Changes in SSI and SSDI Benefits for 2015

 Changes in SSI and SSDI Benefits for 2015

By Ted Walner, Peer Advocate, Brooklyn Peer Advocacy Center, Baltic Street AEH, Inc.

With the recent onset of 2015, the Social Security Administration has made changes in the amounts we receive as well as in the amounts we can earn to qualify for benefits. Firstly there has been a 1.7% increase to the beneficiaries. This is a slightly higher increase than that of the previous year.

The monthly maximum amount of SSI has increased from $721 per month to $733 for an individual. It has also increased to $1,100 per month for a couple from $1,082 previously. The allowable assets for SSI remain the same. They are $2000 for an individual and $3000 for a couple.

A person receiving SSDI must earn less than $1,090 per month to qualify for benefits. This is an increase from $1070 per month last year. A trial work period for an SSDI recipient will count if they earn over $780 per month. This is also increased from $770 per month, last year.

I hope these changes are easy to understand. Basically entitlements have gone up for the New Year. Enjoy the increase and spend wisely!  

WORK: What’s It Worth When You’re On SSDI or SSI by Carl Blumenthal

WORK: What’s It Worth When You’re On SSDI or SSI
By Carl Blumenthal
Why work? Obviously, to make money for the basics and little luxuries of life. In addition, gainful employment defines social acceptance.

Fortunately, even if you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), you can earn more with a job because the Social Security Administration (SSA) allows you to work within some limits, to help with the transition to self-sufficiency. Thus, you can add to the average SSDI monthly payment nationally of $1,130 (2013) or $808 (2014) for a New York SSI recipient living alone.

For those on SSDI, nine Trial Work Periods (TWP's) of a month each are allowed over five years, to get your feet wet if you haven't worked in a long time. During those TWP's, you can gain as much income as possible without losing your full benefits. (So, if you become a car salesman, you can keep all those juicy commissions.)

For 2014, a TWP consists of more than $770 per month. Less than that, you don't use up any of the nine TWP's you're allowed. And, you can still make up to $1,070 per month, what's called Substantial Gainful Activity (SGA), and get your full benefits for up to three years, after you've completed the nine TWP's.

For folks on SSI, the Social Security Administration (SSA) basically subtracts $1 from your check for every $2 in extra income. This is a simplification because SSA excludes the first $85 of your earnings when calculating your change in benefits. 

Say your monthly benefit is $808 and you get $1,085 a month at a new job. Your benefit would be reduced by $500 for that period ($1,085-$85=$1,000/2=$500), but given the extra $1,085, that's still a total of $1,393 ($808-$500=$308+$1,085=$1,393), so you come out way ahead.

To be on the safe side, if you want to continue SOME benefits, don't earn more than twice your monthly SSI level. Certainly, that's not as good a deal as SSDI recipients get. But, you'll do better in the in the long run through employment.
Why do the two programs treat people differently?

Because SSDI is based on the amount of on-the-books past employment. To be eligible, you must have earned at least $4,800 for each of 10 recent years. Like Medicare, which SSDI recipients also receive, SSDI is a government-run insurance program, supported mainly by deductions from workers’ paychecks.

SSI is an income supplement for disabled people with little or no money, which automatically qualifies you for Medicaid. Usually, SSI recipients have not worked enough to qualify for SSDI. Because the program is supported by general tax revenues, not Social Security taxes withheld from wages, Congress made the rules less generous for people who work on SSI.
However, money isn't the only reason to work: That's why the federal government's Eight Dimensions of Wellness (for people with mental health or substance abuse challenges) include one dimension for finances and one for employment. You get satisfaction and self-confidence from being employed.

As Sigmund Freud famously said, "Love and work are the cornerstones of our humanness." Plus, the boredom and frustration of doing nothing can lead to all kinds of mischief, not only in your head but also in your home and on the street. So, one of the best ways to get and stay busy is to work, whether for pay or volunteer.

Finally, here are two notes of warning: Report your earnings regularly to your local SSA office to avoid overpayments you might be obligated to return and also inform SSA of an improvement in your medical condition such that you no longer qualify as disabled. In the latter case, enrollment in a Ticket-to-Work or other rehabilitation program could postpone a required SSA medical re-evaluation.

(For information about Ticket-to-Work and other Social Security work incentives, including how to maintain Medicare or Medicaid, see the Coalition of Behavioral Health Agencies’ newly-revised WORKbook: A Guide to New York City’s Mental Health Employment Programs. Call 212-742-1600 for a free copy or see the guide at www.coalitionny.org.)

Note: Carl Blumenthal is a former employment specialist with NetWORK plus, Baltic Street AEH’s assisted competitive employment (ACE) program. He receives SSDI and works part-time at the Center for Environmental Therapeutics (www.cet.org).

SSI, SSD and Employment: What You Need to Know

SSI, SSD and Employment: What You Need to Know

By Tim Deal, Paralegal, MFY Legal Services, Inc.

PART ONE

The Importance of and Barriers to Employment

Entering, remaining in, or returning to the workforce is an important goal for many people experiencing mental illness. In addition to the financial benefits of earning employment income, there are many other benefits to working. For many people, employment is a vital part of the recovery process.

Unfortunately, as they seek to join the workforce, some people find themselves confronted by a variety of barriers. One serious barrier is a fear of losing their Supplemental Security Income (SSI) or Social Security Disability (SSD) benefits. Another barrier is fear of Social Security overpayments. Overpayments occur when the Social Security Administration (Social Security) alleges they mistakenly increased a recipient’s payment and then decrease that recipient’s SSI or SSD payments until Social Security has been recouped, paid back for their supposed overpayment.

MFY’s New Employment Initiative

MFY Legal Services has provided free civil legal assistance to low-income New Yorkers for over 50 years. The Mental Health Law Project at MFY has been helping New Yorkers with mental illness with civil legal issues since 1983. At MFY, we recognize both the importance of employment for people with mental illness and the seriousness of these Social Security-related barriers to work. In response, the Mental Health Law Project started a new initiative to support the employment goals of people with mental illness. We want to encourage employment by letting people know that they can work while receiving SSI and SSD. In fact, if they do, in most cases they will end up in a better financial situation.

Additionally, our employment initiative seeks to address Social Security overpayments in two ways. First, we want to help prevent overpayments from happening in the first place by educating people on Social Security’s reporting requirements. And, for those who have already received notice of an overpayment, we want to assist them in the overpayment appeal process by helping complete the appropriate Social Security form, and when possible, helping to negotiate with Social Security and appearing at Social Security hearings.

In what follows, we hope that readers will gain an understanding of how employment affects SSI and SSD, as well as what they need to do to prevent and fight overpayments. People who receive both SSI and SSD face a more complicated situation, because they have to deal with both sets of rules; SSI rules apply to the SSI money they receive, while

SSD rules apply to the SSD money they receive.

How Employment Affects SSI and SSD

One of the most common questions we hear is, “How exactly does my work income affect my Social Security benefits?” Social Security’s rules for how employment affects SSI and SSD are very complex. However, there are some general rules to keep in mind when going back to work while receiving Social Security benefits.

Employment and SSI

For people receiving SSI, Social Security adjusts their SSI checks every month that they earn work income. Here is how it works: Social Security wants to know how much money SSI recipients receive in total from work each month before taxes. Once they know this amount, they do a few things. In general, Social Security will ignore the first $85 that an SSI recipient earns at work each month. Then they will cut what remains in half. This amount is what Social Security deducts from the SSI check. The key here is that Social Security does not deduct an SSI recipient’s work income dollar-for-dollar from their check so, if they work, they will end up bringing home more money. In 2014, most people who receive SSI can earn up to $1,700 per month and continue to be eligible for at least some money in their SSI check.

Example One: Let’s say Ms. Smith is an SSI recipient who begins earning $685 a month at work. Social Security will ignore the first $85 dollars that she earns, reducing the amount of employment income it considers from $685 to $600. Then they will cut that $600 in half, bringing it down to $300. This $300 is what they will deduct from Ms. Smith’s check. So, if she receive $808 in her SSI check before working, that amount will be lowered to $508. The important thing to remember is that, in this example, Ms. Smith is earning $685 and receiving an SSI check for $508, increasing her monthly income to $1,193.

This article has been split into two parts. In part two, we will discuss how employment earnings and SSD work together, showing in several examples how various incomes and SSD payments add up. We will also discuss preventing and fighting overpayments.

Contacting MFY

If you have any questions about how working effects SSI and SSD, or if you would like assistance appealing an existing work-related overpayment, MFY’s Mental Health Law Project is here to help. Our intake line is (212) 417-3830. That line is opened Mondays, Tuesdays and Thursdays from 10:00 AM to 5:00 PM.

How Alimony Payments Effect SSD and SSI

By Maro Constantinou, Staff Attorney, MFY Legal Services

Question: Do I have to report an award of alimony to the Social Security Administration if I receive Social Security Disability (SSD) or Supplemental Security Income (SSI) benefits?

Answer: The reporting requirements are different for SSD and SSI benefits. If you only receive SSD benefits then there is no obligation to report to Social Security because SSD is not a needs-based program.

If you receive SSI, you must report the amount of alimony you are receiving to Social Security. Since SSI is a needs-based benefit, Social Security looks at all sources of income to determine eligibility for SSI benefits. Alimony is considered income and will impact a beneficiary’s SSI payment.

You can notify Social Security orally or in writing, but it is better to do so in writing. You should send a letter by certified mail, return receipt requested, to your local Social Security Office. Keep a record of your letter and save proof of mailing. Include your name, social security number, the amount you received and the date you received it. You must report the receipt of alimony within 10 days after the close of the month in which you receive the monies. For example, if you receive an alimony payment on July 3^rd, you must report it to the Social Security by August 10^th. Social Security can impose a penalty and deduct money from your benefits if you do not make a timely report.

Question: How will receipt of alimony affect my SSI benefits?

Answer: Social Security considers alimony to be unearned income and will reduce your SSI benefits. The amount of the reduction depends on the amount of alimony you receive. Generally the first $20 is disregarded and then Social Security will deduct the amount of alimony from your SSI benefit dollar for dollar. For example, if you receive $60 per month in alimony, the first $20 may be disregarded (if no other income is disregarded) and the remaining $40 in alimony will reduce your SSI total amount by $40. If the alimony amount is high enough, you may cease to be eligible for SSI benefits all together.