Transition Students and Disability Benefits:

Transition Students and Disability Benefits:(How Working May Affect

Benefits)

Social Security Benefits for Children

Children may receive various types of benefits from Social Security. These benefits are not necessarily based on the child’s disability.

For example, a child who is under age 18 (19 if still in high school) may receive

benefit payments from Social Security simply because he or she is a dependent of a parent who is disabled or deceased. These benefits are paid on the parent’s work

record.

We will not be discussing this type of benefits today. However, if a child has been receiving these benefits and they end because s/he turns 18,

(or 19, if still in high school), he or she may apply for benefits based on his or her own disability. The disability must be severe and likely to interfere

with his/her ability to work and be self-sufficient

.

Types of Disability Benefits High School Students May Receive

• Supplemental Security Income• (SSI)• Title XV1 benefits• SSI is based on need

If under age 18, child must be medically disabled by SSA’s standards, and both child’s and family’s income and resources must be below certain limits.

Once child is 18, income of parents is no longer considered, but child must meet medical requirements for adults with disabilities.

SSI benefit amount may differ depending on person’s living arrangement. Federal maximum is $721 in 2014. Individuals who receive SSI benefits automatically get

Medicaid health insurance in RI.

• Social Security Disability Insurance • (SSDI)• Title II benefits• SSDI is a disability insurance programIf child is born disabled or becomes disabled

before age 22, and has a parent who is deceased, disabled, or retired, he or she may receive Childhood Disability Benefits (CDB) based on work record of parent. Must be age 18 or older to receive CDB.

If student has worked, he/she may receive SSDI benefits based on his/her own work history and earnings. After 2 years of entitlement to SSDI, you get Medicare

Health insurance benefits.Note that some people may receive both SSI

and SSDI ,SSI and CDB, or CDB and SSDI.

SSI Benefits and Age 18 Redetermination

When a child who has been receiving SSI turns 18, Social Security will do an evaluation to see if he or she still qualifies for SSI benefits. He or she must now meet the disability rules for adults. Some will no longer meet the adult medical requirements and may receive a notification stating that their SSI benefits will end. This decision may be appealed, or……

Those who no longer qualify medically may be able to continue receiving SSI benefits temporarily if they are participating in a Vocational Rehabilitation Program or receiving similar services.

Social Security must decide that doing so will increase the likelihood of their permanent removal from the benefit rolls. (This is known as Continued Payment Under a Vocational Rehabilitation or Similar Program or Section 301). See information sheet in packet.

SSI Benefits and Work:

Most people receive a smaller SSI payment when they begin to work. Some, whose earnings are high, may not receive an SSI cash payment at all.

However, since SSI counts less than half of a person’s gross monthly wageswhen they are calculating a person’s SSI benefits, nearly everyone has more money when they work than they would have if they remained on SSI benefits alone!

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A special exclusion for students who are under the age of 22 and regularly attending high school or college (or a training program to prepare for employment) may allow them to keep all or most of their SSI payment while theywork. In 2014, Social Security will allow qualifying students to earn $1,750 per month(up to a limit of $7,060 for the year) before their wages have any impact on their SSI payments! See detailed information in packet!

What is the Student Earned Income Exclusion?

How Does SSA Calculate a Person’s SSI Payment When They Are Working?

When Social Security is deciding how much SSI a person should receive, they look at other income a person may have. This includes:

UNEARNED INCOME : (such as Unemployment Benefits or SSDI) andEARNED INCOME: (wages from work or income from self-employment)

When they are calculating a person’s SSI payment, they exclude (do not count) the first $20 of a person’s unearned income. This is called a general income exclusion. They also exclude the first $65 and half of the remainder of the person’s earned income. This is called an earned income exclusion.

If a person has very little or no unearned income, they add the $20 (or the balance of the $20) general income exclusion to the $65 earned income exclusion before dividing by 2.

SSI Calculation Based on Earned Income Only

Jose Works at Subway and earns Gross monthly wages of $800.00. He has no unearned income. His Federal SSI payment (in 2014) was $721 per month before he started working. He also received $39.92 from the state of RI. This is a total of $760.92. He has used up all of his Student Earned Income Exclusion.

$800.00 Gross Monthly Wages - 85.00 ($20 General Income Exclusion + $65 Earned Income Exclusion) $715.00 divided by 2 = $357.50 (Countable Earned Income) $721.00 (Federal SSI rate before working in 2014) - 357.50 Countable Earned Income: $363.50 (Adjusted Federal SSI Payment)

Jose’s income is now $800 (wages)+ $363.50 (Federal SSI) + $39.92 (SSI stateSupplement) = $1,203.42. (Note that Jose’s SSI state supplement will not be affected until his income is so high that he no longer receives any Federal SSI.)

SSI Benefit Calculation When APerson Has Both Earned and Unearned Income

• Kate receives SSDI benefits of $400 per month. She also gets $341 in Fed. SSI and a RI state supplement of $39.92 in 2014. She earns monthly gross

wages of $600 from her job at Old Navy. 1.) $400.00 Unearned Income 3.) $380.00 (CUI) - 20.00 General Income Exclusion + 267.50 (CEI) $380.00 Countable Unearned Income (CUI) $647.50 Total Countable Income (TCI)

2.) $600.00 gross monthly wages 4.)$721.00 (Fed SSI rate)

- 65.00 Earned Income Exclusion 647.50 (TCI)

$535.00 divided by 2 = $267.50 countable 73.50 (adj.Fed. SSI)

earned Income (CEI)Kate’s total income is now $400 (SSDI)+ $600 (wages) + $73.50 (Fed SSI +

$39.92(SSI state supplement) =$1134.42

What if You have Disability-Related Expenses When You Work?

Some individuals may have out-of pocket expenses for items or services they need in order to work, such as medications, medical equipment, etc.

Social Security may subtract these expenses from gross wages after the $85 is deducted. This results in lower countable earned income, which results in a higher SSI payment. You must show SSA your receipts for these items and SSA must approve them. Examples may include your co-payments for medications, medical equipment , doctor visits, counseling, physical, occupational or speech therapy, medical supplies, special transportation, such as the RIDE van, etc.

These expenses are called Impairment Related Work Expenses (IRWE).

Example of SSI Calculation Using IRWE

Let’s look at Jose, who earns gross wages of $800 per month at Subway. Let’s say he has approved IRWE of $100 per month because he takes RIDE to and from work and has medication co-pays. Step 1 Step 2$800.00 gross monthly wages $721.00 Fed. SSI rate -85.00 general and earned income exclusions - 307.50 CEI $715.00 $413.50 adjusted Fed.-100.00 (Impairment Related Work Expenses SSI pymt. 615.00 divided by 2 = $307.50 (countable earned income)Without IRWE, Jose’s Federal SSI payment was only $352.50. It has increased by $50 because of his Impairment Related Work expenses!

What if I am Blind and receiving SSI? Social Security has special rules for people who have statutory blindness. Instead of deducting only Impairment Related Work Expenses, Social Security will deduct all expenses a blind person has due to working. (These are called Blind Work Expenses or BWE’s)

BWE’s even include the state, Federal, and Social Security taxes the person pays. A person who is blind may sometimes continue to get all or most of his/her SSI payment while he or she works. BWE’s are deducted in a different place in the SSI calculation than IRWE’s. The result is generally a smaller deduction from the person’s SSI payment when he or she works.

Example of Blind Work ExpenseKelly, who has statutory blindness, works at a local radio station. She works 15 hours per week at a rate of pay of $10 per hour. She usually earns grosswages of $600 per month, but between taxes and the cost of the RIDE van,she has BWE of $250 per month.$600.00 (gross monthly wages) - 85.00 (general and earned income exclusion) $515.00 250.00 (Blind work expenses) $265 DIVIDED BY 2 = $132.50 COUNTABLE EARNED INCOME

Only $132.50 will be deducted from Kelly’s SSI payment!

How Do BWE Affect SSI?

If you need funds to reach a specific work goal,you may apply for a Plan for Achieving Self Support (PASS). You must outline the steps youplan to take and the items and services you expect to need. If your plan is approved, SSA may allow you to set aside funds (such as unearned income, countable earnings, or resources) to help you achieve your goal. Since these funds will not be counted, a PASS may allow you to become eligible for SSI and Medicaid or it may increase the amountof your SSI payment.

What if I Need Funds to Reach My Work Goal?

Example of Blind Work Expense

You simply contact your local Social Security Office. Generally, your SSI payment will return to the higher amount. You will be asked to supply a letter from your employer stating the date that your job ended.

What if I Lose My Job or Decide to Stop Working?


In RI, your Medicaid will automatically continue while you receive an SSI payment, even one as small as $1.00 per month! If your wages cause your SSI payment to stop completely, you willprobably be able to keep your Medicaid becauseof a special work incentive known as 1619(b).(See details on page from Social Security Publication #64-030 included in your packet.)1619(b) allows earnings of at least $34,452 in RI in2014.

What will happen to my Medicaid if I Work?


You may still be able to keep your Medicaid because of a special Medicaid buy-in program for people with disabilities who work.This program, which is also known as the Sherlock Plan, allows you to have countable earnings of 250% of the Federal Poverty Leveland resources of $10,000 for an individual or$20,000 for a couple.

What if I Earn Over the 1619(b) limit?


Most beneficiaries are entitled to 9 Trial Work Months. You get your full SSDI or CDB paymentduring your Trial Work Period, regardless of how much you may earn!In 2014, you must earn at least $770 (gross) in a month before the month will be counted a Trial Work months. Months when you earn lessthan $770 have no impact on your benefits.

How Do Earnings Affect CDB and SSDI?


No, Trial Work months are not required to be consecutive months. Your Trial Work Period ends when you use 9 months which qualify as Trial Work Months within a rolling 60 monthPeriod.

Must Trial Work Months Be Consecutive Months?

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• It depends on whether or not you are working at a level that Social Security calls the Substantial Gainful Activity (SGA) level. Each year, Social Security uses earnings guidelines when they are deciding whether or not your earnings show Substantial Gainful Activity. In 2014, the SGA guideline is $1,070 in gross monthly earnings.

What Happens After the Trial Work Period?

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• If your earnings are below the SGA guideline, your SSDI or CDB benefits generally continue until you do work at SGA level, provided that Social Security continues to find that you are medically disabled.

What happens if my earnings are below this guideline?

ineSocial Security must decide if your work is truly Substantial Gainful Activity. They may use certain rules called work incentives to help them make this decision. They may average your monthly earnings, look at how long you were able to work at SGA level, deduct your Impairment Related Work Expenses, or try to determine the true value of your work by considering subsidies and special conditions. (See information sheets in packet for details.)If they decide that your work is SGA, you will receive payments for 3 more months. The first month is known as your cessation month and the following two months are known as your grace period. After this, your SSDI payments will be suspended.

What happens if my earnings are above the SGA guideline?

ineingWhat Happens if I Must Stop Working

or if my Wages Fall Below SGA?

ineIf you must stop working because of the same or a related disability, you may ask Social Security to restart your benefits without having to file a new application. You must make this request within 5 years of the month in which your CDB or SSDI benefits were terminated. Social Security will pay you provisional benefits for up to six months whilethey make their decision.

This process is known as Expedited Reinstatement of Benefits.

After this five year period, you may always file a new application for benefits if needed.

What if I must stop working after this36-month period?

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Your Medicare will continue while your SSDI or CDB payments continue.Even if your SSDI or CDB payments stop because you work at SGA level, your premium-freeMedicare Part A (Hospital Insurance) benefitswill continue for at least 93 months after yourTrial Work Period if you remain medically disabled. You may purchase Medicare Parts B and D at the same price paid by non-working people with disabilites.

What will happen to my Medicare if I work?

ineYou must keep your local Social Security office informed of your work activity and earnings. This is most easily done by calling or by sending them copies of your pay stubs and your Impairment Related Work Expense or Blind Work Expense receipts. You may also choose to visit your local office with this information.

Failure to do so may result in overpayment.

If you receive SSI benefits, you should also tell Social Security about changes in your living arrangements, marital status, student status, etc.

What are my Responsibilities to SSA When I Work?

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The Ticket to work program is a work incentive which allows you to choose where you would like to receive the vocational services you may need to work. You may choose to work with an agency called an Employment Network (EN) or with the state Vocational Rehabilitation Agency. (This is the office of Rehabilitation Services or ORS in Rhode Island.)The goal of the Ticket to Work Program is to help you obtain the skills thatyou need to work toward financial self sufficiency to the greatest extent possible.Once you decide where you would like to use your Ticket to Work,you sign an Individualized Employment Plan. When you work with an EN,your Ticket to Work is said to be assigned to the agency. When you workwith the state agency, your Ticket is in a special “in use SVR” status.(Note that you do not need an actual paper “ticket” to participate!)

What is the Ticket to Work Program?

ineIn addition to the vocational services you will receive,another advantage is that Social Security may not do a medical continuing disability review while your Ticket is in use if you meet certain work and/or educational guidelines during each 12-month period while your Ticket is in use. (See “Timely Progress Guidelines” information sheet in your packet.)This may allow you to take full advantage of the work incentives described earlier, such as 1619(b), the Extended Medicare provision, the Trial Work Period, etc.

Note that if you are unhappy with the agency you have chosen, you may unassign your Ticket and give it to another EN if one is willing toaccept it.

When you use you Ticket with the state Vocational RehabilitationAgency, it will have value after your case is closed. You may then useIt to request follow-up services from an EN if needed.

What is the benefit of using my Ticket to Work?

In addition to more $$$ working may result in:•New friendships!•New skills and challenges!•A reduction in boredom!•Greater self-esteem ,• A sense of accomplishment, and •More happiness and satisfaction with life!

What are Some of the Benefits of Working?

Documents

Transition Students and Disability Benefits: