How Working Affects Social Security Disability Insurance (SSDI) Benefits

2.3.7 How Working Affects Social Security Disability Insurance (SSDI) Benefits
Louisiana Statewide Transition Project and Louisiana: Healthy and Ready to Work Fact Sheet Series
	7/28/99

I. WHY IS THIS IMPORTANT?

Some young adults with disabilities receive income and benefits through Social Security Disability Insurance (SSDI), a program administered by the Social Security Administration (SSA). SSDI provides benefits to persons with disabilities who have worked and paid Social Security taxes (FICA) and, in some cases, to their dependents. Often, when young adults who receive SSDI are considering employment, they have many questions and concerns relating to their benefits. It is important for young adults, as well as those supporting them, to know how benefits will be affected when returning to work or entering the workforce for the first time.

II. KEY POINTS

How long do benefits continue after the SSDI recipient begins to work? Eligible SSDI recipients can have a Trial Work Period of nine months (not necessarily consecutive) during which benefits will not be affected by earnings regardless of how much is earned. A "Trial Work Month" is any month in which the SSDI recipient's total earnings are more than $200 or, if self-employed, he/she earns more than $200 (after expenses) or spends more than 40 hours in his/her own business. When nine Trial Work Months are successfully completed within 60 months, the SSA reviews the SSDI recipient's earnings to see if they make his/her monthly income exceed the SSA's "Substantial Gainful Activity" or SGA limit ($700 per month, $1,100 per month if blind). If so, benefits will continue for three more months and then stop. However, if the SSDI recipient is still considered by the SSA to be disabled, and if he/she continues to work in spite of the presence of a disability, benefits can be reinstated anytime during the Extended Period of Eligibility (36 consecutive months). During this time, the SSDI recipient will receive the full Social Security cash benefit for any month during which earnings fall below the SGA limit. Cash benefits will continue during the extended period of eligibility as long as the SSDI recipient continues to be considered disabled by the SSA and monthly earnings do not exceed the SGA limit.

How much can a SSDI recipient earn before he/she starts losing benefits? During the Trial Work Period, there are no limits on earnings. During the 36-month Extended Period of Eligibility, the SGA limit is the cutoff point.

The SSA deducts eligible work expenses related to a disability from earnings before determining continued eligibility for benefits. These expenses may include the cost that SSDI recipients pay for any item or service needed to work, even if the item or service is also used in other activities of daily living. SSDI recipients interested in Work Incentives should contact their local or district SSA office and ask to speak to a Work Incentives Liaison.

What happens if the SSDI recipient loses his/her job? If the SSDI recipient loses his/her job during the Trial Work Period, benefits are not affected. If he/she loses the job during the 36-month Extended Period of Eligibility, he/she must call the SSA to get benefits reinstated (as long as he/she still meets the disability requirements). SSDI recipients whose benefits are reinstated do not have to undergo any waiting period.

If the SSDI recipient becomes unable to work due to his/her disability after completing the Extended Period of Eligibility, he/she has to reapply for benefits. If he/she becomes unable to work due to his/her disability within five years after completing the Extended Period of Eligibility, there is no waiting period, given the approval of the SSA of the application to renew benefits. If a new application for benefits is approved, the SSDI recipient can be eligible for another Trial Work Period and Extended Period of Eligibility.

How long will Medicare continue while the SSDI recipient is working? Medicare coverage will continue through the Trial Work Period and for at least 39 months after the Trial Work Period if the SSDI recipient is still considered disabled by the SSA. During this period, Medicare coverage is free, and continues even for those months during this period when earnings are too high to receive cash benefits. When Medicare coverage runs out after this period, and if the benefit recipient is still considered disabled by the SSA, he/she may purchase the same coverage for a monthly premium.

How can the SSA help with work expenses? The SSA has various Work Incentives that can help many SSDI recipients continue to receive cash payments and Medicare coverage for a period of time until they can work regularly and until such time as they no longer need assistance (as determined by the SSA). Work Incentives provide support over a period of time to allow SSDI recipients to test their ability to work and to gradually become more self-supporting and independent. Work Incentives allow SSDI recipients to earn more than the SGA income limits and still continue to receive cash benefits. The SSDI Work Incentives are:

1. Impairment-Related Work Expenses (IRWE)

2. Trial Work Period

3. Extended Period of Eligibility

4. Continuation of Medicare Coverage

5. Medicare for People With Disabilities Who Work

6. Continued Payment Under a Vocational Rehabilitation Program

For examples of how working affects SSDI benefits, see the other side of this fact sheet.

III. ROLES/NEXT STEPS

Students/Young Adults: Young adults who would like to work, but are afraid of losing needed benefits, should contact the local Social Security office. A representative can show them how working will affect their benefits, and also determine which Work Incentives they may be eligible for.

When discussing the transition to employment with those supporting them, young adults should ask for help exploring all applicable Work Incentives.

Families: Families can encourage young adults to work by learning about Work Incentives that can help them go to work and not lose needed benefits. Families can assist young adults when contacting the Work Incentive Liaison at the Social Security office.

When discussing the transition to employment with agencies, families should ask about various Work Incentives for which their son/daughter may be eligible. If incentives are identified, they should help their son/daughter apply.

Agencies: Transition personnel in LEAs and adult agencies should become familiar with Social Security Work Incentives. Relationships should be formed with staff in local Social Security offices who can assist young adults with disabilities to work while retaining benefits as needed. Sponsoring workshops during which the Social Security Work Incentive Liaison presents information and answers questions can be helpful to young adults considering employment and their families.

As requested, personnel from the SSA should attend meetings at which transition to employment is discussed. They can also serve on a local interagency transition team. By providing information to Local Education Agencies, families, and young adults, SSA personnel can help young adults plan for employment without the fear of losing needed benefits prematurely.

IV. RESOURCES/CONTACTS

Social Security Administration

Phone: 1-800-772-1213 (voice) or 1-800-325-0778 (TTY)

Internet: www.ssa.gov

The Employment Network of Louisiana

1100 Florida Avenue, Bldg. 119

New Orleans, LA 70119

1-800-597-0441

V. REFERENCES

Social Security Administration. (May, 1995). Working while disabled: How Social Security can help (SSA Publication No. 05-10095). [Available via Internet at: http:// www.ssa.gov/pubs/]