Plan for Achieving Self- Support

1. Plan for Achieving  Self- Support Imagine Enterprises Stacey Sparks, Community Work Incentive Coordinator 325-893-1968

2. PASS PASS is an SSI work incentive under which persons with disabilities can set aside income (earned, deemed or in-kind) and/or resources to be used to achieve specific work goals. A PASS can be established to cover the costs of obtaining an education; receiving vocational training; starting a business; or, purchasing support services.

3. History and Modifications Began in 1970�s. April 1996, SSA revised its guidelines for the PASS Program. PASS Program further amended in December, 1997 with a statement made by Carolyn W. Colvin, Deputy Commissioner.

4. Purpose of PASS PASS is just the means to acquire the services and items needed for starting work, not the means to make income or resources available for ongoing costs. PASS increases or maintains income producing capabilities. To be approved, there must be a reasonable chance that individuals can achieve their vocational goal. Must be a clear connection between vocational goals and increased earning capacities.

5. Purpose of a PASS PASS is meant to assist a person in competing in the job market. PASS makes it financially feasible for individuals to set aside or save income and/or resources which can be used to achieve their vocational goals. The PASS program provides persons with disabilities the opportunity to self-direct the vocational rehabilitation process.

6. Income and Resources A PASS can be established by setting aside one or more of the following to achieve a vocational goal: Earned income (wages, self-employment, certain sick pay, royalties and or honoraria); Unearned income (Social Security, deemed income, other types of benefits, or other types of monetary support); and/or Resources. The PASS enables individuals to recoup some or all of the expenses paid for under the PASS.

7. PASS Requirements Feasible occupational goal Limits on occupational goals Interval steps/milestones Definable timeframe Sources to be set aside Expenditures Major purchases Organization / SSA-545 Deferred expenses

8. Occupational Objectives The PASS must be especially designed for each individual and have a designated and feasible occupational objective. Non-occupational objectives, such as basic living skills or homemaking skills, do not meet PASS requirements. The proposed vocational goals must be clearly stated indicating job titles or, if self-employed, the type of business. It is important to note the individuals� age, prior work history, education and training, disability, current earnings and if there is a reasonable chance that they can attain the objective.

9. Definable Timeframes Specific time frames must be established for the PASS. Schedules must be provided for meeting the vocational goals which indicate the month and year that it is expected to begin and end. The time allotted must reasonable relate to the goal. The PASS may be developed for an initial time period of up to 18 months. Based on individual needs, a PASS can be extended beyond the initial timeframe as needed to obtain goal.

10. Expenditures The PASS must state how the money set aside will be spent to achieve the job goal. A list of monthly planned expenditures by grouping or category with an explanation of their connection to the job goal must be included along with explanation of why less costly alternatives wouldn�t suffice. Expenses necessary for achieving the goal must be reasonable in price to be approved. Cost estimates for goods and services which indicate how the cost were calculated should be included. Providers should be indicated when known. Goods and services under the PASS may be bought outright, rented or leased.

11. Sources To Be Set Aside Plans must state the sources and the amount of income or resources to be set aside The sources, amounts and rates of accumulation of income and resources must be adequate, but not excessive to achieve the goal. Plans must also show how income/ resources set aside will be kept clearly and easily identifiable.

12. Organization A PASS must be in writing and SSA has established form SSA-545 to assist in completing a Comprehensive Plan. SSA Claims Representatives, PASS Specialists or Work Incentive Liaisons can assist in writing the plan If another format is used, the applicant will still be responsible for providing SSA with the essential information requested in SSA-545.

13. Likely Candidates Resources in Excess of Allowable Limits Unearned Income Only Earned or Deemed Income Only or In-kind Support Combinations of Income Earned Income and Receiving SSI Earned Income (in near future) and Receiving SSI

14. PASS Candidates To qualify for a PASS, an individual must meet the following criteria: Be under age 65 (unless receiving SSI disability payments in the month before age 65); Be disabled or blind; Meet all eligibility requirements for SSI with the exception of the income and resources test; and Have earnings, unearned income, or resources to set aside in the PASS. It is not necessary for individuals to have income and/or resources available when applying for PASS. They may submit a PASS based on projected earnings.

15. Unlikely Candidates Individuals ineligible for SSI for reasons other than excess income and/or resources. Individuals who are unable to pursue occupational goals due to their condition. Individuals who are currently self-supporting. Individuals who have already completed a PASS and have not tried to seek employment Individuals who do not have income or resources to set aside and are willing to do so Individuals who do not need services or items to work or willing to set aside funds Individuals not willing to set aside funds

16. Developing A PASS A PASS may be developed at any time. If individuals establishing the PASS are already receiving SSI, meeting initial SSI eligibility criteria is not required. If individuals are currently not receiving SSI, they must go through the regular SSI application procedure before a PASS can result in an SSI check being issued. PASS Specialists and WIL�s will play an vital role in the application and review process.

17. Business and PASS Can be used for individual or group business ventures and must include a business plan. The plan may require securing concurrence by more knowledgeable third parties as to the feasibility and viability of the business in terms of the person�s ability to conduct the business and ability of the business to be successful. Some possible third party reviewers may include: personnel like a physician , VR counselor, or business planner small business administration local departments of employment and training local chambers of commerce or banks

18. Business Plan Business name, address, owner and business form Description of the principal activity of the business, including a description of the product and/or service Explanation of business objectives along with time tables for business establishment and meeting goals Explanation of unique features of business Description of target market/audience demographics A description of the product service pricing A description of the financial plan Advertising plan A list of personnel and their roles/qualifications

19. Example one: Self �Employment PASS Josh is twenty-four years old. He has decided to return to college and become an airplane mechanic. Josh receives $640 in SSDI benefits. If Josh sets aside his SSDI in the amount of $640, in18 months he will have saved $11,520 for his vocational goal. Because Josh has no other income, only owns one car and one house he will then be eligible for and SSI check of $623 and Medicaid. Josh will use his SSI for food clothing and shelter and he will use the SSDI which is set aside in his PASS account for his tuition, books, transportation, testing fees, etc.

20. Example Two: Business Within a Business PASS Sue loves to sew. She wants to open an embroidery business but does not own any equipment to get the business started. Her uncle owns a screen printing business and often has customers who call and request that items be embroidered. Her uncle says that he would love to have Sue work at his business but cannot afford to purchase the $10,000 of equipment that he would need in order to employ Sue. Sue receives $600 in SSDI and $30 in SSI. Sue could set aside the $600 in SSDI for 18 months in a PASS and save $10,800 for the equipment. Sue would own the equipment and be self-employed. She would use her Uncle�s office and he would take 20% of her profit for rent, utilities, etc. Since Sue would be saving her SSDI in the PASS she would then be eligible for $623 in SSI to use for her living expenses.

21. Questions????????????????

22. For More Information Regarding a Plan for Achieving Self-Support Contact Stacey Sparks, Community Work Incentive Coordinator 325-893-1968 Toll Free 888-635-6688