1. An Overview of SSI and SSDI and Implications for Transition Planning Ellen Condon Project Director University of MT Rural Institute Marc Gold and Associates June 28, 2011

2. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 2 Distinguish between SSI/SSDI Understand impact of wages and income on SSI disability benefits And on SSDI disability benefits Identify the role of Benefits Planning in Transition Planning Today’s Agenda

3. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 3 Disability benefits may be crucial for financing support needs, services, and medical needs. Work will impact benefits. Families, young adults, and employment staff need to be aware of how this happens. Social Security and Transition

4. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 4 Myths exist about working and wages eliminating benefits. Several work incentive programs exist to protect the benefits of recipients as they try out work and the incentives can help pay for services and supports or help a person recover work expenses. Social Security and Transition (cont.)

5. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 5 To augment what schools are providing for employment To fund services when students are on waiting lists for services To promote choice and control of families and adults over providers and services To Increase the options for people Why more resources?

6. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 6 Social Security 2 programs for people with disabilities Both offer cash assistance and medical coverage SSI funded by general revenue of treasury; SSDI funded by workers for themselves or dependents

7. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 7 Inability to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to last for at least 12 months or result in death. “Disability”

8. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 8 Save Everything Copy Everything Don’t Look For Logic Marsha Katz, Rural Institute The 3 Rules

9. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 9 The recipient paid into the insurance system and then became disabled, and unemployed or unable to earn SGA ($1,000/month 2011; $1,640/month if blind) FICA “Disability”

10. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 10 Or (SSDAC), childhood disability benefits, a parent of a disabled child paid into the system and then became disabled, died or retired. “Disabled Adult Child”: unmarried, incurred disability before age 22, is or was dependent on the parent, age 18 or older. SSDAC: Social Security for a Disabled Adult Child

11. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 11 many do. Rod receives SSDI through his father’s retirement account Charles receives SSDI from his mom’s disability account Anne receives SSDI because her biological Dad died While it is less likely for younger people to receive SSDI

12. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 12 Check comes on 3 rd or other day of month Payment varies with age, number of people receiving on the account and previous income, Comes with Medicare (24-month wait) Social Security Disability Insurance (SSDI)

13. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 13 No limits on resources and unearned income All or nothing benefit Earning over SGA ($1,000/month 2011) puts the payment in jeopardy SSDI/SSDAC…

14. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 14 $1,000 (2011)/month gross earnings 40 hours/month or $800 earnings for Self-Employment $1640/month for Blind “Substantial Gainful Activity” (SGA)

15. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 15 A program developed by Social Security Enables people receiving Social Security benefits the opportunity to try out or return to employment without fear of losing benefits Work Incentives

16. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 16 Earnings over $720/month 2011 (gross) 9 months within a rolling 5-year period starting the first day of eligibility Trial Work Period (TWP)

17. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 17 Begins the month after the end of Trial Work Period (TWP) Runs for 36 straight months In any month earnings are under SGA, the SSDI check is due In any month earnings are over SGA, SSDI check is not due but disability status is retained Extended Period of Eligibility (EPE)

18. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 18 Subsidy: services, supports, accommodations that help someone find/maintain a job Provided by employer or others Reduces countable income and allows SSDI recipient to earn over SGA Subsidy & Special Considerations

19. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 19 % of duties performed compared to similar wage coworkers % of production as compared to similar wage coworkers Additional supports provided by coworkers as compared to similar wage coworkers Job coach or follow-along supports provided to employee Examples of a Subsidy

20. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 20 # job coach hours x person’s hourly wage % of duties or production, amount of support needed as compared to non-disabled coworker in similar job/pay Write letter on employer letterhead Keep on file for disability reviews Calculating Subsidy:

21. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 21 Costs of working not disability related Examples include: FICA and taxes, lunches, transportation, cost for guide dog, personal assistance, and other disability-related costs paid out of pocket Reduces countable income Blind Work Expense (BWE)

22. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 22 SSI - Supplemental Security Income

23. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 23 A financial and medical benefit available for people who meet income and resource limits Who have a disability or have a child with a disability Or are 65 years old or are blind What is SSI ?

24. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 24 If you are under 18 your income & resources plus your family’s income and resources determine your eligibility. At age 18 your eligibility is re-determined. Only your income and resources are counted. SSI & Youth

25. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 25 Annual Federal Benefit Rate  $674/month (2011)  $1,011/couple in (2011) Typically comes with Medicaid Check comes on the first of the month Amount of payment varies based on income and living situation SSI Payment

26. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 26 Resources include any cash or item which can be converted to cash: life insurance policy, retirement plan, savings $2000 allowed for an individual $3000 for a couple Car and a house are allowed SSI Resource Limit

27. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 27 Personal property over $500 in value (antiques, coin collections, tools not used for work, boats, snowmobiles, livestock) Amount of equity in a second car Cash value of life insurance 1 st moment of the month SSI Resources

28. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 28 (doesn’t include various state supplements) $674/month for an individual $449.00 for an individual living in the “Household of Another” (2/3 of the FBR) 2011 Federal Benefit Rate

29. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 29 If SSDI/DAC is less than $674/month, then a person would be eligible for both benefits Total of the checks is $20 more than SSI alone - $694.00 in 2011 Receive both Medicaid & Medicare (Medicaid pays for Medicare) Follow SSI AND SSDI rules when working Convenient for a PASS plan Concurrent Recipients

30. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 30 List ALL disabilities Worst Day scenario Statements from friends, families, coworkers, etc. Build in support if necessary Pain and medication side effects Gather your own records and fill in the gaps Ability to work, support needs… Applying for SSI

31. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 31 Must be earning less than SGA ($1,000 in 2011 or $1640 if blind) at the time of application. Can use an IRWE or Subsidy to lower your countable income at application time. Applying for SSI (cont.)

32. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 32 Influence the amount of your SSI check (2 months later) Income and Living Situation

33. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 33 Income Earned Wages Net income from self- employment Food/shelter in lieu of wages Unearned SSDI/SSDAC Railroad Benefits Alimony Child support VA benefits Section 8 subsidy Adoption subsidy In-kind support

34. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 34 What are they? Where are they in MT? How do you find them in other states? What do they do? WIPA- Work Incentive Planning Assistance

35. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 35 Service Provider Directory Searchable by state Service Provider Directory Searchable by state https://secure.ssa.gov/apps10/oesp/providers.nsf/bystat e Service Provider Directory

36. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 36 PABSS Planning and Advocacy for Beneficiaries of Social Security Planning and Advocacy for Beneficiaries of Social Security https://secure.ssa.gov/apps10/oesp/providers.nst/bystate

37. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 37 What would a benefits analysis look like? What information would it provide? How would it help transition? Who would initiate this? The relationship between benefits analysis and transition:

38. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 38 Doing the MATH…

39. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 39 Earned Income only Disregard the first $85/month earned, then divide by 2= the amount the SSI will be decreased. Gross wages - $85.00 X divide by 2= amount SSI will be reduced Calculating the effects of income on SSI:

40. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 40 Matt works 20 hours a week, earning $7.50/hr for an average of $600.00/month. How much is his SSI check? How much income did he have monthly without working? How much income does he have now with working even with the reduction in SSI? Example

41. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 41 $674/month $600- $85= $515 ½ of $515= $257.50 $674-$257.50= $416.50 SSI Income = $600 + $416.50 SSI= $1016.50 Impact of Wages on SSI

42. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 42 Earned and unearned income Disregard the first $65 of earned then divide by 2; “earned income exclusion” Disregard the first $20 of unearned income; “general income exclusion” Add the two together = the amount of countable income. Calculating the effects of income on SSI:

43. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 43 Anne receives SSI and SSDI. She earns $385/month and her SSDAC check is $320/month. How much SSI does she get? Example 2

44. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 44 $320 SSDI - $20 = $300 $385 - $65 = $320 ½ of 320 =$160 $674-$460= $214 Impact of wages and unearned income on SSI:

45. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 45 Students can earn up to $1640/month before their SSI check is reduced Up to $6600/year If they earn over $6600 then their SSI check is reduced Student Earned Income Exclusion (SEIE)

46. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 46 1619 (a) SSI benefits and eligibility continue even though earnings are over the SGA level Break Even Point SSI= $0 When FBR x 2+$85 ($1433/month) 1619 (b) Medicaid & SSI eligibility continue when no check is payable, due to amount of earnings, up to state/personal threshold 1619 (a) and 1619 (b)

47. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 47 State Medicaid Threshold 2011 amount you can earn before losing Medicaid) * gross earnings/year Florida $28,753 Mississippi $25,922 Georgia $27,509 North Carolina $33,568 South Carolina $28,141 Tennessee $26,645 Kentucky $27,345 Alabama $24,438

48. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 48 Allow you to shelter income so it is not counted against you, and your SSI check remains higher, or you recover work expenses or protect eligibility for SSI and Medicaid. PASS Plans IRWE BWE SSI Work Incentives

49. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 49 Paid out of pocket Directly related to disability Expense necessary to work Recover +/- 50% of costs Impairment Related Work Expense (IRWE)

50. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 50 Gross wages/month Less general and earned income exclusion Less IRWE Divide amount by 2 Sum equals the countable income Calculating an IRWE

51. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 51 Any costs of working FICA, lunch, transportation, guide dog… Paid out of pocket Recover 100% of cost Blind Work Expense

52. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 52 Gross monthly wages Less general and earned income exclusions Divide amount by 2 Less BWE Sum equals countable income Calculating a BWE

53. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 53 SSA Red Book http://www.ssa.gov/redbook/ SSA Red Book University of Montana Rural Institute http://ruralinstitute.umt.edu/transition University of Montana Rural Institute  Social Security (Fact Sheets)  Products (Monographs): Keep the Bucks, PASS the Bucks, Manage the Bucks  (Newsletters) Resources:

54. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 54 Plan approved by SSA Expenditures lead to a vocational goal Timelines Budget Can save money or use monthly Plan for Achieving Self Support (PASS)

55. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 55 Comments & Questions

56. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 56 Contact Information Ellen Condon Rural Institute On Disabilities Marc Gold and Associates EmailEmail: condon@ruralinstitute.umt.edu WebsiteWebsite: http://ruralinstitute.umt.edu/transition

57. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 57 THANK YOU!

58. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 58 Upcoming Transition Webinars Webinars Series: Social Security Administration and Transition July 21 Social Security Work Incentives and TransitionSocial Security Work Incentives and Transition August 24 Community Employment for EveryoneCommunity Employment for Everyone July13 An Overview of Employment Approaches and Strategies to Serve all PersonsAn Overview of Employment Approaches and Strategies to Serve all Persons July 28 Online Toolkit for Job Placement and Employment ProfessionalsOnline Toolkit for Job Placement and Employment Professionals

59. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 59 TACE Talks Transition (TTT) Monthly concise information on best practices to transition counselors available for their own pace learning; – sign-up and start your subscription via the Transition Email-List http://tacesoutheast.org/network/transition/em ail_list.php Transition Email-List

60. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 60 Southeast TACE (Region IV) Toll-free: (866) 518-7750 [voice/tty] Fax: (404) 541-9002 WebWeb: TACEsoutheast.org My TACE PortalMy TACE Portal: TACEsoutheast.org/myportal EmailEmail: tacesoutheast@law.syr.edu

61. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 61 Education Credits CRCC Credit - (2.0) Approved by Commission on Rehabilitation Counselor Certification (CRCC) By Friday, July 8, 2011, participants must score 80% or better on a online Post Test and submit an online CRCC Request Form via the MyTACE Portal. CEU Credit - (0.2) Approved by the University College at Syracuse University By Friday, July 8, 2011, participants must submit an online CEU Request Form via the MyTACE Portal. My TACE Portal: TACEsoutheast.org/myportalTACEsoutheast.org/myportal **For CRCC credit, you must reside in the 8 U.S. Southeast states served by the TACE Region IV [AL, FL, GA, KY, MS, NC, SC, TN]. If beyond TACE Region IV, you may apply for CEU credit.

62. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 62 Disclaimer This presentation was developed by the Southeast TACE Center: Region IV ©2011 with funds from the U.S. Department of Education, Rehabilitation Services Administration (RSA) under the priority of Technical Assistance and Continuing Education Projects (TACE) – Grant #H264A080021. However, the contents of this presentation do not necessarily represent the policy of the RSA and you should not assume endorsement by the Federal Government [34 CFR 75.620 (b)].

63. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved 63 Copyright Information This work is the property of the Southeast TACE Region IV Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the authors. To disseminate otherwise or to republish requires written permission from the authors.