How Work Impacts Multiple Benefits:
A Quick Overview for WIA Partners
By Marsha Katz, Organizational Consultant at The Rural Institute
While not a guarantee, many people with disabilities receive, or could be eligible for, Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI). Both benefits are administered by the Social Security Administration. Each includes monthly payments based on disability (typically at poverty level or below), and health insurance (Medicare with SSDI, and Medicaid with SSI). When SSI/SSDI recipients contemplate or engage in work, there are often well-founded concerns about the impact of work on their benefits, particularly the risk of losing Medicaid and/or Medicare. Along with routine health care, Medicaid pays for mental health and developmental disability services, prescriptions, glasses, and personal assistance services. For persons who depend on any of these services, preserving Medicaid is an essential component of a successful work plan.
When recipients of SSDI consistently earn over a particular amount per month, (Substantial Gainful Activity, or SGA), they face loss of their benefits altogether. The loss is compounded if a spouse and/or children are also receiving benefits on the worker’s record. Unless earnings from work can replace both the lost benefit amount and the attached health benefits, working does not improve a person’s situation, no matter how much the person wants to work.
The Workforce Investment Act (WIA) was passed in 1998, guaranteeing equal access to employment services for everyone, including people with disabilities. This change means that Workforce Investment Act partners may be serving people with disabilities for the first time in their careers. The more that employment providers, networks, and WIA partners learn about the potential impact of earnings on benefits, the more effectively they can partner with workers with disabilities. Together they can employ strategies that will achieve successful employment outcomes without resulting in workers losing more than they gain by working.
While there are some real pitfalls that can accompany work for SSI and SSDI recipients, there are also some great bonuses. For instance, by using an SSI work incentive called a Plan for Achieving Self Support (PASS plan), a worker with a disability can create an “extra pot of money” to blend with Workforce Investment and Vocational Rehabilitation funds in order to achieve a vocational goal.
Other Work Incentives
Workers on SSDI can protect their benefits by using other work related provisions called “subsidy,” “Impairment Related Work Expenses,” and “Blind Work Expenses,” even when they earn over the SGA amount. SSDI recipients can also use a PASS.
Subsidies apply to SSDI beneficiaries and in limited circumstance also to SSI recipients. The dollar amount of subsidies is subtracted from gross monthly earnings of the person. If the amount of subsidy is large enough, it will reduce countable earnings below SGA. For SSI, subsidies only apply at application if there are wages being evaluated for SGA. For SSDI recipients, however, subsides apply anytime SGA is a consideration.
Subsidies exist when employers pay workers with disabilities more in wages than the reasonable value of the actual services performed, therefore subsidizing them. To qualify, the person must produce less when compared to the typical worker (employer will document this on the SSA Work Activity Questionnaire, provided by the local SSA office), need extra support or supervision, have fewer or easier duties, more rest periods, special equipment or transportation, fewer hours, irregular hours, or frequent absences, etc.
Impairment Related Work Expenses (IRWEs) enable SSI recipients to recover some of their work expenses incurred as a result of their disability, and they allow SSDI beneficiaries to reduce earnings counted toward SGA. They are much easier to apply for than PASS plans.
Blind Work Expenses (BWE) are only available to persons who receive benefits based on being blind. An allowable BWE is any work-related expense incurred by the person, and includes those expenses that would be considered impairment related work expenses for persons with other disabilities.
Income and Resources
Following are lists (not all inclusive) of common sources of income and resources that persons with disabilities may receive and/or own. Some of these may impact eligibility for SSI/SSDI benefits, and others may be affected when the person on SSI/SSDI begins to work and have earnings. Some of these sources of income and resources are countable, some are excluded, or not countable. Some are countable in certain situations, for only certain benefits, or in certain amounts.
Because the rules are many and varied, they cannot all be reprinted here. However, when assisting persons with disabilities to enter or return to the workforce, it is wise for WIA partners, Employment Specialists, and benefits analysts to go through the following lists with them. If they answer yes to any items, you and they can contact Social Security, and other benefit offices, to get more information about the effect on benefit eligibility, and the effect of earnings on benefits.
Work/Benefits Analysis: Sources of Income and Resources to Consider
Unearned Income
SSDI-Social Security Disability
VA (Veterans) Benefits: Retirment, Agent Orange, Disability, Disabled
Children
Railroad Retirement Benefits
Black Lung Benefits
Section 8/HUD Subsidy
TANF Benefits
Food Stamps/WIC Coupons, milk, free lunch programs and breakfast
programs
Unemployment Benefits
Workers’ Comp Benefits
Child Support
IIM (Individual Indian Money)
Interest and/or Dividends
Lease/Rental Income
Alimony
Adoption Subsidies
Food/Shelter in lieu of wages (e.g. Religious Orders, Military)
Personal Assistance Payments
Scholarships, Fellowships, Grants
Long Term Disability Payments
Cash/In-kind Support from others
Civil Service Retirement
Military Retirement
Military Disability Retirement
Military Allotment
Free Housing on Military Base
Pension/Retirement Payments
Legal Settlement
Periodic Trust Income
Medicare Waiver
Americorp
State General Assistance, Energy Assistance, Home Energy Assistance
Tax Refunds
Foster Grandparent Payments, RSVP Payments, Meals for Older Americans,
Senior Companion
School Loans
Inheritance, Lottery, Gambling Winnings
BIA Payments to Students, Assistance, Foster Care Funds
Earned Income
Wages
Net Income from Self-Employment
Food/Shelter in lieu of wages
Indian PerCapita Payments (Casino)
Work Study
Honoraria
Royalties
Bonuses
Resources
U.S. Savings Bonds
IIM Accounts
Safe Deposit Box Contents
Bank Accounts
Insurance Policies
Retirement/Pension Plan
IDA-Individual Development Accounts
Non-home Real Property
Coin/Stamp Collections
PASS plan Accounts
Trusts
Bonds or Stocks
Home
Valuable Antiques
Vehicles-cars, trucks, boats, snowmobiles
Art Collection
Livestock
IRA, 401K
Property Essential for Self Support
Funeral/Burial Agreement
Cremation Agreement
Cemetery Plot
Head/Foot Stones, Markers
Contact Information
Marsha
Katz, Organizational Consultant
(406) 243-2821
adaptmt@aol.com
The Rural Institute
52 Corbin Hall
The University of Montana
Missoula, MT 59812