Meeting the Needs of Youth with Disabilities

Handbook on Supplemental Security Income
Work Incentives and Transition Students

published: October 1998

Jointly developed by:
The Study Group, Inc.
SSI Work Incentives and Transitioning Youth Project
National Transition Network

About this Document

SSI Program Work Incentives

SSI work incentives are exactly that -- additional incentives that allow students with disabilities to increase their income while maintaining needed SSI cash assistance benefits. SSI work incentives allow students to participate in paid work situations and maintain their SSI benefits while they are in school. As a planning tool, work incentives provide students, parents, school personnel, and other IEP/transition team members with potential resources for additional post-secondary training and other forms of support when a student exits school. SSI program work incentives protect SSI benefits for students while they participate in paid employment.

Accessing SSI work incentives during the transition process expands current and future opportunities for many students with disabilities. Students with disabilities can:

• Engage in paid employment.
• Increase their income without decreasing their SSI benefits or eligibility for other benefits such as Medicaid (in most states).
• Offset expenses incurred as a result of their work.
• Save for further post-secondary education and training or to start their own business.

The transition planning process must include establishing the student’s eligibility for SSI benefits and providing the student with real work experience during the transition periodv -- ages 14 (or younger, if appropriate) - 21. For a student with a disability to benefit from SSI work incentives, the student must be (1) receiving or eligible for SSI cash assistance benefits, and (2) engaged in work experiences as part of their transition program.

SSI work incentives available to transition-age students include: Earned Income Exclusion, Student Earned Income Exclusion (SEIE), Impairment-Related Work expenses (IRWE), Plan for Achieving Self-Support (PASS), Blind Work Expense (BWE), and Property Essential to Self-Support (PESS). Each of the SSI work incentives is an income or resource exclusion that combines to assist individuals with disabilities in maintaining necessary SSI benefits until they are self-sufficient. These incentives can be particularly helpful in designing community-based, paid employment transition programs for students without decreasing the cash assistance benefits provided by the SSI program.

Earned Income Credit

The Earned Income Exclusion applies to all SSI program recipients, including any student earning wages from a school-sponsored employment program or other employment. Under this exclusion, some earnings each month are not counted toward the specified SSI income limit ($500). For many students with disabilities, the Earned Income Exclusion alone will ensure that most or all SSI benefits are maintained while the student participates in school-sponsored paid employment or other paid work situations.

There are three parts to this exclusion. The first is a general exclusion of $20 of monthly income from any source. The second part is an additional $65 earned monthly income exclusion. The third part is the exclusion of one-half of all earnings above the combined $20 + $65 ($85) monthly as well. That is, for every two dollars earned, one dollar is deducted from SSI’s payment (see Example 1).

If, for example, an individual is receiving the maximum SSI benefit rate of $494 each month, the individual’s monthly earnings from paid employment would have to exceed $1073 before the SSI benefit would cease and the individual would exit the SSI program --   if no other work incentives apply. This maximum income level would increase if the individual accessed any of the other SSI program work incentives. In addition to the Earned Income Exclusion, transition students receiving SSI benefits may be eligible for and profit from the following work incentives.

Student Earned Income Exclusion (SEIE)

Student Earned Income Exclusion (SEIE) allows a person with a disability under age 22 and regularly attending school to exclude up to $400 of earned income per month before applying the Earned Income Exclusion (above). The two exclusions may be used in combination. The maximum annual exclusion is $1620.

For example, a full-time college student with a disability receiving SSI benefits of $494 monthly has the opportunity to earn $500 per month while in school. These earnings may be excluded under SEIE up to the $1,620 yearly maximum. In addition, the student excludes another $85 ($20 general exclusion; $65 earned income exclusion) of monthly earnings, leaving him or her with a countable income of $15.00. Please note that SEIE must be applied before the general and earned income exclusions. SEIE can be used either with or without the earned income exclusion. The student’s gross income using SEIE is $479 (SSI) and $500 in earnings, for a total of $979.00. (See Example 2 for a calculation using both exclusions; Example 3, provides calculation using only the SEIE).

Students must apply for a SEIE at their local SSA office. The student must submit a statement of school attendance, a statement of employment, and wage receipts periodically. Local SSA office procedures differ slightly as to how often these statements are required. Students should contact their local SSA office for complete details. For the location of your local Social Security office, call 1-800-772-1213.

Impairment-Related Work Expense (IRWE)

The cost of certain impairment-related items and services that a person with a disability needs to work can be deducted from gross earnings through an IRWE incentive. A student requesting an IRWE must verify that the items or expenses incurred are related to his or her disability and necessary for job performance. The student will be asked to submit proof of payment. Impairment-related work expenses are deductible for SSI payment purposes when:

• The expense enables a person to work.
• The person, because of a severe physical or mental impairment, needs the item or service for which the expense is incurred in order to work.
• The cost is paid by the person with a disability and is not reimbursed by another source.
• The expense is "reasonable" – it represents the standard charge for the item or service in the person’s community.
• The expense is paid in a month in which earned income is received or work is performed while the person used the impairment-related item or service.

Individuals with disabilities may rely on IRWE incentives throughout their entire lives. Work-related expenses that are incurred by a student while in secondary school are likely to continue when they exit school. A student applying for an IRWE incentive under the SSI program should contact the local SSA office for specific details and documentation requirements. (See Example 4 and Example 5)

Plan for Achieving Self-support (PASS)

The Plan for Achieving Self-support (PASS) is a work incentive that allows an individual to set aside income and/or resources for a specified period of time to achieve a work goal (see Example 6 and Example 7). For example, an individual may set aside money for postsecondary education, the purchase of job-coaching support, personal transportation, job-related equipment, or to start a business. The income and/or resources set aside in a PASS do not count in determining SSI benefits. Nor may SSI cash benefits be used to support a PASS. When appropriate, a PASS may be used in conjunction with other SSI work incentives. If a student under age 18 cannot satisfy the SSI income eligibility requirement only because his or her parent’s income is too high, the student may apply for a PASS incentive through which their parents can set aside enough income to make the student eligible for SSI benefits.

The PASS is similar to the IEP/Transition Plan: It establishes job-related goals and objectives. Because of these similarities, it is possible to incorporate a PASS into the IEP/transition plan. A transition student may benefit from a PASS while in school or upon exiting. The basic requirements for a PASS include:

• A feasible and reasonable occupational goal.
• A defined timetable.
• The need for income or resources, other than SSI benefits, to be set aside.
• An explanation of expenditures to be covered by the set-aside funds.

A student wishing to incorporate a PASS into his/her transition program should:

• Request assistance if needed from teachers, counselors, or other IEP/transition team members.
• Obtain the eight page PASS application (Appendix E), instruction sheet, and SSA publication Red Book On Work Incentives in your school counseling office, special education office, or from the local SSA Office.
• Gather all income and resource information that will be required.
• Identify the job goal and steps for achieving it (which may be incorporated into the IEP/transition plan.
• Work with his/her Vocational Rehabilitation Counselor to develop the plan.
• Make and keep an appointment with the local SSA office.
• Complete the PASS application and submit it to local SSA office.
• Answer questions from the SSI-PASS Cadre about the application.

The PASS should be considered during the IEP/transition development process even if

it is not to be used while the individual is still a student. A PASS may be used by any individual participating in SSI at any age. Some students can benefit from a PASS while they are in school, and also after they leave school to further their vocational goal by purchasing additional training or transportation, for example. As part of the transition planning process, the planning team may incorporate the future use of a PASS into the student’s IEP/transition plan.

The most likely candidate for a PASS incentive are students who currently are receiving SSI benefits, want to work and have work goals in their IEP, are in school or a training program or plan to complete postsecondary training, or plan to start their own business.

A PASS incentive can be used to support a number of expenses related to employment goals, including:

• Tuition, fees, books, and supplies for school or training programs.
• Supported employment services, including a job coach.
• Attendant care.
• Equipment and tools needed to work.
• Transportation.

A PASS incentive must:

• Be specifically designed for the individual with a disability.
• Be in writing.
• Have a specific career goal which the individual is capable of achieving.
• Have a specific time frame for reaching the goal.
• Show what money or other resources the individual will use to reach the goal.
• Show how the money and resources will be used.
• Show how the money set aside in the PASS will be kept separate from other funds, i.e., a separate bank account.
• Be approved by the SSA.
• Be reviewed periodically to assure compliance.

Income and resources that are set aside in a PASS are excluded under the SSI income and resources tests. Any transition student who receives SSI benefits or could qualify for them, can have a PASS. A student, for example, whose income exceeds SSI requirements, may develop a PASS to maintain his or her SSI eligibility while pursuing work goals.

To receive a PASS an individual must complete a PASS application and submit it to the SSA office. Each PASS is reviewed for approval by the local PASS cadre. This process can take up to three months to complete. Anyone may help a student develop a PASS, including special education teachers and other school personnel, vocational counselors, social workers, employers, and private PASS vendors. A distinct advantage of a PASS is that it allows the student to be proactive in securing necessary training, support, or services to enhance employment opportunities.

Blind Work Expenses (BWE)

SSA has special rules for people who are blind, including allowing them to earn a higher income (Substantial Gainful Activity [SGA]) and maintain SSI eligibility. Blindness is defined as central visual acuity of 20/200 or less in the better eye with best correction which has lasted or is expected to last a year or longer. Blind Work Expenses (BWE) is a work incentive that allows a blind person to deduct certain expenses needed to earn an income from their earned income when determining SSI eligibility and payment amount. For individuals who are blind, the BWE work incentive is more advantageous than the IRWE. Examples of BWE include: guide dog expenses; transportation; federal, state, and local income taxes; social security taxes; attendant care services; visual and sensory aids; translation of materials into braille; professional association fees; and union dues. When developing transition plans for students who are blind, school personnel and parents should contact their regional SSA office to get more specific information on SSA programs and benefits available.

Property Essential to Self-Support (PESS)

PESS allows a person to exclude certain resources which are essential to employment for self-support. For example, property which is used in a trade or business or required by a person as an employee is totally excluded when determining resources for SSI eligibility or payment determination. While the PESS may have little application for secondary transition students, it may have utility for some students when they enter the work force. A student, for example, who is trained in carpentry may be required to supply his or her own tools as terms of employment. Under a PESS the value of these tools would not be counted as a resource.

The Role of School Personnel in Accessing SSI Work Incentives

School personnel responsible for the successful transition of students from school to work and independent living can perform several functions to support the use of SSI work incentives as a viable part of transition planning. Specifically school personnel can:

• Identify students who are currently receiving SSI benefits and students who may be or will eligible.
• Incorporate SSI work incentives into the IEP/transition planning process and community-based employment.
• Inform students and parents about SSI program benefits and eligibility and work incentives when transition planning begins (age 14, or younger, if appropriate).
• Assist students and parents in collecting appropriate documentation on student’s disability, limitations, performance, and behaviors that will assist SSA in determination or redetermination of eligibility.
• Establish a close relationship with local SSA staff to facilitate communication among students, parents, school personnel, and SSA staff.
• Collaborate with and engage other professionals (i.e., vocational rehabilitation, SSA, and human services) who share a common interest in students’ secondary and postsecondary success.

Identify Potentially Eligible Students

Students eligible to receive SSI benefits can be identified through medical and psychological data alone. Some disabilities (e.g. blindness, hearing impairments, significant speech impairments, mental retardation and autism as measured by an IQ under 60, and Cerebral Palsy with severe motor involvement) can be assumed to meet SSA’s medically-based criteria. Students who exhibit cognitive and emotional problems that will interfere with their ability to work may also be eligible. Students who are not receiving SSI benefits who may be, or will become, eligible at age 18 should be identified during the initial transition planning process. School personnel can also identify students who are receiving or will be eligible to receive SSDI benefits.

Incorporate SSI Work Incentives Into the IEP/Transition Planning Process

Incorporating SSI work incentives into a student’s IEP/transition plan can provide excellent opportunities for students, parents, and other IEP/transition team members to explore employment opportunities while the student is still in school. These incentives can also benefit students after they are out of school. To be eligible for SSI work incentives, a student must first be receiving SSI benefits and be engaged in paid work experiences (CBVE) as part of their transition plan. Therefore, it is important to explore and include work incentives in a student’s transition plan in the very early stages of the process. This will assist students, parents, and other IEP/transition plan members in identifying specific steps that will be required to allow students to establish postschool goals and objectives and participate in school-sponsored employment opportunities. SSI work incentives can also help students plan for and save money toward a future career goal. Participating in SSI work incentives will, in most cases, allow students to increase their monthly income while still retaining their SSI benefits, including Medicaid.

Inform Students and Parent of SSI Program Benefits and Eligibility and Work Incentives

School personnel can introduce and explain SSI work incentives to students and parents during the early stages of transition planning. Successful transition planning requires that school personnel, parents, students, and adult service providers work together to design a sequence of activities that will lead toward community participation and employment when a student exits school. Typically, community-based vocational education will be a focus of the initial transition discussions. Introducing work incentives early in the transition process establishes paid employment as a viable transition goal and allows students, parents, and other IEP/transition team members to broaden their collective thinking regarding available resources and the potential benefits of SSI work incentives. Just as school personnel inform parents and students about vocational rehabilitation and other adult services, so should they inform parents and help them gain knowledge about the SSI program eligibility requirements, benefits, and work incentives. As part of the transition planning process, school personnel routinely collect information on students and their families to assist in the design of plans that meet the goals and circumstances of the students and their family. Information regarding SSI eligibility or potential eligibility should be included in this information.

Assist Students and Parents in Applying and Reapplying for SSI Benefits

Many students and parents are unfamiliar with the SSI program and its application. School personnel can assist students and parents in the SSI application process by helping them complete the application form and referring them to the appropriate local SSA representatives. Once the student is determined eligible for benefits, the greater the opportunities for incorporating work incentives into the transition plan. It takes an average of three months to complete the application process, thus, it is crucial to begin the process during the early stages of the student’s transition planning. Appendix C provides a quick reference guide to the SSI application process.

It is very important that all relevant documents—including medical history, school history, and functional limitations associated with any transition program work experiences—are gathered and organized for submission to the local SSA office. School staff can help gather appropriate school, social, and medical records, both past and present; make a list of all persons SSA may need to contact; and prepare school-based reports on the functional limitations of the student observed in school and in community-based settings. These reports may be excerpted from current assessment reports and/or IEPs/transition plans.

Short written reports with formal records that include specific examples of the student’s functional limitations are extremely important. Information from clergy, relatives, family, and friends also can be useful when they describe specific examples of the student’s functional limitations (Bazelon, 1997).

School personnel can also help parents develop their own anecdotal information on their son’s/daughter’s performance at home. Staff can assist students and parents in obtaining short, written reports from other people who have close contact or work with the student. These may include employers, job-site supervisors, or coworkers of students in community work settings. It’s helpful when school staff and parents keep a diary of activities and functional limitations of students they observe over time.

Students and parents should ask all doctors who have seen the student for hospital, medical and prescription records including reasons for medications. Hospital records should include dates, names of hospitals and attending doctors, and reasons for hospitalization. Sources for such documentation include:

• Doctors, psychologists, nurses, clinics, and hospitals.
• Developmental centers, day care and pre school, school counselors and teachers.
• Therapists.
• Mental health counselors.
• Social workers and welfare agencies.

One of the most significant roles school personnel can play is providing SSA with information that documents observed student limitations in a variety of settings including school and community training and employment sites. Special education teachers, related service personnel, job coaches, and other school staff are in an excellent position to provide this information because they work with the student on a regular basis. Documented observations of the student’s functional limitations by school personnel that impact or will impact on work performance will assist SSA examiners in the determination process.

School personnel can also assist students and parents with the redetermination process of SSI eligibility, which is required once the student reaches age 18. School personnel can help students and parents understand the differences in eligibility criteria for adults (18 and over) and children (under 18 years of age), and should be prepared to address questions regarding potential benefit loss, including Medicaid, if appropriate. Knowing and understanding the eligibility criteria allows school personnel and students and parents to develop appropriate documentation and records for the redetermination process. Often school assessment reports and IEPs/transition plans contain pertinent information regarding the student’s functional limitations across environments; this is a critical component for initial determination and redetermination of eligibility.

Establish a Cooperative Working Relationship With the Local SSA Staff and the Regional PASS Cadre

It has been pointed out in this handbook that SSA staff have indepth knowledge and experience in assisting youth with disabilities and parents in applying for SSI benefits and work incentives. Many local SSA offices have specific staff (e.g., Work Incentives Liaisons and PASS Specialists) assigned to work with transitioning youth and the SSI program. It is important for school personnel and other IEP/transition team members to establish a rapport with these individuals. This will assist school personnel, the student and his/her parents, and other IEP/transition team members in facilitating the application process.

Regional PASS cadres have been established and operate throughout the country to specifically assist school personnel and the IEP/transition team in writing, reviewing, and evaluating PASSes. These cadres can be very helpful in developing a successful PASS application.

Collaborate With and Engage Other Professionals in Applying for SSI Benefits and Work Incentives

Just as all members of the IEP team and others involved in the transition of youth with disabilities must support the goals and objectives of the students’ IEP/transition plan, so is it important that they be familiar with and support the SSI application and work incentives processes for the student, especially when it is a component of the student’s plan. Both application processes require submitting detailed documentation about the student to the SSA office. Various members of the student’s IEP/transition team may have different knowledge about the student. For example, a student’s family and friends will interact with the student in different environments than school personnel and will be familiar with different aspects of the student’s behavior (e.g., basic skills levels and how they function in interpersonal relationships). Vocational rehabilitation and medical personnel are very likely to have critical information regarding the student’s functional limitations. Engaging all of these individuals at some point in these SSI application processes, will provide the SSA office with a complete and detailed picture of the student. All of this information will assist state Disability Determination Services and SSA staff in determining the student’s eligibility for SSI benefits and work incentives. IEP/transition team members and other professionals can also offer their previous knowledge of how to access SSI benefits and work incentives in an efficient manner.

Contents

• Title Page
• Introduction
• Transition Students and SSI Work Incentives
• SSI Program Eligibility
• SSI Program Work Incentives
• Conclusion
• References
• Appendices

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