecurity.gov/disabilityresearch/wi/passcadre.htm PASS Plan form: www.socialsecurity.gov/online/ssa-545.html The Work Site www.ssa.gov/work

44. Questions You are welcome to contact Karla Bell at: 619-594-5381 kbell@interwork.sdsu.edu www.talentknowsnolimits.info www.tknlyouth.org

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