Work Incentives for Work Incentives for Transition Aged Transition Aged

Youth Youth

PA Community on Transition

July 2009

Facilitators & DisclaimerFacilitators & Disclaimer John Miller, Vice President, AHEDD John Miller, Vice President, AHEDD

(717) 763-0968 ext 118, (717) 763-0968 ext 118, john.miller@ahedd.orgjohn.miller@ahedd.org Michele Leahy, Transition Work Incentive Michele Leahy, Transition Work Incentive

CoordinatorCoordinator (215) 885-2060 ext 407, (215) 885-2060 ext 407, michele.leahy@ahedd.orgmichele.leahy@ahedd.org

Information presented does not represent Information presented does not represent official policy of the Social Security official policy of the Social Security Administration (SSA) and/or the PA Administration (SSA) and/or the PA Department of Public Welfare (DPW) and is Department of Public Welfare (DPW) and is the responsibility of the facilitators. the responsibility of the facilitators.

Problem StatementsProblem Statements

““District Personnel have found that some District Personnel have found that some students are quitting work because they are students are quitting work because they are afraid they will lose their Social Security afraid they will lose their Social Security benefits, which many families depend upon.” benefits, which many families depend upon.”

““Federal and state work incentives …can Federal and state work incentives …can help to ease the transition to competitive help to ease the transition to competitive employment, but a widespread lack of employment, but a widespread lack of knowledge about the incentives exists among knowledge about the incentives exists among the District’s teachers, parents and the District’s teachers, parents and students.” students.”

SSA DemographicsSSA DemographicsUS PopUS Pop SSDISSDI SSI (18-64)SSI (18-64)

MarriedMarried 53%53% 50%50% 19%19%

Never Never MarriedMarried

29%29% 21%21% 46%46%

< HS< HS 19%19% 23%23% 44%44%

More than More than 12 yrs 12 yrs schoolschool

52%52% 38%38% 20%20%

Own homeOwn home 68%68% 62%62% 37%37%

Food Food StampsStamps

9%9% 16%16% 44%44%

Households of SSI ChildrenHouseholds of SSI Children According to a national survey, 78% of According to a national survey, 78% of children ages children ages

13-17 who receive SSI13-17 who receive SSI have ever received special have ever received special education services; education services;

Household: 26% live with 2 parents; 53% have Household: 26% live with 2 parents; 53% have another household member with a disability;another household member with a disability;

Household Income: Only 51% of parents have earned Household Income: Only 51% of parents have earned income, and SSI represents 49% of the household income, and SSI represents 49% of the household income among this age group;income among this age group;

Household Assets: 40% of households have no liquid Household Assets: 40% of households have no liquid assets, and 81% have less than $1,000;assets, and 81% have less than $1,000;

Type of Assets: 37% have a checking account, 36% Type of Assets: 37% have a checking account, 36% own their own home, and 29% have a savings own their own home, and 29% have a savings account;account;

Gender: 64% male/36% female;Gender: 64% male/36% female; School Status: 91% in school.School Status: 91% in school.

Source: National Survey of SSI Children & Families, interviews Source: National Survey of SSI Children & Families, interviews conducted between July 2001 and June 2002. conducted between July 2001 and June 2002.

Issues with SSI &TANF Issues with SSI &TANF

Temporary Assistance Needy FamiliesTemporary Assistance Needy Families Family/Household BenefitFamily/Household Benefit SSI Parent/TANF Child: parental SSI Parent/TANF Child: parental

earned income not counted as long as earned income not counted as long as there is $1 of SSI …i.e. until 1619(b)there is $1 of SSI …i.e. until 1619(b)

TANF Parent/SSI Child: any earned TANF Parent/SSI Child: any earned income of SSI child not included in income of SSI child not included in household income.household income.

SSA Income Support SSA Income Support ProgramsPrograms

1.1. Social Security Disability Social Security Disability Insurance (SSDI)Insurance (SSDI)

Social Security Childhood Social Security Childhood Disability Beneficiary Disability Beneficiary (SSCDB)(SSCDB)

2.2. Supplemental Security Income Supplemental Security Income (SSI)(SSI)

Social Security Disability Social Security Disability InsuranceInsurance

Publicly funded LTDPublicly funded LTD Title IITitle II Work history, monthly Work history, monthly

payments based on payments based on personal work history personal work history - credits- credits

6 month wait for 6 month wait for cash, 2 year wait for cash, 2 year wait for MedicareMedicare

Relevant Sub group: Relevant Sub group: Childhood Disability Childhood Disability BeneficiariesBeneficiaries

Supplemental Security Supplemental Security Income Income

Supplemental Supplemental Security Income Security Income (SSI):(SSI): a low income a low income program for which program for which many adults and many adults and youth with youth with disabilities qualify.disabilities qualify.

Title XVITitle XVI Signed into law in Signed into law in

the 1970s by the 1970s by President Nixon.President Nixon.

Ticket to Work & Work Incentives Ticket to Work & Work Incentives Improvement ActImprovement Act

Federal legislation 1999Federal legislation 1999 Address a spectrum of Address a spectrum of

barriers:barriers: To provide beneficiaries with To provide beneficiaries with

timely, accurate information timely, accurate information and guidance on using work and guidance on using work incentives;incentives;

To remove possibility of To remove possibility of losing Medicaid because of losing Medicaid because of going to work;going to work;

To offer beneficiaries priority To offer beneficiaries priority treatment via an expanded treatment via an expanded choice of employment choice of employment providers;providers;

To inject additional new To inject additional new revenue into the employment revenue into the employment service system for people service system for people with disabilities.with disabilities.

SSA Program ConceptsSSA Program Concepts Eligibility: Eligibility:

FIRST STEP: Demonstrate an inability to earn FIRST STEP: Demonstrate an inability to earn Substantial Gainful Activity (SGA)Substantial Gainful Activity (SGA)

Severe Impairment (Disability Determination Severe Impairment (Disability Determination Service)Service)

If Work History Credits (SSDI), otherwise Asset If Work History Credits (SSDI), otherwise Asset Test (SSI)Test (SSI)

Representative PayeeRepresentative Payee Re-determination @ Age 18Re-determination @ Age 18 Continuing Disability Review (CDR)Continuing Disability Review (CDR) Health InsuranceHealth Insurance Impact of Work: Reduction, Suspension, Impact of Work: Reduction, Suspension,

TerminationTermination

SSI & WorkSSI & Work

Monthly responsibility to report all earned Monthly responsibility to report all earned and unearned income to SSA;and unearned income to SSA;

Standard formula of general and earned Standard formula of general and earned income exclusion, as well as “one for two income exclusion, as well as “one for two offset” used by SSA to process this and offset” used by SSA to process this and calculate reportable income;calculate reportable income;

““Reportable income” is used to calculate Reportable income” is used to calculate the eligible SSI payment;the eligible SSI payment;

There is generally a 2-3 month time lag There is generally a 2-3 month time lag due to retrospective accountingdue to retrospective accounting

Additional Impact on SSI payment: Additional Impact on SSI payment:

In Kind SupportIn Kind Support SSA will factor income/resources of SSA will factor income/resources of

another provided to an SSI eligible another provided to an SSI eligible person: person: DeemingDeeming is done at initial application is done at initial application

and during annual determination, e.g. and during annual determination, e.g. parent to an SSI eligible child;parent to an SSI eligible child;

In-Kind Support & MaintenanceIn-Kind Support & Maintenance (ISM) (ISM) is the value of food and shelter provided is the value of food and shelter provided to an eligible personto an eligible person

Impact of Work on SSI (CY 2009)Impact of Work on SSI (CY 2009)

PA Provides an SSI supplement of $27.40 not included in this display! Note: PA Threshold 2009 = $28,699

$-

$500

$1,000

$1,500

$2,000

$2,500

Earned Income $- $300 $625 $980 $1,432 $1,433 $2,392

SSI $674 $567 $404 $227 $1 $- $-

1 2 3 4 5 6 7

1619(a)

1619(b)

Student Earned Income Exclusion: Student Earned Income Exclusion: Instant Increase to Monthly IncomeInstant Increase to Monthly Income

Criteria: Criteria: <22<22 Enrolled in schoolEnrolled in school SSISSI Earning a paycheckEarning a paycheck

Monthly exclusion up to $1,640 (CY 2009) Monthly exclusion up to $1,640 (CY 2009) of countable earnings up to $6,600of countable earnings up to $6,600

Proof of being in school or continuing Proof of being in school or continuing education (e.g. during summer break)education (e.g. during summer break)

Need to request!Need to request!

A 20 year old high school student and A 20 year old high school student and working part time at Shop Rite receives working part time at Shop Rite receives Supplemental Security Income (SSI). Shawn Supplemental Security Income (SSI). Shawn is utilizing the Student Earned Income is utilizing the Student Earned Income Exclusion (SEIE) and the Ticket to Work - Exclusion (SEIE) and the Ticket to Work - work incentives. The SEIE work incentive work incentives. The SEIE work incentive allows full time students, like Shawn who are allows full time students, like Shawn who are under the age of 22 to work, attend school under the age of 22 to work, attend school and still be eligible for all of his SSI benefit. and still be eligible for all of his SSI benefit. Now Shawn has the ability to learn the value Now Shawn has the ability to learn the value of employment without risking losing his of employment without risking losing his benefits. Eventually, it’s Shawn’s goal not to benefits. Eventually, it’s Shawn’s goal not to be dependent on cash benefits provided by be dependent on cash benefits provided by SSI. SSI.

ShawnShawn

Plan for Achieving Self Plan for Achieving Self SupportSupport

A Fixed Savings ProgramA Fixed Savings Program A vocational goal that requires the A vocational goal that requires the

beneficiary to save money over a specific beneficiary to save money over a specific time period. time period.

SSI or potentially eligible for SSI & SSI or potentially eligible for SSI & another source of income: earned, another source of income: earned, unearned, in-kind (e.g. deemed income)unearned, in-kind (e.g. deemed income)

PASS Application submitted to local SSA PASS Application submitted to local SSA Office, approved by Regional PASS CadreOffice, approved by Regional PASS Cadre

Form: Form: http://www.ssa.gov/online/ssa-545.pdfhttp://www.ssa.gov/online/ssa-545.pdf

Using Deemed Income for a Using Deemed Income for a PASSPASS

No No PASSPASS

PASSPASS

Unearned Income Unearned Income (deemed)(deemed)

$450$450 $450$450

General Income General Income ExclusionExclusion

($20)($20) ($20)($20)

Countable UnearnedCountable Unearned $430$430 $430$430

Countable EarnedCountable Earned $0$0 $0$0

PASS DeductionPASS Deduction $0$0 ($430)($430)

Countable IncomeCountable Income $430$430 $0$0

Federal SSI paymentFederal SSI payment $244$244 $674$674

PASS Users By AgePASS Users By Age

0

20,000

40,000

60,000

80,000

100,000

Wor

kers

050100150200250300350400450

PA

SS

Use

rs

Working 3,182 35,202 89,065 77,027 72,812 52,142 15,079

PASS 1 73 342 327 418 286 57

Under 18 18–21 22–29 30–39 40–49 50–59 60–64

Brendan Brendan

A 23 year old is working towards becoming a Social Worker came to AHEDD to help understand how to develop a Plan for Achieving Self-Support (PASS), a fixed saving to assist him obtain this vocational goal. Through AHEDD’s Transition Age WIPA program he found out this savings account can exceed the $2,000 resource limit and has the ability to eliminate a reduction in Supplemental Security Income (SSI). Since he receives two forms of income; SSI and works at Wal-Mart he is allowed to put up to his entire paycheck in the PASS to save for school to become a Social Worker.

Brendan Brendan

Concurrent BeneficiaryConcurrent Beneficiary A young SSI beneficiary who is working begins A young SSI beneficiary who is working begins

paying into SS Retirement/Medicare (i.e. 7.65% x paying into SS Retirement/Medicare (i.e. 7.65% x 2); as a result could potentially qualify for Social 2); as a result could potentially qualify for Social Security Disability Insurance (SSDI) with as little as Security Disability Insurance (SSDI) with as little as 1.5 years of “work credits.”1.5 years of “work credits.”

Since SSI is the payer of last resort, any SSDI is Since SSI is the payer of last resort, any SSDI is treated as “unearned income” and reduces SSI treated as “unearned income” and reduces SSI nearly $1 for $1 (after $20 disregard).nearly $1 for $1 (after $20 disregard).

SSA looks at unearned, earned to calculate the SSA looks at unearned, earned to calculate the monthly SSI payment. Someone who is working is monthly SSI payment. Someone who is working is highly likely to receive $0 in SSI payment but still be highly likely to receive $0 in SSI payment but still be in the SSI program in 1619(b) status.in the SSI program in 1619(b) status.

The timing of the initial SSDI payment could result The timing of the initial SSDI payment could result in a modest SSI overpayment.in a modest SSI overpayment.

MarkMark

A 24 year old who has been working with A 24 year old who has been working with AHEDD employment services for over 2 years. AHEDD employment services for over 2 years. AHEDD was able to help him find two part-time AHEDD was able to help him find two part-time jobs working at Genuardis’ and La Prima. Mark jobs working at Genuardis’ and La Prima. Mark who is SSI eligible received this benefit until he who is SSI eligible received this benefit until he became entitled to his own Social Security became entitled to his own Social Security Disability Insurance due to his own work history. Disability Insurance due to his own work history. Now, he works, receives both SSI, SSDI and Now, he works, receives both SSI, SSDI and remains eligible for his Medicaid, Medicare and remains eligible for his Medicaid, Medicare and Waiver services through the Mental Waiver services through the Mental Health/Mental Retardation offices through his Health/Mental Retardation offices through his local county. local county.

““She responded quickly to my phone call and explained issues that were very She responded quickly to my phone call and explained issues that were very confusing to me, as my son transitioned from SSI to SSDI benefits due to his confusing to me, as my son transitioned from SSI to SSDI benefits due to his

work record. When I met with our case manager at SSA [Social Security work record. When I met with our case manager at SSA [Social Security Administration], I was well-prepared for the interview and knew what Administration], I was well-prepared for the interview and knew what

questions needed to be asked to correct a complicated situation.”questions needed to be asked to correct a complicated situation.”

Jennifer – Mark’s motherJennifer – Mark’s mother

MarkMark

Continuation of Benefits Continuation of Benefits after Terminationafter Termination

If a “Continuing Disability Review” (CDR) or Age 18 If a “Continuing Disability Review” (CDR) or Age 18 Re-determination determines the beneficiary’s Re-determination determines the beneficiary’s impairment no longer qualifies…impairment no longer qualifies…

Continued payment under a program of vocational Continued payment under a program of vocational rehabilitation, employment services, or other rehabilitation, employment services, or other support services (Section 301). support services (Section 301).

In July 2005, SSA extended the continuation of In July 2005, SSA extended the continuation of payments for students whose disability or blindness payments for students whose disability or blindness medically ceases if they are age 18-21 and medically ceases if they are age 18-21 and participating in an individualized education program participating in an individualized education program (IEP). Benefits will continue until they complete the (IEP). Benefits will continue until they complete the IEP or stop participating for any reason. This IEP or stop participating for any reason. This provides students with the opportunity to continue provides students with the opportunity to continue receiving benefits while they complete school. receiving benefits while they complete school.

Safety Net - EXRSafety Net - EXR

Expedited Reinstatement Expedited Reinstatement AKA “AKA “EXREXR” or “EZ back on”” or “EZ back on” Person is terminated from SSI and/or Person is terminated from SSI and/or

SSDI due to earnings from employment SSDI due to earnings from employment 5 year window following SSA termination5 year window following SSA termination Not working or earning below SGA due to Not working or earning below SGA due to

original disability of recordoriginal disability of record

Work Incentives Planning Work Incentives Planning Assistance (WIPA) Assistance (WIPA)

Community based Work Incentive Community based Work Incentive Coordinators (non SSA) working under an Coordinators (non SSA) working under an SSA cooperative agreement;SSA cooperative agreement;

Available to current beneficiaries age 14-Available to current beneficiaries age 14-64;64;

Individualized one on one work incentive Individualized one on one work incentive counseling to complement efforts to counseling to complement efforts to become employed, increase earned income become employed, increase earned income and possibly terminate from cash benefits.and possibly terminate from cash benefits.

WIPA Service ModelWIPA Service Model Confirm current status with SSA (optional);Confirm current status with SSA (optional); Work history and / or current strategy, Work history and / or current strategy,

education, relevant personal facts (e.g. education, relevant personal facts (e.g. marriage, age);marriage, age);

Scenario Analysis of Income;Scenario Analysis of Income; Applicable Work Incentives;Applicable Work Incentives; Address unusual circumstances (e.g. Address unusual circumstances (e.g.

overpayments);overpayments); Recommended form letters & benefit Recommended form letters & benefit

management tools;management tools; Delivered via individualized report!Delivered via individualized report!

Testimony from Parent Testimony from Parent ““Without Michele’s assistance, the completion of Without Michele’s assistance, the completion of

the PASS would have made an already difficult the PASS would have made an already difficult process a lot harder. Her rapid response time, process a lot harder. Her rapid response time, energy and desire to submit a good product energy and desire to submit a good product made the experience less troublesome. She was made the experience less troublesome. She was always positive, clearly expressed her concerns always positive, clearly expressed her concerns and provided constructive criticism. Her and provided constructive criticism. Her attention to detail was much appreciated and her attention to detail was much appreciated and her empathy for people with disabilities was evident empathy for people with disabilities was evident while at the same time she was firm in the need while at the same time she was firm in the need to have the disabled person fulfill their to have the disabled person fulfill their responsibility. “responsibility. “

Managing Benefits & Work Managing Benefits & Work IncentivesIncentives

Awareness among Transition Staff: Do we Awareness among Transition Staff: Do we know who gets benefits?know who gets benefits?

Family and/or student perspectives on Family and/or student perspectives on benefits as well as supporting community benefits as well as supporting community agencies;agencies;

Explore capability of managing benefits;Explore capability of managing benefits; Assisting students to identify, apply for, Assisting students to identify, apply for,

and manage work incentives;and manage work incentives; Initiate and/or enhance communication Initiate and/or enhance communication

with SSA and/or DPW via County with SSA and/or DPW via County Assistance Office (CAO) and other Assistance Office (CAO) and other resources.resources.

Benefits Planning QueryBenefits Planning Query The BPQY communicates information on SSA The BPQY communicates information on SSA

records specifically for beneficiaries with records specifically for beneficiaries with disabilities and encourages financial planning for disabilities and encourages financial planning for a return to work. The information is generally a return to work. The information is generally accurate but if earnings were not reported by the accurate but if earnings were not reported by the beneficiary or if work reports were not processed beneficiary or if work reports were not processed by SSA, the data must be updated and corrected. by SSA, the data must be updated and corrected.

A BPQY (A BPQY (SSA-2459SSA-2459) is given to beneficiaries upon ) is given to beneficiaries upon request. The BPQY and its cover letter (request. The BPQY and its cover letter (SSAL-634SSAL-634) will be mailed directly to the ) will be mailed directly to the beneficiary at the address shown on the current beneficiary at the address shown on the current

SSA record.SSA record.

Medicaid & SSIMedicaid & SSI Federal - State Health Insurance program Federal - State Health Insurance program

coordinated by CMS (federal) and state coordinated by CMS (federal) and state Medicaid agency, e.g. PA Department of Medicaid agency, e.g. PA Department of Public Welfare;Public Welfare;

Low Income Groups;Low Income Groups; Most states, including PA, provide automatic Most states, including PA, provide automatic

Medicaid eligibility to SSI beneficiaries;Medicaid eligibility to SSI beneficiaries; SSI beneficiary receives cash assistance SSI beneficiary receives cash assistance

from SSA and Medicaid health insurance from SSA and Medicaid health insurance through County Assistance Office (CAO)…through County Assistance Office (CAO)…the local administrator of DPW services.the local administrator of DPW services.

Medical Assistance for Medical Assistance for Workers with Disabilities Workers with Disabilities

(MAWD) (MAWD) Department of Public Department of Public

Welfare Welfare www.dpw.state.pa.uswww.dpw.state.pa.us

Effective January 2002Effective January 2002 Disabled per SSA Disabled per SSA

guidelines, except guidelines, except earnings and incomeearnings and income

250% of poverty250% of poverty $10K or less in assets$10K or less in assets Monthly premium 5% of Monthly premium 5% of

countable income countable income Eligible for Waiver Eligible for Waiver

Services!Services!

Ticket to Work ProgramTicket to Work Program A Work Incentive via a A Work Incentive via a

non-monetary vouchernon-monetary voucher Distributed to Distributed to

beneficiaries > 18beneficiaries > 18 Encouraged to seek Encouraged to seek

employment services employment services through an approved through an approved “Employment “Employment Network”(EN) and/or Network”(EN) and/or State VRState VR

Voluntary (both Voluntary (both parties);parties);

Viable program for Viable program for persons who want to persons who want to work and be able to work and be able to reduce dependency on reduce dependency on SSA cash benefits.SSA cash benefits.

Ticket to Work Ticket to Work

Market Driven …. Slightly confusingMarket Driven …. Slightly confusing Expanding choice and access to employment Expanding choice and access to employment

providers who have expressed specific providers who have expressed specific interest in helping beneficiaries become interest in helping beneficiaries become employedemployed

Outcome goal for both provider and Outcome goal for both provider and beneficiary is established as an objective level beneficiary is established as an objective level of earningsof earnings

Represents an opportunity to increase federal Represents an opportunity to increase federal funds into the employment infrastructurefunds into the employment infrastructure

Q&AQ&A Why does it matter if a student receives SSA Why does it matter if a student receives SSA

benefits?benefits? If the student is receiving SSI benefits prior to 18 If the student is receiving SSI benefits prior to 18

does he/she continue to receive benefits as an adult?does he/she continue to receive benefits as an adult? Why does a student need to report earnings to SSA? Why does a student need to report earnings to SSA?

How is this done?How is this done? How is the SSI benefit impacted by working?How is the SSI benefit impacted by working? How does a student qualify for a Student Earned How does a student qualify for a Student Earned

Income Exclusion (SEIE) and what does this matter? Income Exclusion (SEIE) and what does this matter? How does a student qualify for a Plan for Achieving How does a student qualify for a Plan for Achieving

Self Support (PASS) and what does this matter? Self Support (PASS) and what does this matter? What happens if a SSI student starts to save money What happens if a SSI student starts to save money

from work?from work?

Recommended ActionsRecommended Actions Implement a plan of awareness & education Implement a plan of awareness & education

about work incentives for parents and students;about work incentives for parents and students; Determine if a student receives SSA benefits as Determine if a student receives SSA benefits as

part of the transition planning process. Initiate part of the transition planning process. Initiate dialogue about it with parents and students;dialogue about it with parents and students;

Utilize the WIPA as part of the set of transition Utilize the WIPA as part of the set of transition services;services;

Play a role in helping a student access work Play a role in helping a student access work incentives, and in some cases, teach benefit incentives, and in some cases, teach benefit management skills.management skills.