Social Security Work Incentives &

Transcription

1 Social Security Work Incentives & the Importance of Work Incentives Counseling presented March 2013 EMPLOYMENT RESOURCES, INC. Amber Kwiatkowski Jolene Wanek Employment Resources, Inc. Mary Ridgely Virginia Commonwealth University

2 In this training you will learn: Basic knowledge of SSA Work Incentives and the impact of work on benefits. Role of Work Incentives Benefits Counseling in helping people achieve employment and financial stability. Understanding of where to find work incentives counselors in your state. Brief talking points to use when talking to people about work and benefits. Individuals with disabilities have very limited income and assets Social Security Beneficiaries with Disabilities As of December 2012, 14 million individuals were receiving Social Security disability benefits. Of those: 7.8 million received Title II benefits only, 4.6 million received Supplemental Security Income (SSI) only, and 1.6 million received both SSI and Title II benefits. Employment Status of Social Security Beneficiaries Seven percent of Social Security beneficiaries are working at any given time. Only 0.2 percent of beneficiaries earn enough to leave the rolls. People with disabilities in high poverty compared to those without disabilities:

3 Myths that Prevent Financial Stability {Benefit myths do more than just prevent beneficiaries from making informed choices about work. Benefit myths keep people in poverty!} Beneficiaries are told: You need to keep all your benefits even if you work. You cannot make it without all your benefits. You will be worse off if you work too much. Work Incentive Counseling goals Obtain employment for the first time or return to work. Improve current employment situation. Access or maintain health care coverage. Beneficiaries want financial stability. Employment is key! 40% of SSI & SSDI beneficiaries report a desire to work. Barriers to financial stability Fear of losing needed benefits if earnings increase. Work incentives continue to be under utilized. A Work Incentives Counselor is key to supporting beneficiaries who want to work.

4 Social Security Basics { To help establish the lay of the land } Title II ( regular Social Security) monthly cash benefits based on FICA tax paid partial replacement of earnings lost due to retirement, death, or disability. Title II Benefits Social Security benefits are based on the lifetime FICA earnings of the worker. Retirement Survivor Auxiliary Disability - Social Security Disability Insurance (SSDI) Having a physical or mental condition that prevents a person from engaging in substantial work for 12 months or that is expected to end in death. Title XVI (Supplemental Security Income or SSI): cash payment at a set level to the elderly and people with disabilities who have limited income and resources low or no Title II benefit. Title XVI (SSI) Supplemental Security Income (SSI) provides a monthly cash payment to those who have limited income and resources and are also: Aged (65 and over), or Blind, or Disabled Some states provide a supplemental payment in addition to the federal one. Title II Disability (SSDI) Disability Insurance Benefits (DIB) Disabled Widow(er) Benefits (DWB) Childhood Disability Benefits (CDB) (also know as Disabled Adult Child s or DAC benefits)

5 Medicare Medicare is basic health coverage for retired people (over 65) and for disabled beneficiaries who have been entitled to SSDI for two years. Part A (inpatient services) Part B (doctor/outpatient services) Part C (managed care systems) Part D (prescription drugs) Medicaid Medicaid is a state and federal program providing comprehensive medical assistance for people with low income and resources. People get Medicaid automatically with SSI eligibility in some states. Other people with disabilities who do not receive SSI may also qualify in various ways. Work Incentives Programs that help people with disabilities to enter (or re-enter) the workforce by protecting their eligibility to SSDI, SSI, and health care coverage while trying to work. Temporary or partial exemptions from earning / asset restrictions that encourage people with disabilities to try working reductions in benefits are often partial and / or gradual.

6 Work Incentives - SSDI Trial Work Period (TWP): Opportunity to test a person s ability to work for nine months without losing benefits regardless of earnings. Month counted if gross earnings for month is over $750 (2013.) Substantial Gainful Activity (SGA): At the end of TWP, SSA conducts a review to determine if work is substantial earnings more than $1040 / month, $1,740 for blind (2013) If substantial, benefits are paid for three more months following the last month of the TWP and then stop. Extended Period of Eligibility (EPE): 36 month period beginning at end of TWP cash benefits reinstated for any month beneficiary does not earn above SGA. Expedited Reinstatement (EXR): 60 month period after termination of benefits due to SGA in which benefits can be reinstated: Impairment must be found to be the same 6 months of provisional benefits available while disability decision are being made Certain work incentives reduce work earnings that are counted toward SGA: Subsidy and Special Conditions: Support on the job resulting in more pay than value of work value of the assistance deducted from gross wages to determine countable income for SGA purposes. Impairment Related Work Expenses (IRWE): The cost of items / services deducted from income if they are needed to work, related to disability, and paid for by the recipient.

7 Work Incentives: SSI Earned Income Exclusion: $65 ($85 if there is no unearned income) plus half of the remainder excluded per month of earned income: Calculating Countable Income Calculating Federal Payment $185 Earned Income $710 Federal Benefits Rate - 85 Disregard - 50 Countable Income $100 $660 Federal Payment / 2 $50 Countable Income 1619(b): Medicaid coverage continues if work earnings prevents cash payment. Impairment Related Work Expenses (IRWE): Cost of items/services deducted from earned income if needed to work, related to disability, and paid for by the recipient. Plan to Achieve Self Support (PASS): Recipient can set aside money (e.g., work income) for a specific work goal and none of it will count in computing the monthly payment amount or as a resource. Overlooked work incentives Student Earned Income Exclusion SA needs to know the recipient is a student Subsidy and Special Condition SSA must be made aware of employer support or job coaching Other Federal Benefits & Programs Examples of Non-Social Security work incentives that support financial stability: Medicaid Buy-In allows access to low cost health care Earned Income Tax Credit (and other tax credits) increases income HUD s Earned Income Disregard increases income Individual Development Accounts increase savings

8 Where to find Work Incentives Counseling Services State VR agency may be purchasing Work Incentive Benefit Counseling services Medicaid funds waiver participants Ticket to Work Employment Networks (EN) Independent Living Centers Community Service Providers Types of Work Incentives Counseling Intensive, individualized benefits analysis and work incentives planning Less intensive, but still individualized benefits assistance Accurate information Work Incentives Benefits Counselors Providing Information on Work Incentives How SSI Work Incentives Support Financial Stability: SEIE, IRWE, BWE, & PASS can all increase income PESS and PASS can allow increased savings 1619b allows ongoing access to low cost health care and provides a great safety net How Title II Work Incentives Support Financial Stability: TWP, Grace Period, IRWE and Subsidy can allow increased income EPE provides a great safety net Extended Period of Medicare allows ongoing access to health care Work Incentives Counselors Support Financial Stability through Employment by: 1. Busting benefit myths preventing a beneficiary from establishing a goal of financial stability. 2. Changing the focus from benefit limits to financial stability by asking about the beneficiary s financial budget and goal(s). 3. Providing information about work incentives that can support beneficiaries in achieving financial goals.

9 Strategies to Address Myths Be armed with several positive encouraging phrases to use when myths arise. Special work rules allow you to work, have more money, and maintain the benefits you need. The benefit programs are complicated, but there are professionals trained to help you use the work incentives. Messaging is Critical! Positive messages: Work is a possibility Earnings and benefits are not mutually exclusive It is possible to work and come out financially ahead even if benefits are reduced or terminated Work Incentives and other tools, such as IDAs, make it possible to access services and supports needed to be successful at work Talking Points 1. Keep all documentation. 2. Medicaid can continue if cash benefits stop. 3. Blind Work Expenses allow SSI recipients to earn at high levels and maintain cash benefits. 4. A PASS allows for purchase of services and items needed to reach an employment goal. 5. Title II beneficiaries can use work incentives to maintain cash benefits. 6. Medicare coverage will continue for at least seven years. 7. Reinstatement of benefits is possible if work stops after termination. See handout on Talking Points! Benefits & Work VCU National Training Center Provides Access to the National Training Curriculum Work Incentive Counseling Training and Certification Individual Level Technical Assistance Organizational Level Technical Assistance Provides Access to Supplement Training Archived Training and Resource Materials

10 Thanks for Attending EMPLOYMENT RESOURCES, INC. Amber Kwiatkowski Jolene Wanek Employment Resources, Inc. Mary Ridgely Virginia Commonwealth University