Griffin-Hammis Associates, LLC

Asset Development: Getting and Keeping Money

SSA, Assets, Self-Employment & Resource Ownership

Alliance for Full Participation November 18, 2011

Washington, D.C.

Business By Disability Type

Based on Sample of 76

DD34%

MH43%

Physical17%

TBI4%

Other2%

Griffin-Hammis Associates, LLC

Gross Income

76 Business Sample

0 20 40 60 80 100 120 140

High

Low

Average

Average Adjusted

Thousands

Average Gross Revenue: $28,241 Omitting 1 $900,000 Business

Griffin-Hammis Associates, LLC

$28,241

$39,712

$4,800

$130,000

Individual Funding Sources

0 75 150 225 300 375 450 525 600 675 750

Other Grant Funds

CE Funds

Bank/Non-Bank Loans

CRP & DDC Funds

PASS

VR

Personal/Family

Thousands

Sample 76 Businesses: Total Start-up Investment $2,145,000

Griffin-Hammis Associates, LLC

$99,395$737,600

$474,925

$59,000$394,600

$347,000

$33,200

Griffin-Hammis Associates, LLCMyths or Facts? SSA & Work?

If receiving SSI or SSDI: Never work for pay!

Just pocket any untraceable cash, if & when you get some, spend it, & don’t tell SSA

Work Incentives are terrible misguided federal laws that lure people to work & then punish them later

If you work for pay you will lose financial & medical security & will be forced to pay SSA back for years

0

500

1000

1500

2000

2500

SSI & Gross Wages

Gross WagesSSI

2010 SSI FBR Single Person: $674 per month

2010 SSI FBR (Married Couple): $1,011 per month

2010 MT 1619(b) SSI/Medicaid Threshold: $28,819/year

Griffin-Hammis Associates, LLCWork Incentives & Working

That last chart looked pretty good …. yet

That chart only shows SSI & Gross Wage interactions

It did not take into account payroll taxes, food stamps & energy assistance reductions & section 8 rent increased

Next Chart: 40 hours/week at $9.33/hour equals $1,493/month = $145 more/month than not working

203 403 674 803 1003 1203 Taxes, F/S, Sec 8, Energy

85 369 589 819 859 909 989 Net Wages Remaining

674 674 400 200 0 0 0 0 SSI

50 135 145 165 195 235 285 365$315 more/month by

earning $2,192/month

0

500

1000

1500

2000

2500

Interaction of SSI Reduction, Wages Increasing, Reduction in Food Stamps & Energy Assistance,

& Increase in Section 8 Rent

Payroll Taxes, Food Stamps, Section 8 & Energy Assistance

Net Wages Remaining

SSI

Griffin-Hammis Associates, LLCWork Incentives & Working

– That chart looked survivable …. yet

– SSI does not calculate check reductions correctly/timely

– SSI’s ongoing errors result in overpayments further reducing the SSI check by 10% (-$67) resulting in only $78 more/month from 160 hours/month of work … (*versus not working)

– SSA’s PASS creates significantly more revenue (next slide)

-

143 323 564 653 803 923 Taxes, F/S, Sec 8, Energy

203 403 674 803 1003 1203 Net Wages in PASS

85 145 165 195 235 285 365 Net Wages Remaining

674 674 674 674 674 674 674 674 SSI

50 135 398 618 919 1088 1338 1618 PASS + Remaining Income

0

500

1000

1500

2000

2500

3000

3500

Interaction of Food Stamps, Section 8, Energy Assistance when using a PASS, which results in no SSI Reduction With PASS

Payroll Taxes, Food Stamps, Sec-tion 8 & Energy Assistance

Net Wages in PASS

Net Wages Remaining

SSI

0

500

1000

1500

2000

2500

$1000 SSDI Example

Gross Wages

SSDI

2010 Non-Blind SGA: $1,000 per month gross wages

2010 Blind SGA: $1,640 per month gross wages

Griffin-Hammis Associates, LLCWork Incentives & Self-

Employment PESS – Property Essential to Self-

Support:

VR: $3,950Council: $9,000PASS: $12,286

Total: $25,236

Griffin-Hammis Associates, LLCExceeding $2,000 in Liquid

Assets SSI only

Stated goal was financial flexibility and owning his own home within 3 years of becoming wage or self-employed

- without losing Medicaid

Griffin-Hammis Associates, LLCExceeding $2,000 in Liquid

Assets PESS – Property Essential to Self-

Support:

VR: $21,400PASS: $9,000

Total: $30,400

Griffin-Hammis Associates, LLCWork Incentives & Self-

Employment PESS – Property Essential to Self-

Support:

SI 01130.501 Essential Property Excluded Regardless of Value or Rate of Return

A. POLICY PRINCIPLES 2. Trade Or Business Property

“Property essential to self-support used in a trade or business is excluded from resources regardless of value or rate of return effective May 1, 1990”

Griffin-Hammis Associates, LLCWork Incentives & Self-

Employment Self-Employment Generalizations

SSI Only = Very good policies to operate a business within

SSI & SSDI = Due to SSI receipt along with SSDI = very good policies and a bonus of mathematically excellent PASS’s (retroactive and forward PASS potentials = potential large up-front PASS funds to start a business with)

SSDI Only – Complicated if goal is to retain SSDI check – which results if possible in a PASS and intentionally losing SSDI during the PASS to retain SSI that PASS caused

Griffin-Hammis Associates, LLCWork Incentives & Self-

Employment PESS – Property Essential to Self-

Support:

SI 01130.501 Essential Property Excluded Regardless of Value or Rate of Return

C. DEVELOPMENT AND DOCUMENTATION — PROPERTY USED IN A TRADE OR BUSINESS 5. Liquid Resources Used In A Trade Or Business

“Effective May 1, 1990, all liquid resources used in the operation of a trade or business are excluded as property essential to self-support. Obtain an individual's signed allegation that liquid resources are used in the trade or business.”

Griffin-Hammis Associates, LLCWork Incentives & Self-

Employment PESS – Property Essential to Self-

Support:

PESS is limited (only applies to) Unincorporated Businessesthat generate Self-employment Income (SEI) for the owner or owners

Forms of businesses that PESS applies to: Sole Proprietorship Partnership

Griffin-Hammis Associates, LLCWork Incentives & Self-

Employment

Q & A

Griffin-Hammis Associates, LLC

http://www.griffinhammis.com