This article explores Social Security's Ticket-to-Work program, a suite of services designed to help people with disabilities prepare for, obtain, maintain and increase paid employment.
BY ALEXANDRA BAIG, MBA, CFP®
The key to obtaining Social Security Disability Benefits, whether Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) is providing conclusive evidence that you cannot earn more than $1,220 (2019, $2,040 if you have blindness) working at any under any circumstances. Particularly for people who have autism spectrum disorder (ASD), behavioral health challenges or other more invisible disabilities, this can be hard. It can involve filling out a whole wad of forms, making multiple visits to a field office and waiting for several years. Because your whole eligibility hinges on the fact that you can't work, it's hard for some people with disabilities to believe that the Social Security Administration (SSA) actually wants them to work. I've heard it on good authority that this is true from a long time Social Security field office specialist who is also the parent of a young adult with a developmental disability. When you think about it, it makes sense. If you are only receiving benefits, you are drawing down system resources. But if you work, even if you are putting money back into the system as well as taking it out. The SSA wants you to work.
The SSA is very much aware that employment is not synonymous with self-sufficiency, although it is a step in that direction. They realize that going to work for the first time, returning to work after a long time or increasing one's work level significantly are all processes. These processes take time, take resources, may not always result in success and will always require concurrent ongoing support if they are to result in success. This is, again, particularly true for people with ASD and others who may require very specific work circumstances to be successful. This article explores Social Security's Ticket-to-Work program. Ticket-to-Work is a suite of services designed to help people with disabilities prepare for, obtain, maintain and increase paid employment. We also discuss several other significant Work Incentives that help people with disabilities keep their SSI and SSDI cash Medicaid Medicare as long as possible, even as they increase their earnings from work. The Ticket - to-Work used in conjunction with other Work Incentives provides a robust safety net.
KEEP COVERED: For some people with disabilities, the concern is not so much with keeping their cash benefits as with keeping their health insurance and support services through Medicare and Medicaid. There are several work incentives that let you keep each kind of coverage going even when cash benefits have stopped.
Everyone who is on Supplemental Security Income (SSI) because of disability or Social Security Disability Insurance (SSDI) has a "ticket." You used to get an actual paper ticket in the mail. Now, whatever agency you chose to assign your ticket just looks you up. All ticket services are free to you, paid for by Social Security. You can assign your ticket to either your state's Vocational Rehabilitation Agency (the Vocational Rehabilitation Division of the Department of Human Services in Illinois) or to a private sector employment network (EN). You can find ENs near you by following this link: choosework.ssa.gov/findhelp/result?option=directSearch. You then explore the ENs near you to find one that is a good match. EN services may include career counseling, skills and knowledge assessment, locating education and training opportunities, designing and requesting work accommodations, resume writing and interviewing coaching and job search and placement assistance.
All EN's help you to create an "Individual Work Plan" or "IWP." Your IWP is a collaborative effort between you and your Vocational Rehabilitation or EN counselor. The plan sets out your particular work goals and the specific steps you need to be taking to reach them, as well as a time table. For example, you may want to work as a veterinary technician. The steps of your work plan might be to research accredited pro grams, select a program, determine your class schedule, map out transportation and apply for public transportation pass, decide on and obtain any technology or study aids, pass the classes, obtain an internship, reach out to local veterinary firms and schedule i n fo rma t i on a l interviews, create a targeted resume, locate practices that are hiring, practice viewing, interinterview, follow up. Begin working part-time with a goal of increasing hours to full-time within 12 months.
Your EN will report on your progress to Social Security. As long as you are using your ticket and making timely progress, Social Security will suspend any medical re-evaluation of your disabling condition. Timely progress measures depend on your career stage and IWP steps as well as how many months you have been using your ticket. For instance, in general, by the end of your first 12 months using the ticket, you are expected to achieve one of the following milestones:
• Worked for at least 3 months at the Trial Work wage level, which is $850/month for 2018 • Completed your GED or obtained a high school diploma • Completed 60% of a full-time course load in an academic or vocational training program • A combination of the above Within the 13-24 months of usage, you are expected to achieve one of these milestones: • Worked for six months at or above the Trial Work wage level • Completed 75% of a full-time course load • A combination of the above Within the 25-36-month period, you are expected to: • Work for nine months of work at the Substantial Gainful Activity level ($1,180/month in 2018) • Complete an additional academic year of study • Complete a 2- or 4-year college program • Complete a year technical training program • A combination of the above
Time progress and the Ticket-to-Work can continue for 84 months. During that time, Social Security and Medicaid work incentives will allow participants to keep cash benefits in certain situations where their work earning have not yet started or are low, to keep Medicare for up to 93 months and to keep Medicaidfunded services almost indefinitely.
The Ticket-to-Work dovetails with other Work Incentives. SSI is a variable benefit. Income you receive from another source reduces your SSI benefit from the maximum of $771 (2019). However, income you earn through work receives preferential treatment through the Earned Income Exclusion. The first $65 that you earn ($85 if you have no unearned income) does not reduce your benefit at all. The remainder reduces your benefit by only 50 cents for every one dollar you earn. If my monthly gross income is $595, the first $85 has no impact; the remaining $510 reduces my SSI by only $255. If you worked and earned just below the Substantial Gainful Activity level, you would earn $1,219/month from your work and still receive $204 in SSI. There is an additional work incentive under Social Security Regulation 1619(a) that will even allow you to continue receiving a cash SSI benefit for working above the SGA level up to the point where the 50cents-on-the-dollar formula has reduced your SSI to $0. The Student Earned Income Exclusion is an even better deal. Full-time students can earn up to $1,870/month up to a cumulative $7,550 annually without reducing their SSI benefits.
KEY CONTRIBUTION: When you have a disability, it can be an uphill road to put in place the supports and services you need. In can be even more difficult when you have an "invisible" disability such as ASD. At the same time, you have skills and energy to put to work in the community.
There are other work incentives that apply to both SSI and SSDI recipients. Impairment Related Work Expenses (IRWE) allow a worker to deduct from her/his earnings before those earnings are counted the cost of any item or service paid out of pocket, related to the disability and necessary for the person to work. For example, if I earn $1,300/month from my work, but my service animal costs $150, my speech recognition software $50 and my para-transit to work $100, then Social Security only considers my income to be $1,000. If my employer makes certain accommodations for me and these can be quantified, then these are considered Subsidies and also deductible before my earnings are counted. If I work successfully above the SGA level for a few months, but it is unsustainable, that is an Unsuccessful Work Attempt. If my earnings from work vary a lot, I can ask Social Security to consider the average over several months. And even if my earnings above SGA are so stable that I do lose eligibility for my cash benefits, I can regain them through Expedited Reinstatement if I must decrease or stop work again within five years because my disabling conditions worsen, or my employer removes supports.
There are additional Work Incentives that apply to SSDI only. SSDI is an all-or-nothing benefit. As long as your countable earnings are below the SGA level, you get your full benefit. And you don't lose your benefits immediately when you reach the SGA level. Every time you earn above $880/month, you incur a Trial Work Month, but you continue to get your full SSDI benefit. When you have nine Trial Work Months with in a rolling 60-month span, you have completed the Trial Work Period. For 36 months after your Trial Work Period has ended, called the Extended Period of Eligibility, you can still get a benefit in any month when your earnings are below the SGA level. For some people with disabilities, KEY CONTRIBUTION: When you have a disability, it can be an uphill road to put in place the supports and services you need. In can be even more difficult when you have an "invisible" disability such as ASD. At the same time, you have skills and energy to put to work in the community. the concern is not so much with keeping their cash benefits as with keeping their health insurance and support services through Medicare and Medicaid. There are several work incentives that let you keep each kind of coverage going even when cash benefits have stopped. Section 1619(b) of the Social Security regulations lets you keep Medicaid up to earnings thresholds ranging from $27,000+ (Alabama and Illinois) to $66,000+ (Connecticut). In fact, if you have high medical or service expenses, you can even qualify for a much higher individualized threshold.
This is for people who once had SSI. Most states also have Medicaid Buy-in programs that allow anyone on Medicaid for Disability to keep it by paying a small premium. Income eligibility requirements vary a lot by state, but in my home state of Illinois, for example, a worker can earn up to three times the Federal Poverty Level or more than $42,000 net of income and FICA taxes. Finally, workers can keep premium-free Medicare Part A for up to 93 months after going off SSDI and then pay a small premium to keep it going indefinitely.
When you have a disability, it can be an uphill road to put in place the supports and services you need. In can be even more difficult when you have an "invisible" disability such as ASD. At the same time, you have skills and energy to put to work in the community. Social Security's Ticket-to-Work and Work Incentives can support your successful transition from relying solely on government benefits to working, earning and becoming increasingly self-sufficient.
ABOUT THE AUTHOR: Alexandra Baig, MBA, CFP® is a fee-only financial planner and an employment network service provider who helps people with disabilities make the most of government benefits and personal resources to support their work and life goals. Alexandra has previous experience running L'Arche Chicago, an innovative residential community for people with and without disabilities.