Since the beginning of the SSI program, a number of disabled or blind recipients have worked and received SSI payments. Initially, the program contained a basic
earned income exclusion that recognized the additional costs associated with employment. In addition, the law contained a number of special income exclusions designed to encourage work. The income exclusion for
blind work expenses (BWE),
plan to achieve self-support (PASS), and
student earned income exclusion (SEIE) were among these provisions.
We discuss the incentives for work and opportunities for rehabilitation in more detail in section III.E. In the following tables we provide historical information on participation by SSI recipients in work incentive programs.
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In this section, we present historical data on participation by SSI recipients in work incentive programs. Table
V.E1 presents historical numbers of SSI recipients categorized according to their section 1619 status. Figure
V.E1 presents this information in graphical form.
Table V.E2 presents historical numbers of SSI recipients who benefit from other selected work incentive provisions: (1) plan to achieve self-support (PASS); (2) impairment-related work expense exclusion (IRWE); and (3) blind work expense exclusion (BWE). These recipients may be benefiting from more than one of these selected work incentive provisions. This information is available only for calendar years 1990 and later.
Provisions designed to make vocational rehabilitation (VR) services available to SSI blind or disabled recipients have been part of the SSI program since its inception. From the beginning, SSA referred SSI recipients to State VR agencies, which provided services to those recipients they accepted as clients. Prior to 1981, SSA made block grants to VR agencies to fund services to disabled beneficiaries. The 1981 amendments changed this and established a “cost” reimbursement provision. Under this provision, we reimburse VR agencies for the cost of VR services furnished to blind or disabled SSI recipients only if the services result in the recipient returning to work. For reimbursement purposes, we consider recipients to have returned to work if they have had earnings exceeding the SGA level for 9 continuous months.
The 1984 amendments authorized reimbursement for cases
b where the recipient medically recovers while engaged in a program of rehabilitation services approved by SSA and SSA determines that continuation or completion of such a program would increase the likelihood the individual will permanently leave the rolls. The 1990 amendments authorized reimbursement for the cost of services the VR agencies provide in months in which the individual is not receiving Federal SSI benefits if the individual:
In 1994, SSA amended the regulations to include reimbursement to alternate private and non-State public VR providers (“alternate participants”) that provided VR services to recipients that a State VR agency had not accepted as clients. The Ticket to Work and Work Incentives Improvement Act of 1999 subsequently replaced the alternate provider program with the Ticket to Work and Self-Sufficiency program (Ticket to Work program).
Under the Ticket to Work program, a disabled beneficiary may obtain vocational rehabilitation, employment and other support services from qualified private or public providers — “Employment Networks” (ENs). The Ticket to Work program authorized the Commissioner to provide payments to ENs under either an outcome payment system or an outcome-milestone payment system.
c By expanding the pool of providers and giving the providers incentives for achieving success, this program expands access to these services for persons with disabilities to assist them in finding, entering, and retaining employment as well as reducing their dependence on cash benefits.
Beginning in February 2002, SSA implemented the Ticket to Work program on a State-by-State basis and completed implementation in September 2004. As we implemented the Ticket to Work program in a State, we eliminated the alternate provider and the traditional VR referral process described earlier. SSA provides eligible individuals who received SSI benefits due to blindness or disability in such a State with Ticket to Work services. Ticket-eligible beneficiaries may obtain vocational rehabilitation services, employment services, and other support services needed to return to work or go to work for the first time from ENs or their State VR agencies. Individuals not eligible for a ticket may still request services from a State VR agency; the VR agency continues to decide whether each beneficiary is eligible for services under the Rehabilitation Act of 1973.
The Ticket legislation required that SSA establish a corps of work incentives specialists to disseminate accurate information about work incentives. In addition, the Social Security Protection Act of 2004 mandated that SSA provide a work report receipt to the beneficiary. SSA responded to these mandates with the following actions:
In fiscal year 2003, AWIC employees provided refresher training on employment supports to the local Work Incentive Liaisons (WIL) located in each of the local field offices. Beginning in fiscal year 2004, SSA updated the systems application phase of this training with the release of eWork. We provided training to all direct service employees in field offices, teleservice centers and the payment processing centers. We completed this training initiative in November 2004.
AWICs have also been very active in participating in outreach activities in their local areas and continue to be the primary point of contact for public information outreach in the communities. They have strengthened the relationship with our Ticket to Work partners: the ENs; WIPAs; Protection and Advocacy (P&A) agencies and Disability Program Navigators. AWICs also work closely with the regional plan to achieve self-support (PASS) cadres in SSA to make joint educational presentations to the community about our employment support programs. The partnership has strengthened support of one of the objectives of the Ticket to Work program, which is to educate the public about the benefits of returning to work and becoming self-sufficient. We have made presentations directly to persons with disabilities and entities that provide services to this target group, including presentations at:
In 2008, SSA revised the Ticket to Work regulations to enhance beneficiary choice and improve the effectiveness of the program. The revisions extended the program to all adult
OASDI disabled and SSI blind or disabled beneficiaries, removed disincentives for Employment Networks to participate in the program, provided incentives for them to support beneficiaries through a more gradual return to work, and positioned them to better support ongoing retention of employment. Since we published the new regulations, SSA has noted promising trends:
Table V.E4 provides historical data on the number of VR agency reimbursement claims allowed and the amount of such
awards for SSI recipients.
In a somewhat broader context of providing work incentives for disabled beneficiaries of both the OASDI and SSI programs, the President’s FY 2013 Budget contains a proposal to test a framework for simplifying the rather complicated array of work incentives available under the OASDI program. Under the proposed Work Incentives Simplification Program (WISP), we would treat earnings of OASDI disabled beneficiaries more like the treatment of earnings for SSI disabled adults under SSI.
