EXPANDING THE FINANCIAL STABILITY OF PERSONS WITH DISABILITIES

EXPANDING THE FINANCIAL STABILITY OF PERSONS WITH DISABILITIES Moderator Shayna Simpson-Hall NC Council on Developmental Disabilities Presenters Elizabeth Jennings Director of Training and Technical Assistance National Disability Institute And Michael R. Roush, M.A. Manager, Financial Empowerment & Innovation National Disability Institute

Objectives for Today s Session Understand the link between poverty and persons with disabilities Identify strategies for persons with disabilities to access to build their financial stability: Public Benefit Programs Employment Free tax preparation Financial Education Asset Development Programs

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.

The Americans with Disabilities Act of 1990 The Nation s proper goals regarding individuals with disabilities are to assure equality of opportunity, full participation, independent living, and economic selfsufficiency for such individuals; 42 U.S.C. 1201(a)(8) (2005)

Disability and Poverty People with disabilities are more likely to be unemployed and to live in poverty than any other single demographic group in the United States today. Public benefit programs for people with disabilities, especially Supplemental Security Income (SSI), are not aimed at increasing assets and independence for people with disabilities.» More so then any other population on a fixed income, services and policies do not hold the expectation of economic self-sufficiency.

Barriers to Financial Stability Public attitudes Low expectations of and within the disability community, and Current partnerships don t support savings and building a financial future. Regulations discourage saving for the future; retirement, emergencies, etc.

Empowerment & Education are Key Individuals with disabilities can and do work and generate earned income. Individuals with disabilities can participate in local asset building opportunities. Individuals with disabilities can save and build assets. Individuals with disabilities are an underserved population of low wage workers.

Assets Produce Improved economic stability Increased long term planning Greater educational attainment Increased civic engagement

Make the Paradigm Shift Acknowledge that public benefits in exchange for a life of poverty is a bad deal for all. Individuals with disabilities live in poverty at higher rates than any other group in America. Discussing a movement from poverty to financial stability is a new conversation that may seem counter-intuitive at points but is the only way to ensure equal opportunity and full participation.

Making the shift Making the shift requires: New Focus New Tools and Strategies New Partnerships

Focus on Financial Stability Cross agency collaboration to remove policy and program barriers to self-sufficiency Increase awareness and understanding of ways social insurance, employment, and asset development programs work together rather than in conflict

Focus on Financial Stability Empower persons with disabilities with new knowledge, choices, and supports Shift employment from THE goal to ONE step towards financial stability.

New Tools and Strategies Increase use of Social Security Work Incentives Benefit from financial education and affordable financial services Set savings and asset goals

New Tools and Strategies Increase access and benefit from the Earned Income Tax Credit (EITC) and other favorable tax provisions Support individuals in utilizing an Individual Development Account (IDA) to achieve an asset goal through matched savings Increase access to health care through enrollment in North Carolina s Medicaid Buy-In

To a person with a disability, saving money and developing assets will produce choices that directly impact their quality of life, especially regarding: mental and physical health positive self-concept and level of community participation expectations and status with other community stakeholders

Five Key Strategies to Financial Stability Asset Development Financial Literacy Earned Income Tax Credit Tax Filing Employment Understanding Public Benefits

PROGRAMS THAT OFFER SUPPORT

Public Benefits The Social Security Administration has two programs to support individuals with disabilities with an inability to work at a substantial level. Social Security Disability Insurance (SSDI) Supplemental Security Income (SSI) Many people with disabilities who receive SSDI and/or SSI, want to work or return to work but are unsure what will happen to their benefits when they do. The SSA has special work incentives available that make it possible for individuals to test their ability to work and continue to receive some or all of their cash and health benefits.

Work Incentives Comparison Chart Social Security Disability Insurance Trial Work Period Extended Period of Eligibility Impairment Related Work Expense Subsidies Unsuccessful work attempt Unincurred Business Expenses (self-employed only) Continuation of Medicare Section 301 Expedited Reinstatement Ticket to Work Supplemental Security Income Student Earned Income Exclusion Impairment Related Work Expense Blind Work Expense 1619 (a) 1619 (b) Property Essential For Self Support Plan for Achieving Self-Support Subsidies (only at time of application) Section 301 Reinstatement without new application Expedited Reinstatement Ticket to Work

Plan to Achieve Self-Support (PASS) The purpose of PASS is to allow SSI recipients to set aside income and/or resources to be used to assist in achieving specific work goals. A PASS can be used to assist in the costs of education, starting a business or purchasing support services that will result in the reduction / cessation of benefits. By utilizing PASS, an SSI recipient s can help to offset the costs associated with the return to gainful employment by reducing countable income and potentially increasing the amount of SSI cash benefits due.

Plan to Achieve Self-Support The PASS plan must: Have a specific work goal Have a specific time frame for reaching the goal Show what money and any other contributions will be used to reach the work goal Show how any money set aside in savings will be kept separate from other funds Show how the money and resources will be saved and, later, spent Be submitted in writing and approved by Social Security s PASS Cadre Include a Business Plan if the PASS is for self-employment Be reviewed periodically to assure compliance Increase an individual s ability to be self-supporting by decreasing the amount they receive in cash benefits from Social Security www.passonline.org

Property Essential For Self-Support SSI will NOT count certain resources that are essential to a person s means of self-sufficiency. Utilized when initially applying Maintain resource eligibility Property used in a trade or business (inventory) Property used for work as an employee (required tools, equipment, transportation etc. Example: SSI will not count UP to $6,000 of equity value of non-business property which is used to produce goods or services essential to daily activities: a) Land used to produce food for consumption for personal use SSI will NOT count up to $6,000 of equity value of non-business incomeproducing property if the property yields an annual rate of return of at least 6%: a) Rental Property b) Produce grown on land for sale

Special Needs Trusts Protecting Assets http://www.ssa.gov/ssi/spotlights/spot-trusts.htm Pooled Trusts You can put your earned money into a Pooled Trust http://www.specialneedsanswers.com/resources/directory_of _pooled_trusts.asp

Resources for more information Social Security Administration Website www.socialsecurity.org SSA Red Book www.socialsecurity.gov/redbook/

Benefits Planning Work Incentive Planning Assistance (WIPA) The primary objective of the WIPA initiative is to assist SSA beneficiaries with transitioning from dependence on public benefits to paid employment and greater economic self-sufficiency. Community Work Incentives Coordinator (CWIC) are trained experts who will help you in understanding your federal and state benefits and how to use work incentives that may be available to you.

How to locate a CWIC in your area? If you want to locate the WIPA project nearest you, please visit: http://choosework.net/resource/jsp/searchbystate.jsp North Carolina has two organizations that provide WIPA services:» NC DHHS, Division of Vocational Rehabilitation, 2001 Mail Service Center, Raleigh, NC 27699 Phone: 919-855-3588 Toll Free: 1-800-689-9090» Tri-County Industries, 1250 Atlantic Ave, Rocky Mount, NC 28701 Phone: 252-977-3800 Toll Free: 866-605-7765

Benefits Planning Protection & Advocacy of Beneficiaries on Social Security (PABSS) PABSS was created to assist SSA beneficiaries with disabilities in obtaining information and advice about receiving vocational rehabilitation & employment services and to provide advocacy or other related services that beneficiaries may need to secure or regain gainful employment. Each PABSS project can:» Check out any complaint against an employment network (EN) or other service provider helping an individual return to work;» Give information and advice about vocational rehabilitation and employment;» Explain SSA s work incentives;» Provide consultation and legal representation to protect the rights of any one wanting to return to work; and» Assist with problems concerning work plans under the Ticket to Work program.

How to locate a PABBS in your area? The P&A Agency for North Carolina is Disability Rights North Carolina Disability Rights North Carolina 2626 Glenwood Avenue, Suite 550 Raleigh, NC 27608 Phone: 919-856-2195 Toll Free: 877-235-4210

Employment Employment is a critical component to Financial stability. NC Employment First Employment in the general workforce is the first and preferred outcome in the provision of publicly funded services for all citizens with disabilities regardless of level of disability, in a job of their choosing with supports and accommodations provided as necessary to achieve and maintain employment.

American Job Centers American Job Centers are designed to provide a full range of assistance to job seekers under one roof. Established under the Workforce Investment Act. Job Centers offer: training referrals, career counseling, job listings, and similar employment-related services. AJCs are also called Workforce Centers or One Stop Centers.

Vocational Rehabilitation VR assists people with physical or mental impairments obtain and maintain employment. VR services may include: - vocational evaluation - diagnostic services - assistive technology - transportation - personal assistance - college or vocational training - on-the-job training - job coaching (CRP) - physical and mental restoration - supported employment (CRP) - work adjustment activities (CRP) - modifications to vehicle, home, job, and worksite VR is a required partner within every American Job Center, allowing VR and AJCs to share customers.

NC Employment Resources NC Employment First - http://www.ncdhhs.gov/mhddsas/services/employment/ NC American Job Centers - http://www.nccommerce.com/workforce NC Vocational Rehabilitation - www.ncdhhs.gov/dvrs/ NC Community Alternatives Program for Persons with Mental Retardation/Developmental Disabilities - http://www.ncdhhs.gov/mhddsas/providers/capmrdd/index. htm#waivers NC Americorps/Volunteer Opportunities - http://www.volunteernc.org

Free Tax Preparation The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) Programs offer free tax help for taxpayers who qualify.

VITA Volunteer Income Tax Assistance (VITA) The VITA Program generally offers free tax help to people who make $51,000 or less and need assistance in preparing their own tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals in local communities. They can inform taxpayers about special tax credits for which they may qualify such as Earned Income Tax Credit, Child Tax Credit, and Credit for the Elderly or the Disabled. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. To locate a VITA Site near you, go to: http://www.irs.gov/individuals/find-a-location-for-free-tax-prep

EITC Earned Income Tax Credit The Earned Income Tax Credit (EITC) is a credit for people who earn low-to-moderate incomes. EITC can reduce the individual s tax liability, and can mean a refund. In simple terms, working families and individuals may keep more of what they work for. The EITC is a refundable credit. What this means is that if the individual qualifies, based on their income, even when they have no tax liability, they will receive a tax refund. The individual must file their taxes to receive this refund, even if they do not have any tax liability. If filing for the EITC for the first time, the individual may file to claim the credit for a three-year period.

Number of qualifying children: EITC For Tax Year 2013 Earned income & AGI less than: (single/married filing jointly) EITC up to: 3 or more children $46,227 / $51,567 $6,044 2 children $43,038 / $48,378 $5,372 1 child $37,870 / $43,210 $3,250 No children $14,340 / $19,680 $487 Investment income must be $3,300 or less for the year.

EITC Requirements Must have a valid Social Security Number Must have earned income from employment or from selfemployment. Filing status cannot be married, filing separately. Must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return. Cannot be a qualifying child of another person. If the filer does not have a qualifying child, they must: be age 25 but under 65 at the end of the year, live in the United States for more than half the year, and not qualify as a dependent of another person Cannot file Form 2555 or 2555-EZ (related to foreign earn income)

Income Impact on Public Benefits Excludes any federal tax refund (EITC, CTC, other tax credits, or a refund) from counting as income in determining eligibility, or the amount of benefit, for any federally funded benefit program. Includes state and local programs partially funded by federal dollars. Resource Refunds that are saved by the filer do not count against the resource limits of any federally funded public benefit for 12 months after the refund is received.

Financial Education Curriculums There are many Financial Education Curriculums available, the following list provides a sample: FDIC Money Smart http://www.fdic.gov/consumers/consumer/moneysmart/trainthetrainer.html Hands On Banking www.handsonbanking.com Jump$tart Coalition www.jumpstart.org National Endowment for Financial Education www.nefe.org National Disability Institute www.realeconomicimpact.org New curriculum being developed in Ohio specifically for students with disabilities

NDI & NCCDD Building Assets & Promoting Choice and Community Participation for People with Disabilities Curriculum Financial education and asset development curriculum for students and adults with developmental disabilities. The six modules are organized as follows: Module 1: Overview and Introduction Module 2: Financial Literacy Education and Access to Mainstream Financial Services Module 3: Earned Income Tax Credit and Free Tax Preparation Assistance Module 4: Individual Development Accounts Module 5: Home and Business Ownership Module 6: Social Security Work Incentive Programs

FDIC Money Smart The FDIC developed the Money Smart program to help low- and moderate-income individuals understand basic financial services, develop money management skills, and learn how to use banking services effectively. Money Smart is available from the FDIC in English, Spanish, Chinese, Korean and Vietnamese and is free of charge to the user. Instructions for obtaining copies of the curriculum can be found by clicking on the Money Smart link at www.fdic.gov

Individual Development Accounts Individual Development Accounts (IDAs) are matched savings accounts that allow individuals with limited income and limited wealth to save money and to build assets. The IDA Provider partners with Financial institutions, foundations, churches, private donors, and state and local governments to fund the matches to the personal savings of IDA holders (usually at a rate ranging from $1 to $8 for each dollar saved). For example, an IDA program with a 2:1 match would provide $2 for every $1 dollar saved in the IDA, $1000 saved in the IDA would receive a $2000 match.

Individual Development Accounts An IDA can be used to purchase 1. a home 2. higher education and training 3. business capitol Federally funded IDA programs require that participants enroll in financial education classes. Most projects require at least 12.5 hours of training before a proposed asset can be purchased. The IDA provider may also provide connections to credit counseling, VITA services, EITC and public benefit enrollment. These services provide an individual the opportunity to increase their ability to earn, budget and save towards their goal.

Program Variations Programs can vary in several ways. o o o o o o Target population Program requirements Minimum investment Minimum/maximum amount saved each month Length of required savings Savings goal (may be more limited or broader) It s important to know up front the program rules and whether or not the program is TANF or AFI funded.

Impact on Public Benefits Assets accrued in an IDA established using TANF or AFIA money can not, under Federal regulations, negatively impact an individual s eligibility for federal programs. The individual s contributions, matching contributions, and interest can not be considered as an asset when determining eligibility or benefit levels for federal benefit programs like Social Security, Medicaid and Food Stamps. Assets for Independence Act, Section 415, codified at 42 U.S.C. 604 note and Social Security Act, Section 404(h)(4), codified at 42 U.S.C. 604(h)

Impact on SSI SSI does not count the individual s contributions, matching contributions, and interest as a resource. SSI also excludes the individuals contribution from their countable earned income. http://www.ssa.gov/ssi/spotlights/spot-individual-development.htm

Locating an IDA Provider To locate an IDA Provider in your area go to: http://cfed.org/programs/idas/directory_search Or http://idaresources.acf.hhs.gov/afigrantees IDA information specifically for the disability community: http://idaresources.acf.hhs.gov/disability

Family Self-Sufficiency (FSS) Pursuant to the Quality Housing and Work Responsibility Act of 19 98, specific public housing tenants are entitled to a disregard of inc remental earnings as an incentive to economic self-sufficiency. The Family Self-Sufficiency program (FSS) is designed to assist some Section 8 and all public housing tenants to achieve financial independence and self-sufficiency http://portal.hud.gov/hudportal/hud?src=/program_offices/public_indian_ho using/programs/hcv/fss Content developed by Cornell University, Employment and Disability Institute

Features of the FSS FSS Program participants enter into a service plan and contract th at measure the family s progress in achieving selfsufficiency. (Similar to an SSI PASS) Self sufficiency is defined as independence from public housing assi stant, subsidies and welfare cash assistance The head of the family is required to agree to seek and maintain s uitable employment through the term of the FSS contract Content developed by Cornell University, Employment and Disability Institute

Features of the FSS Two significant financial benefits to the FSS Program are: Rent is unaffected by earned income until at such time that the fam ily s income equals or exceeds 80% of the median area income PHAs will deposit funds into an FSS account for each participating family When the FSS is completed, the family will be given the full amount in the escrow account No limits on amount of money that may be accumulated Content developed by Cornell University, Employment and Disability Institute

Income Impact on Public Benefits FSS does not offer an SSI income exclusion. Resource The FSS account does not count as a resource during the life of the FSS contract. The funds are in an escrow account to which the individual does not have access.

FSS Programs in North Carolina Charlotte Housing Authority - http://www.cha-nc.org/ Durham Housing Authority - http://www.durhamhousingauthority.org/ Franklin-Vance-Warren Opportunity, Inc. - http://www.fvwopp.com/ Greensboro Housing Authority - http://www.gha-nc.org/ High Point Housing Authority - http://www.hpha.net Housing Authority of the City of Greenville - http://www.ghanc.net Housing Authority of the City of Wilson http://www.wilsonha.org/ Housing Authority of the City of Winston-Salem http://www.haws.org/ Pembroke Housing Authority - http://www.pembrokeha.com/ Raleigh Housing Authority - http://www.rhaonline.com/ Rocky mount Housing Authority - http://www.rm-ha.org/ Statesville Housing Authority - http://www.statesvillehousing.org Western Carolina Community Action - http://www.wcca.net/ Wilmington Housing Authority - http://www.wha.net/index.htm

Resources National Disability Institute www.realeconomicimpact.org Assets for Independence www.idaresources.org/disability Bank On www.joinbankon.org WID Equity Newsletter - http://www.wid.org/programs/access-to-assets/equity The Corporation for Economic Development cfed.org CFED s IDA Network www.idanetwork.org Assets and Opportunity Scorecard - scorecard.cfed.org

NDI Programs & Promising Practices Public Benefit Programs SSA Work Incentive training 2- day events and webinars Employment Trade Association Partnerships Free Tax Preparation REI Network, My Free Taxes Financial Education NC Building Assets & Promoting Choice and Community Participation for People with Disabilities, BEST Alliance Asset Development Programs IDA expansion, 2-day training events

Story from the Field University of North Florida Coggin School of Business University of South Florida St. Petersburg, Florida Project 10 STING RAY Peer to Peer learning Students with I/DD and general population students

QUESTIONS & ANSWERS

Contact Information Elizabeth Jennings ejennings@ndi-inc.org 561.351.9140 Michael R. Roush, M.A. mroush@ndi-inc.org 727-278-1352