Overview of Social Security Disability Programs and Work Incentives - slide 3
Substantial Gainful Activity
2006 = $860 ($1450/blind)
2007 = $900 ($1500/blind)
2008 = $940 ($1570/blind)
2009 = $980 ($1640/blind)
2010 = $980 ($1640/blind)
Extended Period of Eligibility
36 Consecutive Months
Cessation Month
Grace Period
At this point it is important that you understand the term Substantial Gainful Activity. You will hear this term a lot when you are dealing with the Social Security Administration. Substantial Gainful Activity implies that an individual is performing significant mental of physical duties for profit, and are, therefore, demonstrating the ability to work in spite of their disabling impairment.
In 2010, in order to be determined earning SGA, an individual must earn over $980 per month. In 2008, the SGA figure was $940. And prior to 2008, the amount was even less! One important thing to remember is that individuals who are blind have a higher SGA amount and for 2010 the figure is $1640.
Now that you understand the meaning of SGA, we can continue our discussion. Let’s pick up where we left off. At the end of the individual’s Trial Work Period, as long as they continue to have their original disabling condition, a 36-month Extended Period of Eligibility or EPE begins. The EPE begins the first month following the last month of the Trial work period. During the EPE an individual will receive a cash benefit when their earnings fall below Substantial Gainful Activity. The first month in the Extended Period of eligibility that the individual earns over SGA is called the “cessation month”. The individual will receive their benefit payment that month and the next 2 months. These additional 2 months are called the grace period. During the EPE, individuals are due an SSDI payment for any month they do not work or when their work earnings fall below the SGA level.
It is important to know that during the EPE, the individual does not have to file a new application for their benefits to resume. They do however need to notify SSA that their earnings have decreased. It is absolutely critical that individuals consistently and accurately report to SSA monthly fluctuations in earnings. This helps the person avoid overpayments and underpayments of Social Security benefits.