Debra is a student at Washington High School who is mentally retarded with a full scale IQ of 55. Debra has participated in a variety of community-based activities since she entered the ninth grade at age 15. Ms. Morgan, the transition specialist at Washington High School, discussed the SSI program with Debra’s parents at the first IEP/transition planning meeting. At the time the parents’ monthly income was too high for Debra to qualify for SSI benefits. Debra’s transition plan did include, however, that she would apply for SSI benefits when she turned 18. At this point, her parents’ monthly income would no longer be a consideration.
Debra applied for and began to receive SSI benefits when she was 18. Debra, now 19, is entering her last year of high school as she will meet her IEP requirements this school year. During the last IEP/transition meeting Debra expressed her interest in working in food services after graduating from high school. Her last vocational placement was a non-paid training experience at a local restaurant. Debra, her parents, and members of the team wanted Debra to have the opportunity to work longer hours in a paid employment situation. Debra’s plan reflected this goal.
The school’s job developer found a position for Debra at Ferguson’s restaurant. Debra could initially work 15 hours per week with the possibility of expanding to 20 hours per week. She would be paid minimum wage. Debra was excited about the possibility of working and being paid while taking the remainder of the classes she needed to graduate. She would take classes in the morning and work the lunch-dinner preparation shift at Ferguson’s. The school would provide transportation to the restaurant and Debra would ride home with her father who worked nearby.
Debra’s parents wanted Debra to work, but asked if she would lose her SSI benefits if she were paid. Ms. Morgan was aware that there was a general income exclusion that would apply to Debra’s wages. She thought there also was some type of income exclusion because Debra was still a full-time student. She suggested that Debra and her parents contact the local SSA office. The SSA office confirmed that Debra would qualify for a Student Earned Income Exclusion and explained the details, including the reports and documentation that were to be filed. Debra was able to begin work at Ferguson’s without losing SSI eligibility and actually increased her monthly income by $315. (see table below)
Effect on Debra's Monthly Income: |
|
|---|---|
| $315.00 | Debra's gross earnings working 15 hours each week at Ferguson's Restaurant |
| -315.00 | Debra's SEIE |
| 0.00 | SSI countable earned income |
| $494.00 | Debra's SSI monthly benefit |
| -0.00 | SSI countable income |
| +315.00 | Debra's gross monthly earnings |
| $809.00 | Debra's gross income |
The transition team included in Debra’s IEP/transition plan that Debra would be responsible for keeping all her pay stubs and reporting her income to the SSA office as required. The plan also established a procedure for Debra and her teacher to review Debra’s earnings on a quarterly basis to estimate when or if Debra might reach the $1620 SEIE limit. As part of her plan, Debra, her parents, and school staff were to review Debra’s options, including the use of other work incentives when she was no longer a student and could not apply the SEIE.