| Overview of Social Security Disability Programs
and Work Incentives slide 2
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Lesson 6: Long Term Supports
Funding
Overview of Social Security Disability Programs and Work Incentives - Slide 2
Social Security Disability Insurance
Trial Work Period
2006 = $620
2007 = $640
2008 = $670
2009 = $700
2010 = $700
Social Security Disability or SSDI enables former workers who become disabled and are unable to continue working to receive monthly cash benefits and Medicare Insurance. This program is for former workers and dependents of a retired, deceased, or disabled worker. This includes children under 18 and disabled children over 18 if they acquired their disability prior to age 22.
This program is not based on economic need. So, there are no restrictions on unearned income limitations (such as savings accounts, child support or alimony, workers compensation, or unemployment compensation). The amount of the SSDI benefit is dependent on the level of contributions made to the program, which varies from person to person. I am sure you have noticed on your pay stubs the Social Security deduction. This is your contribution.
It is important to remember that SSDI is an all or nothing benefit. There is no gradual reduction of benefits based on earnings. You either receive a cash benefit or you don’t.
Individuals who receive SSDI based on disability are entitled to what is called a Trial Work Period or TWP. This provides the individual with an opportunity to test their work skills while maintaining full benefit checks regardless of the amount of income they earn during those months. The TWP is considered a work incentive and begins the first month the individual is entitled to SSDI benefits or files an application for disability benefits.
Effective January 1, 2010, only months during which an individual earns over $700 are service months and count as Trial Work Period months. This figure has not always been $700 per month. In 2008, months in which an individual earned over $670 were considered service months.
Now that you know what the Trial work period is, when it starts, and what constitutes a service month, you are probably asking yourself, well when does it end? How long does the individual get to earn as much as they want with out losing their cash benefit?
The TWP ends only if the
individual as has performed 9 months of trial work with in a rolling period
of 60 months. These months have to be tracked very carefully. The Social Security
Administration can help you determine if an individual has used all of their
Trial work months or how many they have used. The catch to this is that SSA
can only do this if the individual has accurately reported their earnings to
SSA.
Another important tip is that for SSDI beneficiaries, Social Security counts
the gross monthly income EARNED in the calendar month, rather than what was
actually received, based on pay dates.