HOW WILL EMPLOYMENT AFFECT MY CHILD’S DISABILITY BENEFITS? Title II and SSI Work Rules Barbara A. Isenhour Bailey Liipfert, III Special Needs Alliance

Title II Disability Benefits Social Security Disability Benefits – SSDI Benefits for the insured worker Child Disability Benefit – CDB Benefits for child disabled before age 22 if parent insured for Social Security and retired, disabled or deceased Disabled Widow(er) Benefit – DWB Benefits for spouse or former spouse of insured deceased worker. Must be 50+ TWP

Title II Terms Trial Work Period - TWP Substantial gainful activity – SGA Extended period of eligibility – EPE Impairment related work expenses - IRWE

Trial Work Period If gross wages equal or exceed $810 it is a trial work period (TWP) service month No deductions from gross wages 9 TWP service months in prior 5 years 1 TWP per “period of disability”

Trial Work Period Earnings Sam gets SSDI of $900/mo. Year Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2012 $720 $600 $650 $700 2013 $750 $550 $760 $800 $900 2014 $770 $660 $500 $1300 $1200 $1500 $1700 End TWP 2015 $780 2016 $810 Trial work period ends Aug. 2014

Trial work period example #2 Year Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2011 $720 $900 $1,500 $800 2012 $450 $500 $600 2013 $750 $350 $820 2014 $770 $300 2015 $780 $700 2016 $810 $1,000

Substantial Gainful Activity - SGA 2016 SGA for blindness $1,820

Calculating SGA Gross earnings Minus impairment related work expenses Minus work subsidies Equals SGA

Impairment Related Work Expenses – IRWE Expenses necessary to get to work and perform work duties Must be paid out of pocket by worker and not reimbursed Must be paid after employment started Examples: transportation; durable medical equipment, service animal, private job coach

Work Subsidies Special working conditions or support required in order to work. Subsidies are not paid by the worker. Job coach Worker requires more supervision Worker less productive Transportation to and from work Attendant care to get worker ready for work

Calculating SGA Eric’s gross earnings $1,400 IRWE – transportation paid by Eric to/from job - $200 Subsidy – employer says Eric is 20% less productive than other employees - $280 Countable earnings $980

Cessation of Disability – Sept.2012 SSDI Sept, Oct., & Nov. 2012 2011 $1,000 SGA $600 $350 $800 $700 $900 2012 $1,010 $500 $1300 $1200 $1500 $1700 End TWP Grace period $1400 Grace period 2013 $1,040 2014 $1,070 2015 $1,090

Extended Period of Eligibility - Re-entitlement Period 36 months from end of TWP Year Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2012 $700 $600 $350 $800 $900 2013 $500 $1300 $1200 $1500 $1700 End TWP EPE RP 2014 2015 2016 End 36 months 1

Earnings During Extended Period of Eligibility CDB $900/mo. SGA TWP Jan Feb March April May June July Aug Sept Oct Nov Dec 2012 $600 $350 $800 $900 2013 $500 $1300 $1200 $1500 $1700 End TWP Grace period $1400 Grace period 2014 $1100 $0 $400 2015 2016 End 36 months

Why work? May get to keep Title II cash benefit and earnings Even if lose cash benefit, wages should be more than cash benefit Build up own work history to increase future SSDI or SSRI benefit Extended Medicare coverage Intangible benefits from working

Who Gets SSI Financially needy – assets below allowed amount Countable income below the SSI benefit amount - $733 + state supplement or SSP Disabling medical condition, blind or 65+

How SSI Benefit Amount Calculated The following amounts are deducted from the SSI benefit amount: Unearned income Deemed income In-kind support Earned income

SSI Work Incentives Student earned income exclusion (SEIE) reduces countable earned income Impairment related work expenses (IRWE) reduces countable earned income Blind work expenses (BWE) reduces adjusted countable income Plan for achieving self-support (PASS) reduces adjusted countable income

Student Earned Income Exclusion Student must be “regularly attending school” Under age 22 Excludes $1,780 up to $7,180 per year in 2016 Calendar year exclusion and must be renewed each year

Impairment Related Work Expenses - IRWE Goods or services required in order to work; related to disabling condition Must be paid by SSI recipient; not reimbursed IRWE claimed when earnings reported IRWE is a deduction from gross earned income

Plan to Achieve Self-Support PASS PASS is a written plan approved by SSA Allows an SSI recipient to set aside earned or unearned income to be used to achieve an occupational goal. Can set aside a lump sum in a PASS account instead of placing the funds in a d(4)(A) SNT Can designate unearned income to PASS account, increasing SSI amount Can put earnings in PASS account

Examples of PASS Expenditures Purchase vehicle or pay for transportation to work Tuition or other educational expenses Equipment, supplies, inventory to establish a business Child care Attendant care Meals during work

Unearned income Earned income 1000.00 Minus general and earned income exclusion 85.00 Total countable income 915.00 Divide by 2 457.50 Deduct amount funding PASS -457.50 Adjusted countable income SSI FBR + SSP 733 Minus adjusted countable income Adjusted SSI payment SSI payment w/o PASS 275.50

How Earnings Affect SSI Payment UNEARNED INCOME 1. ____ UNEARNED INCOME 2. - $20 DEDUCT GENERAL INCOME EXCLUSION 3. ____ COUNTABLE UNEARNED INCOME EARNED INCOME 4. ____ GROSS EARNED INCOME 5. ____ DEDUCT STUDENT EARNED INCOME 6. -$65 DEDUCT EARNED INCOME EXCLUSION + UNUSED GENERAL EXCLUSION 7. ____ DEDUCT IMPAIRMENT RELATED WORK EXPENSES 8. ____ ADJUSTED EARNED INCOME 9. ____ DIVIDE BY 2 10. ____ COUNTABLE EARNED INCOME ADD LINE 3 AND 10 TO GET TOTAL COUNTABLE INCOME 11. ____ DEDUCT PLAN FOR ACHIEVING SELF-SUPPORT (PASS) or blind work expense 12. ____ ADJUSTED TOTAL COUNTABLE INCOME DETERMINE SSI BENEFIT AMOUNT 13.____ FEDERAL BENEFIT AMOUNT + SSP IF APPLICABLE 14.____ DEDUCT ADJUSTED TOTAL COUNTABLE INCOME (line 12) 15.____ ADJUSTED SSI PAYMENT

Section 1619(b) Status Assuming there is no unearned income, when SSI recipient’s earnings = 2 x SSI + SSP + $85 they lose SSI benefit (break even point) When individual loses SSI what happens to their Medicaid benefits?

Section 1619(b) Individual can keep Medicaid when they lose SSI because of earnings if: Otherwise eligible for SSI but for income Depend upon Medicaid in order to work or expect to use Medicaid in next year Gross income below state threshold amount

TERM TITLE II SSI Ticket to Work X Impairment related work expenses Medicaid Continuing disability medical review Work incentives planning and assistance Expedited reinstatement of benefits Plan for achieving self support - PASS Work subsidies Substantial gainful activity Trial work period Extended period of eligibility Earnings counted in month work performed Medicare Property essential for self support – PESS Blind work expenses Student earned income exclusion Unearned income Break even point Section 1619(b) status Earnings counted in month earnings paid