*Megan HellamSocial Security Specialist, Department of Rehabilitation (DOR)

In partnership with the California Health Incentives Improvement Project (CHIIP)

October 27, 2011

PLAN TO ACHIEVE SELF-SUPPORT(PASS)

*OverviewSSI/SSDI reviewWhat is a PASS?Strong PASS CandidatesHow does a PASS work?Occupational GoalsExpensesEffects on Benefit AmountComponents of PASS Application

Whats what? SSI? SSDI? *

Supplemental Security Income (SSI) Title XVISocial Security Disability Insurance (SSDI) Title IIMust meet SSAs disability criteriaNeeds BasedBased on work historyPayment fluctuates with income, work incentive programs, supplements, etcPayment based on average lifetime earnings covered by Social SecurityPaid from General Tax RevenuesPaid from Disability Trust FundMedicaid (MediCal)Medicare

What Is A PASS?A written plan that allows recipients of SSI to set aside income and/or resources for a specified period of time to be used to achieve a chosen occupational goal.SSI recipients are eligiblePASS may allow SSI eligibility for SSDI beneficiariesA way that Social Security assists people with disabilities in their own efforts to join or re-enter the work force

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*What Is A PASS?Funds set aside in a PASS are not counted as income when determining monthly SSI paymentFunds set aside dont count toward SSI resource limitsA PASS is intended to encourage SSI recipients to eventually become self-supporting

*Strong PASS CandidatesSomeone whoHas income other than SSI Wants to be self-supportingIs enrolled in school or training programIs using other work incentives alreadyWould otherwise have benefits reduced due to incomeHas ability or support(s) to manage a PASS

*How Does A PASS Work?PASS application Must be in writingState an occupational goalOutline all the necessary steps Have a reasonable time lineDetail expenses that are necessary to achieve work goalReviewed, approved, monitored by the PASS Specialist

*Occupational GoalAn occupational goal must be expected to generate at least enough earnings to:Decrease reliance on benefits and increase self-sufficiencyMust be ViableMust be Feasible

*Occupational GoalMust be the earliest point in the career path that would generate sufficient income to cover:Living expensesAll non-reimbursable medical costsAll work-related expenses, including PASS expenses

*ExpensesPASS expenses:Extra costs incurred in pursuing occupational goalMust be necessary to achieve goalMust have a reasonable costAll receipts must be keptPASS funds must be kept in separate account

Expenses Some ExamplesTrainingAssistive technologyEquipment and toolsSupported employment services, job coachesAttendant or childcare servicesTransportation expensesProfessional attireVehicle

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*How to calculate the effects of a PASS plan on benefitsEFFECTS ON BENEFIT AMOUNTS

*Basic SSI CalculationsFederal Benefit Rate (FBR)$674 for individual, $1011 for coupleCalifornia State Supplement Program (SSP)$156.40 for individual, 396.20 for coupleTotal CA SSI amount$830.40 for individual, $1,407.20 for couple$885.40 for blind individualRates effective July 2011

*Basic SSI Calculations The SSI General Income Exclusion of $20 is first applied to any unearned income received; if no unearned income, it is applied to earned income

The first $65 of gross earnings received each month is not counted (Earned Income Exclusion), plus one-half of the remaining earnings

*Calculations Example #1SSI/SSDI, no PASSJane is a concurrent beneficiary. She is not currently working but would like to become a Dental Assistant.Her SSDI check is $300 per month

*Calculations Example #1SSI/SSDI, no PASS $300SSDI (Unearned Income) -20 General Income Exclusion=$280Countable Income

$830.40SSI Amount -280 Countable Income=$550.40Adjusted SSI Amount

*Calculations Example #1SSI/SSDI, no PASSAvailable Income $300SSDI +550.40 Adjusted SSI Payment=$850.40Total Spendable Monthly Income

With no money contributed toward a PASS plan

*Calculations Example #2SSI/SSDI with a PASSJane would like to attend a Dental Assistant program. She qualifies for Financial Aid but still needs funds to purchase scrubs and other equipment.She would like to write a PASS plan to find out if she can set aside some of her SSDI ($280) to cover those costs.

*Calculations Example #2SSI/SSDI with a PASS $300SSDI (Unearned Income) -20 General Income Exclusion=$280Countable Income- $280PASS Contribution = 0Adjusted Countable Income $830.40SSI Amount -0 Adjusted Countable Income=$830.40Adjusted SSI Amount

*Calculations Example #2SSI/SSDI with a PASSAvailable Income $300SSDI+830.40Adjusted SSI Payment -280PASS Contribution=$850.40 Total Spendable Monthly Income

Compared to $850.40 without a PASS plan and with no money contributed toward her career

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*Calculations Example #3SSI and earnings with a PASSJohn is an SSI recipient. He is currently working part-time and wants to move up in the company that he works forHe needs to take a few classes in order to get the certification he needs to meet the requirements for other positions

*Calculations Example #3SSI and earnings with a PASSHe can write a PASS plan to set aside some of his earned income to pay for tuition and books. He currently earns $289 per monthLets say John would like to put $102 of his earned income toward his PASS plan every month

*Calculations Example #3 SSI and earnings with a PASS$289 Earned Gross Income -20 General Income Exclusion -65 Earned Income Exclusion 204 204/2 Divide remaining by 2 =$102 Countable Earned Income -102 Contributed to PASS =$0 Adjusted Countable Income

*Calculations Example #3 SSI and earnings with a PASS $830.40 SSI Amount -0 Adjusted Countable Income=$830.40 Adjusted SSI Payment

Available Income $830.40 Adjusted SSI Payment+289 Earned Gross Income -102 Contributed Toward PASS$1,017.40 Total Spendable Monthly Income

Compared to $1,017.40 without a PASS plan

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Benefits of a PASS PlanOften notice no difference in available income with or without a PASS (depending on amount set aside)Ownership of items purchasedPersonal investment in employment goalsAbility to supplement services from other agencies; cover costs that other agencies cannotOffers alternative or supplement to traditional VR servicesAllows for self-directed employment planViable option for self-employment goals

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*PASS Specialists RoleMake decisions on PASS casesMonitor PASS and conduct Final AccountingsObtain necessary informationDiscuss modifications and amendmentsCoordinate with other service provider(s) when a mutual consumer is involved

*PASS Specialists RoleThe legislative history shows that Congress expressed a desire to provide every opportunity and encouragement to the blind and disabled to return to gainful employment. Congress intended that the PASS provision be liberally construed if necessary to accomplish these objectives

SI 008070.001.ADont Deny - Modify

*WRITING A PASS

*Writing a PASSPart I Your Work GoalPart II Medical/Vocational/Educational BackgroundPart III Your PlanPart IV ExpensesPart V Funding for Work GoalPart VI - Contacts Part VII - Remarks Part VIII - Agreements

ResourcesPASS Cadres: http://www.socialsecurity.gov/disabilityresearch/wi/passcadre.htm#sanfranciscoregionPASS Application: http://www.ssa.gov/online/ssa-545.htmlGeneral SSI/SSDI info and calculators: www.db101.orgTool kits, Webinars and other Resources: www.talentknowsnolimits.infoWork Incentive Planning and Assistance (WIPA) Projects: http://ssa.gov/work/WIPA.htmlDOR Contact: ttwinfo@dor.ca.gov

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*****************With $100 contribution toward his occupational goals and eventual self-sufficiency, this individual will still be receiving the SAME amount of income as if he wasnt putting anything aside.*****