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Calculating a PASS | |
In the examples below the person being detailed is single and lives alone. We
outline what their usable monthly income is under four different scenarios:
not working and collecting SSI/SSDI; working without a PASS; working with
a PASS; and, increased earning potential after completing a PASS.
Scenario One: Not working but collecting SSI and SSDI
Chris Receives $220.00 a month from SSDI and has chosen not to work. To calculate the amount of SSI Chris might be eligible for, SSA subtracts a $20.00 General Income Exclusion from the $220.00 SSDI check leaving countable unearned income of $200.00. This amount is then subtracted from the 2006 FBR of $603.00 making Chris eligible for a $403.00 SSI check. It is easy to see that Chris will have to live on an extremely tight monthly budget of $623.00.
Scenario Two: Working but not using a PASS
Chris continues to receive a $220.00 SSDI check although decided to take a job and is earning $462.00 a month. SSA calculates his countable unearned income the same way as in Scenario One leaving Chris with $200.00 in countable unearned income. SSA then takes the earnings of $462.00 a month and subtracts a $65.00 Earned Income Disregard leaving Chris with a countable earned income of $397.00. SSA then divides this by 2 (reducing benefits $1.00 for every $2.00 earned) giving Chris total countable earned income of $198.50. This amount is then added to the $200.00 total countable unearned income giving Chris a total countable income of $398.50. This amount is then subtracted from the 2006 FBR of $603.00 leaving Chris with an adjusted SSI check of $204.50. As the figures reflect, Chris earns $263.50 more a month by working. However, with some additional training and support Chris could land a better job thus increasing his earning potential and independence.
Scenario Three: Working and using a PASS
In this scenario Chris continues to receive SSDI with his total countable unearned income being $200.00 as calculated in Scenario One. Chris continues receiving $462.00 a month in wages although has decided to apply for a PASS to cover costs associated with getting training to secure a job that pays almost one and a half times as much as the current job. Chris' job coach training will cost $150.00 a month. As in Scenario Two, SSA calculates the total countable earned income the same way and adds the total countable unearned income to this. Here is the difference though, prior to subtracting the total countable income of $398.50 from the FBR, SSA excludes the amount set aside in a PASS ($150.00) leaving a total countable income of $248.50. This is then subtracted from the 2006 FBR of $603.00 leaving an adjusted SSI check of $354.50. As noted, Chris' useable monthly income has increased yet another $150.00 to cover costs associated with achieving Chris' occupational objective as outlined in the PASS.
Keep in mind in Scenario Two and Three that Chris will use a trial work period month for every month that earnings exceed $200.00. After using nine trial work period months within a 60-month rolling window SSA will evaluate Chris' work to see if substantial gainful activity is being engaged in SGA - earnings in excess of $860 ($1450 if blind).
Scenario Four: Increased earning potential
As a result of using a PASS and completing on-the-job training with a job coach after 18 months Chris' earnings will have increased. Chris would still be eligible for a $103.00 SSI check. Even if earnings increased beyond the break-even point, Chris could still maintain medical coverage (Medicaid) under the 1619(b) provision as long as certain criteria were met.
