Transcript High School 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 program
If 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 wages
when 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!
What is the Student Earned Income
ine
Exclusion?
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 they
work. 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!
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)
and
EARNED 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
- 357.50
$363.50
(Federal SSI rate before working in 2014)
Countable Earned Income:
(Adjusted Federal SSI Payment)
Jose’s income is now $800 (wages)+ $363.50 (Federal SSI) + $39.92 (SSI state
Supplement) = $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 A
Person 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
How Do
BWE Work
AffectExpense
SSI?
Kelly, 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 gross
wages 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!
What if I Need Funds to Reach My
Work Goal?
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 you
plan 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 amount
of your SSI payment.
What if I Lose My Job or Decide to
Example of
Blind
Work
Expense
Stop Working?
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 will happen to my Medicaid if I
Example of Blind
Work
Expense
Work?
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 will
probably be able to keep your Medicaid because
of 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 in
2014.
Example
of Over
Blindthe
Work
Expense
What
if I Earn
1619(b)
limit?
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 Level
and resources of $10,000 for an individual or
$20,000 for a couple.
Example
of Blind
Work
How
Do Earnings
Affect
CDBExpense
and SSDI?
Most beneficiaries are entitled to 9 Trial Work
Months. You get your full SSDI or CDB payment
during 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 less
than $770 have no impact on your benefits.
Must Trial Work Months Be
Example
of Blind Work
Expense
Consecutive
Months?
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 month
Period.
What Happens After the Trial Work
ine
Period?
• 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 if my earnings are
below thisine
guideline?
• 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
ine guideline?
above the SGA
Social 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 I Must Stop Working
ineing
or if my Wages
Fall Below SGA?
The consecutive 36 month period which
immediately follows your Trial Work Period is
known as your Extended Period of Eligibility
(EPE).
During this period, Social Security can easily
restart your benefits if you stop working or if
your wages fall below SGA. This provides you
with a safety net so that you do not have to be
afraid to try working!
What if I must stop working after this
ineperiod?
36-month
If 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 while
they 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 will happen to my Medicare if I
ine
work?
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-free
Medicare Part A (Hospital Insurance) benefits
will continue for at least 93 months after your
Trial 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 are my Responsibilities to SSA
ine
When I Work?
You 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 is the Ticketine
to Work Program?
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 that
you 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 work
with 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 benefit of using my Ticket
ine
to Work?
In 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 to
accept it.
When you use you Ticket with the state Vocational Rehabilitation
Agency, it will have value after your case is closed. You may then use
It to request follow-up services from an EN if needed.
What are Some of the Benefits of
Working?
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!