March 1995 • No. 2, Article 3
WORK INCENTIVES LET YOU TRY TO RETURN TO WORK
After a person is found entitled to Social Security disability insurance
(SSDI) or SSI benefits, one of the most frequently asked questions is "what
happens if I try to work?" The Social Security Administration has
several programs and rules collectively referred to as "work incentives."
They are intended to allow people to return to work without immediately
losing their disability payments. Some of these incentives apply
only to SSDI, others only to SSI and some to both programs. The work incentive
programs apply only to individuals who are working but are still medically
disabled. A person's benefits can be terminated any time his medical
condition improves so that he is no longer disabled.
SSDI Programs
Trial Work Period (TWP): Once eligibility for SSDI benefits
is established, the individual is entitled to a TWP. Any month a person
earns more than $200 counts as a trial work month. Recipients can
work a total of nine trial work months (which do not need to be consecutive)
in any 60 month period. The work will not affect the receipt of benefits
regardless of how much money the person makes in a month. However, after
the nine trial work months, if the person earns more than $500 in any month,
she will lose benefits for that month. As described below, earnings in
excess of $500 per month will lead to the termination of benefits after
the extended period of eligibility.
Extended Period of Eligibility (EPE): The EPE is a 36 month
period which begins the month after the TWP is used up (the month after
the ninth month a person has earned $200 or more from work.) If during
this 36 month period the individual earns less than $500 in a month, she
becomes automatically reentitled to disability benefits for that month
and all months thereafter for which monthly earnings continue to be less
than $500. Benefits will continue to be paid after 36 months as long
as earnings stay below $500. As soon as earnings rise above $500
after the 36 month EPE expires, no further benefit payments will be made,
even if earnings later drop below $500. The individual will have
to reapply for benefits if she later becomes unable to continue work.
SSI Programs
Plan for Achieving Self Support (PASS): A PASS allows an individual
to set aside income or resources to be used for achieving a return to work
goal. The advantage of a PASS is that income and resources that are
set aside are not counted in determining the individual's monthly SSI entitlement.
PASS plans are discussed in greater detail on page ___.
Section 1619: Normally, if an SSI recipient earns over
$500 a month, Social Security considers that individual to be working and
not disabled. However, if a person already receiving SSI returns
to work and earns over $500 a month, she will be given Section 1619 status
and benefits will continue. The monthly benefit amount will decrease proportionately
to the amount earned. The first $65 earned will not affect the monthly
SSI entitlement. Any additional earnings reduce the monthly SSI entitlement
by 50% of the amount earned in excess of $65.
For example, if a person earns $665 in a month, benefits will continue,
but will be reduced. The reduction will be 50% of the earnings in
excess of $65 which is $300. If the earnings are high enough that
the offset is greater than the SSI monthly entitlement, benefits will stop
although in some circumstances the individual may continue to receive MediCal.
Summary
Other work incentive programs not discussed above may apply to some individuals.
The details of each program are complex and the outlines above cover only
the most general points. The disability beneficiary should be aware
of the consequences of attempting to work before doing so. More information
about work incentive programs can be obtained from your local Social Security
office or The Hawkins Center.
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The Hawkins Center
A Non-Profit Agency Providing Legal and Support Services
to People with Disabilities
101 Broadway, Suite 1, Richmond, CA 94804, Phone: (510)232-6611,
Fax: (510)232-2271
email: info@hawkinscenter.org
This page was last updated 3/4/99
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