Question 8

Question: An individual wants to work and utilize a PASS plan. However, he received Food Stamps and is concerned that if he starts to work, he’ll lose his Food Stamp benefits. Is there a way for him to work, have a PASS plan, and continue to qualify for Food Stamps?

Answer: Some people are reluctant to work at all when they realize that their SSI may go down, and their Food Stamps may go down, and their HUD subsidized rent could go up. What they often don't realize is that they nearly always end up ahead by working, and that their earnings more than make up for any reduction in any of their benefits. It's always helpful to work out a "what if" math scenario on paper so people can see how they are ahead financially by working.

If someone on SSI starts working, SSI will count less than half their earnings, and HUD/Section 8 will count only 30% of the income increase. While Food Stamps may be drastically reduced or even lost altogether, when you add it all up, people are almost always better off financially when they work.

And actually, when you layer in a PASS, things can get even better. The reason is because you usually exclude (set aside) all your countable income in a PASS...that's what actually "funds" the PASS, and pays for all the goods and services you want to purchase as part of your PASS. When you set aside all your "countable income" in a PASS, it doesn't get counted by SSI or Section 8 or Food Stamps, and you end up even more ahead financially.

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