Social Security 101

Sheila FeskoInstitute for Community Inclusion

NextSTEP

www.serviceandinclusion.org

Toll-free hotline: 888-491-0326 (voice/TTY)

National Partnerships

AGENDA

• Introduction to Social Security programs

• Relationship to National Service programs

• Impact of work on benefits• Engaging SSA recipients in service

Two SSA Disability Benefits Programs

• Supplemental Security Income (SSI)

• “Social Security” Disability Insurance (SSDI)

Supplemental Security Income

• SSI-Supplemental Security IncomeProvides financial support and medical benefits (Medicaid) to persons with low income and few resources who are:

Aged (65+) or

Blind or Disabled

Medicaid Health Insurance

Monies come from General Revenue

Social Security Disability Insurance

• SSDI-Social Security Disability Insurance Cash benefits and medical insurance for:– Former Workers or– Dependents of a retired, deceased or disabled

worker including: Children under 18, disabled

child over 18 if disability acquired before 22

Medicare Health Insurance

Social Security monies come from FICA taxes

Medicare Coverage

• 24-month waiting period for coverage after cash benefits begin

• Part A: Hospital Insurance coverage automatic

• Part B: Medical Insurance voluntary with monthly premiums (recipients billed for months in which no cash benefit is received)

Eligibility for 2013

• SSI Eligibility Resource requirement: less than $2000 in assets Income requirement: earning less than SGA ($1,040/a

month) Medically disabled U.S. Citizen or meets immigration requirements Disability is anticipated to last at least a year

• SSDI Eligibility Worked and paid Social Security taxes (FICA) for enough

quarters - Or a dependent of a former worker Medically disabled Not working or earning less than SGA ($1,040/a month) Disability is anticipated to last at least a year

Living Allowance and Social Security

AmeriCorps State/National Direct

AmeriCorps VISTA

SSI Recipients No impact No impact

SSDI Recipients Counted as income

No impact

Mary Stack

Red Book on Work Incentives

One of SSA’s highest priorities is to help (recipients) with disabilities achieve a better and more independent lifestyle by helping them to take advantage of employment opportunities.

Effects of income on SSI

General and earned income exclusions = $85

Check is gradually reduced in relation to income

Continued cash benefits when earnings are above SGA until break even point is reached (1619a)

Continued Medicaid eligibility when earnings exceed BEP until threshold amount – state dependent but can be up to $30,000 - is exceeded (1619b)

SSI Work Incentives

• Student Earned Income Exclusion– Students under age of 22 can exclude

income• Plan to Achieve Self-Support

– Allows individual to set aside income to achieve vocational goal

• Impairment Related Work Expense – Expenses individuals with a disability

needs to be able to work are deducted from earnings

Effect of Income on SSDI

• SSDI check is not initially impacted by earning

• Individuals has 9 month Trial work Period to test work – Trial work month, any month individual

earns over $720– Have 9 cumulative months within 5

years

Work Incentives SSDI

• Extended Period of Eligibility – After completing Trial Work Period

• 36 months if income goes below Substantial Gainful Activity –SSDI check can be reinstated the next month

• Expedited Reinstatement – Following extended period of eligibility

• Benefits can be reinstated for 60 months without new application

• Impairment Related Work Expense• Extended Medicare Coverage

Ticket to Work • SSA recipients can get a “Ticket to Work”

that they can bring to an Employment Network that will help them find a job.

• Employment Network is paid for service based on individual moving off benefits.

• Employment Networks include:– Vocational rehabilitation – Community rehab providers

Alex Richard

Resources

• National Service to Employment Project (NextSTEP)

– www.serviceandinclusion.org/NextSTEP • Sheila Fesko, ICI—UMass Boston

617-287-4365sheila.fesko@umb.edu

• National Service Inclusion Project (NSIP) – www.serviceandinclusion.org/

• Social Security Administration • www.socialsecurity.gov/redbook.• www.socialsecurity.gov/work