Everyone can be great, Because Everyone can serve. Dr. Martin Luther King, Jr.

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1 Everyone can be great, Because Everyone can serve. Dr. Martin Luther King, Jr. What YOU Should Know About Public Assistance Programs and AmeriCorps Benefits What is AmeriCorps? AmeriCorps is commonly referred to as the domestic Peace Corps. Each year, more than 75,000 individuals enroll in AmeriCorps through local, state, and national agencies to address our country s critical needs in education, economic opportunity, health, disaster, veterans and the environment. People who enroll in AmeriCorps commit to a term of volunteer service (anywhere from a summer to one year) in communities across the United States including here in Iowa. The skills members learn and hone in AmeriCorps can put them on a competitive pathway to employment. AmeriCorps members can choose to serve in any of the three branches of AmeriCorps: AmeriCorps State and National AmeriCorps VISTA (Volunteers in Service to America) AmeriCorps NCCC (National Civilian Community Corps)

2 What do AmeriCorps Members Do? AmeriCorps members serve in a variety of ways that might include teaching and mentoring youth, protecting the environment or developing new programs for non-profits. Individuals may serve full-time or part-time. Across Iowa, hundreds of positions are available throughout the year that suit almost any ability and interest. Who Can Join AmeriCorps? In general, AmeriCorps members must be 17 years or older, have a high school level education and be a U.S. citizen, national or lawful permanent resident. People of all abilities and backgrounds are encouraged to apply. AmeriCorps is committed to the inclusion of qualified individuals without regard for race, color, national origin, disability, gender, sexual orientation, religion, political affiliation or other non-merit factors. AmeriCorps Program Managers receive training in how to provide inclusive service environments and reasonable accommodations to members with disabilities. A fund exists to acquire reasonable accommodations if needed. Benefits of Serving in AmeriCorps When AmeriCorps members successfully complete their term of service, they receive a Segal AmeriCorps Education Award to pay for higher education or to pay back qualified student loans. The maximum amount of the education award changes each year and is equal to the maximum Pell Grant. Most AmeriCorps members receive a modest living allowance during their term of service, and may be eligible for additional benefits, such as health care and child care assistance. Members also receive training specific to their service assignment, career connections, professional development opportunities, and the chance to make a real difference in people s lives. AmeriCorps is an awesome adventure and a way to gain the experience of a lifetime. "Being an AmeriCorps member has made me more aware of the needs of people in my community. AmeriCorps has prepared me for a career where I can serve people in direct specific need. I am glad to have served " AmeriCorps Member

3 SSI and SSDI Benefits- The HEART Act On June 17 th, 2008, President Bush signed into law H.R. 6081, the Heroes Earnings Assistance and Relief Act of 2008 ( the HEART Act ), making AmeriCorps more accessible to people with disabilities. SSI Supplemental Security Income (SSI) is a federal program that provides a monthly cash benefit to low-income individuals who are aged, blind, or who have a disability. In the past, receiving an AmeriCorps living allowance could disqualify an individual from eligibility. The new law directs the Social Security Administration to ignore an individual s receipt of AmeriCorps benefits for purposes of SSI eligibility. The AmeriCorps living allowance, health insurance, and child care subsidy are NOT counted as earned income for SSI. However, individuals should still report their AmeriCorps earnings to the Social Security Administration, even though it will not cause the SSI payment to decrease. SSDI Social Security Disability Insurance (SSDI) is a federal program that provides money to individuals with disabilities based on their payments into the insurance program. There are separate laws and regulations for SSI and SSDI eligibility and the HEART Act moved through Congress to quickly include SSDI. The AmeriCorps living allowance is counted as earned income for SSDI. However, most people find that the amount of the AmeriCorps living allowance does not have a substantial negative impact on their SSDI benefit. Our client referrals to AmeriCorps have helped to diversify the service culture and enhance the members skills and abilities through these valuable experiences. Iowa Rehabilitation Professional

4 Health Benefits AmeriCorps Health Plan AmeriCorps members who serve a full time term or a part-time term in a full-time capacity may be eligible for a health care plan through their AmeriCorps program. The health care providers and plans vary between AmeriCorps programs, so prospective members should be sure to ask about health plan details before enrolling. If a member already has a health insurance provider, they may waive the AmeriCorps provided health plan and keep their current provider. Medicaid The Medicaid program pays for a variety of medically necessary medical and health care procedures for certain groups of low income people. How AmeriCorps VISTA payments are counted for Medicaid: The living allowance payments for AmeriCorps VISTA members are exempt as income and a resource, as long as the Director of the Corporation for National and Community Service determines that the value of such payments is less than minimum wage. How AmeriCorps State/National and NCCC are counted for Medicaid: Living allowances (stipends) are counted as earned income. Normal earned income deductions and diversions are allowed. Child care allowances are exempt as income. Educational awards are exempt as income and a resource. Health insurance, reasonable accommodations, supplies and services made available to participants with disabilities are exempt as income and a resource. SSI-related Medicaid (people 65 years or older and people with disabilities): Stipends or living allowance payments are considered wages. Normal earned income deductions and diversions are allowed. Educational awards or payments made as an alternative to educational awards are wages. Clothing allowance payments are unearned income. Any food or shelter received by the participant is unearned income in the form of in-kind support and maintenance.

5 Food Assistance The Food Assistance Program is Iowa s program under the federal Supplemental Nutrition Assistance Program (formally known as Food Stamps). Benefits are issued on an Electronic Benefit Transfer (EBT) card. The EBT card can be used at many locations such as grocery stores, convenience stores, some farmer s markets and supercenters like Wal- Mart or Target. The AmeriCorps living allowance does not affect eligibility for Food Assistance. How AmeriCorps State/National payments are considered for Food Assistance: AmeriCorps payments are excluded as income for Food Assistance. How AmeriCorps VISTA payments are considered for Food Assistance: VISTA payments are excluded if the person was receiving food assistance or public assistance when the person joined VISTA. VISTA payments are counted as earned income if the person was NOT receiving Food Assistance or public assistance when joining VISTA. "Everyone has been great, and I'm feeling more comfortable every day it's a fantastic experience!" AmeriCorps Alumnus

6 AmeriCorps Childcare Benefits through First Financial Associates AmeriCorps members who were not State of Iowa Child Care Assistance (CCA) recipients immediately prior to becoming members must apply for the child care benefit provided through First Financial Associates and enroll in the program if eligible. Eligibility is determined based on age, family size, income and need for service. Households who are eligible for First Financial Associates child care benefits are not eligible for state CCA. Households who do not show proof of application for AmeriCorps childcare benefits through First Financial Associates are not eligible for state CCA. Most AmeriCorps members will only be eligible for AmeriCorps child care benefits through First Financial Associates, and not state CCA. However, First Financial Associates generally follows the same guidelines as the state CCA program for determining eligibility. Child care providers must also apply to First Financial Associates to be considered an eligible provider. State of Iowa Child Care Assistance (CCA) While serving in AmeriCorps, most members will not qualify for CCA. Both earned and unearned income is used to determine eligibility. Families may be responsible for a co-pay, or portion of the child care costs based on number of children and family gross income. Families applying for child care who are on FIP or because of a protective need do not have co-pays or have to meet income guidelines, but they must have a need for service. Need for Service AmeriCorps members meet need for service when they serve 28 or more hours per week (considered to be meeting an employment need) or; Participate in the PROMISE JOBS program and have AmeriCorps written into their Family Investment Agreement regardless of how many hours they serve (considered to meet the PROMISE JOBS activity need for service).

7 Family Investment Program (FIP) The FIP program provides temporary cash assistance to families with children. A family must meet financial and nonfinancial eligibility criteria to be eligible for FIP. Federal law limits how long a person can get FIP to a total of 60 months (five years), however there are some exceptions to this policy. FIP eligibility and benefits are determined based on the size of the family, the family s income and the family resources. Families must work with PROMISE JOBS to receive a FIP check. PROMISE JOBS is a work and training program that helps the family become self-sufficient (see next page). How AmeriCorps VISTA payments are counted for FIP: The living allowance payments for AmeriCorps VISTA members are exempt as income and a resource, as long as the Director of the Corporation for National and Community Service determines that the value of such payments is less than minimum wage. How AmeriCorps State/National and NCCC payments are counted for FIP: Living allowances are counted as earned income. Normal income deductions and diversions are allowed. Child care allowances are exempt as income. Educational awards are exempt as income and a resource. Health insurance, reasonable accommodations, supplies, and services made available to participants with disabilities are exempt as income and a resource. I was struggling to find employment, and the AmeriCorps position provided an outlet for a variety of my interests and abilities. I care greatly about serving others, so it seemed like a good fit. AmeriCorps Member

8 PROMISE JOBS, or Promoting Independence and Self Sufficiency through Employment, is Iowa s welfare reform program designed to assist Family Investment Program (FIP) recipients to become self sufficient. PROMISE JOBS is a participation requirement for most FIP recipients. Participants develop an individualized Family Investment Agreement (FIA) that outlines steps they will take to leave public assistance. Persons who fail to participate or comply with their FIA are considered to have chosen a Limited Benefit Plan (LBP), and lose their FIP benefits. How AmeriCorps service is considered for PROMISE JOBS: The actual hours of participation in an AmeriCorps program may qualify as PROMISE JOBS participation in one of the following categories: Employment if the living allowance is considered earned income for FIP purposes or; Unpaid community service if the living allowance is exempt as income and a resource for FIP purposes (for example, the AmeriCorps VISTA payments may be exempt if the Director of the Corporation for National and Community Service has determined that the value of such payments is less than minimum wage). In June 2008, Cedar Rapids was drowned in water, mud, muck and anguish. I have witnessed over the past three years, the power of human potential with countless volunteers who had one goal in mind and that was to help, serve and nurture. Volunteers young and old from all over the U.S.A. were all pitching in, using their muscles, heart and soul to take care of business in the heartland of Iowa." AmeriCorps*VISTA Member

9 Waiving the Living Allowance Although AmeriCorps rules allow members to waive their living allowance, people with disabilities should use caution in doing so. AmeriCorps provisions state: Even if a member waives his or her right to receive the living allowance, it is possible depending on the specific public assistance program rules that the amount of the living allowance the member is eligible to receive will be deemed available. Moreover, it may not be necessary to waive the living allowance if the person qualifies for certain work incentives that can be used to reduce the amount of income counted by public programs. If members choose to waive the living allowance, they may revoke the waiver at any time during their term of service and begin to receive the living allowance. Unemployment Insurance Unemployment insurance (UI) is a temporary benefit program for people who become unemployed through no fault of their own, while they seek new employment. AmeriCorps members, however, are not considered employees of their program or service site, so they would not be eligible for UI if their position was terminated. Income Taxes AmeriCorps members are taxed at the state and federal level for their member living allowances. Members must also pay federal income taxes on their Segal Education Award in the year(s) that the award is redeemed. However, the Segal Education Award is exempt from Iowa income taxes (according to Iowa Code (422)). Members should be sure their tax preparer understands all the tax implications for AmeriCorps benefits. Other Benefits Programs This literature is not intended to be an exhaustive list of how all local benefits programs may be impacted by service in AmeriCorps. It is possible that other benefits programs may vary in how they consider the AmeriCorps benefits when determining eligibility. For further inquiries, please contact your benefits provider or the Iowa Commission on Volunteer Service.

10 Iowa Commission on Volunteer Service The Iowa Commission on Volunteer Service (ICVS) and its partners promote and support volunteerism by assisting agencies in the development of quality programs that use service as a strategy to strengthen communities across the state. ICVS strives to engage Iowans in their communities by facilitating high-impact service opportunities. Iowa is proud of its commitment to inclusion and providing opportunity for all who seek to serve. The Iowa Commission on Volunteer Service recruits people of all abilities for national service program like AmeriCorps. The ICVS Inclusion Coordinator is available to provide training, technical assistance and referrals to support members who may need accommodations to equitably perform the duties of their service assignments. For more information, please visit Contact ICVS: 200 East Grand Avenue Des Moines, IA (Des Moines local ) Fax: icvs@iowa.gov