Social Security and Work Incentives

2.3.0 Social Security and Work Incentives
Louisiana Statewide Transition Project and Louisiana: Healthy and Ready to Work Fact Sheet Series
	5/31/99

I. WHY IS THIS IMPORTANT?

Many people with disabilities receive income and benefits through one of two Social Security programs: Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). 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 Social Security Administration's guidelines). SSDI benefits are paid to individuals with disabilities who have worked and paid Social Security taxes (FICA) and, in some cases, to dependents of those individuals.

Often, when individuals who receive SSI or SSDI are considering employment, they have many questions and concerns relating to their benefits. The Social Security Administration (SSA) has instituted various Work Incentive programs in order to provide support and assistance while benefit recipients return to work or enter the workforce for the first time.

Work Incentives can help many benefit 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 benefit recipients to test their ability to work, and to gradually become more self-supporting and independent.

II. KEY POINTS

The two disability programs under the Social Security Administration, Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI), each have Work Incentives. However, the rules for each program are different, because the programs are different. The Work Incentives under both programs are generally meant to accomplish the following:

· Continue cash benefits until an individual is earning over $700 per month (what the SSA calls "Substantial Gainful Activity"). Individuals may earn up to $1,110 per month if they are blind.

· Help with work expenses.

· Help with training, education, and rehabilitation in order to find work.

· Continue health care assistance (Medicare and/or Medicaid) for a period of time, even when earnings are too high to allow cash 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

8. Continued Payment Under a Vocational Rehabilitation Program

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 more information about these programs, contact the SSA or visit their website (see the "Resources/Contacts" section 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 Work Incentive Liaison at the local Social Security office to ask about Work Incentives. The liaison can help determine potential eligibility and answer questions.

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, Bld. 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/]

Social Security Administration. (August, 1995). Red book on work incentives for people with disabilities (SSA Publication No. 64-030). [available via internet at: http:// www.ssa.gov/pubs/]

Social Security Administration Office of Disability. (January, 1996). Graduating to Independence. [available via internet at: http:// www.ssa.gov/pubs/]