Incentives that Work
Social Security work incentives are regulations that make it possible for people who receive disability benefits to work without losing their benefits. There are different rules for SSI and SSDI, yet both programs have conditions that allow a person time to test his or her ability to work without losing money and health coverage.
What happens to SSDI if a person works?
The SSDI work incentives consist of a series of timelines that allow a worker to gradually move into the workforce.
The first timeline, the Trial Work Period, allows employment without a loss of benefits.
The next timeline, the Extended Period of Eligibility, provides a safety net when earnings fall below a predetermined level due to an impairment.
The final timeline allows for ongoing Medicare coverage as well as the ability to easily return to benefits if needed.
What is the Trial Work Period?
The Trial Work Period is the first timeline under the SSDI work incentives. When a person earns more than the Trial Work Period permits — $700 in 2009 — the Social Security Administration considers this a Trial Work Month. A worker is permitted nine Trial Work months within five years. During the Trial Work Period, full cash and Medicare benefits will continue. Trial Work months do not need to be consecutive.
How will a person know when all nine Trial Work months have been used?
A person is responsible for keeping track of trial work months. Social Security will have records of earnings from the IRS, but will not inform the beneficiary when the trial period has expired. By keeping track of his of her own months, the worker will know when the Extended Period of Eligibility, a period that has different rules, has begun.
What is the Extended Period of Eligibility?
The Extended Period of Eligibility (EPE) begins immediately after the ninth Trial Work Month and continues for three years, or 36 consecutive months. During the EPE, the worker will continue to receive Medicare coverage. However, a check will only be issued if earnings are below substantial gainful activity, or SGA.
What is SGA?
Substantial gainful activity, or SGA, is a term used by SSA to describe a level of work activity and earnings. If a person receives SSDI benefits based on disability, SGA determines if the disability when the person returns to work and completes the Trial Work Period.
SSA uses an earnings guideline to evaluate whether work activity is SGA. For the year 2009, monthly earnings averaging $980 or more were considered SGA for any impairment other than blindness. If a worker is blind, earnings averaging more than $1640 a month (for the year 2009) generally demonstrate substantial gainful activity.
