How Working Affects Supplemental Security Income (SSI) Benefits

2.3.6 How Working Affects Supplemental Security Income (SSI) Benefits
Louisiana Statewide Transition Project and Louisiana: Healthy and Ready to Work Fact Sheet Series
	7/28/99

I. WHY IS THIS IMPORTANT?

Many young adults with disabilities receive income and benefits through Supplemental Security Income (SSI), a program administered by the Social Security Administration (SSA). SSI pays monthly checks to people who are 65 or older, or blind, or have a disability and who don't have a lot of resources (as determined by the SSA's guidelines). Often, when young adults who receive SSI 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 SSI recipient begins to work? It depends on how much he/she earns. The amount of the SSI check is based on how much other income the SSI recipient has. When the other income goes up, the SSI check usually goes down. So when earnings push income over the SSA's "Substantial Gainful Activity" or SGA limit ($700 per month, $1,100 per month if blind), checks will stop for that month. However, cash benefits will resume again without a new application for any month during which income drops below the SGA. However, if the SSI recipient does not receive cash benefits or Medicaid for 12 months or more, he/she may need to apply again.

How do earnings reduce cash payments? If the SSI recipient's only income besides SSI is the money he/she earns from a job, then the SSA doesn't count the first $85 in earnings each month ($20 general exclusion and $65 Earned Income Exclusion). One-half of what is earned over $85 is deducted from the SSI check. If the SSI recipient has other unearned income (such as an SSDI check), then the SSA doesn't count the first $65 in earnings each month. One-half of what the SSI recipient makes over $65 is deducted from SSI payments.

What happens if the SSI recipient loses or quits his/her job? If a SSI recipient loses or quits his/her job while still receiving SSI benefits, payments will be increased because of reduced income. If the SSI recipient loses or quits his/her job within 12 months after payments were stopped because earnings were too high, and if he/she is still considered disabled by the SSA, benefits would start again without the need to reapply. If the SSI recipient works for more than 12 months after SSI or Medicaid stopped and then loses or quits his/her job, he/she may need to reapply for benefits.

How long will Medicaid continue while the SSI recipient is working? In general, Medicaid coverage will continue, even after SSI payments stop, until the SSI recipient's income reaches a certain level. That level varies with each state and reflects the cost of health care in the state. However, if health care costs are higher than this level, SSI recipients can have more income and keep Medicaid benefits. Also, for Medicaid to continue, the SSI recipient must:

· need it in order to work;

be unable to afford similar health insurance coverage without SSI;

· continue to have a disabling condition; and

· meet all nondisability requirements other than earnings. These include income and resource limits.

If a SSI recipient qualifies for Medicaid under these rules, the SSA will review his/her case to determine if he/she still meets the disability requirements of the SSA. If so, the SSI recipient can continue to receive Medicaid benefits.

How can the SSA help with work expenses? The SSA has instituted various Work Incentives that can help many SSI recipients continue to receive cash payments and health insurance 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 SSI recipients to test their ability to work, and to gradually become more self-supporting and independent. Work Incentives allow SSI recipients to earn more than the SSI income limits and still continue to receive payments. The SSI Work Incentives are:

1. Impairment-Related Work Expenses (IRWE);

2. Earned Income Exclusion;

3. Student Earned Income Exclusion;

4. Blind Work Expenses;

5. Plan for Achieving Self-Support (PASS);

6. Property Essential to Self-Support;

7. Section 1619 Work Incentives; and

8. Continued Payment Under a Vocational Rehabilitation Program.

For examples of how working affects SSI 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 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/]