1. Work Incentives Planning and Assistance National Training and Data Center Effective Work Incentives Counseling for Transition Age Youth

2. Learning Objectives After this training, CWICs should be able to: 1.Identify the three different subgroups within the 14-25 year old transition age youth population and describe the critical benefits issues which are common for each of the three sub-groups. 2.Describe successful techniques for counseling youth in each of the three sub-groups on the benefits issues relevant to that group. 3.Describe how to facilitate use of the Student Earned Income Exclusion (SEIE). 4.Describe the CWIC role in helping youth and parents understand parent-to-child deeming and in-kind-support and maintenance. 5.Describe the CWIC role is supporting decisions about when a beneficiary needs a representative payee. 6.Describe the CWIC role is supporting educational & career development for youth. 2

3. Why is WIPA so important for transition age youth? Cash benefits and associated medical insurance are valuable resources as students with disabilities transition to adult life. Work incentives are designed to increase employment and earnings capacity over time. Early intervention and education about benefits and work incentives helps prevent future problems. Failure to educate on benefits is a “missed opportunity” which may cause harm. 3

4. Sub-Groups within Transition Age Youth Population There are 3 distinct sub-groups within the 14-25 year old transition age population. Each group presents different challenges and opportunities. Each group requires a different focus when providing WIPA services. The age groups are: 1.Beneficiaries 14 up to age 18; 2.Beneficiaries who are close to the 18 th birthday; and 3.Beneficiaries over age 18. 4

5. Sub-Group 1: Beneficiaries 14 to 18 The overwhelming majority of these individuals will be getting SSI benefits with Medicaid. Some of these youngsters may also receive Title II child’s benefits. If the amount of child’s benefits is high enough, it will preclude SSI eligibility. Watch for children who get both. Remember - youth who ONLY get child’s benefits are not eligible for WIPA services. Remember – CDB eligibility does not begin until age 18. No one of this group will be getting CDB. It’s possible to get SSDI under age 18, but not likely. Most students would not have worked enough to earn the credits necessary to establish entitlement for SSDI. 5

6. Critical Benefits Issues for Youth Under Age 18 Establishing and maintaining eligibility for SSI and Medicaid is main concern for most families. Parents, students & teachers have little understanding of disability benefits or work incentives and fear the effect of paid employment on eligibility and cash payment. Application of parent-to-child deeming rules complicates matters for SSI recipients. Transition aged youth receiving Title II benefits (alone or in conjunction with SSI) are not always identified or counseled properly. 6

7. Implications for Providing WIPA Services to Youth Aged 14 to 18 Don’t assume the student or family know anything about how the SSI program works. Be prepared to spend time explaining basic concepts. Focus on the SSI calculation sheet and the power of the Student Earned Income Exclusion (SEIE). Show different examples of work at varying levels, how pay affects the SSI check and what the total financial outcome will be for each example. Be prepared to discuss ALL of the benefits received by family members and how income earned by the student may affect these benefits. Be specific in your counseling – show the parents the total financial outcome. Parent-to-child (PtC) deeming is a major issue for SSI eligible children. 7

8. Student Earned Income Exclusion Allows SSI recipients under age 22 who regularly attend school to exclude up to $1,780 of gross earned income per month up to a maximum ANNUAL exclusion of $7,180 (in 2016). Social Security will exclude ALL earnings up to $1,780 per month until the full annual exclusion of $7,180 is exhausted or the individual is no longer a student. NOTE: The SEIE also applies to earnings deemed from an ineligible spouse or parent(s) and to the joint earned income of eligible couples when both members are under age 22 and are working students. 8

9. Important SEIE Facts As long as the child attends school regularly just before summer break and intends to continue attending school when it reconvenes, student status will be applied for all months within the quarter – including summer months. Social Security verifies student status during the annual re- determination process. Do not assume that SEIE is automatic. To insure it’s applied, request it in writing. SEIE is NOT optional – if the student is eligible, the exclusion must be applied. 9

10. Definition of Regularly Attending School Regular attendance means the individual takes one or more courses of study and attends classes: in a college or university for at least 8 hours per week under a semester or quarter system; in grades 7 - 12 for at least 12 hours per week; in a course of training to prepare the student for a paying job for at least 15 hours per week if the course involves shop practice, or 12 hours per week if it does not involve shop practice. This training includes anti-poverty programs, such as the Job Corps and government-supported courses in self-improvement; or for less than the amount of time indicated above for reasons beyond the student's control, such as illness, if circumstances justify the reduced credit load or attendance. 10

11. Examples of SEIE and School Attendance Enrollment in special course of study Edward is a 19-year-old student attending a public high school. He doesn’t attend regular classes but receives special training to meet self-improvement skills such as combing hair, dressing, and eating. Edward is not a student for SSI purposes despite attendance at a secondary school facility because he is not attending a curriculum for grades 7-12. 11

12. Examples of SEIE and School Attendance Student in a training course Sara is a 21-year-old student who attends Perkins School for the Blind. She is in a training course 20 hours per week. Sara spends 15 hours per week learning office skills and 5 hours per week learning personal grooming skills. At the conclusion of the course, Sara will be able to use her office skills for a paying job (sheltered or in a competitive job market). The 15 hours per week that she spends on learning office skills meets the required attendance hours and qualifies her as a student for SSI purposes. 12

13. Examples of SEIE and School Attendance School attendance less than the required hours Kim is a student with a physical disability student who attends vocational school only one day per week due to the unavailability of transportation. Although her enrollment for attendance is less than 12 hours per week, Kim qualifies as regularly attending school because the lack of transportation is a circumstance beyond her control. 13

14. Additional Types of Students 14 Homeschooled Students Homebound Students Online Schooling

15. Homeschooled Students Social Security considers a homeschooled student to be regularly attending school if he or she is instructed at home in grades 7-12 for at least 12 hours a week. Homeschool instruction must be consistent with the homeschool laws. 15

16. Homebound Students A homebound student is an individual who must cease an actual physical presence in the classroom due to illness, injury, or other circumstances beyond the student’s control. A homebound student may be regularly attending school, if he or she: – must stay at home because of a disability; – studies a course or courses given by a school in grades 7-12, college, university, or government agency; and – has a home visitor or tutor from school who directs the studying or training. 16

17. Online Schooling Social Security considers a recipient who receives his or her education through online schooling to be a student regularly attending school if: – He or she studies a course or courses provided by an online school in grades 7-12, a college or university, or a government agency; and – The online school is authorized by the laws of the state in which the online school is located. 17

18. Tips for Facilitating Approval of SEIE Report student status with the initial report of work. Don’t assume Social Security knows the beneficiary is enrolled and regularly attending school. Provide verification of school enrollment with a school record such as an ID card, tuition receipt, or other comparable evidence. Be sure to document that the program involves training to prepare the beneficiary for a paying job. 18

19. More SEIE Tips Provide the following information with the initial report of work: Name and address of the school, institution, or instructor (in home schooling situations) furnishing the training; Name and telephone number of the person to contact for verification, if necessary; and Information on the course or courses of study, dates of enrollment, number of hours of attendance, and other activities. 19

20. SEIE and PASS SEIE can make it difficult to use a PASS since SEIE applies first in the SSI calculation and is NOT optional. In most cases, ALL earned income is disregarded at this step. Unless the student has unearned income to set aside, there may be no countable income left to fund the PASS after SEIE is applied. Earnings can be “saved” by putting them in the bank and then set aside in a PASS as a resource instead of income. 20

21. CWIC’s Role In Parent-to-Child (PtC) Deeming Have a clear understanding of the general concepts and procedures used in PtC deeming. Understand how deeming interacts with work incentives. Explain the basics of PtC deeming to families – especially the reporting requirements. Refer families and students to additional resources for more information. Provide handouts. Do NOT try to determine the exact amount of parental deemed income. Refer the family to Social Security and be prepared to act as an “interpreter”. 21

22. Common PtC Questions Child support counts as the eligible child’s income – not deemed income. One-third of the child support payment is excluded for youth under 18. Resource limit is $2,000 for eligible child plus $2,000 for 1 parent or $3,000 for 2 parents (maximum of $5,000). PtC deeming only applies to persons under 18. In-kind Support and Maintenance (ISM) applies to SSI recipients over 18. Refer to resource document on PtC deeming on VCU NTDC website at http://www.vcu-ntc.org/resources/viewContent.cfm/709http://www.vcu-ntc.org/resources/viewContent.cfm/709 22

23. More PtC Deeming Facts Certain retirement accounts or pensions do not count as parental resources for PtC deeming purposes. There is one circumstance under which PtC deeming may be waived in most states (child in Medical facility). Income from the child is never deemed against parents. However, a child may provide ISM to SSI eligible parents if the child is paying more than his/her pro-rata share of household expenses. 23

24. Title II Benefits and Youth Under Age 18 Implications for Providing WIPA Services Not all youth receive SSI only – some also receive Title II payments (mostly child’s benefits). Concurrent beneficiaries require extra time and attention. All benefits must be verified prior to case specific advisement – no assumptions, no exceptions. Watch for children who have potential eligibility for Title II child’s benefits but who never applied. Remember that Title II child’s benefits have nothing to do with disability and operate very differently than the disability benefits. 24

25. Title II Child’s Benefits Provided to certain children of insured workers who are either deceased or retired and receiving Social Security retirement or disabled and receiving SSDI who are: Under age 18; or if 18 or older, a full-time elementary or secondary school student under age 19; Dependent upon the insured worker; and Unmarried (with some exceptions). 25

26. Understanding Child’s Benefits Social Security’s definitions of “child” and “dependent” are complex. While the beneficiary may be disabled, Title II child’s benefits are NOT related to disability status. Youth who receive only Title II child’s benefits aren’t eligible for WIPA services. Wages earned by Title II child beneficiaries are subject to the Annual Earnings Test ($15,720/year in 2016), not the disability work incentives. The Title II disability benefits work incentives don’t apply to child’s benefits. 26

27. Child in Care Benefits It’s possible for a parent to collect a Title II benefit when the “child in care” standard is met. This may occur when the child is: – Under age 16 and the claimant exercises parental control and responsibility; – Age 16 or older and mentally disabled and the claimant exercises parental control and responsibility; – Age 16 and older and physically disabled the claimant performs personal services; or – Age 16 or older and physically disabled with mental involvement. For in care purposes, the child is treated as mentally disabled. The claimant exercises parental control and responsibility. 27

28. More About Child-in-Care The caregiving parent is collecting benefits off of the insured worker’s earnings record (ER), but is also affected by the benefits status of the child. Not all parents of children getting child’s benefits or CDB meet the child-in-care standard. Social Security makes this determination. CWICs must ask about child-in-care benefits and include information in BS&A or other counseling about how work may affect this benefit. For more information, see RS 01310.000 Child in Care. 28

29. Social Security Disability Insurance (SSDI) Title II disability benefit paid to disabled former workers who are fully insured and insured for disability status (latter requirement does not apply to blind beneficiaries). Beneficiaries do NOT have to be 18 or older to collect SSDI. Eligibility for SSDI can happen quickly for young people as fewer work credits are required. Medicare Qualifying Period (MQP) and 5-month waiting period apply. 29

30. Sub-group 2: Youth Who Are Approaching the 18 th Birthday When beneficiaries attain the age of 18, Social Security considers them to be adults. Several critical changes in benefits status may occur in the 18 th year. CWICs should discuss any potential changes that may occur at 18 with the student and family. Start these discussions at least 6 months before the birthday, if possible. Conduct an Age 18 Benefits Check-Up. 30

31. Critical Changes Related to the 18 th Birthday The SSI age 18 redetermination. Transition from parent-to-child deeming to in-kind support and maintenance (ISM). Potential eligibility for SSI once parental income is no longer considered. Conversion of child’s benefits to CDB if disability standard is met. One-third deduction of child support ends. Adulthood means the end of parental guardianship. A Representative Payee may need to be appointed. 31

32. SSI Age 18 Redetermination All youth who receive SSI are required to have their eligibility re-determined under the adult criteria upon reaching their 18 th birthday. The review usually occurs within 12 months of the 18 th birthday. It may be initiated as early as the month prior to 18 th birthday. The Age 18 redetermination is treated as initial application for SSI using the adult disability criteria. The Medical Improvement Review Standard (MIRS) is not applied. 32

33. SSI Age 18 Redetermination The SGA requirement is NOT part of the Age 18 Redetermination process. If the review results in eligibility, SSI and Medicaid continue uninterrupted. If the review results in denial, benefits are terminated 2 months after the date on the notice. Social Security does not apply the ineligibility back to the month after the 18 th birthday. Approximately 47% of all youth who go through the age 18 redetermination are initially determined ineligible for SSI under the adult standard. The usual appeals process applies to these decisions. 33

34. Tips for Preparing for the Age 18 Redetermination Make sure the student and family are informed about the age 18 redetermination process – educate, educate, educate. Focus efforts on early planning & preparation. Assist with development or collection of accurate information to facilitate a correct determination. Encourage employment & job-based training early in the transition process. Develop a contingency plan. Resource document on age 18 redeterminations found at: http://www.vcu-ntc.org/resources/viewContent.cfm/795 34

35. Transitioning from Deeming to In-Kind Support and Maintenance (ISM) PtC deeming stops the month after the 18 th birthday. Make sure Social Security is contacted the month prior so that an ISM evaluation can be made. ISM is unearned income in the form of food, clothing or shelter that is given to or received by the individual because someone else pays for it. ISM impacts both eligibility & payment amount. How ISM is valued depends upon the living arrangement (VTR/PMV rules). 35

36. Counseling about the End of Deeming and Beginning of ISM Encourage youth not previously eligible for SSI due to deeming to reapply. Make sure you fully understand the rules governing ISM determinations. Refer to the briefing paper on ISM at the VCU NTDC website here: http://www.vcu-ntc.org/resources/viewContent.cfm/865 Provide clear & concise information on the ISM rules. Proactively help families plan for having the beneficiary pay all or part of his/her fair share of the household expenses. Consider flat rate rental agreements as appropriate. 36

37. Counseling Youth and Families about Title II Benefit Transitions Provide information on any Title II benefit changes that may occur after the 18 th birthday: – Loss of Child’s Benefit? – Eligibility CDB? – Impact of CDB on potential SSI and Medicaid? – Establishing SSDI on own work record? 37

38. Age 18 and Representative Payee Issues A representative payee is the person, agency, organization or institution selected to receive and manage benefits on behalf of a beneficiary. A representative payee is NOT the same as a legal guardian. Representative payee status is ONLY recognized by Social Security. Representative payee status is reviewed at age 18 to determine if a change is needed. 38

39. Providing Supports around Representative Payee Issues Educate youth and parents on options available and process for making representative payee changes. Assist youth to develop necessary financial & benefit management skills by making referrals for financial literacy services. Educate youth and family member about reporting responsibilities. Be prepared for some difficult discussions as desires of students and parents do not always match. 39

40. Benefit Considerations for ALL Transition Age Youth Continued Access to Health Care: – Section 1619(b). – CDB Special Medicaid Beneficiary status. – Medicaid Buy-in. – Medicaid Waivers. – Medicare eligibility and EPMC provisions. – Employer sponsored health care plans. – Extended access to parental coverage due to ACA (up to age 26). 40

41. Benefit Considerations for ALL Transition Age Youth Educational & Career Development: – PASS. – Ticket to Work. – Vocational Rehabilitation. – American Job Centers Individual Training Accounts. – TANF – Individual Development Accounts. – PELL grants & educational loans. CWICs are expected to assume an active role in helping students identify needs in this area and make referrals for services. 41

42. Final Words Transition age youth have some very unique needs when it comes to providing WIPA services. This population is a high priority for Social Security and the WIPA initiative. Youth who are moving toward employment should receive ongoing individualized services. There is a lot to remember and address with transition age youth – especially in the months before the 18 th birthday. Use the Age 18 Benefits Check-Up to structure your counseling. Stay in touch with youth and their parents – proactive contact is necessary. 42