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Deciding between PASS and IRWE | |
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At a Glance
Many items or services that are allowable under a PASS may also meet criteria for exclusion as an IRWE. However, items or services may be excluded only under one of these two work incentive provisions at a time when computing the amount of the SSI cash benefit to be received! When items or services meet criteria for both PASS and IRWE, it is better to establish a PASS because of the order in which these two exclusions are applied in the SSI benefit computation. SEE CALCULATIONS |
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Many
items or services that are allowable under a PASS may also meet criteria for
exclusion as an IRWE. It is not possible to set aside earnings under a PASS
to purchase job coach services and at the same time subtract the expense of
these services from monthly gross wages as an IRWE. At any given time, the expense
of job coach services may be either a PASS or an IRWE for SSI cash benefit computation
purposes. However, if the PASS goal has already been attained, it must be computed
as an IRWE.
When items or services meet criteria for both PASS and IRWE, it is better to establish a PASS because of the order in which these two exclusions are applied in the SSI benefit computation. An example of a vocational goal-related service calculated as an IRWE first and then as a PASS may best demonstrate the differences between the two work incentives. Two examples follow:
Calculating IRWE and PASS
John must purchase job coaching services to assist in initial job training.
The expense is $100 per month. This expense meets criteria for exclusion under
both IRWE and PASS. John receives $456.50 a month in SSI and earns $300 in gross
wages. His current monthly income is $756.50 from these sources. Once the expense
is paid for over and above his SSI check, John's spendable income is $656.50.
The difference in the methods of calcu-lating IRWE and PASS results in a 100% reimbursement of job coaching expense under PASS, and only a 50% reimbursement of the same expense under IRWE. As illustrated, it would be better for John to establish a PASS to pay for this expense. Some items established as a PASS may be switched to IRWE when the PASS exclusion is no longer available. Remember that it is usually better to use the PASS work incentive instead of the IRWE. Both options should be investigated with the assistance of the local SSA office to determine the best option for each situation.
The difference in the methods of calculating IRWE and PASS results in a 100%
reimbursement of job coaching expense under PASS, and only a 50% reimbursement
of the same expense under IRWE. As illustrated, it would be better for John
to establish a PASS to pay for this expense. Some items established as a PASS
may be switched to IRWE when the PASS exclusion is no longer available. Remember
that it is usually better to use the PASS work incentive instead of the IRWE.
Both options should be investigated with the assistance of the local SSA office
to determine the best option for each situation.
It is permissible to have a PASS for one or more expenses
and at the same time have an IRWE for other work-related expenses not covered by the PASS.
