Rescinded 1984
SSR 81-7: Titles II and XVI: Substantial Gainful
Activity Earnings Guidelines After 1977
SSR 81-7
PURPOSE:
To state substantial gainful activity (SGA) guidelines which increase the amount an individual disabled by an impairment(s) other than blindness can earn and still be considered disabled for purposes of receiving disability benefits under title II and title XVI.
CITATIONS (AUTHORITY):
Sections 223(d) and 1614(a)(3)(D) of the Social Security Act; Regulations No. 4, section 404.1574(b) and Regulation No. 16, section 416.974(b).
PERTINENT HISTORY:
The Secretary is directed by statute to prescribe the criteria for determining when services performed or earnings derived from services demonstrate a person's ability to engage in SGA. In the past, the Secretary has from time to time issued regulations containing earnings guidelines with upper and lower dollar amounts to assist in evaluating work activity. In the absence of evidence to the contrary, monthly earnings from work which average more than the upper guideline amount show ability to engage in SGA. Monthly earnings averaging less than the lower guideline amount do not show ability to engage in SGA. Where monthly earnings average between the upper and lower guideline amounts, inclusively, we determine SGA on an individual basis by evaluating the amount of earnings together with the nature and circumstances of the work activity and the person's nature and circumstances of the work activity and the person's impairment(s). The upper and lower guideline amount for 1977 were $240 and $160, respectively. Additional increases were needed for calendar years after 1977 in order to maintain the monthly guideline amounts at a level consistent with national earnings levels so that the guidelines would continue to be indicative of ability to engage in SGA. The increase in the SGA dollar amounts for calendar year 1978 was determined by multiplying each of the guideline amounts effective during 1977 by the ratio of: (1) the average amount, per employee, of the taxable wages of all employees as reported to the Secretary for the first calendar quarter of 1976; to (2) the average amount of such wages reported for the first calendar quarter of 1975. The resulting product was rounded to the nearest multiple of $10.
The SGA dollar amounts for calendar year 1979 were determined by multiplying each of the guideline amounts effective for 1978 by the ratio of: (1) the average amount, per employee, of the taxable wages of all employees as reported to the Secretary for the first calendar quarter of 1977; to (2) the average amount of such wages reported for the first calendar quarter of 1976. The resulting product was rounded to the nearest multiple of $10. The average amount of taxable wages per employee for the first quarter of 1977 was $2444.86. For the first quarter of 1976, it was $2306.62. The ratio of average wages reported for the first quarter of 1976 was, therefore, 1.0599318. Multiplying the upper guideline amount in effect during 1978 ($260) by the ratio of 1.0599318 produced the amount of $275.58, which was then rounded to $280. The lower guideline amount of $170 multiplied by 1.0599318 produced $180.18, which was rounded to $180.
The SGA dollar amounts for calendar years after 1979 were determined by multiplying each of the guideline amounts effective for 1979 by the ratio of: (1) the average amount, per employee, of the taxable wages of all employees as reported to the Secretary for 1978; to (2) the average amount of such wages reported for 1977. The resulting product was rounded to the nearest multiple of $10. The average amount of taxable wages per employee for 1978 was $10,566.03. For 1977, it was $9,779.44. The ratio of average wages reported for 1978 to average taxable wages reported for 1977 was, therefore, 1.079410. Multiplying the upper guideline amount in effective during 1979 ($280) by the ratio of 1.079410 produced the amount of $302.23, which was then rounded to $300. The lower guideline amount of $180 multiplied by 1.079410 produced $194.29, which was rounded to $190.
POLICY STATEMENT:
The upper and lower SGA dollar guidelines for evaluating the work activity of title II and XVI disability claimants and beneficiaries disabled by impairments other than blindness are $260 and $170 per month for earnings in months in calendar year 1978, $280 and $180 per month for earnings in months in calendar year 1979 and $300 and $190 for earnings in months in calendar years after 1979.
EFFECTIVE DATE:
The $260/$170 SGA guideline is effective for earnings in calendar year 1978; the $280/$180 SGA guideline is effective for earnings in calendar year 1979; and the $300/$190 SGA guideline is effective for earnings in calendar years after 1979. The higher earnings amounts apply in the adjudication of any disability claim involving earnings by a claimant on or after January 1, of the year in which the higher amounts are effective.
FURTHER INFORMATION:
Final regulations establishing the 1978 and 1979 SGA guidelines were published in the Federal Register on August 20, 1980, at 45 FR 55566. Interim regulations establishing the SGA guidelines for calendar years after 1979 were published in the Federal Register on March 18, 1980, at 45 FR 17131.
CROSS-REFERENCES:
Program Operations Manual section 2051; Claims Manual sections 6400ff, T6400, A6400 and A6736.2; Disability Operating Manual section 630.