Benefit Offset Four-State Pilot

Connecticut, Utah, Vermont, Wisconsin

August 2005

Summary

We designed the Benefit Offset Pilot to test a $1 reduction in SSDI benefits for every $2 in earnings in combination with employment supports, with the goal of helping beneficiaries with disabilities return to work.  The projects provide beneficiaries with a gradual reduction in their benefits, eliminating the normal abrupt loss of cash benefits in the SSDI program when a beneficiary works and has earnings over a specific amount.  Participants maintained ongoing eligibility for health care benefits and other supports linked to SSDI eligibility.  We used the results of the 4-State Pilots to inform the design and implementation of the National Benefit Offset Demonstration that we implemented in January 2011.

Detailed Description and Reports

View the Detailed Description of the Demonstration online.
Print out a Detailed Factsheet.

Individual State Final Reports:

Connecticut
Utah
Vermont
Wisconsin

Publications:

“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. Forthcoming.

Related Links

National Benefit Offset Demonstration
4 State SSDI Benefit Offset Pilot Website

On December 11, 2008 we published a notice in the Federal Register announcing our plans for a gradual phase-out of this project. Approximately 400 beneficiaries who completed their trial work periods by December 31, 2008 will continue in the project until the end of the special 72-month Extended Period of Eligibility. Beneficiaries who did not complete their trial work periods by December 31, 2008 returned to regular program rules effective January 1, 2009.  As of April 2011 there are 299 beneficiaries still in the pilot, with about 117 of them in benefit offset.