HOPWA Getting to Work Initiative Benefit Planning; SSI/SSDI

Initiative Goals Build the capacity of HOPWA funded project sponsors and grantees to increase access to vocational services and employment opportunities for HOPWA program participants Develop organizational structure to deliver employment services either through partnerships or direct services Advance staff knowledge and skills to incorporate vocational services, career development and benefit planning into the services offered to HOPWA program participants

Webinar Goals Increase staff understanding of the benefit planning process Increase staff ability to assist clients to make informed decisions about pursuing paid employment and its impact on public benefits Increase staff understanding of work incentives Increase staff ability to encourage clients to pursue earned income

Benefit Planning Webinars Basic overview, information and resources Part one - SSI and SSDI Part two – Benefit planning, Housing, SNAP, and EITC

Public Benefits

Vocational Services Process Vocational Assessment Vocational/ Career Plan Job Readiness Assistance/ Training Job Search/Job Seeking Services Job Placement/ Employer Engagement Job Coaching/ Retention Benefit Planning Notice how benefit planning isn’t called out as a step in the process. That is because it is integral to all steps. Benefit planning doesn’t happen in one step, needs to be revisited several times. Integrating benefit planning into the vocational services process assists with answering the question; How will a job effect my benefits? Accurate, available and understandable information on benefits reduces fear and increases motivation to engage in vocational assessment and planning An individual’s employment goal is based on an informed choice with regard to impact on public benefits and potential enhanced economic well being

Safety Net Benefit access is a key social service role and intervention Public benefits develop a safety net Safety net provides relief and the stability to recover/rebuild for the vulnerable, disadvantaged and people in crisis

Challenge Moving clients beyond the safety net The “net” offers relief and minimally meets basic needs Tension point: at times focusing on a goal of earned income appears to put people at risk of losing the security offered by the benefits

SSI and SSDI

Definition of “Disability” for an Adult “… The inability to engage in any substantial gainful activity (SGA) by any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months”

SSI Supplemental Security Income (SSI) for aged, Blind and Disabled Also known as Title XVI Need based and those who receive SSI are considered a “recipient” Includes cash award Eligibility for Medicaid benefits; Title XIX

SSI Formula SSI Federal Payment Standard = $698.00 for 2012 Exclusions $20.00 = General Income Exclusion $65.00 = Earned Income Exclusion $85.00 = Total Exclusions

SSI Formula, cont. _________ Gross Earned Income - $85.00 Subtract Exclusions _________ Divide by 2 _________ Countable earned income _________ SSI Cash Amount _________ Subtract Countable earned income _________ New SSI Cash amount Gross Income + New SSI Amount = __________

SSI Example SSI recipient making $685.00 gross wages per month: $685.00 Gross Earned Income $85.00 Subtract Exclusions $ ? Divide by 2 $ ? Countable earned income

SSI Example, cont. $698.00 SSI Cash Amount $300.00 Subtract Countable earned income $398.00 New SSI Cash amount Gross Income + New SSI Amount = 685.00 + 398.00 New monthly income $1,083.00 which is $385.00 more than SSI amount

Retrospective Payments Two month delay in adjusting benefit Example: receive on June 1, $698.00 SSI; plus June wages $685.00 SSI should be $398.00; Adjustment starts in August and will include deduction to recover over payments

SSI Work Incentives Continued Medicaid coverage while working Reinstatement of cash benefit Student earned income Exclusion Plan for Achieving Self Support (PASS) Property Essential to Self Support Blind Work Expense

Break Even Point Break Even Point When SSI cash benefit is reduced to zero based on earnings $1,481 in earnings based on $698.00 SSI benefit SSI payment multiplied by 2 and add $85.00; SSI/Medicaid eligibility continues under 1619B

1619B and Expedited Reinstatement of Benefits Allows for continued eligibility for Medicaid when SSI cash benefit is reduced to zero Expedited Reinstatement of Benefits Allows for a reinstatement of cash benefit if earned income is reduced or discontinued

SSI Example Jack receives $698 per month from SSI Job for the summer months @ 30 hours per week changing to 15 hours per week once the season over; job pays $10.00 per hour. He has heard that SSI goes down when you work; wants to know how much because he is afraid that he won’t have enough money to live on any more. How would you answer Jack’s question and advise him?

SSDI Social Security Disability Insurance (SSDI) Title II Cash award based on work history Medicare eligibility after 2 years Medicaid buy in option

Substantial Gainful Activity (SGA) The performance of significant physical or mental activities in work for pay or profit Usually determined to be countable earned income of 1,010 or more per month; $1,640 for individuals with blindness Applies to SSDI during application and after qualifying for SSDI Self employed: 3 part test

Reducing Countable Income Impairment Related Work Expenses Out of pocket expenses related to disability such as attendant care, routine drugs and services transportation costs Subsidy and Special Work Deductions Dollar value of additional support a person receives to perform work; no actual exchange of money but amount is deducted from countable income

Trial Work Period To test the ability to work or run a business, without affecting cash benefit Full cash benefit continues no matter what the wage Trial work month equals $720 or more in monthly earnings Nine trial months within 60 months; consecutive or accumulated

Extended Period of Eligibility Begins after trial work period ends At least 36 months in length Cash benefit for any month income is below SGA Re-entitlement period

Expedited Re-instatement of Benefits Five Year period after termination of benefits Original impairment no longer permits the performance of SGA Receive Provisional Benefit Medical review Initial re-instatement period (IRP) of 24 months At the completion of IRP, new trial work period

SSDI example Bill receives $900 per month in SSDI along with Medicare He wants to get a job and move into a new apartment with a friend and his share will cost $600 per month He was told that if he gets a job he will lose his SSDI after 9 months. He feels he will need a full time job once his benefits are gone but he is afraid he won’t be able to stay employed. How would you advise Bill?

SSI/SSDI Recipient Emily receives $400.00 a month from SSDI and $198.00 from SSI. She hasn’t worked for awhile but she would really like to have a job. She is concerned about feeling weak and exhausted although she is feeling better these days She knows that her SSI will go down but isn’t sure about her SSDI. She wants to know how much she can make and if it is worth it to go back to work How would you advise Emily?

Resources Work Incentive Planning and Assistance (WIPA’s) http://www.ssa.gov/work/WIPA.html State Vocational Rehabilitation Agencies – Benefit Planning Services Employment Networks http://www.ssa.gov/work Certified Benefit planners Social Security “2012 Red Book” http://www.ssa.gov/redbook

Additional Resources Mike Walling Benefits Training and Consulting Telephone: (610) 696-1551 http://www.benefits-training.com mike@benefitstrainingandconsulting.ccsend.com Cornell University ILR School Employment and Disability Institute http://www.ilr.cornell.edu/edi/edionline

Conclusion

Questions or Comments? Nick Codd, Senior Economic Opportunities Specialist nick.codd@buildingchanges.org (206) 805-6133