Making Work Pay Part 4: Asset Development Webinar Series Elizabeth Jennings National Disability...

Making Work PayPart 4: Asset Development Webinar Series

Elizabeth JenningsNational Disability Institute

March 6, 2012

TACE Center: Region IV, a project of the Burton Blatt Institute.Funded by RSA Grant # H264A080021. © 2012

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• Welcome and Introductions• Overview of SSA’s Definition of Disability• Overview of SSDI• Overview of SSI• The Interplay of Asset Development Strategies with SSA

Benefits• When to consider Benefits and Asset Development • Connecting and working with Community Work Incentive

Coordinators • Contact Information• Questions

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Today’s Agenda


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As a result of this webinar, Counselors will better understand:

• The basics of SSDI and SSI• How to assist clients in thinking about how to use their

work incentives.• The interplay of SSA disability benefits and asset

building.• How to work in partnership with a CWIC.• Considering benefits at key points in the rehabilitation

process. • Why this information matters and how it can place clients

on the pathway to financial stability.

Objectives


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A national research and development organization with the mission to promote income preservation and asset development for persons with disabilities and to build a better economic future for Americans with disabilities.

National Disability Institute


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• People with disabilities are more likely to be unemployed and to live in poverty than any other single demographic group in the United States today.

• Public benefit programs for people with disabilities, especially Supplemental Security Income (SSI), are not aimed at increasing assets and independence for people with disabilities. More so then any other population on a fixed income,

services and policies do not hold the expectation of economic self-sufficiency.

Disability and Poverty


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Overview of SSA’s Definition of Disability


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• The Social Security Administration has two programs to support individuals with disabilities with an inability to work at a substantial level. Social Security Disability Insurance (SSDI) Supplemental Security Income (SSI)

• Many people with disabilities who receive SSDI and/or SSI, want to work or return to work but are unsure what will happen to their benefits when they do.

• Both SSDI and SSI have special work incentives available that make it possible for individuals to test their ability to work and continue to receive some or all of their cash and health benefits.

Overview


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Individuals must prove 2 things to be eligible for SSDI or SSI:

1. Prove that they have a documented medical disability that will last 12 months or longer or result in death.

2. Meet SSA’s definition of disability:

The inability to engage in Substantial Gainful Activity (SGA, which is paid work) by reason of any documented medical impairment (physical or mental) that will lasts 12 months or longer and/or result in death.

Individuals who are blind do not have to prove that they are unable to work. They only have to prove that they meet SSA’s level of blindness.

SSA Eligibility


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SGA is a basic test used by SSA to establish disability status

• SGA is the performance of significant mental and/or physical duties for profit.

• It is usually determined to be gross earnings (before taxes) of an amount of money that is set January 1 of each calendar year based on the National Average Wage Index.

• To meet this test a person must not be working, or if working, earning less than the SGA level amount.• 2012 SGA for non-blind individuals = $1010/month

• 2012 SGA for blind individuals = $1690/month

Substantial Gainful Activity (SGA)


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Overview of SSDI


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• SSDI is a Title II Benefit. • SSDI benefits are based on a person’s work history

looking at length of time and amount of money earned in F.I.C.A.. SSDI check amount will vary from person to person.

• DAC –Disabled Adult Children• Disability Prior to Age 22 & Never Legally Married• Insufficient FICA or higher parent amount• Parent is deceased, disabled or retired• Possible continuation of Medicaid

• Medical Insurance – MEDICARE

What is SSDI?


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Important to Note

• 5 Month Waiting Period for cash benefits• 24 months waiting period for Medicare• No Asset limit• Individual must have 12 months consecutive-initial

eligibility • SSDI is obsessed with SGA


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These are the list of programs under SSDI called Work Incentives:

Trial Work Period = $720/Month 2012 Extended Period of Eligibility Extended Medicare Coverage Impairment Related Work Expenses Section 301 Special Condition/Subsidies Expedited Reinstatement

SSDI Work Incentives and Wages


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• 9-month period, within 60 months, in which a person on SSDI can work and earn any amount of money without the earnings affecting their SSDI eligibility

• Each month an SSDI recipient earns more than $720 counts as one month of the TWP (indicated 2012 amount)

• These months do NOT need to be consecutive

Trial Work Period (TWP)


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• A period of extended eligibility that starts with the month after the TWP ends and continues for the next 36 months.

• Months that countable earned income is less than the SGA level they receive their full SSDI check.

• Months that countable earned income is more than the SGA level they do not receive a SSDI cash benefit.

• When countable wages first exceed the SGA level (cessation month), Social Security will plan to stop the benefits - but will allow the person to receive a check for that month and for 2 more months as a “grace period” before stopping checks altogether

Extended Period of Eligibility (EPE)


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An IRWE exists when:• The individual with a disability pays for the item or

service• The item or service is related to the person’s condition• The person would not be able to work if s/he did not

spend the money and receive the item or service

Impairment Related Work Expenses (IRWEs)


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A Subsidy Exists When the Employer: Willingly pays more in wages than the value of services

performed (Employer Subsidy); or

Receives full value only because some agency provides extra services to the employee (sometimes called Special Considerations)

Subsidies


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• An SSDI beneficiary is entitled to continued Medicare coverage after the trial work period and for up to an additional 93 months following the ninth trial work month.

• During this entire period, hospital coverage is automatic and cost-free. outpatient coverage continues to be optional and subject to premium payment ($99.90/month in 2012 for all enrollees)

Extended Medicare Eligibility (effective 10/1/00)


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• Re-Application• Expedited Reinstatement (EXR)

Options for Returning to Rolls


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A voluntary program for people with disabilities who want to work. Ticket provides:

• Greater Choice through an Increased Network of Vocational Service Providers (Employment Networks)

• Protection from Continuing Disability Reviews• Long-term support

Ticket to Work


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Section 301 allows individuals who improve medically and are no longer considered medically eligible through a CDR (Continuing Disability Review) to continue receiving a cash benefit if:

• Participating in an approved vocational rehabilitation program (public or private) at the time the eligibility ceases; or

• Continued benefit payments to students age 18 to 21 who medically recover, or whose disability is determined to have ended as a result of age 18 re-determination, while participating in an individual education program. (Effective July 2005)

• It is determined by SSA, with the aid of information from the vocational program that the vocational program will likely increase the permanent independence and self-sufficiency of the individual.

• Medicare and Medicaid and any State supplements also would continue under Section 301

Section 301


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Overview of SSI


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SSI is provided to individuals who:

1. Meet SSA’s definition of disabilityand

2. Have income under $698 ($1,048 for eligible couples)and

3. Assets under $2000 ($3000 for eligible couples)

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Savings and Supplemental Security Income


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SSI excludes some assets:• Your home, vehicle, goods you use for self-support, etc.

http://www.ssa.gov/ssi/spotlights/spot-resources.htm• Properly established Trusts

http://www.ssa.gov/ssi/spotlights/spot-trusts.htm• Individual Development Accounts

http://www.ssa.gov/ssi/spotlights/spot-individual-development.htm

24 Savings and the SSI Asset Limit


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• Supplemental Security Income (SSI) is a Title XVI program.

• SSI is the payer of last resort.• An individual must prove that they are financially eligible

for SSI. Monthly income less than $698/month Assets less than $2000 Eligible couple = $1048/month and $3000 assets

• Federal Benefit Rate Maximum: 2012 equals $698 per month.

• Medical Insurance - Medicaid

What is SSI?


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• Not everyone receives the full benefit amount• The rate of pay an individual is eligible for is based on:

Family composition (i.e. Living alone, with others, etc.) Marital status Deeming of income Type of housing (i.e. congregate care) In-Kind support and maintenance

• State Supplements – Some states offer supplemental payments to individuals eligible to receive SSI.

Federal Benefit Rate (FBR)


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• Income: Anything received in cash or in kind that can be used to meet needs for food or shelter.

• Two Types of Income: Earned Income and Unearned Income

Earned Income: Typically, gross wages - salaries, commissions, bonuses, self-employment; sheltered workshop earnings.

Unearned Income: All income that is not earned income. Unearned income is counted when it is actually or constructively received.

SSI: Income At-A-Glance


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SSI: Resources At-A-Glance

Resources: Cash or other liquid assets or real or personal property that an individual owns and could convert to cash which can be used to provide for food or shelter.

• The general rule is that an item received in a month is income and, unless spent, becomes a resource in the following month.

• General resource limit in 2012 is $2,000 for an individual, $3,000 for an eligible couple (Note: This rate was established on 1/1/89).


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SSI Work Incentives enhance economics and can protect Medicaid

• Student Earned Income Exclusion• Impairment Related Work Expense (IRWE)• Blind Work Expense• Plan For Achieving Self-Support (PASS)• Property Essential for Self-Support (PESS)• 1619a• 1619b• Section 301• Special Condition/Subsidies• Expedited Reinstatement

SSI Work Incentives and Wages


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Sample of a SSI wage Formula:

$1185 Gross Wages-20 GIE-65 EIE$1100÷2 =$550 Countable Wages

$698 2012 FBR-550 Countable Wages$148 SSI Cash Benefit

Before Work…Monthly Income =$698 SSIAfter Work ….Monthly Income =$1185 Wages+$148 SSI$1333But wait…..Are you worried the

individual earned over SGA

SSI Work Incentives and Wages


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• Student Earned Income Exclusion (SEIE) - The SEIE allows an individual who is under age 22 and regularly attending school to have earnings excluded from income as shown below:

• For Year 2012, Monthly Exclusion is $1,700Maximum exclusion for calendar year is $6,840

• Effective 4/01/05 To qualify for this exclusion, an individual must be:

under age 22; and

a student regularly attending school per SI 00501.020D.

Student Earned Income Exclusion (SEIE)


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• IRWE reduces gross income due to disability-related out of pocket expenses that allow a person to earn income, even if those items or services are needed for non-work activities. The expenses must be directly related to supporting

the disability Cost must be paid out of person’s pocket and not

covered by other funding sources Expense must be paid in a month wages are earned Expense must be reasonable

Impairment Related Work Expenses (IRWE)


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• The purpose of PASS is to allow SSI recipients to set aside income and/or resources to be used to assist in achieving specific work goals. A PASS can be used to assist in the costs of

education, starting a business or purchasing support services that will result in the reduction / cessation of benefits.

• By utilizing PASS, an SSI recipient’s can help to off-set the costs associated with the return to gainful employment by reducing countable income and potentially increasing the amount of SSI cash benefits due.

Plan to Achieve Self-Support (PASS)


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Plan For Achieving Self-Support (PASS)

The PASS plan must: • Have a specific work goal • Have a specific time frame for reaching the goal • Show what money and any other contributions will be used to reach

the work goal • Show how any money set aside in savings will be kept separate

from other funds• Show how the money and resources will be saved and, later, spent • Be submitted in writing and approved by Social Security’s PASS

Cadre • Include a Business Plan if the PASS is for self-employment • Be reviewed periodically to assure compliance • Increase an individual’s ability to be self-supporting by decreasing

the amount they receive in cash benefits from Social Security www.passonline.org


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Protects Medicaid when SSI Cash Benefits is Zero:

• The person must lose eligibility for SSI cash benefits due to excess earnings

• Person must be otherwise eligible for SSI

• Person must need Medicaid to Work

• Earnings must be below State’s Earned Income Threshold: www.ssa.gov/disabilityresearch/wi/1619b.htm#threshold

SSI & Section 1619(b) Medicaid


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• Re-Application• Expedited Reinstatement (EXR)

Options for Returning to Rolls


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A voluntary program for people with disabilities who want to work. Ticket provides:

• Greater Choice through an Increased Network of Vocational Service Providers (Employment Networks)

• Protection from Continuing Disability Reviews• Long-term support

Ticket to Work


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Section 301 allows individuals who improve medically and are no longer considered medically eligible through a CDR (Continuing Disability Review) to continue receiving a cash benefit if:

• Participating in an approved vocational rehabilitation program (public or private) at the time the eligibility ceases; or

• Continued benefit payments to students age 18 to 21 who medically recover, or whose disability is determined to have ended as a result of age 18 re-determination, while participating in an individual education program. (Effective July 2005)

• It is determined by SSA, with the aid of information from the vocational program that the vocational program will likely increase the permanent independence and self-sufficiency of the individual.

• Medicare and Medicaid and any State supplements also would continue under Section 301

Section 301


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The Interplay of Asset Development Strategies with

SSA Benefits


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• Wonderful starting point• No harm opportunity• Understanding one’s budget can help determine

employment goals• Easily accessible

Financial Literacy


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• Student Earned Income Exclusion (SSI)• Impairment Related Work Expense (SSDI and SSI)• Blind Work Expense (SSI)• PASS (SSI)• 1619b (SSI)• Subsidy and Special Conditions (SSDI)• Medicaid Buy-In (vary by state)

Work Incentives to Increase Income


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• PASS (SSI)• PESS (SSI)• Medicaid Buy-In (vary by state)

Work Incentives to Increase Resources


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• Medicaid Buy-In programs allow states to expand Medicaid coverage to workers with disabilities who are not typically eligible for Medicaid due to their income/assets.

• States design their Medicaid Buy-In program (within certain parameters) to meet their State’s unique needs, resources, and objectives.

• To be eligible for the Buy-In program, an individual must have a disability (as defined by the Social Security Administration), have earned income, and meet any other financial eligibility requirements established by their state.

Check with Your State Medicaid office to learn more about Buy-In

Medicaid Buy-In


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• PL 111-312, Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Sec. 728

• Passed by Congress in December 2010• Greatly simplifies and standardizes the rules on how tax

refunds are treated in determining the eligibility for public benefit programs.

Earned Income Tax Credit & Benefits


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Income • Excludes any federal tax refund from counting as income

in determining eligibility, or the amount of benefit, for any federally funded benefit program. Includes state and local programs partially funded by federal dollars.

Resource • Refunds that are saved by the filer do not count against

the resource limits of any federally funded public benefit for 12 months after the refund is received.

Legislation provides for:


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• Tax refunds can include benefits from the EITC, CTC, other tax credits, or a refund.

• New rules are effective for 2010 through 2012, the period covered by the legislation.

Implementation of New Legislation


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• Assets accrued in an IDA established using TANF or AFIA money can not, under Federal regulations, negatively impact an individual’s eligibility for federal programs. The individual’s contributions, matching contributions, and interest can not be considered as an asset when determining eligibility or benefit levels for federal benefit programs like Social Security, Medicaid and Food Stamps.

Assets for Independence Act, Section 415, codified at 42 U.S.C. 604 note and Social Security Act, Section 404(h)(4), codified at 42 U.S.C. 604(h)

IDA and Public Benefits


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• SSI does not count the individual’s contributions, matching contributions, and interest as a resource.

• SSI also excludes the individuals contribution from their countable earned income.

http://www.ssa.gov/ssi/spotlights/spot-individual-development.htm

SSI and qualified IDAs


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• HUD offers many (over 25) programs to support individuals in transitioning to work.

www.huduser.org/publications/pdf/w2w.pdf• Programs vary by Public Housing Authority (PHA)• Important to Note: Earned Income Disregard

HUD Programs


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• First 12 Months of Employment =

100 Percent disregard of New Wages• Second 12 Months of Employment

50 Percent disregard of New Wages

www.nls.org/ssassi/hud-earned-income.pdf

HUD Earned Income Disregard


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Two significant financial benefits to the FSS program are:

• Rent is unaffected by earned income until at such time that the family’s income equals or exceeds 80% of the median area income

• PHAs will deposit funds into as FSS account for each participating family

• When the FSS is completed, the family will be given the full amount in the escrow account

• No limits on amount of money that may be accumulatedContent developed by Cornell University, Employment and Disability Institute

Family Self-Sufficiency Program


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When To Consider Benefits And Asset Development


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• Benefits and asset development should be an ongoing thread that is evident throughout the process.

• SSA has provided a sense of financial stability. Letting go of SSA is more easily palatable with a plan

for financial stability• To start, change the approach to IEP development to

consider longer term objectives to advance economic self-sufficiency

When To Consider Benefits And Asset Development


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How do you go about seeking employment?

Do you consider……

1. your talents and abilities?

2. your budget?

3. the cost of going to work?

4. benefits offered?

When Discussing Employment


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Are you making the same considerations for the individuals you serve or are short term needs dominating the process?

1. Staying under SGA

2. Transportation

3. Immediate job opportunity

These are valid concerns. But they are short-term decisions.

Considerations


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Key points in the timeline:• When a job offer is made• When an individuals receives their paycheck• When an individual reaches the end of the Trial Work

Period • When an individual works at SGA • When a Work Incentive is used• When an individual on SSI experiences zero cash benefit• When an individual enters Extended Medicare

56 When to Consider Benefits


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Key points in the timeline:• When a job offer is made• When an individuals receives their paycheck• During tax time• When a Work Incentive is used• When a decrease in cash benefits is imminent• When an individual becomes eligible for their State

Medicaid Buy-In• Before you close a person’s case

When to Consider Assets


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• It is essential that you believe that every individual has the potential to move towards financial stability.

• Start the conversation. Don’t assume that another touch point is discussing financial literacy, budgeting or thinking about a financial future with your client.

• Fear is a bad decision maker. It is important to encourage individuals to get the right information about their benefits before making limiting decisions.

• Don’t let your own insecurity about your finances deter you from making connections for those you serve.

Don’t underestimate your power to create change through encouragement.

You are a Motivator…


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Connecting and Working with Community Work Incentive

Coordinators (CWICs)


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• The Work Incentives Planning Assistance Program is a grant funded program sponsored by the Social Security Administration

• Community Work Incentive Coordinators (CWIC) receive training approved by SSA, and are certified under this program to provide accurate advisement to Social Security beneficiaries

Work Incentives Planning Assistance Program (WIPA)


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• To assist people who want to know how work will affect benefits

• To learn about Work Incentives through SSA• To learn about additional resources available to assist in

the return to work• Referrals to other resourcesList of Providers -

https://secure.ssa.gov/apps10/oesp/providers.nsf/bystateFact Sheet -

http://www.socialsecurity.gov/work/wipafactsheet.html

Intention of WIPA Program


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• Communicate, communicate, communicate.• Support good record keeping• Refer back when necessary

Working with CWICs


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• Connect with your local CWIC to explore ways to work together Who to refer When to refer Where to refer

• Discuss how you will receive the information provided to the individual post-benefits planning

• Ask if the CWIC will identify ways you can support the process• Don’t be afraid not to be the expert AND don’t be afraid to

become one!! VCU National Training Center

http://www.vcu-ntc.org/index.cfm

Communicate, Communicate, Communicate


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Support the individual and their identified employment supports to:

• Open SSA mail immediately• Keep EVERYTHING SSA sends• Make copies of EVERYTHING sent to SSA• Report new work activity to the local SSA Office• Provide wage data to SSA regularly by providing a copy

of pay check stubs Wage data may be FAXED, hand delivered, or mailed Be sure to write your S.S. # on pay check stubs, and your

name if not already printed on check stubs

Support Good Record Keeping


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Protects the rights of beneficiaries of SSDI and SSI • Check out any complaint against an employment network or

other service provider helping an individual return to work

• Give information and advice about vocational rehabilitation and employment

• Explain SSA’s work incentives

• Provide consultation and legal representation to protect the rights of any one wanting to return to work

• Assist with problems concerning work plans under the Ticket to Work Program

http://www.ssa.gov/work/PandA.html

Protection and Advocacy of Beneficiaries of Social Security (PABSS)


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Comments & Questions


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Contact Information

Elizabeth JenningsProgram AssociateNational Disability InstituteEmail: [email protected]


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Upcoming Webinars

TACE Asset Development Webinar series• April 3

Building a Better Financial FutureJackie Wilks-Weathers & Richard Keeling

• May 8Connection Between Financial Stability and Job RetentionMike O’Brien

To learn more or to register:

http://tacesoutheast.org/network/ax/training/webinars_asset_building.php


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Education Credits

CRCC Credit - (2.0)

Approved by Commission on Rehabilitation Counselor Certification (CRCC)

• By Friday March 16, participants must score 80% or better on a online Post Test and submit an online CRCC Request Form via the MyTACE Portal.

My TACE Portal: TACEsoutheast.org/myportal

**For CRCC credit, you must reside in the 8 U.S. Southeast states served by the TACE Region IV [AL, FL, GA, KY, MS, NC, SC, TN]. If beyond TACE Region IV, you may apply for CEU credit.


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THANK YOU!


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Southeast TACE (Region IV)

Toll-free: (866) 518-7750 [voice/tty]

Fax: (404) 541-9002

Web: TACEsoutheast.org

My TACE Portal: TACEsoutheast.org/myportal

Email: [email protected]


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Disclaimer

This presentation was developed by the Southeast TACE Center: Region IV ©2012 with funds from the U.S. Department of Education, Rehabilitation Services Administration (RSA) under the priority of Technical Assistance and Continuing Education Projects (TACE) – Grant #H264A080021. However, the contents of this presentation do not necessarily represent the policy of the RSA and you should not assume endorsement by the Federal Government [34 CFR 75.620 (b)].


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Copyright Information

This work is the property of the Southeast TACE Region IV

Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the authors. To disseminate otherwise or to republish requires written permission from the authors.

Making Work Pay Part 4: Asset Development Webinar Series Elizabeth Jennings National Disability...

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