BREAKING DOWN BARRIERS TO EMPLOYMENT: UNDERSTANDING SUPPLEMENTAL SECURITY INCOME WORK INCENTIVES

Transcription

1 BREAKING DOWN BARRIERS TO EMPLOYMENT: UNDERSTANDING SUPPLEMENTAL SECURITY INCOME WORK INCENTIVES Michael R. Roush, M.A. Director, Real Economic Impact Network and Project Lead, Upward to Financial Stability National Disability Institute Marlene Ulisky Manager, Financial Empowerment & Disability Benefits National Disability Institute Laurie Schaller, B.S. Manager of Financial Empowerment National Disability Institute

2 Presenter Michael R. Roush, MA Director, Real Economic Impact Network National Disability Institute

3 Listening to the Webinar The audio for today s webinar is being broadcast through your computer. Please make sure your speakers are turned on or your headphones are plugged in. You can control the audio broadcast via the audio broadcast panel If you accidentally close the panel, you can re-open by going to the Communicate menu (at the top of the screen) and choosing Join Audio Broadcast 3

4 Listening to the Webinar, continued If you do not have sound capabilities on your computer or prefer to listen by phone, dial: (Toll-Free Number) Meeting Code: You do not need to enter an attendee ID. 4

5 Captioning Real-time captioning is provided during this webinar. To access the captions, click the Media Viewer button in the upper right corner of the webinar platform. For Mac users, the Media Viewer panel will automatically be open in the lower right corner of the webinar screen. If you want to make the Media Viewer panel larger, you can minimize other panels like Chat, Q&A, and/or Participants. 5

6 Submitting Questions For Q&A: Please use the chat box or Q&A box to send any questions you have during the webinar to Michael Roush or REI Admin and we will direct the questions accordingly during the Q&A portion. If you are listening by phone and not logged in to the webinar, you may also ask questions by ing questions to Please note: This webinar is being recorded and the materials will be placed on the National Disability Institute website at 6

7 Technical Assistance If you experience any technical difficulties during the webinar, please use the chat box to send a message to the host Maggie Redden, or you may also Mredden@ndi-inc.org. 7

8 National Disability Institute A national research and development organization with the mission to promote income preservation and asset development for persons with disabilities and to build a better economic future for Americans with disabilities. 8

9 Special Thank You This initiative is supported at 75% by the North Carolina Council on Developmental Disabilities and the funds it receives through P.L , the Developmental Disabilities Bill of Rights and Assistance Act of 2000 and by National Disability Institute with matching funds over the required non-federal match of 25%.

10 Presenter Marlene Ulisky Manager, Financial Empowerment & Disability Benefits Director, National Disability Institute 10

11 Supplemental Security Income (SSI) Benefits and Work Incentives 11

12 Objectives Understand Supplemental Security Income (SSI) for children and SSI for adults and what means tested means. Review SSI work incentives. Understand how the work incentives can leverage the resources needed for employment. Learn the methods and benefit of timely reporting earnings to SSA. 12

13 Supplemental Security Income (SSI) A needs based benefit, paid by the Social Security Administration (SSA) and funded through general tax revenues, intended to provide food and shelter to aged, blind or disabled individuals who have limited income and limited resources. SSI is the payor of last resort. 13

14 Supplemental Security Income (SSI) Must meet non-disability rules before disability is considered Not working or Working under substantial gainful activity level - $1,180/not blind or $1,970/blind Full Federal Benefit Rate (FBR) for 2018: $750/individual or $1,125/SSI couple North Carolina is a state that provides a State Supplement to certain individuals States have option to provide Medicaid 14

15 Means Tested: What Counts Purpose of SSI is to help obtain food and shelter. Any factor impacting this may impact SSI: Who you live with: Spouse or parent Deeming Income: Earned, Unearned, or Deemed Resources: How much you have in resources 15

16 SSI Countable Income Earned Income Unearned Income SSDI Benefits Veterans Administration Benefits Unemployment Compensation In-kind Support Not cash, but actual food and/or shelter provided by someone else. 16

17 Income Not Counted The value of food stamps Housing subsidy Home energy assistance Disaster assistance Food or shelter based on need provided by nonprofit agency Income tax refunds Payment of a SSI recipient s bills Earned or unearned income in a PASS Proceeds of a loan Clothing Some deposits into an ABLE Account 17

18 SSI Resources Resources are things that you own that could be used to pay for food and shelter. Resource Limit: Individual (Adult): $2,000 Couple (Adults): $3,000 Resources may be: Cash or other liquid assets Real or personal property More than 1 vehicle 18

19 Resources Not counted Primary residence Household goods and personal effects One vehicle used for transportation Property Essential for Self Support Resources protected under a Plan to Achieve Self Support SSA approved Special Needs Trusts/Pooled Trusts Medical devices or adaptive equipment Unspent Retroactive SSI/SSDI benefit payments (up to 9 months after receipt) Income Tax Refunds including the Earned Income Tax Credit (12 months after receipt) Federally funded Individual Development Accounts ABLE Accounts - up to $100,000 Some life insurance policies Some burial funds and spaces 19

20 Adult (18 or Older): Definition of Disability The inability to engage in substantial gainful activity by reason of a medically determinable physical or mental impairment or combination of impairments which has lasted or can be expected to last for a continuous period of not less than 12 months or to result in death. Note: Under SSI only, there is not a duration requirement and individuals who are blind do not have to prove that they are unable to work. They only have to prove that they meet SSA s level of blindness. 20

21 Child (Under age 18): Definition of Disability Inability to engage in substantial gainful activity by reason of a medically determinable physical or mental impairment or combination of impairments which causes marked and severe functional limitations and that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. 21

22 Continuing Disability Review (CDR) Process SSA is required by law to conduct medical reviews. A CDR may involve an interview at the local SSA office and completion of a form identifying current medical sources and treatment SSA sends the information to the State Disability Determination Service (DDS) for review and a medical determination..

23 Medicaid Once an individual is determined eligible for SSI, they will receive state-administered Medicaid. North Carolina is a Section 1634 State which means that they allow SSA to make the Medicaid eligibility determination when they make the SSI determination. 34 States and the District of Columbia are Section 1634 States. 23

24 Benefits of Working Employment is one of the most effective ways to achieve financial stability! You always end up with more money by working vs not working. You can earn far more than $85 per month! In fact, your SSI can be reduced to ZERO and you can still keep your Medicaid! You can quickly be reinstated if your benefits terminate. You can purchase or obtain items or services needed to work! You are building your financial future by accruing credits of coverage towards becoming insured for a SSDI benefit or retirement benefit. 24

25 SSI Work Incentives Support for Financial Stability Earned Income Exclusion Student Earned Income Exclusion (SEIE) Impairment Related Work Expense (IRWE) 1619 (a) SSI Payments for Persons Who Work 1619 (b) Medicaid While Working Plan to Achieve Self- Support (PASS) Expedited Reinstatement (EXR) Blind Work Expense (BWE) Property Essential For Self Support (PESS) Subsidy (only at time of application) Section 301 Ticket to Work

26 General Income Exclusion and Earned Income Exclusion SSA subtracts a $20 general income exclusion (GIE) if it was not used already to reduce unearned income. SSA does not count the first $65 of earnings you receive in a month, plus they do not count one-half of the remaining earnings. The amount left reduces your SSI. Medicaid Continues 1619(a) Gross earnings $1, Minus GIE - $20.00 $1, Minus EIE - $65.00 $1, Divided by 2 /2 Countable Earnings $ SSI Benefit $ Minus countable earnings - $ Adjusted SSI $ Adjusted SSI $ Plus Earnings + $1, New Monthly Income $ 1,

27 SSI Calculation - Earned Income Full-time at $15/hour Working at SGA Level Gross earned income Subtract General Income Exclusion (GIE) subtotal Subtract Earned Income Exclusion (EIE) subtotal Divide by 2 Countable Earned Income $2, $20.00 $2, $65.00 $2, /2 $1, Federal Benefit Rate Subtract Countable Earned Income Adjusted SSI amount Adjusted SSI Plus Gross Earned income New Monthly income $ $1, $0 $ $2, $ 2, Medicaid Continues under 1619(b) if Meet Criteria (Next Slide) 27

28 Medicaid Continuation - Section 1619 (b) After you return to work, your Medicaid can continue even if your earnings are too high for a SSI payment if you are: Still eligible for SSI except for earnings Still disabled Resources under $2000 ($3000/couple) Need Medicaid to work Have been eligible for SSI for at least one month Annual earnings below the North Carolina State Threshold Amount - $33,707 (2017) An individualized threshold amount may be available.

29 Medicaid Buy-In North Carolina Health Coverage for Workers with Disabilities (HCWD) provides full Medicaid coverage for workers with disabilities ages 16-64: Unearned Income cannot exceed 150% of Federal Poverty Level. If countable income is above 150% of FPL there is an annual enrollment fee. If countable income is above 200% of FPL there is also a monthly premium. Visit: 29

30 Student Earned Income Exclusion - SEIE Student Earned Income Exclusion allows students to deduct: Up to $1,820 per month or A maximum of $7,350 per year (2018). Requirements: Under age 22 Regularly attending school Individuals not able to claim the full amount in a month can carry the balance over to the next month. This exclusion applies before any other exclusion. 30

31 SSI Calculation - SEIE Thomas is a age 21 and he takes classes at a community college 10 hours a week to obtain a degree. He works 15 hours per week and earns $10.00 per. This month he was paid $600. $600 Gross wages -$600 Subtract SEIE (up to $1820) $0 Countable Earned Income $750 - $0 = $750 SSI $ = $1350 Using the SEIE in this case results in $600 increased income!

32 Impairment Related Work Expenses-IRWE IRWE enables beneficiaries to reduce countable earnings for out of pocket items or services that support their disability-related employment needs. Conditions for Allowable Expenses: The item or service enables you to work You need the item or service due to an impairment You pay for the expense out of pocket and are not reimbursed The cost must be reasonable. SSA requires receipts. IRWE is used by SSDI and SSI but affects cash benefits differently.

33 Examples IRWE: Prescription medication (non-routine) Physician co-pays Medical devices/job accommodation devices Some transportation expenses Some attendant care expenses Job Coaching Service animal expenses Not an IRWE: Health insurance premiums Routine physician visits Routine dental exams Procedures, testing, medication not related to your medical impairment Cost of a vehicle whether modified or not 33

34 Plan to Achieve Self Support - PASS If you receive SSI or can become eligible for it, a PASS allows you to set aside your income or resources for expenses for items or services needed to achieve a work goal. When SSA figures your SSI payment, they do not count the money you set aside for approved PASS expenses. Your PASS must be in writing on form SSA-545-BK and approved by SSA. It must specify the progressive steps to your goal. They will review the PASS from time to time. An Employment Network, Vocational Rehabilitation Agency or Certified Benefits Planner can help you set up a PASS. Achievement of your work goal must reduce or eliminate the SSI or SSDI you receive. 34

35 PASS - Example Kathy has a work goal of becoming an Administrative Assistant. To meet the qualifications, she must have computer skills and understand how to use several software programs. Kathy will need to go to a technical school to learn to use a computer. Kathy needs childcare for her 10 year old daughter after school. She may need to have a tutor. She will need a computer to practice if one is not available. She will need to pay for transportation to and from school. She may need a vehicle. She will have to pay for books and supplies. She will need business clothing to go on interviews.

36 PASS - Example Kathy receives $320 per month from SSDI and $450 in SSI monthly. She will save $300 per month of her SSDI to pay for her expenses under the PASS to reach her work goal. She fills out the PASS form and submits it to the PASS Cadre in her Region. The Cadre may accept it or they may call her to talk about some of the items. The Cadre accepts the PASS as submitted. Kathy will save $300 in a separate bank account each month. Because SSI has approved her PASS they will now exclude all of her SSDI when figuring her SSI payment. They now send her $750 of SSI instead of $450 she was getting prior to submitting the PASS. The PASS will be reviewed periodically by the Cadre. She will need to show her progress, and provide bank statements and receipts for expenses.

37 Expedited Reinstatement - EXR Expedited Reinstatement (EXR) protects SSI beneficiaries who return to work and have their benefits terminated due to excess earned income or a combination of earned and unearned income. When a beneficiary is receiving proper Benefits and Work Incentive advisement, benefit termination is a planned event. Who is eligible: Requests EXR within 5 years from the month benefits stopped Is not working or is working under the SGA level in the month they apply; Have the same or related disabling condition Was terminated due to work. SSA will immediately pay up to 6 months of benefits while they are making a disability decision.

38 Wage Reporting When you receive SSI, you are required to report your wages to SSA monthly. There are several ways to report: SSI Telephone Wage Reporting or SSI Mobile Wage Reporting. You report during any of the first 6 days of each month. Fax, visit or mail your paystubs along with any IRWEs to your local SSA office by the 10 th if each month. Report wages as soon as you receive your last paycheck each month, preferably no later than the 6 th of the following month. You can sign up for or text reminders to report monthly wages for SSI at

39 Resources and Tips 39

40 Work Incentive Tips More than one Work Incentive may be used at the same time. Resources are available to help you to understand and access Work Incentives: Work Incentives Planning and Assistance Project (WIPA) Protection and Advocacy Program (P&A) Social Security Administration (SSA) PASS Cadre Local SSA Offices Work Incentive Liaisons Technical Experts Report your work regularly!

41 Other Tips Combine the usage of Work Incentives with other supports to increase your financial stability: Earned Income Tax Credit and other tax credits to increase income Individual Development Accounts to increase savings HUD Earned Income Disregard to increase income Medicaid Buy-in which allows access to low cost health care An ABLE Account to save for disability-related expenses. 41

42 Social Security Administration Resources or (TTY) PASS Cadre Birmingham PASS Cadre (800) or (205) Medicaid Buy in: Job Accommodation Network or (TTY) Asset Building: 42

43 Resources Work Incentives Planning and Assistance Projects North Carolina Dept. of Health and Human Services (919) or ServiceSource (800) or (910) Disability Rights North Carolina (877) To find an Employment Network or Vocational Rehabilitation Agency under the Ticket to Work Program (866) or (866) (TTY) 43

44 PASS Resources SSA - General information on PASS PASS Form 545 PASS Cadre Contact Information PASS resources for individuals who are blind Cornell University - Introduction to PASS and how it works Password protected online PASS application Examples and tips to help complete the application Print a PDF of the completed PASS application

45 Part Three Please Join Us Next Tuesday, February 20, 2018 at 1:00PM for the topic: Breaking Down Barriers to Employment: Understanding Social Security Disability Insurance (SSDI) Work Incentives 45

46 Thank You! Marlene Ulisky Manager, Financial Empowerment and Disability Benefits NDI