Presented by Karen Larsen Social Security Administration Work Incentive Coordinator

Title II RSDI/SSDI Retirement, Survivors, Disability Insurance) Medicare Title XVI SSI- Supplemental Security Income Medicaid Concurrent Social Security’s Benefit Programs

If a parent who worked under jobs covered by Social Security retires, becomes disabled, or dies, a Social Security benefit can be paid to a child 1. Under age 18, 2. During ages 18 and 19 if the child is a full-time student, 3. At age 18 and over (throughout the lifetime) for a child who was disabled before age 22.

1. Are any of these Social Security benefits based on financial need? No. The wealth or poverty of the child and of the parent/s is not considered with these benefits. 2. If my child is disabled, when should the medical issues concerning disability be raised with Social Security? If a child is under age 18 and is drawing benefits on a parent’s account, development of the child’s disability should be started with Social Security when the child is age 171/2.

3. What if the parent of a child with a disability doesn’t retire, become disabled, or die until the “child” is older and is already an “adult”? Such an “adult-child” can start to draw on the parent’s Social Security record - as long as it can be established that the disability began before the child became age 22 and has existed continuously since. Sometimes it’s very difficult to obtain proof of a disability that occurred many years ago. Parents can help, when possible, by securing medical evidence of a child’s disability and having it available for the time, years later, when it may be needed.

SSI makes payments for disabled children, regardless of their ages. Because SSI is based upon financial need, the income and resources of the child must be considered. The income and resources of the parent/s the child lives with must also be considered up until the time the child turns age 18.

If the parents’ income and resources are too high to permit the payment of SSI for a disabled child, the child may still become entitled to SSI upon reaching age 18, since then the income and resources of the parent/s are no longer considered. HERE’S SOME VERY IMPORTANT INFORMATION ABOUT THE SSI PROGRAM … Since the SSI program does not allow for the payment of back benefits, it is essential that an application be filed for the child’s SSI no later than the month before the month the child turns age 18 !!!

Rocking the Social Security boat by changing anything, such as allowing a child to engage in a school’s vocational program! Allowing SSI checks to be reduced, or jeopardizing SSI entitlement, by letting a child have income from a job! Creating an overpayment that has to be paid back! Remember, working means earning Social Security credits for retirement or disability.

Learning about jobs through a school’s vocational program does not affect Social Security benefits, unless the child is earning an actual wage as the result of being employed.

But If my child recieves SSI won’t they lose their health insurance if they work? NO! Let’s see what does happen when a child receiving SSI goes to work?..

Because the SSI program is based upon financial need, any new income can have the effect of reducing the amount of the SSI payment. So, if a child on SSI goes to work, that’s new income. Social Security has a formula to determine how much of the work income will affect the SSI payments. Under the formula, the first $85 of gross earnings per month does not count, and also ½ of the remaining wages does not count. EXAMPLE: If a child earns, say, $185 gross wages in a month, the first $85 doesn’t count, leaving $100, and half of that $100 also doesn’t count, leaving only $50 that does count. The SSI payment will be reduced by $50.

$ SSI +$ GROSS EARNINGS _______________________________________________________________ $ Total Income TOTAL INCOME FOR THE MONTH

Medicaid Continuation Program $25,241 Earnings Threshold MI. Freedom to Work Medicaid Program

It allows SSI recipients under age 22 and regularly attending school to exclude earnings from being counted against SSI payments. Regularly attending school means taking one or more courses at least. 8 hrs/wk in college. 12 hrs/wk in grades hrs/wk in job training. for even less time if beyond student’s control. can include home study For 2006, limits on earnings excluded under this provision are. $1460/mth and. $5910/yr

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1. Enter estimated or actual wages for each month. 2. Enter amounts that can be excluded each month subject to the monthly and yearly limits. The 2006 monthly limit is $1460, and the year’s limit is $ The SSI Earned Income Exclusion (minus $85/$65 and minus one half of the remainder) can be applied to any monthly earnings still remaining. 3. Enter monthly wage amounts not excluded. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC STUDENT WILL EARN EXCLUDED EARNINGS NONEXCLUDED AMTS REMAINING COUNTED

SO; IN JUNE FOR EXAMPLE  Joella has $ in earned income.  Joella’s SSI check will be reduced by only $27.50, her SSI check will be $  Therefore, her total income for June is: $1, gross earnings $1, gross earnings + $ SSI $2, Total income in June $2, Total income in June

What if Joella is in a Federal work study program?  Wages will NOT be countable as income for SSI if: –Work is under Title IV of the Federal Higher Education Act. Must present verification. –Michigan Work Study is a state program and will count as wages. THIS EXCLUSION ONLY APPLIES TO SSI. ALL WAGES ARE COUNTABLE FOR SSDI.

Gifts to Students for Education  Any gift you use in paying tuition or educational fees is excluded from your SSI income determination  Also excludes grants, scholarships, fellowships, or gifts to be used for tuition or education fees from your countable resources for 9 months after you receive it.

A SAFETY NET!!! EXPEDITED REINSTATEMENT!  If your benefits ended because you worked and had earnings, you can request to have your benefits started again.  Within five years of when your benefits ended.  Still disabled & unable to work  Make request within 5 years

Plan to Achieve Self Support (PASS) A PASS allows you to set aside money (income and/or resources) for a specified time for a specified work goal. A PASS allows you to set aside money (income and/or resources) for a specified time for a specified work goal. SSI does not count the money set aside when determining your SSI eligibility or payment. SSI does not count the money set aside when determining your SSI eligibility or payment.

Ralph receives monthly Social Security benefits of $700. This amount of income is too high to permit him to receive any SSI. However, he has a PASS approved which will allow him to set aside $400/month to pay for his education to become a teacher. Since his countable income is reduced from $700 to $300 due to his PASS, he now qualifies for SSI. He is awarded SSI of $280/month ($603) reduced by countable income of $300 minus $20 income disregard). As an SSI recipient he qualifies automatically for Medicaid.

The IRWE will reduce the amount of earnings we will actually count. That means that you will keep more of what you earn. See the Redbook for even more details An Impairment Related Work Expense (IRWE) is an out-of- pocket expense incurred by a person with a disability to enable him/her to work. Typical IRWEs are attendant care services, medical devices, work-related equipment, residential modifications, medical services, and transportation expenses.

OK, I’m not quite so scared anymore, BUT WHAT ABOUT THOSE OVERPAYMENTS? What happens if I get overpaid? The worst that can happen is that Social Security will send a letter asking that the overpayment be repaid. * It can be repaid by monthly installments, with no interest being charged. If the monthly rate of withholding proposed by Social Security is too high, the rate can generally be negotiated. * Like any action taken by Social Security, overpayments can be appealed, and under certain conditions overpayments can even be entirely waived.

TWO MAJOR (AND VERY DIFFERENT) PROGRAMS SOCIAL SECURITY BENEFITS (SSB): * Child under age 18 doesn’t have to be disabled, but parent/s must be retired, disabled or deceased * Benefits stop at age 18, or go to age 19 for full-time students * Not based on financial need * No health insurance SUPPLEMENTAL SECURITY INCOME (SSI): * Child must be disabled to qualify * Child of any age can qualify, and SSI can continue into adulthood * Based on financial need - income and resources of parent/s are considered until the child turns age 18 * Child receiving SSI qualifies automatically for Medicaid * Has special provision called Student Earned Income Exclusion that exempts substantial earnings (Gray areas show benefits based upon disability) * If child (of retired, disabled, or deceased parent/s) is disabled before age 22, Disabled Adult Child benefit is payable for lifetime they receive Medicare

SSB BENEFITS FOR CHILD UNDER 18 AND STUDENT SSB FOR DISABLED ADULT CHILD BENEFITS SSI DISABLED CHILD BENEFIT Child would have to earn over $12000 per year before earnings would have any effect. Earnings during the first 9 months of working do not affect benefits (Trial Work Period). For 3 years following Trial Work Period, no benefits can be paid for months when gross earnings exceed $810/mth. Formula allows first $85 plus ½ of the remainder of monthly gross earnings not to be counted. If child is a student, $5670/yr. of child’s gross earnings can be excluded up to age 22.

Work Incentive Liaison (WIL) 1/each SSA office Local Work Incentive expert Local Work Incentive expert Primary point of contact for you Primary point of contact for you Resolve local W.I. and benefit issues Resolve local W.I. and benefit issues In Kalamazoo- In Kalamazoo- Ms. Canner Ms. Canner x x 236

Learning how Social Security programs work can help young people transition from school work to paid work