Work Incentives

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Title XVI Work Incentives
IDA CAMPBELL WORK INCENTIVES COORDINATOR NORTH
CAROLINA AREA
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SSI Supplemental Security Income

• Based on financial need
• Income and resources of family members may affect
  eligibility
• Must be disabled or blind
• Automatic Medicaid eligibility
• in some states.

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Work IncentivesSSI

• 65 plus one-half remainder per month exclusion
• Student child earned income exclusion
• Impairment-related work expense
• Blind work expense
• Recovery during Vocational Rehabilitation
• 1619(b) continuation of Medicaid eligibility
• Plan for Achieving Self-Support (PASS)

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It Pays to Work!

• Johns SSI check before he goes to work 623.00
• John gets a job and will earn 800 gross wages a
• month (No other income)
• We do not count the first 85.00
• 800.00 - 85.00 715.00
• Then, we only count 1.00 for every 2.00 715.00
  2 357.50
• 357.50 Johns countable income

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It Pays to Work!
623.00 maximum SSI payment rate -357.50
countable income 265.50 SSI check 623.00
Total income John had before working 800.00
Gross Wages 265.50 SSI check 1065.50 Total
Income after working As you can see, It pays for
John to work!!!

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• STUDENT EARNED INCOME EXCLUSION

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SEIE 2007

• For any student who is under age 22
• Regularly attending school
• Excludes from earnings in 2007
• Up to 1,510 in a month but not more than a
  total of 6,100 in a calendar year

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REGULARY ATTENDING SCHOOL

• Regularly attending School means the person
  takes one or more courses of study and attends
  classes
• In a college or university for eight (8) hours a
  week,
• OR
• In grades 7-12 for twelve hours a week
• OR
• In a training course to prepare for employment
  for 12 hours a week (15 hours per week if the
  course involves shop practice)
• OR
• For less time indicated above - for reasons
  beyond control, such as illness.

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Home Schooling Qualifies if...

• Studying a course or courses given by a school
  (grades 7-12), college, university or government
  agency and
• Has home visitor or tutor from school who directs
  the course of study.

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Impairment Related Work Expenses (IRWE)

• Cost of items and services paid by the
  beneficiary that are related to the disability
  and allow the beneficiary to work
• Reduces countable income

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Impairment Related Work ExpensesIRWE

• Item or service must be disability-related and
  reasonable in cost.
• Cost of the item or service is paid by the person
  with the disability and he/she will not be
  reimbursed for the expense by another source such
  as Medicaid.
• Examples
• - Special transportation
• - Prescription medications
• - Medical supplies
• - Special clothing
• - Job coaching sevices

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Blind Work Expenses (BWE)

• Covers SSI beneficiaries who are statutorily
  blind
• Excludes earned income used to pay for
  work-related expenses
• Does not have to be related to individuals
  disability

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Blind Work Expenses (BWE)

• Any earned income used to meet expenses needed to
  earn that income, is not counted when computing
  the SSI payment
• Examples expenditures for
• Service Animal care
• Transportation to and
• from work

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Examples of BWE

• Federal, State, and local income taxes and Social
  Security taxes
• Licenses, professional association dues, union
  dues
• Mandatory contributions (pensions disability)
  and
• Non medical equipment/services.

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MORE Blind Work Expenses!

• Visual and sensory aids
• Translation of material into Braille.

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Sec 1619(b) Medicaid(Wages stop SSI payments)
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Section 1619 (b) Qualifications

• Countable earned income makes total
• countable income exceed the applicable
• breakeven point and no cash payments
• are due.
• Note
• The breakpoint is 1331.00 (623 x2,
• plus 85.00).

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Section 1619(b) MedicaidQualifications

• Needs Medicaid in order to work
• (Medicaid Use Test) AND
• Has gross earned income insufficient to replace
  SSI, Medicaid, and any publicly funded attendant
  care (Threshold Test)
• 2007 Threshold 29,410.00 for NC
• The Threshold Chart for all States is posted on
  the MAXIMUS website.

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Section 1619 (b) Individual Threshold Amount

• If earnings are above states threshold
  amount, SSA figures individual threshold If
  individual has
• IRWE
• BWE
• PASS
• Publicly funded attendant or personal care
• Medical expenses above per capita State Medicaid
  amount

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Jesse

• Has quadriplegia due to accident at age 19
• Earning 60,000.00 per year in 1998 as a
  financial manager
• Has attendant care services
• Has a PASS to save for a modified vehicle
• Not eligible for SSI payments
• But Jesse could keep his Medicaid under section
  1619(b) provisions.

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Continued Pay Under Sec 301 Vocational
Rehabilitation (VR) or Similar Program-SSI and
SSDI

• Actively participating in a VR or similar program
  that started before disability ceased (including
  an IWP with an EN under the Ticket to Work
  Program.)
• Disability ceased because medical condition
  improves
• Payments health insurance continue until VR or
  similar program ends
• Note SSA does not initiate a medical review on a
  person using a ticket. However, if the review was
  initiated prior to the ticket assignment, or the
  ticket is considered to be no longer in use, a
  medical review can be conducted.

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Section 301

• Effective March 1, 2006, a PASS qualifies as an
  appropriate program of VR services, employment
  services, or other support services for the
  purpose of section 301 payments.
• Office of Disability Operations (ODO) will
  determine whether the individuals completion of
  the VR, or similar program, will increase the
  likelihood that the individual will not return to
  the disability or blindness benefit rolls.

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Opening the Door to Self-Support
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What Is PASS?

• ?Plan to reach specific occupational goal
• ?Exclusion of certain income and
• resources
• ?Assists people with disabilities in their own
  efforts to join or re-enter the work force.

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Who Can Benefit From a PASS?

• Want to be self-supporting
• Participating in a VR plan
• In school or a training program
• In a rest home but attending school
• SSDI beneficiaries who could
• become eligible for SSI with a PASS
• SSI beneficiaries with other income
• for expenses

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Viability

• The PASS goal must be realistic,
• taking into account
• Training needs
• Assistive equipment and technology
• Job market
• How to get the job or start the business
• Money to cover PASS expenses and living
  expenses

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Occupational Goal General Rules

• Expected to generate at least enough earnings to

• Reduce SSI for those eligible without a PASS
• Eliminate the SSDI cash benefits for those not
  eligible for SSI without a PASS

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Occupational Goal Supported Employment

• Achieve stabilization in a job
• Earn more money by working more hours
• Work with less out of pocket expenses e.g.,
  fewer hours of job coaching

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Examples of Expenses

• Transportation Expenses
• Attendant or Child Care Expenses
• Job search, Relocation Expenses
• Cost of Professional Attire

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Examples of Expenses
?Training Expenses ?Equipment and
Tools ?Supported Employment Services,
including payment for Job Coach
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Funding Source

• Income that would normally reduce the SSI
• check
• ?Wages
• ?Social Security check
• ?Pensions
• ?Parents or spouses income
• Resources that would normally make the
• individual ineligible for SSI
• ?Saving bonds
• ?Certificates of deposit
• ?Settlements or retroactive benefit payments

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• Cover costs of obtaining evaluation
• PASS set up to last for time VR needs to perform
  evaluation
• After evaluation, can amend plan to specify work
  goal and related expenses

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Occupational Goal Self-Employment
Must include a business plan that explains, at a
minimum

• What the business will do
• How it will operate
• Materials needed
• Marketing plan
• Potential customers
• How it will be financed
• Expected profit and loss

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Who Can Help Me Write a PASS?

• WIPA (Work Incentives Planning and
• Assistance)
• PASS Specialists (PASS Cadre)
• Vocational Rehabilitation counselor
• Organization that helps people with
• disabilities
• Employer
• Friend or relative
• Social Security Office

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PASS COMPUTATION EXAMPLE UNEARNED and EARNED
INCOME EXCLUSIONS
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• Michael
• Earns 750 /mo wages
• Receives SSDI of 450/mo
• Wants to set aside the full amount
• of his total countable income
• (earned and unearned) in a PASS
• to cover transportation and job
• coaching expenses.

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MICHAEL (Continued) 450 Unearned Income
- 20 General Exclusion
430 Countable Income 750 Gross
Earned Income - 65 Earned Income 685
Remainder / 2 Divided by 2 342.50
Countable Earned Income
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MICHAEL (Continued)

• 430.00 Countable Unearned Income
• 342.50 Countable Earned Income
• 772.50 Countable Income
• - 772.50 PASS Deduction
  Since Total Countable Income 0
• Therefore, SSI payment 623.00/mo.

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MICHAEL

• Total monthly income
• 450.00/ SSDI
• 750.00/mo earnings
• 623.00/mo SSI
• Total income 1823.00/month
• Note Without earnings and a PASS 623/mo

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Thats ALL!!!