Longitudinal Statistics on Work Activity and Use of Employment Supports for New Social Security Disability Insurance Beneficiaries

by Su Liu and David C. Stapleton
Social Security Bulletin, Vol. 71 No. 3, 2011
Text description for Chart 1.
Paths toward benefit termination for work for the 1996 award cohort, 1996–2006

Chart 1 shows the progression toward termination for work for the entire 1996 award cohort. The number of beneficiaries reaching the return-to-work markers and the percentage of the total cohort those figures represent are shown in the boxes. The routes through which beneficiaries reach each marker and how many beneficiaries follow the specific route from the previous marker are presented outside of the boxes. The bottom boxes show the status of beneficiaries in December 2006, the end of our study period.

We find that among the 591,493 awards in 1996, 46 percent of the awardees were on the rolls in December 2006, including 40 percent who did not use any DI work incentives. Of the 54 percent who were no longer on the rolls, most (50 percent of the cohort) had exited for reasons other than work—attainment of the FRA, death, or medical recovery. Of the 50 percent who exited the rolls for reasons other than for work, almost 98 percent were off the rolls in December 2006, and 2 percent had their benefits reinstated in the same period. Over 10 percent made some progress toward termination for work by completing the TWP. Of that figure, nearly 9 percent were terminated for reasons other than work, while 28 percent remained on the rolls in December 2006. A substantial majority of those who completed the TWP (63 percent, or 6.5 percent of the cohort) went on to have their benefits suspended for work in at least 1 month, and more than half of those eventually had their benefits terminated for work—3.7 percent of the cohort. Of the 63 percent who had their benefits suspended for work, about 19 percent went on to have their benefits terminated for reasons other than work, and 25 percent were back on the rolls in December 2006.

Nearly 27 percent of the 1996 awardees whose benefits were terminated for work in their first 10 years on the rolls had their benefits reinstated by December 2006, and 73 percent were off the rolls by the same period.

SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
NOTE: One return-to-work marker not captured here is service enrollment.
Table equivalent for Chart 2. Cumulative years with benefits suspended or terminated for work (per 1,000 beneficiaries) for the 1996 award cohort, by age group at award, 1996–2006
Year Age group at award
18–39 40–49 50–61 62–FRA
1996 0.20 0.09 0.08 0.00
1997 2.88 1.33 1.18 0.05
1998 11.03 5.09 3.96 0.14
1999 23.06 10.37 7.31 0.16
2000 37.64 16.57 10.69 0.16
2001 54.04 23.46 14.12 0.16
2002 71.30 30.71 17.27 0.16
2003 89.17 38.12 20.12 0.16
2004 107.51 45.51 22.65 0.16
2005 125.87 52.84 24.74 0.16
2006 144.03 59.91 26.40 0.16
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
NOTE: The contribution of the oldest age group is so small that it is not clearly visible on the chart.
Table equivalent for Chart 3. Cumulative percentage employed for the 1996 award cohort, by age group at award, 1998–2006
Year Age group at award
18–39 40–49 50–61 62–FRA All ages
1998 24.63 15.80 11.42 14.14 15.54
1999 31.23 19.50 13.36 17.00 18.98
2000 36.08 22.37 15.10 19.47 21.72
2001 38.99 24.17 16.35 20.81 23.48
2002 40.98 25.37 17.29 21.67 24.71
2003 42.50 26.36 18.11 22.22 25.71
2004 43.89 27.21 18.80 22.59 26.57
2005 45.10 27.92 19.42 22.94 27.32
2006 46.20 28.58 20.03 23.24 28.03
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
Table equivalent for Chart 4. Annual percentage employed for the 1996 award cohort, by age group at award, 1998–2006
Year Age group at award
18–39 40–49 50–61 62–FRA All ages
1998 24.63 15.80 11.42 14.14 15.54
1999 26.37 16.02 10.79 12.11 15.53
2000 27.85 16.55 10.68 10.99 15.85
2001 27.03 15.78 9.63 9.44 14.91
2002 25.77 15.00 8.86 7.81 13.98
2003 24.81 14.27 8.22 6.92 13.22
2004 24.41 13.66 7.56 5.97 12.61
2005 24.27 13.22 6.89 5.25 12.10
2006 24.13 12.85 6.42 4.69 11.73
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
Table equivalent for Chart 5. Mean annual earnings, by age group, 1998–2006 (in 2007 dollars)
Year Age group
18–39 40–49 50–61 62–FRA All ages
1998 2,953.67 2,286.95 1,501.41 1,757.81 2,003.48
1999 3,511.58 2,422.05 1,385.72 1,288.29 2,067.88
2000 4,055.75 2,552.67 1,301.52 1,323.52 2,180.77
2001 4,259.81 2,587.32 1,193.45 1,088.13 2,169.71
2002 4,292.73 2,528.67 1,105.88 914.43 2,111.62
2003 4,319.83 2,438.08 1,016.74 885.14 2,053.17
2004 4,375.48 2,353.10 914.60 744.49 1,986.99
2005 4,420.17 2,279.97 820.06 629.24 1,927.40
2006 4,488.11 2,210.19 760.75 532.68 1,890.95
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
Table equivalent for Chart 6. Mean annual earnings for those with positive earnings among the 1996 award cohort, by age group, 1998–2006 (in 2007 dollars)
Year Age group
18–39 40–49 50–61 62–FRA All ages
1998 9,458 11,526 10,102 9,716 10,160
1999 10,749 12,328 9,967 8,108 10,455
2000 12,002 12,690 9,509 9,154 10,675
2001 13,159 13,680 9,662 9,006 11,225
2002 13,957 14,113 9,810 9,118 11,591
2003 14,625 14,310 9,645 9,997 11,767
2004 15,092 14,422 9,363 9,488 11,726
2005 15,394 14,474 9,083 9,157 11,650
2006 15,790 14,416 9,027 8,692 11,664
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
Table equivalent for Chart 7. Age/sex-adjusted cumulative longitudinal work-incentive statistics for the 1996 award cohort, 1996–2006
Year Completed TWP Benefits suspended because of work for at least 1 month Benefits terminated because of work
1996 0.67 0.13 0.01
1997 2.67 1.10 0.03
1998 4.37 2.39 0.11
1999 5.65 3.36 0.33
2000 6.70 4.15 1.09
2001 7.22 4.76 1.77
2002 7.55 5.18 2.28
2003 7.83 5.52 2.72
2004 8.12 5.78 3.06
2005 8.40 6.01 3.31
2006 8.65 6.16 3.47
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
NOTE: Weights were used to adjust the series to reflect the age/sex composition of the 2001 award cohort. See the text for details.
Table equivalent for Chart 8. Cumulative longitudinal work-incentive statistics for the 1996 awardee cohort, by age group, 1996–2006
Year Completed TWP Benefits suspended because of work for at least 1 month Benefits terminated because of work
  18–39
1996 1.48 0.30 0.02
1997 5.88 2.46 0.09
1998 9.94 5.68 0.30
1999 13.10 8.25 0.89
2000 15.54 10.33 2.83
2001 16.72 11.91 4.71
2002 17.49 13.00 6.13
2003 18.13 13.86 7.38
2004 18.77 14.57 8.30
2005 19.43 15.20 8.98
2006 20.05 15.61 9.47
  40–49
1996 0.65 0.12 0.01
1997 2.82 1.21 0.04
1998 4.71 2.66 0.13
1999 6.15 3.78 0.38
2000 7.43 4.70 1.25
2001 8.13 5.43 2.00
2002 8.55 5.95 2.58
2003 8.90 6.34 3.09
2004 9.27 6.65 3.52
2005 9.66 6.91 3.83
2006 9.96 7.11 4.01
  50–61
1996 0.39 0.06 0.00
1997 1.46 0.57 0.01
1998 2.20 1.06 0.03
1999 2.71 1.38 0.11
2000 3.16 1.63 0.38
2001 3.36 1.83 0.59
2002 3.50 1.95 0.70
2003 3.62 2.06 0.81
2004 3.73 2.12 0.89
2005 3.83 2.18 0.93
2006 3.91 2.22 0.97
  62–FRA
1996 0.10 0.02 0.00
1997 0.51 0.18 0.00
1998 0.69 0.33 0.00
1999 0.70 0.34 0.00
2000 0.70 0.34 0.00
2001 0.70 0.34 0.00
2002 0.70 0.34 0.00
2003 0.70 0.34 0.00
2004 0.70 0.34 0.00
2005 0.70 0.34 0.00
2006 0.70 0.34 0.00
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
Table equivalent for Chart 9. Age/sex-adjusted cumulative work-incentive statistics for the 1996 award cohort, by state,1996–2006
State Benefits terminated because of work Benefits suspended because of work for at least 1 month Completed TWP Employed
South Dakota 5.66 3.35 7.55 24.96
Minnesota 5.95 4.06 6.29 24.41
North Dakota 3.73 4.39 6.32 25.39
Iowa 4.17 3.12 6.66 24.14
Wyoming 3.76 4.40 3.27 26.49
Wisconsin 4.78 3.68 5.83 23.21
Delaware 4.06 3.65 2.24 26.88
Colorado 5.05 3.81 3.45 24.38
Vermont 4.36 3.21 6.86 22.21
New Hampshire 4.97 3.71 6.13 21.71
Utah 4.74 3.15 3.73 24.50
Nebraska 4.22 3.18 5.29 22.94
Massachusetts 5.54 3.51 3.30 21.43
Kansas 4.42 3.16 4.54 21.66
Arizona 3.80 3.22 2.09 24.56
Michigan 3.99 2.81 2.60 24.09
Idaho 3.81 3.92 4.17 21.23
Montant 4.40 2.00 4.83 21.81
Alaska 4.51 3.19 2.66 22.66
Washington 4.62 3.40 3.32 20.49
Illinois 4.81 3.25 3.33 20.29
Connecticut 3.96 2.81 4.44 20.42
District of Columbia 5.18 3.24 1.73 21.25
Ohio 4.17 3.15 2.90 20.67
Missouri 3.11 3.04 3.73 20.79
Maine 3.36 2.97 3.62 20.46
Oregon 3.74 3.00 3.47 19.90
Indiana 3.51 2.62 3.45 19.80
Nevada 3.46 3.75 1.93 19.95
New Mexico 2.94 2.27 2.54 21.02
California 3.88 2.97 1.80 19.97
Rhode Island 3.65 2.79 3.61 18.50
Maryland 3.91 2.60 2.04 19.97
All states 3.47 2.73 2.40 19.40
North Carolina 2.74 2.24 2.14 19.88
Pennsylvania 3.40 2.45 2.52 18.57
New Jersey 3.85 2.64 1.79 18.42
New York 4.07 2.77 1.82 17.98
Florida 2.95 2.73 2.19 18.49
Texas 3.16 2.50 2.22 18.47
Virginia 3.10 2.54 2.57 17.79
Arkansas 2.27 2.00 2.39 18.88
Louisana 2.24 2.43 1.76 18.93
Oklahoma 2.26 2.56 2.14 17.84
Georgia 2.38 2.10 1.78 18.51
Tennessee 2.35 2.03 1.03 18.51
South Carolina 2.03 1.74 1.75 18.16
Hawaii 2.57 2.47 1.54 16.19
Kentucky 2.10 2.11 1.12 16.87
Mississippi 2.57 2.33 1.00 15.88
Alabama 1.87 1.74 1.44 16.03
West Virginia 1.74 1.51 1.37 14.13
Puerto Rico 0.45 0.45 0.51 8.18
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
NOTE: Weights were used to adjust each state's values to the age/sex composition of the national 2001 award cohort. See the text for details.
Table equivalent for Chart 10. Annual age/sex-adjusted percentage employed since the second postaward year, by award cohort year, 1998–2006
Year Award cohort year
1996 1997 1998 1999 2000 2001 2002 2003 2004
1998 15.54                
1999 15.53 15.95              
2000 15.85 16.31 16.42            
2001 14.91 15.35 15.55 15.79          
2002 13.98 14.39 14.69 14.92 15.41        
2003 13.22 13.65 13.90 14.24 14.64 14.93      
2004 12.61 13.11 13.41 13.80 14.31 14.58 14.88    
2005 12.10 12.61 12.95 13.37 13.90 14.30 14.60 14.56  
2006 11.73 12.25 12.66 13.18 13.77 14.25 14.74 14.74 14.68
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
NOTE: Weights were used to adjust the series to reflect the age/sex composition of the 2001 award cohort. See the text for details.
Table equivalent for Chart 11. Age-adjusted cumulative percentage with TWP completion, by award cohort year, 1996–2006
Year Award cohort year 2nd year 4th year
1996 1997 1998 1999 2000 2001 2002 2003 2004
1996 0.67                    
1997 2.67 0.77               2.67  
1998 4.37 3.03 0.84             3.03  
1999 5.65 4.84 3.09 0.85           3.09 5.65
2000 6.70 6.23 4.98 3.28 1.16         3.28 6.23
2001 7.22 6.89 5.88 4.50 2.87 0.51       2.87 5.88
2002 7.55 7.31 6.42 5.23 3.93 1.93 0.50     1.93 5.23
2003 7.83 7.65 6.85 5.78 4.70 3.05 1.93 0.51   1.93 4.70
2004 8.12 8.00 7.29 6.34 5.41 4.06 3.27 2.12 0.61 2.12 4.06
2005 8.40 8.35 7.72 6.89 6.10 4.98 4.50 3.68 2.35 2.35 4.50
2006 8.65 8.63 8.07 7.33 6.63 5.67 5.41 4.84 3.78 2.20 4.84
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
NOTE: Weights were used to adjust the series to reflect the age/sex composition of the 2001 award cohort. See the text for details.
Table equivalent for Chart 12. Cumulative age/sex-adjusted percentage with benefits suspended for work, by award cohort year, 1996–2006
Year Award cohort year 2nd year 4th year
1996 1997 1998 1999 2000 2001 2002 2003 2004
1996 0.13                    
1997 1.10 0.13               1.10  
1998 2.39 1.24 0.14             1.24  
1999 3.36 2.57 1.22 0.12           1.22 3.36
2000 4.15 3.60 2.52 1.19 0.15         1.19 3.60
2001 4.76 4.36 3.48 2.46 1.24 0.12       1.24 3.48
2002 5.18 4.85 4.09 3.22 2.27 0.97 0.11     0.97 3.22
2003 5.52 5.23 4.52 3.78 2.99 1.91 0.88 0.09   0.88 2.99
2004 5.78 5.55 4.90 4.25 3.56 2.66 1.82 0.80 0.10 0.80 2.66
2005 6.01 5.81 5.22 4.65 4.03 3.25 2.57 1.73 0.84 0.84 2.57
2006 6.16 6.01 5.44 4.95 4.37 3.67 3.11 2.40 1.63 0.76 2.40
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
NOTE: Weights were used to adjust the series to reflect the age/sex composition of the 2001 award cohort. See the text for details.
Table equivalent for Chart 13. Cumulative NSTW years per 1,000 age/sex-adjusted awardees, by award cohort year, 1996–2006
Year Award cohort year 4th year 6th year 8th year
1996 1997 1998 1999 2000 2001 2002 2003 2004
1996 0.35                      
1997 5.13 0.36                    
1998 19.05 5.78 0.38                  
1999 38.41 20.73 5.68 0.33           38.41    
2000 60.95 41.23 20.12 5.42 0.39         41.23    
2001 85.89 64.52 39.74 19.45 5.89 0.30       39.74 85.89  
2002 111.66 89.00 60.82 37.21 18.73 4.52 0.29     37.21 89.00  
2003 137.84 114.31 82.96 56.48 34.84 15.37 4.08 0.26   34.84 82.96 137.84
2004 164.08 140.18 106.34 77.23 52.87 30.06 14.30 3.69 0.26 30.06 77.23 140.18
2005 189.84 165.77 130.05 98.94 72.34 46.61 28.37 13.36 3.91 28.37 72.34 130.05
2006 214.71 190.68 153.32 120.71 92.37 64.06 43.97 26.60 13.15 26.60 64.06 120.71
SOURCE: Analysis of DI beneficiary records in the 2007 TRF.
NOTE: Weights were used to adjust the series to reflect the age/sex composition of the 2001 award cohort. See the text for details.