Work Incentives for Transition Aged Youth

1. Work Incentives for Transition Aged Youth PA Community on Transition July 2009

2. Facilitators & Disclaimer • John Miller, Vice President, AHEDD • (717) 763-0968 ext 118, john.miller@ahedd.org • Michele Leahy, Transition Work Incentive Coordinator • (215) 885-2060 ext 407, michele.leahy@ahedd.org • Information presented does not represent official policy of the Social Security Administration (SSA) and/or the PA Department of Public Welfare (DPW) and is the responsibility of the facilitators.

3. Problem Statements “District Personnel have found that some students are quitting work because they are afraid they will lose their Social Security benefits, which many families depend upon.” “Federal and state work incentives …can help to ease the transition to competitive employment, but a widespread lack of knowledge about the incentives exists among the District’s teachers, parents and students.”

4. SSA Demographics

5. Households of SSI Children • According to a national survey, 78% of children ages 13-17 who receive SSI have ever received special education services; • Household: 26% live with 2 parents; 53% have another household member with a disability; • Household Income: Only 51% of parents have earned income, and SSI represents 49% of the household income among this age group; • Household Assets: 40% of households have no liquid assets, and 81% have less than $1,000; • Type of Assets: 37% have a checking account, 36% own their own home, and 29% have a savings account; • Gender: 64% male/36% female; • School Status: 91% in school. Source: National Survey of SSI Children & Families, interviews conducted between July 2001 and June 2002.

6. Issues with SSI &TANF • Temporary Assistance Needy Families • Family/Household Benefit • SSI Parent/TANF Child: parental earned income not counted as long as there is $1 of SSI …i.e. until 1619(b) • TANF Parent/SSI Child: any earned income of SSI child not included in household income.

7. SSA Income Support Programs • Social Security Disability Insurance (SSDI) • Social Security Childhood Disability Beneficiary (SSCDB) • Supplemental Security Income (SSI)

8. Social Security Disability Insurance • Publicly funded LTD • Title II • Work history, monthly payments based on personal work history - credits • 6 month wait for cash, 2 year wait for Medicare • Relevant Sub group: Childhood Disability Beneficiaries

9. Supplemental Security Income • Supplemental Security Income (SSI): a low income program for which many adults and youth with disabilities qualify. • Title XVI • Signed into law in the 1970s by President Nixon.

10. Ticket to Work & Work Incentives Improvement Act • Federal legislation 1999 • Address a spectrum of barriers: • To provide beneficiaries with timely, accurate information and guidance on using work incentives; • To remove possibility of losing Medicaid because of going to work; • To offer beneficiaries priority treatment via an expanded choice of employment providers; • To inject additional new revenue into the employment service system for people with disabilities.

11. SSA Program Concepts • Eligibility: • FIRST STEP: Demonstrate an inability to earn Substantial Gainful Activity (SGA) • Severe Impairment (Disability Determination Service) • If Work History Credits (SSDI), otherwise Asset Test (SSI) • Representative Payee • Re-determination @ Age 18 • Continuing Disability Review (CDR) • Health Insurance • Impact of Work: Reduction, Suspension, Termination

12. SSI & Work • Monthly responsibility to report all earned and unearned income to SSA; • Standard formula of general and earned income exclusion, as well as “one for two offset” used by SSA to process this and calculate reportable income; • “Reportable income” is used to calculate the eligible SSI payment; • There is generally a 2-3 month time lag due to retrospective accounting

13. Additional Impact on SSI payment: In Kind Support • SSA will factor income/resources of another provided to an SSI eligible person: • Deeming is done at initial application and during annual determination, e.g. parent to an SSI eligible child; • In-Kind Support & Maintenance (ISM) is the value of food and shelter provided to an eligible person

14. Impact of Work on SSI (CY 2009) The 1619 slide 1619(b) 1619(a) PA Provides an SSI supplement of $27.40 not included in this display! Note: PA Threshold 2009 = $28,699

15. Student Earned Income Exclusion: Instant Increase to Monthly Income • Criteria: • <22 • Enrolled in school • SSI • Earning a paycheck • Monthly exclusion up to $1,640 (CY 2009) of countable earnings up to $6,600 • Proof of being in school or continuing education (e.g. during summer break) • Need to request!

16. Shawn A 20 year old high school student and working part time at Shop Rite receives Supplemental Security Income (SSI). Shawn is utilizing the Student Earned Income Exclusion (SEIE) and the Ticket to Work - work incentives. The SEIE work incentive allows full time students, like Shawn who are under the age of 22 to work, attend school and still be eligible for all of his SSI benefit. Now Shawn has the ability to learn the value of employment without risking losing his benefits. Eventually, it’s Shawn’s goal not to be dependent on cash benefits provided by SSI.

17. Plan for Achieving Self SupportA Fixed Savings Program • A vocational goal that requires the beneficiary to save money over a specific time period. • SSI or potentially eligible for SSI & another source of income: earned, unearned, in-kind (e.g. deemed income) • PASS Application submitted to local SSA Office, approved by Regional PASS Cadre • Form: http://www.ssa.gov/online/ssa-545.pdf

18. Using Deemed Income for a PASS

19. PASS Users By Age

20. Brendan

21. Brendan A 23 year old is working towards becoming a Social Worker came to AHEDD to help understand how to develop a Plan for Achieving Self-Support (PASS), a fixed saving to assist him obtain this vocational goal. Through AHEDD’s Transition Age WIPA program he found out this savings account can exceed the $2,000 resource limit and has the ability to eliminate a reduction in Supplemental Security Income (SSI). Since he receives two forms of income; SSI and works at Wal-Mart he is allowed to put up to his entire paycheck in the PASS to save for school to become a Social Worker.

22. Concurrent Beneficiary • A young SSI beneficiary who is working begins paying into SS Retirement/Medicare (i.e. 7.65% x 2); as a result could potentially qualify for Social Security Disability Insurance (SSDI) with as little as 1.5 years of “work credits.” • Since SSI is the payer of last resort, any SSDI is treated as “unearned income” and reduces SSI nearly $1 for $1 (after $20 disregard). • SSA looks at unearned, earned to calculate the monthly SSI payment. Someone who is working is highly likely to receive $0 in SSI payment but still be in the SSI program in 1619(b) status. • The timing of the initial SSDI payment could result in a modest SSI overpayment.

23. Mark

24. Mark A 24 year old who has been working with AHEDD employment services for over 2 years. AHEDD was able to help him find two part-time jobs working at Genuardis’ and La Prima. Mark who is SSI eligible received this benefit until he became entitled to his own Social Security Disability Insurance due to his own work history. Now, he works, receives both SSI, SSDI and remains eligible for his Medicaid, Medicare and Waiver services through the Mental Health/Mental Retardation offices through his local county. “She responded quickly to my phone call and explained issues that were very confusing to me, as my son transitioned from SSI to SSDI benefits due to his work record. When I met with our case manager at SSA [Social Security Administration], I was well-prepared for the interview and knew what questions needed to be asked to correct a complicated situation.” Jennifer – Mark’s mother

25. Continuation of Benefits after Termination • If a “Continuing Disability Review” (CDR) or Age 18 Re-determination determines the beneficiary’s impairment no longer qualifies… • Continued payment under a program of vocational rehabilitation, employment services, or other support services (Section 301). • In July 2005, SSA extended the continuation of payments for students whose disability or blindness medically ceases if they are age 18-21 and participating in an individualized education program (IEP). Benefits will continue until they complete the IEP or stop participating for any reason. This provides students with the opportunity to continue receiving benefits while they complete school.

26. Safety Net - EXR • Expedited Reinstatement • AKA “EXR” or “EZ back on” • Person is terminated from SSI and/or SSDI due to earnings from employment • 5 year window following SSA termination • Not working or earning below SGA due to original disability of record

27. Work Incentives Planning Assistance (WIPA) • Community based Work Incentive Coordinators (non SSA) working under an SSA cooperative agreement; • Available to current beneficiaries age 14-64; • Individualized one on one work incentive counseling to complement efforts to become employed, increase earned income and possibly terminate from cash benefits.

28. WIPA Service Model • Confirm current status with SSA (optional); • Work history and / or current strategy, education, relevant personal facts (e.g. marriage, age); • Scenario Analysis of Income; • Applicable Work Incentives; • Address unusual circumstances (e.g. overpayments); • Recommended form letters & benefit management tools; • Delivered via individualized report!

29. Testimony from Parent • “Without Michele’s assistance, the completion of the PASS would have made an already difficult process a lot harder. Her rapid response time, energy and desire to submit a good product made the experience less troublesome. She was always positive, clearly expressed her concerns and provided constructive criticism. Her attention to detail was much appreciated and her empathy for people with disabilities was evident while at the same time she was firm in the need to have the disabled person fulfill their responsibility. “

30. Managing Benefits & Work Incentives • Awareness among Transition Staff: Do we know who gets benefits? • Family and/or student perspectives on benefits as well as supporting community agencies; • Explore capability of managing benefits; • Assisting students to identify, apply for, and manage work incentives; • Initiate and/or enhance communication with SSA and/or DPW via County Assistance Office (CAO) and other resources.

31. Benefits Planning Query The BPQY communicates information on SSA records specifically for beneficiaries with disabilities and encourages financial planning for a return to work. The information is generally accurate but if earnings were not reported by the beneficiary or if work reports were not processed by SSA, the data must be updated and corrected. A BPQY (SSA-2459) is given to beneficiaries upon request. The BPQY and its cover letter (SSAL-634) will be mailed directly to the beneficiary at the address shown on the current SSA record.

32. Medicaid & SSI • Federal - State Health Insurance program coordinated by CMS (federal) and state Medicaid agency, e.g. PA Department of Public Welfare; • Low Income Groups; • Most states, including PA, provide automatic Medicaid eligibility to SSI beneficiaries; • SSI beneficiary receives cash assistance from SSA and Medicaid health insurance through County Assistance Office (CAO)…the local administrator of DPW services.

33. Medical Assistance for Workers with Disabilities (MAWD) • Department of Public Welfare www.dpw.state.pa.us • Effective January 2002 • Disabled per SSA guidelines, except earnings and income • 250% of poverty • $10K or less in assets • Monthly premium 5% of countable income • Eligible for Waiver Services!

34. Ticket to Work Program • A Work Incentive via a non-monetary voucher • Distributed to beneficiaries > 18 • Encouraged to seek employment services through an approved “Employment Network”(EN) and/or State VR • Voluntary (both parties); • Viable program for persons who want to work and be able to reduce dependency on SSA cash benefits.

35. Ticket to Work • Market Driven …. Slightly confusing • Expanding choice and access to employment providers who have expressed specific interest in helping beneficiaries become employed • Outcome goal for both provider and beneficiary is established as an objective level of earnings • Represents an opportunity to increase federal funds into the employment infrastructure

36. Q&A • Why does it matter if a student receives SSA benefits? • If the student is receiving SSI benefits prior to 18 does he/she continue to receive benefits as an adult? • Why does a student need to report earnings to SSA? How is this done? • How is the SSI benefit impacted by working? • How does a student qualify for a Student Earned Income Exclusion (SEIE) and what does this matter? • How does a student qualify for a Plan for Achieving Self Support (PASS) and what does this matter? • What happens if a SSI student starts to save money from work?

37. Recommended Actions • Implement a plan of awareness & education about work incentives for parents and students; • Determine if a student receives SSA benefits as part of the transition planning process. Initiate dialogue about it with parents and students; • Utilize the WIPA as part of the set of transition services; • Play a role in helping a student access work incentives, and in some cases, teach benefit management skills.