SSI Work Incentives: Make Disability Benefits Work for You! Karla Bell, Program Manager CHIIP/SDSU...

SSI Work Incentives: Make Disability Benefits Work for You!Karla Bell, Program ManagerCHIIP/SDSU Interwork Institute

SSI Work Incentives:Make Disability Benefits Work for You!

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Getting Started

Overview

Myths about SSI and Work

Social Security Disability Benefits Overview

How earned income affects SSI

Ways to maximize SSI benefits

Keeping Medi-Cal and IHSS while working

Tools and Resources for benefits and employment planning

Myths

If I go back to work:I’ll lose my cash benefitsI’ll lose my Medi-Cal and IHSSIf my disability worsens and I can’t continue to work, I won’t be able to get back on benefits

Social Security Disability Insurance (SSDI) or Title II

Supplemental Security Income (SSI) or Title XVI

Must meet SSA disability criteria

Insurance Program Needs Based

FICA contributions/work history

Resource Limits: $2,000 for individual; $3,000 for couple

Paid from Title II Trust Fund Paid from tax fund

5 month waiting period No waiting period

Monthly payment depends on average lifetime earnings

Payment fluctuates with income, state supplements, etc

Medicare: 2 year waiting period

Medicaid (Medi-Cal): Immediate eligibility

SSI? SSDI? What’s What?

2012 California SSI payment rates

2012 California SSI Monthly Payment Rates $854.40 (Individual-own household) $625.17 (Individual-household of another) $938.40 (Individual-no cooking facilities) $909.40 (Blind individual) $680.17 (Blind-household of another) $1444.20 (Couple) $1591.20 (Blind Couple)Rates effective January 2012

SSI Resource Limit: $2000 (individual) $3000 (couple)

How do I find out what benefits I receive?

Benefits Planning Query (BPQY) A brief report with details about your SSI and/or SSDI

benefits, health coverage and work and earnings history Request from your local Social Security Office Call the Social Security Administration (SSA) at: 800-

772-1213 (voice); 800-325-0778 (TTY) Learn more about the BPQY on Disability Benefits 101:

http://ca.db101.org/news/news_1685.htm A Community Work Incentives Coordinator (WIPA

projects) will request a BPQY for you as part of benefits counseling

http://ca.db101.org/news/news_1685.htm

SSI Work Incentives

Going to work can increase overall income

Your SSI payment amount is adjusted when a person has other sources of income (earnings, SSDI, etc.)

Work Incentives allow income to be excluded in order to maximize the SSI amount when a person is returning to work

To use most work incentives: Tell Social Security that you have gone to work or Report changes in your earnings

Some work incentives require you to ask Social Security to determine if you can use them

How Earnings Affect SSI Payments

Social Security counts less than half of your earned income

Social Security uses gross earnings (before taxes) to decide how much to subtract from SSI check

The first $85 of earnings is not counted ($20 General Income Exclusion and $65 Earned Income Exclusion)

After subtracting these amounts from gross earnings, Social Security divides the remaining earnings by two

The remainder, called “countable income”, is then subtracted from the amount of the original SSI check

The amount left over is the person’s adjusted SSI payment

Step One:

$885.00 Gross Monthly Earnings from Work

-$20.00 General Income Exclusion

-$65.00 Earned Income Exclusion

÷2

=$400.00 Countable Earned Income

Step Two:

$854.40 SSI Payment (California 2012 rate)

-$400.00 Countable Earned Income

=$454.40 Adjusted SSI Payment While Working

How Amount of Adjusted SSI Check is calculated:


+$454.40 Adjusted SSI Payment

=$1339.40

Total Spendable Monthly Income

Available Income

Compared to $854.40/month without income from work

Using Work Incentives to Maximize Benefits

Impairment Related Work Expenses (IRWEs)

Blind Work Expenses (BWEs)

Student Earned Income Exclusion (SEIE)

Plan to Achieve Self-Support (PASS)

Impairment Related Work Expenses (IRWE)

Documented expenses for services or items that are related to one's disability, needed in order to work and are paid out of pocket and not reimbursed

The cost may be pro-rated over a 12-month period for nonrecurring expenses

Examples: Personal assistance services Assistive Technology Prescription drug co-payments Costs related to service animals Supplements or expendable medical supplies

No fixed list-negotiate IRWEs with Social Security

Example: IRWE and SSI

Jack is 24 years old and lives in his own apartment

He receives $854.40/month from SSI

He begins a new job that pays him $1000 in gross monthly earnings

He has a physical disability and he cannot use available public transportation and cannot drive himself

He pays a driver to transport him to his job

He also pays out of pocket for medical supplies and supplements

These services and items cost him $300/month and qualify as IRWEs

Step One:


-$85.00 General & Earned Income Exclusions

-$300.00 IRWEs

-$615.00 Remaining Earnings

Step Two:

$615.00 Remaining Earnings

÷2


How Jack’s Adjusted SSI Check is calculated:

Step Three:




Step Four:

$546.90 Adjusted SSI Payment

+1000.00 Work Earnings

-$300.00 IRWE

=$1246.90 Total Available Income

How Jack’s Adjusted SSI Check is calculated:

Blind Work Expenses (BWE)

For SSI beneficiaries whose primary diagnosis is blindness

Allows the exclusion of any work related items that are paid out of pocket and not reimbursed

BWEs do not need to be related to blindness or any impairment

Examples: Service animal expenses, fees, State, Federal & local taxes, visual & sensory aids, driver services, transportation to and from work, childcare, meals consumed at work, union dues, uniforms, reader services, vehicle modification, mandatory pension contributions, training to use an impairment-related item, translation of materials into Braille

Example: BWE and SSI

Jill is 30 years old, blind and lives in her own apartment

She receives $909.40/month from SSI

She begins a new job that pays her $1800 in gross monthly earnings

She can deduct the cost of transportation to work regardless of whether her blindness required any specialized arrangement

Costs related to blindness are also included so she can deduct expenses for adaptive computer software or service dog expenses

She also can deduct income taxes, union dues and meals at work

Her expenses cost her $500/month and qualify as BWEs

Step One:



÷2


Step Two:


-$500.00 BWE


How Jill’s Adjusted SSI Check is calculated:

Step Three:




Step Four:


+1800.00 Work Earnings

-$500.00 BWE

=$1851.90 Total Available Income

How Jill’s Adjusted SSI Check is calculated:

IRWE & BWE

All Blind and Impairment Related Work Expenses must be verified by your local Social Security field office

Provide them with original receipts or canceled checks of the expenses

Social Security will determine if the expense may be deducted

Request in writing in order to use appeal rights (if necessary)


SEIE allows young people who are in school to test their ability to work without any reduction in their SSI check

For SSI recipients under the age of 22 and regularly attending school, college or training to prepare for a paying job

Social Security can exclude up to $1640 of earned income per month from the student’s countable earnings when calculating their SSI payment 2012 monthly exclusion will be $1,700/month

Maximum yearly exclusion: $6600 in 2011 $6840 in 2012


“Regularly attending school” means taking one or more courses of study and attending classes: In college or university for at least 8 hours a week In grades 7-12 for at least 12 hours a week In a training course to prepare for employment for

at least 12 hours a week (15 hours a week if the course involves shop practice)

May be approved for less time if it is due to a reason beyond student’s control, such as illness


School enrollment can be verified with an ID Card, tuition receipt, or other evidence

Social Security can contact the school to verify attendance

It is recommended that student status is clearly indicated in writing when notifying Social Security of employment

SEIE should be applied automatically when earnings and student status are reported

Example: SEIE and SSI

Lola is 20-years old and she lives with her parents

Starting in January 2012, she will be a full time student at her local community college

Because she still lives at home and is not paying rent, she receives a monthly SSI check of $625.17

Starting in April of 2012, she will be working ten hours a week at the rate of $15/hour as a peer mentor at her local independent living center

Her gross monthly income from work is $645.00

Because she is a student, she can use the SEIE, which allows her to exclude her earnings up to $1700 per month (up to a total of $6840 per year) from her countable income for SSI

Step One:


-$645.00 SEIE

$0.00 Total Countable Earnings

Step Two:


-$0.00 Countable Earnings


Step Three:


+$645.00 Work Earnings

=$1270.17 Total Income

Example – SEIE and SSI Calculation:

SEIE Yearly Exclusion

Maximum yearly exclusion is $6840 in 2012

If Lola earns $645.00/month, and works 9 months (April-December) she could exclude the entire $5805.00 total earnings

Can remain in effect even when you are on summer break as long as you resume school when school reopens


A written plan that allows recipients of SSI to set aside income and/or resources for a specified period of time to be used to achieve a chosen occupational goal

SSI recipients are eligible PASS may allow SSI eligibility for SSDI beneficiaries

A way that SSA assists people with disabilities in their own efforts to join or re-enter the workforce

Examples of PASS expenses: training, transportation, equipment and tools, child care, assistive technology, job coach, business start up funds, vehicle modifications, professional attire

28

29

You must have some form of countable income and/or resources to set aside in the PASS Funds set aside in a PASS are not counted as income when

determining SSI payment Funds set aside don’t count toward SSI resource limits

A PASS is intended to encourage SSI recipients to eventually become self-supporting (i.e. occupational goal will lead to a significant reduction in SSI)

To learn more watch our archived PASS webinar:

http://interwork.sdsu.edu/chiip/training.php?page=webinars



Example: PASS and SSI

Keiko receives $854.40/month in SSI

She is earning $550.00/month working part-time at a local coffee house

She attends college full-time and she has been using the Student Earned Income Exclusion, but she is turning 22 next month

Her goal is to become a licensed practical nurse which includes state certification testing

She has been saving money to buy a car and she has almost $1,800 in her savings account, but she knows that she cannot save much more without losing her SSI

She would like to write a PASS for: School and employment expenses To buy a used car since there is no public transportation available to

or from any local hospitals or nursing homes




÷2

$232.50 Countable Earned Income

-$232.50 Contributed to PASS

$0.00 Adjusted Countable Income

Example—SSI and PASS Calculation:


-$0.00 Countable Income

=$854.40 Adjusted SSI Payment

Available Income


+$550.00 Earnings from Work

-$232.50 Contributed towards PASS

$1,171.90 Total Available Income

Example—SSI and PASS Calculation:

Often notice no difference in available income with or without a PASS (depending on amount set aside)

Ownership of items purchased

Personal investment in employment goals

Ability to supplement services from other agencies; cover costs that other agencies cannot

Viable option for self-employment goals

Offers alternative or supplement to traditional Department of Rehabilitation services

Allows for self-directed employment plan

Benefits of a PASS Plan

Keeping Medi-Cal and IHSS While Working

Section 1619(b)

Medi-Cal Working Disabled Program

SSI and Medi-Cal: 1619(b)

1619(b) is a work incentive that allows working SSI recipients to keep FREE Medi-Cal (No Share-of-Cost)

Medi-Cal retained when SSI payment is reduced to $0.00 per month due to earned income

Free Medi-Cal coverage continues until earnings reach a threshold amount: $36,423.00 (non-blind) $37,743.00 (blind) These are 2012 amounts for California

People with high medical costs or publicly funded attendants (i.e. IHSS) can earn even more (Individualized Threshold)

Benefits can start again if you stop working or your earnings decrease (Reinstatement)

1619(b) Qualifications

To qualify:

Have been eligible for an SSI cash payment for at least 1 month;

Would be eligible for cash payment except for earnings;

Still be disabled or blind;

Still meet all other eligibility rules, including the resources test;

Need Medi-Cal in order to work;

Have gross earned income that is insufficient to replace SSI, Medi-Cal, and any publicly funded attendant care (IHSS)

1619(b): Individualized Threshold

Individualized Threshold: threshold can be adjusted on a case-by-case basis Higher Individualized Threshold if:

Blind Work Expenses (BWE) Impairment Related Work Expenses (IRWE) Plan to Achieve Self-Support (PASS Plan) Publicly Funded Personal Attendant (i.e. In-Home Supportive Services) Medical Expenses above State Average

Social Security’s Programs Operation Manual reference: SI 02302.050 Individualized Threshold Calculation https://secure.ssa.gov/apps10/poms.nsf/lnx/0502302050

Area Work Incentives Coordinators http://www.ssa.gov/sf/awic.htm

https://secure.ssa.gov/apps10/poms.nsf/lnx/0502302050

http://www.ssa.gov/sf/awic.htm

Medi-Cal Working Disabled Program

The Medi-Cal Working Disabled Program allows individuals to earn up to $55,476/year and keep their Medi-Cal! Eligible couples can earn up to $74,580/year Even higher wages are allowed with IRWEs

Affordable monthly premiums to access Medi-Cal and IHSS without a share-of-cost $20-$250 for individuals $30-$375 for couples

IRS approved Retirement Plans allowed and not counted towards asset limit

Save your earned income in a separate identifiable account with no cap

Getting Back on Benefits

1619(b) - SSI cash benefits can start again if you stop working or your earnings decrease (Reinstatement)

Expedited Reinstatement (EXR): 5 year period after SSI benefits and payments

stop due to work and earnings If a beneficiary stops working their benefits can

be reinstated without having to file a new application

Up to 6 months provisional benefits payable during EXR decision making process

Medical decision needed

Benefits Planning Tools, Skills and Resources for Results

The Benefits Binder: your notebook and log of phone calls, office visits, and names of service staff you contact. File original paycheck stubs, government letters and receipts here.

Reporting Requirements: Who is responsible, when? If you have a payee, the payee is responsible to report changes to Social Security. If not, it’s the beneficiary. Report income and other life changes timely

Know your appeal rights. A Notice of Action explains them.

Utilize Benefits Planning Tools and Resources: Disability Benefits 101 website (www.db101.org), and local benefits planners.

These tools, rules and skills can result in timely and improved customer service with benefit programs

http://www.db101.org/

Resources

Disability Benefits 101

www.disabilitybenefits101.org

SSA Red Book-Guide to Work Incentives

www.ssa.gov/redbook

Work Incentives Planning and Assistance (WIPA) Projects

Free benefits counseling by Community Work Incentives Coordinators (CWIC)

For SSI, and SSDI recipients ages 18-64

https://secure.ssa.gov/apps10/oesp/providers.nsf/bystate

http://www.disabilitybenefits101.org/

http://www.ssa.gov/redbook

https://secure.ssa.gov/apps10/oesp/providers.nsf/bystate

Resources

Area Work Incentives Coordinators (AWIC) Social Security’s work incentives experts Help SSI and SSDI beneficiaries who are having trouble getting

accurate information and application of work incentives at local SSA offices

www.ssa.gov/sf/awic.htm

Disability Rights California Protection and Advocacy for Beneficiaries of Social Security (PABSS) Assistance with appeals, overpayments, problems with Employment

Networks, workplace discriminationhttp://www.disabilityrightsca.org/

800-776-5746TTY 800-719-5798

http://www.ssa.gov/sf/awic.htm

http://www.disabilityrightsca.org/

Resources

Plan to Achieve Self-Support Find your PASS Cadre:www.socialsecurity.gov/disabilityresearch/wi/passcadre.htm

PASS Plan form:www.socialsecurity.gov/online/ssa-545.html

The Work Sitewww.ssa.gov/work

http://www.socialsecurity.gov/disabilityresearch/wi/passcadre.htm

http://www.socialsecurity.gov/disabilityresearch/wi/passcadre.htm

http://www.socialsecurity.gov/online/ssa-545.html

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

Questions

You are welcome to contact Karla Bell at:619-594-5381

[email protected]

www.talentknowsnolimits.info

www.tknlyouth.org

mailto:[email protected]

http://www.talentknowsnolimits.info/

http://www.tknlyouth.org/

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SSI Work Incentives: Make Disability Benefits Work for You! Karla Bell, Program Manager CHIIP/SDSU...

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