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

2. 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

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

4. 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”

5. 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

6. 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

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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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+

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

18. 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

19. 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

20. 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

21. 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

22. 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

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

24. 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

25. 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?

26. 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

27. 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