ssi work incentives: make disability benefits work for you!
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SSI Work Incentives: Make Disability Benefits Work for You!. SSI Work Incentives: Make Disability Benefits Work for You!. Karla Bell, Program Manager CHIIP/SDSU Interwork Institute. Getting Started. To use the Captioning window: - PowerPoint PPT PresentationTRANSCRIPT
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 criteriaInsurance Program Needs BasedFICA contributions/work history
Resource Limits: $2,000 for individual; $3,000 for couple
Paid from Title II Trust Fund Paid from tax fund5 month waiting period No waiting periodMonthly 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
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:
$885.00 Gross Monthly Earnings from Work+$454.40 Adjusted SSI Payment=$1339.4
0Total 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:
$1000.00 Gross Monthly Earnings from Work
-$85.00 General & Earned Income Exclusions
-$300.00 IRWEs
-$615.00 Remaining Earnings
Step Two:
$615.00 Remaining Earnings
÷2
=$307.50 Countable Earned Income
How Jack’s Adjusted SSI Check is calculated:
Step Three:
$854.40 SSI Payment (California 2012 rate)
-$307.50 Countable Earned Income
=$546.90 Adjusted SSI Payment While Working
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:
$1800.00 Gross Monthly Earnings from Work
-$85.00 General & Earned Income Exclusions
÷2
$857.50 Remaining Earnings
Step Two:
$857.50 Remaining Earnings
-$500.00 BWE
=$357.50 Countable Earned Income
How Jill’s Adjusted SSI Check is calculated:
Step Three:
$909.40 SSI Payment (California 2012 rate)
-$357.50 Countable Earned Income
=$551.90 Adjusted SSI Payment While Working
Step Four:
$551.90 Adjusted SSI Payment
+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)
Student Earned Income Exclusion (SEIE)
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
Student Earned Income Exclusion (SEIE)
“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
Student Earned Income Exclusion (SEIE)
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 Gross Monthly Earnings from Work
-$645.00 SEIE
$0.00 Total Countable Earnings
Step Two:
$625.17 SSI Payment (California 2012 rate)
-$0.00 Countable Earnings
$625.17 Adjusted SSI Payment
Step Three:
$625.17 Adjusted SSI Payment
+$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
Plan to Achieve Self-Support (PASS)
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
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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
Plan to Achieve Self-Support (PASS)
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
$550.00 Gross Monthly Earnings from Work
-$85.00 General & Earned Income Exclusions
$465.00 Remaining Earnings
÷2
$232.50 Countable Earned Income
-$232.50 Contributed to PASS
$0.00 Adjusted Countable Income
Example—SSI and PASS Calculation:
$854.40 SSI Payment (California 2012 rate)
-$0.00 Countable Income
=$854.40 Adjusted SSI Payment
Available Income
$854.40 Adjusted SSI Payment
+$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
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
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
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
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
Questions
You are welcome to contact Karla Bell at:[email protected]
www.talentknowsnolimits.infowww.tknlyouth.org
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