Understanding Social Security Work Incentives

Understanding Social Security work incentives - -

What is the trial work period?

By Christopher C. Marshall, NAMI federal affairs representative

Source: NAMI Advocate, Summer 2001

(Please note that the amounts quoted in this article are from 2001 and the amounts change annually.)

An individual with a disability who has met the eligibility requirements for the Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) program---both managed by the Social Security Administration (SSA)---is allowed to work and still receive benefits, as long as the income from work is not above the Substantial Gainful Activity (SGA) level of $740 a month (in 2001).

The SGA level is determined yearly by the SSA and is intended to indicate the level of impairment caused by a disability that would result in an individual receiving assistance. Generally, if someone with a disability can earn above the SGA level, the SSA determines that he or she can work and live independently and is not eligible for disability benefits. However, if someone cannot earn more than the SGA level and meets other disability criteria, SSA determines him or her disabled (according to the SSA definition of disability); therefore, he or she is eligible for assistance.

Both the SSI and SSDI programs offer a range of employment-support programs or work incentives designed to allow beneficiaries to test their ability to work without losing their benefits. These programs and incentives are intended to provide gradual, long-term support that leads to independence.

The trial work period is a work incentive automatically available under the SSDI program. Under current rules, an SSDI beneficiary may work for up to nine months (not necessarily consecutively) within a five-year period, make any amount of income, and still receive full SSDI benefits for these months.

A trial work period month is used whenever an SSDI beneficiary earns more than $530 a month.

After the trial work period is completed, the SSA will reexamine the beneficiary=s disability status to see whether he or she is able to work and earn at the SGA level. If the SSA determines that the beneficiary is still disabled and cannot work at the SGA level, then SSDI benefits will continue; if not, benefits will stop in approximately three months.

If a beneficiary is still eligible for SSDI benefits after the trial work period, the beneficiary enters another work incentive program called the extended period of eligibility, which provides benefits over the next 36 months when income from working dips below the SGA level. Generally, beneficiaries must not exceed the SGA level to maintain their benefits.

For more information, contact:

The National Alliance on Mental Illness

NAMI of Greater Chicago

1536 West Chicago Avenue

Chicago, IL 60622

(312) 563-0445