Social Security Administration

St. Paul, Minnesota

An SSI Work Incentive

PASS

“What is a PA$$?”A PASS is part of the SSI program.

A PASS is plan to reach a specific job goal.

A PASS is a self-financed employment plan

A PASS is an “agreement” between you and SSA.

HIGHER SSI PAYMENTS

Pass excludes otherincome which normally would reduce SSI. With the exclusion we ask the person to put this money into PASS. Most common income excluded is wages/ SSDI.

PASS is a self financed RETURN TO WORK EFFORT

What is the PASS “agreement?” You agree to try to work to reduce your

dependence on SSA benefits.

SSA agrees to temporarily pay you SSI to live on, while you spend YOUR SSDI (or wages) on the “stuff” you need to go to work.

Who Can Benefit From a PASS? SSI recipients who want to be self-

supporting Voc rehab participants Recipients in school or training program Beneficiaries who are currently working

and want to increase their income Recipients with reduced SSI checks due

to other income

Elements of a PASS

Be in writing (SSA-545) State a JOB goal or VR evaluation Contain a reasonable time frame List expenses that are necessary to

achieve the work goal

A PASS must:

Initial PASS Application

Individualized Plan for Employment (IPE)

School information: acceptance letter, class schedule, transcript, financial aid

Documentation of PASS expenses.

Initial PASS Application: What We Need

Depending on the type of PASS submitted, job goal and expenses, the following items should be sent with the initial PASS application form:

Individual Plan for Employment (IPE) or letter from

DVR showing you are on their waiting list.

Attending School Admission letter, class schedule, Cost of tuition, books and fees, List for grants, scholarships and loans

TransportationNewspaper or internet advertisement of vehicle

they are proposing to buy.Written estimate for auto insuranceAn estimate of mileage to and from school or work

EquipmentA product summary or advertisement for the

computer system they want to purchaseA product summary for assistive devices

ServicesJob coaching / attendant care (hours and

cost)

Self Employment PASSA detailed business planProduct summaries of goods and services

needed for the business.

Other Benefits while on the PASS

State SupplementsHousing AssistanceFood StampsEnergy Assistance Income and resources set

aside under a PASS are not countable

FUNDING A PASS Funds used to reach occupational goal will not be used to compute SSI checks Can exclude income, for example...

wagesSocial Security benefitspensionsincome from husband, wife or parent

Can exclude resources, for example...savings bondsbank accounts, certificates of depositretroactive benefit payments, settlements

PASS Expenses PASS expenses must be

NecessaryReasonableDirectly related to attaining the job

goalNot incurred prior to start of the PASSCannot be reimbursed by third party

What Kinds of Expenses Can a Plan Help Pay For?

School or training expenses tuition, fees, books & supplies

Supplies to start a business Employment services, such as job coach Attendant care or child care expenses Equipment & tools to do the job Transportation for work Uniforms, special clothing, safety equipment

PASS Milestone

A significant, visible step or event necessary to achieve the occupational goal

Reasons for Denial or Partial Approval of Expenses Incurred prior to PASS Reimbursement expected Not reasonable cost Not necessary to reach goal

The PASS Process Local Social Security Offices

take claims forwards PASS material to PASS specialists

The PASS Cadre helps local offices develop PASSesreviews and authorizes all PASSeswill work with claimants as neededsends notices and makes systems inputs as

needed

The Arithmetic of PASS: Kelly receives SSDI of 520.00. Without PASS :$520.00

- 20.00 Gen’l Excl.

$500.00 Countable Income (CI)

$674.00 SSI FBR

- 500.00 CI

174.00 SSI payment

Total Income w/o PASS = 694.00/mo.

Kelly, with PASS

$520.00 SSDI- 20.00 Gen’l Excl $500.00 UI- $500.00 in PASS 0.00 Cntbl Inc

674.00 SSI FBR- 0.00 Cntbl. Inc.674.00 SSI

payment

Total Inc w/ PASS:674.00 SSI, plus500.00 to spend

on tuition, books, etc.

A Sample PASS - SSI ONLYExample 1 - Wages Being Excluded Billy wants to go to a vocational school to

become a auto mechanic . Billy has wages to exclude. He earns

$685.00 per month. Countable income figured $685- $85 =

$600.00 600/2= $300.00 in countable income.

This would normally reduce his SSI by $300.00 per month

Example 1 (continued)

He agrees to spend the $300.00 in countable income on his education and we approve a PASS.

We set aside this income and his SSI increases by $300/month for the PASS time frame.

A Sample PASS SSDI ONLYExample 2 - SSDI Being Excluded

Maria wants to go to school and become a social worker.

She gets $800.00 in SSDI benefitsThe occupational goal would need to

expect to generate enough income to eliminate SSDI. We could exclude up to $780.00 in SSDI income. This would give PASS applicant the full SSI payment of $674.00/mo.

Example 2 con’t

The applicant is expected to live off the SSI payment and put the PASS funds into the approved expenses.

Occupational Goals: where a PASS begins!

A job that will produce sufficient earnings to:

reduce dependency on SSI eliminate dependency on SSDI

is feasible, considering one’s disability and strengths and abilities

-Types of job goals….

JOB Goal:SUPPORTED EMPLOYMENT

Reduce dependency through:

Earning more money by working more hours

Earning the same money but with lower out-of- pocket (e.g., fewer hours of job coaching) needed.

Job Goal:

SELF-EMPLOYMENT Background running your own business? Taken the SCORE “Going into Business”

Seminar? Must include business plan that explains:

What is your product or service?Who is your market? How much do you need to “net” in

order to replace your benefits?

Help With Self-Employment

Contact:Small Business Administration

(SBA)SCORE (Affiliated with the SBA)Small Business Development

CentersCommunity collegesJames J. Hill Library- St. Paul

PASS Progress Review Plans are periodically reviewed to

verify individual is “on track” with planned milestones

account for the use of funds○ What are the actual amounts of income and

resources being excluded in figuring SSI checks?

○ Were these funds spent towards attaining the work goal?

PASS Amendment

Amendments to the PASS after it has been approved may include changes in:Amount of income or resources to be set

asidePlanned expensesScheduled date to reach the job goalMOST PASS APPLICATIONS ARE

AMENDED DUE TO UNEXPECTED CHANGES.

Appeals of Our Decisions

Request for reconsideration Request for hearing

Introducing the newPASS/AWIC web sitePASS/AWIC web siteIncludes New ONLINE PASS REFERRAL FORM Contact info for PASS Cadre and AWIC Reference material for

The publicFor SSA employees

And more…

Joani Werner Toll-free # 1-866-667-6032 x10661 Fax # 651-290-3811