| Overview of Social Security Disability Programs
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Overview of Social Security Disability Programs and Work Incentives - slide 15
PASS
Resources
Earned Income
Unearned Income
This is how it works: The SSI amount is increased (or individuals are made eligible for SSI when they would not be under the regular SSI rules), by excluding certain income or assets (also called resources), which would have to be counted under the regular SSI rules. Income and resources, which normally would reduce SSI or prevent eligibility can be ignored if they are listed in the PASS and used towards occupational objectives. The extra SSI helps pay for their other living expenses (i.e. food, clothing, and shelter).
The income and/or resources set aside in a PASS are not counted in determining eligibility for SSI or in calculating the amount of the SSI benefit that individuals will receive. In determining SSI eligibility, individuals must meet an income and resources test. If their income (including earnings and unearned income such as SSDI) and/or resources are too high, they will not be eligible for SSI. However, by excluding this income and/or resources in a PASS, individuals could meet the income and resources test, thus potentially qualifying for SSI. Likewise, individuals already receiving SSI can maintain or increase their SSI cash benefit by excluding income/resources in a PASS to be used in reaching their employment goal.
Earned and Unearned Income
Individuals who have both earned and unearned income, can set aside either or both of these incomes to establish or increase SSI cash benefits.
Earned Income:
If individuals who receive SSI were to go to work, their new earnings would result in the SSI check being reduced. Recipients= SSI checks would normally be reduced by the earnings minus allowable exclusions (known as the countable earned income). By setting aside new earnings that would normally reduce the SSI check, individuals are provided an opportunity to purchase the goods and services needed to work.
Unearned Income:
Individuals who have only unearned income in the form of SSDI or another type of pension may also benefit from the PASS work incentive. Depending on the amount of their countable unearned income, individuals may not be eligible for SSI, or if eligible be receiving a reduced SSI check (for example they would not be receiving the maximum FBR.) By setting aside a portion or all of this countable unearned income in the PASS, individuals may become eligible for SSI or increase the amount of the SSI check they are currently receiving.