Counsel's Corner

Returning to Work While on Social Security

By Steven Bruce, Esq.[1]

Persons with disability benefits have understandably been afraid of losing their benefits and their Medicare and/or Medicaid[2] coverage if they made good faith attempts to work. The Social Security Administration has revised its disability work incentive programs to make it possible for disabled beneficiaries to work under certain conditions but still retain some of their benefits, as well as their Medicare or Medicaid coverage.

However, Social Security's disability work incentive programs can be confusing, overwhelming, and difficult to grasp. This article explains these programs in a way that we hope will allay some of the concerns you might have about losing your benefits if you attempt to work.

There are two different programs available, depending on whether you are receiving Supplemental Security Income (SSI) or Social Security Disability Income (SSDI). SSI is a federal supplemental income program that helps persons who are poor and disabled by providing monthly cash payments to meet basic needs for food, clothing and shelter, whether or not you have worked in the past.

On SSI, you can keep $1 for each $2 you earn. This is known as the "2 for 1 rule."

If you are receiving SSI, you may be able to use the program called Plan to Achieve Self Support, or PASS. A PASS lets you set aside money and/or things you own to pay for items or services needed to achieve a specific work goal. PASS applicants find out what training, items, or services are required to reach a work goal. These can include school expenses, supplies to start a business, equipment and tools, transportation, and uniforms. An application detailing expenses and a timeline in achieving the specific work goal is submitted to Social Security for approval. After Social Security approves your PASS plan, you can "shelter" income to pay these costs. PASS also lets you set aside money for installment payments as well as down payments on things like a wheelchair or a computer, if it is needed to reach your work goal.

SSDI is an insurance program for people who have worked in recent years (five out of the last ten years, in most cases) but are now disabled. As an SSDI beneficiary, you qualify for the Trial Work Period (TWP) program. Under this work incentive program, you may test your ability to return to work and still be considered disabled. During the TWP, you will receive your full disability benefits regardless of how much you earn, as long as your work activity has been reported and you continue to have a disabling impairment. Social Security does not consider services performed during the TWP as indicating that the disability has ended until services have been performed for at least nine months during a 60-month (5-year) period and you continue to have a disabling impairment. The nine months do not have to be consecutive. For the 36 months following the TWP, the individual will be entitled to restart their benefits without having to file a new application. This is called an extended period of eligibility (EPE).

The Ticket to Work and Work Incentives Improvement Act of 1999 ("Ticket to Work") provides access to employment training and placement services for people with disabilities and improves access to healthcare coverage available under Medicare and Medicaid. The Act was meant to make it possible for one to choose a job without risking the loss of healthcare. Indeed, two successful parts of the Ticket to Work amendments include extending Medicare benefits for an additional 4 3/4 years or 93 months after you complete a TWP. If you are terminated from the disability program, you can apply for "expedited reinstatement" of benefits, which is required to be processed within six months. Regrettably, Social Security's administration of the "Ticket to Work" program has otherwise largely been a failure.

People With Disabilities Foundation has produced a CD that explains the Social Security Disability Work Incentives Programs in a way that makes it easier for anyone receiving SSI and/or SSDI benefits to understand what is required. It can be purchased for $14.95 by contacting People With Disabilities Foundation at education@pwdf.org, or see our website at www.pwdf.org. SSA's The Red Book is a written manual of various work incentive rules. It is available at www.ssa.gov, any SSA office, or by calling 1-800-772-1213.

2 In many states, modifications to the Medicaid program are opted by the state. For instance, California's version of Medicaid is Medi-Cal.

PWDF Profile

Who We Are

People With Disabilities Foundation is an operating
501(c)(3) nonprofit organization based in San Francisco, California, which focuses on the rights of the mentally disabled.

Services

Advocacy: PWDF advocates for Social Security claimant's disability benefits in eight Bay Area counties. We also provide services in disability rights, on issues regarding returning to work, and in ADA consultations, including areas of employment, health care, and education, among others. There is representation before all levels of federal court and Administrative Law Judges. No one is declined due to their inability to pay, and we offer a sliding scale for attorney's fees.

Education/Public Awareness: To help eliminate the stigma against people with mental disabilities in society, PWDF's educational program organizes workshops and public seminars, provides guest speakers with backgrounds in mental health, and produces educational materials such as training videos with an audience of Human Resource managers and Vocational Rehabilitation counselors.

Continuing Education Provider: State Bar of California MCLE, California Board of Behavioral Sciences Continuing Education, and Commission of Rehabilitation Counselor Certification.