2018 Updates to Social Security Benefits and Their Impact - Sandy (Hardy) Smith Imagine Enterprises 2018

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2018 Updates to Social Security Benefits
          and Their Impact

         Sandy (Hardy) Smith
         Imagine Enterprises
                2018
Training Objective and Assumption

  Objective: After this class, you will understand the
   2018 updates to Social Security Disability Benefits and
   their impact

  Assumption: All participants already have a basic
   understanding of Social Security’s disability benefits
   and works impact on them.
How does Social Security adjust
benefit amounts each year?

 The annual updates occur based on the increase in the
  Consumer Price Index from the third quarter of 2015 to
  the third quarter of 2017.

 It is referred to as a Cost-of-Living Adjustments (COLA).
Quick Review: What are Social
Security Benefits?

 Title 2 (Disability-related)
   Childhood Disability Benefits
   Social Security Disability Insurance (SSDI)
   Disabled Widow(er)s Benefits (DWB)

 Title 2 (Non-disability related)
   Auxiliary Benefits
   Retirement

 Title 16
   Supplemental Security Income (SSI)
2018 “Quarter” of Coverage
 The amount of earnings required for a quarter of coverage
  (QC) in 2018 is $1,320.

 "Quarter of coverage" is a legal term, but you may also see
  the term "Social Security credit" (or just "credit") used
  elsewhere.

 A QC is the basic unit for determining whether a worker
  is insured under the Social Security program.

 No matter how high your earnings may be, you can not earn
  more than 4 QC's in one year.
Reporting Wages and Changes
 If you're on SSI and SSDI, you must report your earnings separately to
  your SSI and SSDI claims representatives.

 You can report your earnings to SSDI in person, by phone, or by mail.

 Find a Social Security office near you.

 You can call Social Security at 1-800-772-1213 (TTY: 1-800-325-0778)

 GET RECEIPT!
Reporting Wages for SSI
 Use the automated toll-free SSI Telephone Wage Reporting Service or
  the free SSI Mobile Wage Reporting Smartphone app.
    Contact the local Social Security office and speak to your representatives.
    https://www.ssa.gov/ssi/spotlights/spot-telephone-wage.htm

 Receive e-mail or text message wage reporting reminder
   https://public.govdelivery.com/accounts/USSSA/subscriber/new?topic_id=US
    SSAWR_1

 GET A RECEIPT
What are the 2018 Updates to the
    Title 2 Work Incentives?
          Trial Work Period (TWP):

     Extended Period of Eligibility (EPE):

        Cessation and Grace Period:
Trial Work Period (TWP)

 TWP is a nine-month period accumulated over a rolling 60-
  month during which Title 2 beneficiaries can test their ability
  to work without losing Title 2 cash payments and Medicare
  coverage.

 In 2018, a beneficiary can earn any amount of money - but
  any gross earnings over $850 will count as a TWP month.

 No work incentives can be used during the TWP
Requesting, Tracking and Reporting
   Requesting:
     •   No request necessary, it is automatically triggered when Social
         Security enters reported gross wages

   Tracking and Reporting:
     • Usually, if wages are consistent, Social Security will take the initial
       wage report and use it for the nine month period and then check
       back with the person at that time
     • Tracking is simple, any month you are over the monthly threshold,
       that will be one of the nine trial work months. When under, is does
       not count.
     • Remember, all nine months need to fall in a 60 month window.
Extended Period of Eligibility (EPE)
 For 36 CONSECUTIVE months immediately following the end of
  the (TWP), a beneficiary who continues to be medically
  disabled, can receive a Title 2 check for each month that they
  have COUNTABLE gross earnings below the Substantial Gainful
  Activity (SGA) level for that year.

 In 2018, these amounts are $1,180.00
   ($1,970 if statutory blind)*

 Work incentives can now be used
Requesting, Tracking and Reporting
 Requesting:
   •   No request necessary, it is automatically starts the month following the
       end of the Trial Work Period and last 36 CONSECUTIVE months.
 Tracking and Reporting:
   • Usually, if wages are consistent, Social Security will take the initial wage
     report and use it for the duration. Any changes to the wages or work
     incentives must be reported immediately.
   • Tracking is a bit more complicated. It is gross wages – paid time off –
     work incentives.
   • Any month you are under the SGA threshold, you are entitled to a check.
     When over, you are not.
Cessation and Grace Period

 The first month, after the TWP, a beneficiary goes over the
  SGA level and is able to maintain that level of earnings for a
  period of time

 Will receive the Title 2 check that first month and the following
  two months.

 SSA looks at unsuccessful work attempt and averaging along
  with other work incentives to make this determination
Requesting, Tracking and Reporting
 Requesting:
   • No request necessary, it is automatically occurs when Social Security sees
     a pattern on countable wages above the SGA.
   • Could occur in the EPE, but does not have to.
 Tracking and Reporting:
   • Usually, if wages are consistent, Social Security will take the initial wage
     report and use it for the duration. Any changes to the wages or work
     incentives must be reported immediately.
   • Tracking is a bit more complicated. It is gross wages – paid time off –
     work incentives.
TWP and EPE Example
        Jan    Feb    Mar    Apr    May    Jun    Jul    Aug    Sep    Oct    Nov    Dec
2008    500    500    500    500    500    500    500    500    700    500    500    550
$670
2009    550    550    580    500    450    810    550    550    555    810    560    560
$700
2010    600    600    600    810    810    810    600    600    600    600    600    600
$720
2011    400    350    400    350    400    350    400    350    400    350    400    350
$720
2012     0      0      0      0      0     500    600    650    650    810    810    650
$720
2013    650    650    650    650    650    650    650    650    650    810    810    625
$750/
1040
2014    175    185    185    185    199    230    300    500    500    625    650    625
$1070

2015    500    500    500    500    500    500    500    810    500    400    500    600
$1090

2016    1100   1100   1100   1100   1100   1100   1500   1500   1500   1100   1100   1100
$1130

2017    1100   1000   1000   1000   1000   1000   1000   1000   1000   1000   1000   2000
$1170
Impairment-Related Work Expense
(IRWE) – (No 2018 Changes)

• Any out-of-pocket expense;

• Related to your disability;

• Not reimbursed any anyone;

• Purchased so that you could continue working.

• The dollar amount of the IRWE is subtracted from the
  GROSS monthly earnings of the beneficiary, potentially
  reducing their SGA
Requesting, Tracking and Reporting
   Requesting:
     • Letter to SSA that itemizes (out-of-pocket and disability
       related)costs and how often they are purchased.
     • Work Activity Report (Form 821)

   Tracking and Reporting:
     •   Keep receipts until Social Security requests them –usually at annual
         re-determination
Subsidy – (No 2018 Changes)

 When an employer pays workers with disabilities more in
  wages than the reasonable value of the actual service
  performed or assistance is provided by an employment
  service or enclave type of setting.

 The dollar amount of the subsidy is subtracted from the
  GROSS monthly earnings of the person, potentially reducing
  their SGA.
Requesting, Tracking and Reporting
   Requesting:
     • Letter to from employer (helpful if letter and job description)
     • Work Activity Report (Form 821)

   Tracking and Reporting:
     • Once approved, there is no additional tracking or reporting unless
       there is a change in job hours, duties, supervision.
     • Social Security usually will complete and annual update
Special-condition Subsidy –
 No 2018 Changes

 Human services agencies may provide support and services
  to beneficiary potentially subsidizing that particular
  individuals ability to work at an SGA level (example: Job
  Coach)

 The dollar amount of the subsidy is subtracted from the
  GROSS monthly earnings of the person, potentially reducing
  their SGA
Requesting, Tracking and Reporting
   Requesting:
     • Letter to from job coach, family member, etc … (helpful if letter
       and description of special condition)
     • Work Activity Report (Form 821)

   Tracking and Reporting:
     • Once approved, there is no additional tracking or reporting unless
       there is a change in job hours, duties, supervision.
     • Job coaches hours can fluctuate – report month (time sheet and/or
       case notes
     • Social Security usually will complete and annual update
Medicare Continuation
 Part A can continue, at no cost, for at least 93 months
  following the end of the Trial Work Period (TWP) if the
  individual is still medically disabled, probably longer.

 Part B may be purchased and billed quarterly.
   Standard Premium in 2018 is $134 * HOWEVER* because the Part B
    Premium increased more than the COLA for 2018, if the beneficiary
    pays for Part B out of their Title 2 check, that rate is $109.*
   If you enroll in Part B for the first time in 2018 or billed directly, you will pay the standard
    rate.
   Social Security will clarify the premium rate for individuals that ask.

 Part D – Drug coverage – varies by plan
   http://www.medicare.gov/
Requesting, Tracking and Reporting
   Requesting:
     •   Computer generated, it is based on countable income and when
         you are terminated from title 2 cash benefits

   Tracking and Reporting:
     • Social Security is able to tell you when your Extended Medicare
       coverage ends.
     • Report any changes in job, etc … to Social Security
Social Security Disability Benefits
       and Impact of Work

        Title 16 (SSI)
Title 16 - Supplemental Security
Income (SSI)
 SSI makes cash assistance payments to aged, blind and
  disabled people (including children under 18) who have
  limited income and resources ($2,000 Individual and $3,000 Couple).

 The federal government funds SSI from general tax revenues.

 2018 = $750 for Individual or $1,125 for Eligible Couple

   Child and Adult Definitions!

 Individuals who receive SSI cash payments also receive
  Medicaid coverage.
What are the 2018 Updates to the
           SSI Rules?

        What is deeming?
         What is ISM?
The Deeming Concept –
No 2018 Changes
 When SSA determines the eligibility and amount of payment
  for an SSI recipient, the income and resources of people
  responsible for the recipient's welfare are also considered.

 This concept is called "deeming." It is based on the idea that
  those who have a responsibility for one another share their
  income and resources.

 It does not matter if money is actually provided to an eligible
  individual for deeming to apply.

 Deeming Types: Spouse-to-Spouse, Parent-to-Child and
  Sponsor-to-Alien
In-Kind Support and Maintenance
(ISM)
 In-kind support is unearned income in the form of food or
  shelter that is given or received because someone else
  besides the benefit recipient is paying for it.

 In-kind support will effect the amount of the SSI cash
  benefit.

 When a child turns 18, parent-to-child deeming stops and
  the “adult child” transitions to ISM
Determining the Value of ISM

 The Value of the One-Third Reduction rule (VTR) applies
  when an individual/couple over the age of 18 live
  throughout a month in another person's household and
  receive both food and shelter from others living in the
  household.
   2018: $750 – $250 = $500 (Individual)
Twelve Month Suspension Period –
No 2018 Changes

 Reasons other than work

 Over resources

 Food and shelter paid by non-Medicaid facility
Age-18 Redetermination –
No 2018 Changes

 Any person who was found eligible for SSI as a child must
  have their eligibility for SSI re-determined as an adult.

 The redetermination will be done within a year after the
  person’s 18th birthday.

 It is extremely important to follow through with the Age-18
  Redetermination to avoid an overpayment.
What are the 2018 Updates to the
      SSI Work Incentives?
     •       Student-Earned Income Exclusion
     •       Impairment-Related Work Expense
               •   Blind Work Expense
         •    Plan for Achieving Self-Support
SSI Work Incentives
 General Income Exclusion
  (GIE) ($20)
                                 Plan for Achieving Self-
                                  Support (PASS)
 Earned Income Exclusion
  (EIE) ($65) and divide by 2
                                 Blind Work Expense (BWE)

 1619 (a) & (b)
                                 Impairment- Related Work
                                  Expenses (IRWE)
 Student-Earned Income
  Exclusion (SEIE)
1619(a)

 SSI continues past the SGA to the break-even point

 The break-even point is when SSA calculates your incomes
  and work incentives and you go to a zero cash benefit
Both Earned and Unearned
Income
 STEP ONE:                                     STEP THREE:

 Unearned Income                    $ 225.00   Countable Unearned Income   $   205.00
 - General Income Exclusion (GIE)   $ 20.00    + Countable Earned Income   $   199.00
 = Countable Unearned Income        $ 205.00   = Countable Income          $   404.00
                                               - PASS                      $       0
 STEP TWO:
p.90                                           = Total Countable Income    $   404.00
 Gross Earned Income                $ 463.00
 - SEIE                             $     0    STEP FOUR:
 = Remainder                        $ 463.00
 - GIE if not used above                       Base SSI Rate:              $ 750.00
                                    $     0    - Total Countable Income    $ 404.00
 = Remainder                        $ 463.00   = SSI Payment               $ 346.00
 - Earned Income Exclusion          $ 65.00
 = Remainder                        $ 398.00
 - IRWE                             $     0
 = Remainder                        $ 398.00   $225.00 Unearned
 Divide by 2                             /2    +463.00 Earned
 = Remainder                        $ 199.00   +346.00 SSI Check
 - BWE                              $     0    $1,034.00
 = Total Countable Earned Income    $ 199.00
Student Earned Income Exclusion
(SEIE)
 If you are under age 22 and

 Regularly attending school.

 SSA does not count up to $1,820 of earned income per
  month in 2018

 The 2018 maximum calendar year exclusion is $7,350
Calculating SEIE
STEP ONE:                                       STEP THREE:

Unearned Income                    $ 200.00     Countable Unearned Income         $ 180.00
- General Income Exclusion (GIE)   $ 20.00      + Countable Earned Income         $   0.00
= Countable Unearned Income        $ 180.00     = Countable Income                $ 180.00
                                                - PASS                            $      0
STEP TWO:                                       = Total Countable Income          $ 180.00
p.96
Gross Earned Income                $ 1,820.00
- SEIE                             $ 1,820.00   STEP FOUR:
= Remainder                        $    00.00
- GIE if not used above                         Base SSI Rate:                    $ 750.00
                                   $       0    - Total Countable Income          $ 180.00
= Remainder                        $   00.00    = SSI Payment                     $ 570.00
- Earned Income Exclusion          $   65.00
= Remainder                        $    0.00      200.00 Unearned
- IRWE                             $       0    1820.00 Earned
= Remainder                        $    0.00     570.00 SSI
Divide by 2                              /2     2560.00 (DANGER!)
= Remainder                        $    0.00        *** NOT DONE YET***
- BWE                              $       0    $7,350-1820=$5530 remaining for Calendar Year (at
= Total Countable Earned Income    $    0.00        $1820/month it will only last 4 full months with
                                                    $70 for the 5th month) REMEMBER, it is a calendar
                                                    year!
Requesting, Tracking and Reporting
   Requesting:
     •   Use attached template letter and submit to local Social Security
         Claim Representative

   Tracking:
     • Report wages monthly
     • Remember to deduct monthly SEIE from annual cap
   Reporting:
     •   Annual re-determination and as things change (stop working, end
         education, etc…)
Impairment-Related Work Expense
(IRWE)

 Out-of-pocket expense;

 Related to your disability;

 Not reimbursed any anyone,

 Purchased so that you could continue working.
IRWE Calculation
STEP ONE:                                      STEP THREE:

Unearned Income                    $       0   Countable Unearned Income   $     0
- General Income Exclusion (GIE)   $   20.00   + Countable Earned Income   $ 282.50
= Countable Unearned Income        $       0   = Countable Income          $ 282.50
                                               - PASS                      $     0
STEP TWO:                                      = Total Countable Income    $ 282.50
Gross Earned Income                $ 750.00
p.117
- SEIE                             $     0     STEP FOUR:
= Remainder                        $ 750.00
- GIE if not used above                        Base SSI Rate:              $ 750.00
                                   $  20.00    - Total Countable Income    $ 282.50
= Remainder                        $ 730.00    = SSI Payment               $ 467.50
- Earned Income Exclusion          $  65.00
= Remainder                        $ 665.00    $750.00 Earned
- IRWE                             $ 100.00    + 467.50 SSI
= Remainder                        $ 565.00    1217.50
Divide by 2                             /2       100.00 (IRWE)
= Remainder                        $ 282.50    1117.50
- BWE                              $      0
= Total Countable Earned Income    $ 282.50
Requesting, Tracking and Reporting
   Requesting:
     • Letter to SSA that itemizes (out-of-pocket and disability
       related)costs and how often they are purchased.
     • Work Activity Report (Form 821)

   Tracking and Reporting:
     •   Keep receipts until Social Security requests them –usually at annual
         re-determination
Blind Work Expense (BWE)

 Documented expenses a person, who has statutory
  blindness as his or her primary disability with SSA;

 Incurs because the item(s) is needed for work.

 These expenses do not have to be related to blindness, just
  to work.
Calculating BWE
STEP ONE:                                      STEP THREE:

Unearned Income                    $       0   Countable Unearned Income    $       0
- General Income Exclusion (GIE)   $   20.00   + Countable Earned Income    $   17.50
= Countable Unearned Income        $       0   = Countable Income           $   17.50
                                               -   PASS                     $       0
STEP TWO:                                      = Total Countable Income     $   17.50
Gross Earned Income
p.124                              $ 600.00
- SEIE                             $     0     STEP FOUR:
= Remainder                        $ 600.00
- GIE if not used above                        Base SSI Rate:               $ 750.00
                                   $ 20.00     -   Total Countable Income   $ 17.50
= Remainder                        $ 580.00    = SSI Payment                $ 732.50
- Earned Income Exclusion          $ 65.00
= Remainder                        $ 515.00    $600.00 Earned
- IRWE                             $      0    +732.50 SSI
= Remainder                        $ 515.00    1332.50
Divide by 2                             /2      240.00 BWE
= Remainder                        $ 257.50    $1092.50
- BWE                              $ 240.00
= Total Countable Earned Income    $ 17.50
Requesting, Tracking and Reporting
   Requesting:
     • Letter to SSA that itemizes (out-of-pocket)costs and how often
       they are purchased.
     • Reminder: Costs do NOT need to be related to blindness
     • Work Activity Report (Form 821)

   Tracking and Reporting:
     •   Keep receipts until Social Security requests them –usually at annual
         re-determination
Plan for Achieving Self-Support
(PASS)

 PASS will allow recipients to set-aside income and/or
  resources for vocational training, self-employment or
  educational cost.
Calculation w/ PASS
 STEP ONE:
                                               STEP THREE:
 Unearned Income                    $ 220.00
 - General Income Exclusion (GIE)   $ 20.00    Countable Unearned Income   $ 200.00
 = Countable Unearned Income.       $ 200.00   + Countable Earned Income   $ 216.50
                                               = Countable Income          $ 416.50
 STEP TWO:                                     - PASS                      $ 416.50
 Gross Earned Income
p.138                               $ 498.00   = Total Countable Income    $0
 - SEIE                             $      0
 = Remainder                        $ 498.00
                                               STEP FOUR:
 - GIE if not used above            $      0
 = Remainder                        $ 498.00
 - Earned Income Exclusion          $  65.00   Base SSI Rate:              $ 750.00
 = Remainder                        $ 433.00   - Total Countable Income    $ 0
 - IRWE                             $      0   = SSI Payment               $ 750.00
 = Remainder                        $ 433.00
 Divide by 2                             /2    $220.00 Unearned
 = Remainder                        $ 216.50   +498.00 Earned
 - BWE                              $      0   +750.00 SSI
 = Total Countable Earned Income    $ 216.50   $1468.00
                                               - 416.50 (PASS)
                                               $ 1,051.50
Requesting, Tracking and Reporting
   Requesting:
     • SSA Form 545 and requested documents
     • SSA Form 3288 Consents
     • In Texas, submit to Social Security PASS Specialist (aka: Area Work
       Incentive Coordinator)
   Tracking:
      • Follow approved PASS deposits and transactions
      • Keep receipts
   Reporting:
      •   Monthly to PASS Specialist
      •   As PASS Specialist requests
      •   Any amendments to the approved PASS
1619 (b)
2018 amount is not out yet

 Medicaid coverage can continue, at no cost, even if your
  earnings become too high for a SSI cash payment, as long as

    you need Medicaid in order to work and
    meet other eligibility requirements.

   State of Texas 2017 threshold = $34, 821
Requesting, Tracking and Reporting
   Requesting:
     • Social Security codes the transition in their system and it is read by
       the local Medicaid office and continues Medicaid under 1619(b)
     • Should be automatic – usually there may be delays
     • Be proactive
   Tracking and Reporting:
     • Maintain communication with SSA regarding work and any other
       changes (marriage, move, etc…), as 1619(b) retains SSI eligibility
     • Usually done as an annual redetermination
Individualized Threshold Amounts
 Individual calculation for someone with special needs or
  unusually high medical costs

 Earnings are not sufficient to replace cash and health
  benefits

 Consider: IRWE, BWE, PASS, and the value of publicly-
  funded personal/attendant care

 Can be done at the local SSA office
Requesting, Tracking and Reporting
   Requesting:
     • Go to local Social Security office to request
     • Take list of Medicaid-paid expenses
   Tracking and Reporting:
     • Maintain communication with SSA regarding work and any other
       changes (marriage, move, etc…), as Individual Threshold retains
       SSI eligibility
     • Usually done as an annual redetermination
ABLE Accounts: A brief introduction
ABLE Accounts

 Tax-advantaged savings accounts for individuals with
 disabilities and their families

 Created as a result of the passage of the Stephen Beck
 Jr., Achieving a Better Life Experience Act of 2014 or
 better known as the ABLE Act.
(more)

 The beneficiary is the account owner

 Income earned by the accounts will not be taxed.

 Contributions to the account made by any person will be
  made using post-taxed dollars and will not be tax
  deductible
   although some states may allow for state income tax
   deductions for contribution made to an ABLE account.
ABLE Accounts

 Established ABLE savings accounts will not affect their
 eligibility for SSI, Medicaid and other public benefits.

 Used to secure funding for disability-related expenses
 that will supplement benefits provided through private
 insurance, Medicaid, SSI, the beneficiary's employment
 and other sources.
Expenses are allowed by ABLE
Accounts

 A "qualified disability expense" means any expense
 related to the designated beneficiary as a result of living
 a life with disabilities.
These include:
 education,
 housing,
 transportation,
 employment training and support,
 assistive technology,
 personal support services,
 health care expenses,
 financial management and administrative services and
 other expenses which help improve health, independence,
  and/or quality of life.
TEXAS ABLE Accounts

 NOT YET

 https://texasable.org/
Opening ABLE Accounts in Other
States that Offer Them
 You are free to enroll in any state’s program provided that the
  program is accepting out of state residents.

 Examples of state ABLE programs accepting enrollment
  nationwide include: Ohio, Nebraska, and Tennessee.

 An example of a state ABLE program only accepting in-state
  residents would include the Florida ABLE United program.
Other ABLE Website Resources

 https://www.congress.gov/bill/113th-congress/house-
 bill/647

 http://www.ablenrc.org/
Finding Experts
 SSA (AWIC and WIC)
  http://www.socialsecurity.gov/redbook/eng/resources-
  supports.htm#1
 Ticket to Work – Employment Networks
  http://www.ssa.gov/work/overview.html
 TX Vocational Rehabilitations
  http://www.twc.state.tx.us/jobseekers/vocational-
  rehabilitation-services
Independent Living Center
  http://www.ncil.org/
 WIPA Projects
  http://www.choosework.net/resource/jsp/searchByState.jsp
THANKS!
      Sandy Hardy Smith,
  Imagine.SandyHS@gmail.com

http://www.ImagineEnterprises.org
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