Social Security Work IncentivesOpportunities to Work from SSA

Presenter: R. Shelley

Roberts Consulting Services

The Texas Customized Self-Employment Project

Sponsored By: The Texas Council for Developmental Disabilities

Managed By: Community Healthcore

Financial Support for The Texas Customized Self-Employment Project is provided by the Texas Council for Developmental Disabilities, with Federal funds* made by the United States Department of Health and Human Services, Administration on Developmental Disabilities.

*($112,704) (78%) DD funds; ($32,019) (22%) non-federal resources

SSITitle XVI

• Subject to economic and medical need

• Federal Benefit Rate (FBR) = $698 (2012)

• Medical benefit: Medicaid

• Under the age of 18 are subject to family income and number of siblings

• Resource Limits: individual $2,000: couple $3,000

SSI Applicable Work Incentives

• PASS

• IRWE

• 1619 (b)

• 1619 (a)

• PESS (Property Essential to Self Support)

• Student Earned Income Exclusion

• SEIE (2011) $1,640/mo., $6,600/yr.

1619 (b)

• Medicaid remains intact even though the SSI recipient earns at or over the SSA Break Even Point (BEP) = $1,481 in gross wages in one month (2012)

• Recipient must use Medicaid during the year or project use in the following year

• Texas threshold amount (2012): $31,174

1619 (a)

• A person may earn up to $85/month without losing any money from the SSI check

• After $85 earnings, $1 for every $2 of earnings is subtracted from the SSI check

IRWEImpairment Related Work Expense

• Actual expenses paid by the SSA/SSI recipient for services and accommodations due to the disability which allow them to work

• Expenses must be paid during the same month as the corresponding earnings

• Expenses are subtracted directly from earnings

Student Earned Income Exclusion

• Up to 22 years of age

• School attendance rules apply

• $1,700 monthly (2012)

• $6,600 per year

Property Essential to Self SupportPESS

• Applies to all equipment, tools, etc., that allows people to work

• Applies in both self employment or regular employment

• May be the establishment of a business bank account for self-employment (business) income

• Cannot be counted against resources ($2,000 single; $3,000 married couple) as long as the person is employed or self employed

PASS PlansPlan to Achieve Self Support

• Shelter money to pay for goods and services to further employment goals for people

• Maintain full SSI checks for people who are working for the duration of the PASS

• In some instances, may be used for students under the age of 18

PASS PlansWhat Can We Buy?

• Education (Tuition/Expenses)• Businesses• Equipment/machinery• Tools• Work clothes• Child care• Transportation• Work support• Employment development/training

PASS Plans: Basic Requirements

• The plan must:• Result in a decreased reliance on benefits administered by Social

Security

• Be designed specifically for the person

• Be in writing (can be written by anyone)

PASS Plans: Basic Requirements

• Have a specific work goal that the person is capable of performing. SSA’s PASS Specialists will usually presume a PASS to be viable if Vocational Rehabilitation or a certified rehabilitation professional or special education teacher says the goal is feasible

PASS Plans: Basic Requirements

• Have a specific time frame for reaching the goal

• Show what money and other resources received will be used to reach the goal

• Show how the money and resources will be used

• Show how the money set aside will be kept separately from other funds

PASS Plans: Basic Requirements

• Show how the money set aside will be kept separately from other funds

• Be approved by the Social Security Administration

• Be reviewed periodically to assure compliance

• Be accompanied by a business plan if the work goal is self-employment

PASS Plans: Likely Candidates

• Resources in Excess of Allowable Limits

• Individuals who do not have earned or unearned income and who have not qualified for SSI in the past due to resources over the SSI resource limit (generally defined as over $2000 in non-excluded resources) may use a PASS to set aside some or all of the excess resources to achieve a vocational goal and, as a result, qualify financially for SSI and Medicaid

PASS Plans: Likely Candidates

• Earned Income Only

• Individuals with disabilities who have earned income only can set aside the countable portion of their earnings in a PASS to become financially eligible for SSI/Medicaid

PASS Plans: Likely Candidates

• Both Earned and Unearned Income

• Individuals who have both earned and unearned income can set aside their countable wages, or unearned income, or both in a PASS and thereby establish SSI/Medicaid financial

PASS Plans: Likely Candidates

• Earned Income and Receiving SSI/Medicaid

• Individuals who have earned income and who are receiving SSI checks can set their countable earnings aside in a PASS, which will result in receiving full SSI checks while they work toward their PASS goal.

PASS Plans: Likely Candidates

• Earned Income (in the future) and Receiving SSI/Medicaid

• Individuals who have SSI only, but who will begin working in the near future, can write a PASS to set aside countable new wages starting with the first month of employment. The SSI check will only be reduced by the amount of countable income not set aside in the PASS.

PASS Plans: Likely Candidates

• In School or Training• Potential PASS candidates having income/resources, including

individuals with disabilities in school or training programs, currently receiving services from rehabilitation agencies, or interested in rehabilitation and becoming self-supporting

PASS Plans:Likely Candidates

• Title II (SSDI & SSDAC) Only

• Must be able to qualify for SSI & Medicaid

• Must be able to fulfill budgetary requirements

• Check medical, living, and food expenses

• May fund more expensive PASS items and goals