Benefit Offset National Demonstration (BOND)

Objective

The purpose of the Benefit Offset National Demonstration was to determine the effect of a benefit offset, in combination with and without enhanced counseling services, on employment outcomes including earnings and benefits. Beneficiaries in the demonstration receive a benefit offset, a $1 reduction in benefits for every $2 in earnings over substantial gainful activity, while a comparison group continued under normal disability rules. The goal was to determine if beneficiaries with disabilities would be encouraged to return to work if given a gradual reduction in their monthly benefit payments rather than a complete loss of payments under the current Social Security Disability Insurance (SSDI) program rules. Participants maintained ongoing eligibility for health care benefits and other supports linked to SSDI eligibility. 

Status

We awarded the contract for the implementation and evaluation of a four-state pilot program in 2005. Enrollment in the pilot began in August 2005.

We awarded the contract for the implementation and evaluation of the national project in December 2009. We completed start-up tasks in 2010 and began a three-month pilot of the Benefit Offset National Demonstration in January 2011. Full project implementation began in late April 2011 and ended September 2017. A final report was released in December 2018.

Participation in the pilot was limited to beneficiaries who receive only SSDI benefits. The pilot began in 2005 with four states: Connecticut, Utah, Vermont, and Wisconsin.

In 2011, we expanded implementation of the various treatments of the benefit offset program for SSDI-only beneficiaries and concurrent beneficiaries (i.e., those who receive both SSDI and SSI benefits based on disability) in ten sites around the country.  We selected these sites based on the geographic areas supported by our regions.

The BOND project had two stages. Offset treatment participants in both Stage One and Stage Two participated in BOND for a maximum of 60 months upon completion of a trial work period (TWP). Participants had to complete their TWP on or before September 30, 2017, to qualify for the project. We compared employment status, earnings, and benefits paid across the different groups to evaluate the effectiveness of the treatment groups.

Stage One: 968,530 beneficiaries (non-volunteers) assigned to two groups
- $1 for $2 offset and Work Incentives Counseling; or
- Control (no offset).
Stage Two: 12,744 beneficiaries (volunteers) assigned to three groups
- $1 for $2 offset and Work Incentives Counseling; or
- $1 for $2 offset with Enhanced Work Incentives Counseling; or
- Control (no offset).

The use of the benefit offset was modest, and enhanced counseling services had the same effect as regular counseling services. A benefit-cost analysis showed that the total cost of the benefit offset exceeded its total benefit.

Final Reports for the Pilot States
Connecticut
Utah
Vermont
Wisconsin

BOND Final Reports
BOND Final Evaluation Report (2018)
BOND Final Evaluation Report Appendices (2018)

Early Assessment Reports
BOND Stage-1 Early Assessment Report
BOND Stage-2 Early Assessment Report

Interim Reports

BOND Stage 1
BOND Stage-1 (2016) Interim Process, Participation, and Impact Report
BOND Stage-1 (2016) Interim Process, Participation, and Impact Report – One page Summary
BOND Stage-1 (2017) Interim Process, Participation, and Impact Report
BOND Stage-1 (2017) Interim Process, Participation, and Impact Report – One Page Summary

BOND Stage 2
BOND Stage-2 (2015) Interim Process, Participation, and Impact Report
BOND Stage-2 (2015) Interim Process Participation Report – One page Summary
BOND Stage-2 (2017) Interim Process, Participation, and Impact Report
BOND Stage-2 (2017) Interim Process, Participation, and Impact Report – One Page Summary

Snapshot Reports

BOND Stage 1
BOND Stage-1 (2013) Year 1 Snapshot Report
BOND Stage-1 (2014) Year 2 Snapshot Report
BOND Stage-1 (2015) Year 3 Snapshot Report
BOND Stage-1 (2019) Year 6 Snapshot Report
BOND Stage-1 (2019) Year 6 Snapshot Report -- One page Summary

BOND Stage 2
BOND Stage-2 (2014) Years 1 and 2 Snapshot Report
BOND Stage-2 (2017) Year 4 Snapshot Report
BOND Stage-2 (2017) Year 4 Snapshot Report - One Page Summary
BOND Stage-2 (2019) Year 6 Snapshot Report
BOND Stage-2 (2019) Year 6 Snapshot Report -- One page Summary

Planning Documents
BOND Design Report
BOND Evaluation Analysis Plan
BOND Process Analysis Report

Ancillary Research
Benefit Offset Simulation Model (BOSIM) Enhancement Design Report

Ancillary research using the Benefit Offset National Demonstration data and data from other sources to provide policymakers with additional information on the potential effects of a change in the SSDI program rules that would allow beneficiaries to work and keep a portion of their benefits. The ancillary research falls within two themes. The first is research that will allow us to produce better estimates on the potential for induced entry into the SSDI program resulting from a change in the SSDI program rules. The second is research that will allow us to produce better estimates on the effect of changes in the structure of a benefit offset on costs and benefits of a new SSDI benefit offset policy.

The Approaches to Evaluating Induced Entry paper describes the strengths and limitations of various research designs to estimate induced entry.

The Research Designs for Estimating Induced Entry report develops specific research designs to estimate induced entry.

Special Topics
BOND Implementation and Evaluation: Further Exploration of WIC and EWIC Services
BOND Implementation and Evaluation: Extending the Final Evaluation Report Results
BOND Implementation and Evaluation: Insights on Racial and Ethnic Equity
Exits from SSDI Benefits for Work and Medical Improvement and Post-Exit Experiences

"Effects on beneficiary employment and earnings of a graduated $1-for-$2 benefit offset for Social Security Disability Insurance ," Journal of Rehabilitation, April-June 2011.
"The impact of changing financial work incentives on the earnings of Social Security Disability Insurance (SSDI) beneficiaries," Journal of Policy Analysis and Management, vol. 30 no. 4, pp. 708-728.
"Supporting Work Effort of SSDI Beneficiaries: Implementation of Benefit Offset Pilot Demonstration," Journal of Disability Policy Studies.