SSI

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SSIs PASS A Tool for Loan Applicants with Work
Goals

• Presenters
• Michael Dalto, Executive Director
• Maryland Technology Assistance Program
• mdalto_at_mdtap.org
• James R. Sheldon, Jr., Supervising Attorney
• National AT Advocacy Project
• Neighborhood Legal Services, Inc.
• jsheldon_at_nls.org
• The initial template was created by Cornell
  Universitys
• Employment and Disability Institute and is used
  with permission.

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Plan for Achieving Self Support
PASS is an SSI work incentive under which persons
with disabilities can set aside additional income
and/or resources to be used to achieve specific
work goals.
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Cheektowaga, NY
NY
NJ
New York, NY
KY
NC
Raleigh, NC
TN
SC
MS
Birmingham, AL
AL
GA
FL
Miami, FL (south FL)
www.ssa.gov/disabilityresearch/wi/passcadre.htm
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Who can have a PASS?

• Any person who is blind or disabled who gets
  Supplemental Security Income (SSI), or can
  qualify for SSI, can have a PASS.
• The individual must
• have income other than SSI
• or a resource to set aside
• have a feasible work goal
• have a specific savings/spending plan and
• must provide for a clearly identifiable
  accounting for the funds which are set aside.

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How does it work?

• The income and/or resources set aside in a PASS
  are not counted in determining eligibility for
  SSI or in calculating the amount of the SSI
  benefit that individuals will receive.
• EXAMPLE
• Geri is attending engineering school. All
  school expenses are being paid by PELL and her VR
  agency. However, she will need a van when she
  begins to work because she is a wheelchair user
  and no public transportation is available. Geri
  receives 520.00 SSDI and 123.00 SSI per month.
  She wants to put the countable SSDI in a PASS
  account to buy a van.

Without a PASS 520.00 SSDI
623.00 2007 SSI Rate 20.00
disregard - 500.00 countable SSDI
500.00 countable SSDI 123.00 SSI payable

520.00 SSDI
643.00 Total income
without a
PASS Federal benefit rate for 2007
With a PASS 500.00 to PASS Account 623.00
SSI 20.00 disregarded SSDI 1143.00 Total
income with an
approved PASS
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How does it work?
Geri receives 720.00 per month SSDI. She is not
eligible for SSI because her SSDI benefit is too
high. Geri proposes a PASS to set aside 500.00
per month to purchase a van when she is ready to
begin working.

• With a PASS
• 720.00 SSDI
  500.00 PASS savings
• - 20.00 disregard
  220.00 SSDI
• 700.00
  423.00 SSI
• 500.00 PASS savings
  1143.00 Total income
• 200.00 SSI countable income with
  an approved
• 
  PASS
• 623.00 SSI rate
• - 200.00 SSI countable income
• 423.00 SSI payment
• Geri would have 643.00 for living expenses --
  220.00 from her SSDI benefit and the 423.00 SSI
  payment.

Without a PASS 720.00 SSDI -
20.00 disregard 700.00 countable SSDI Since
the 2007 SSI federal benefit rate is 623.00,
Geri is not eligible for SSI without a PASS. Her
total income would be her 720.00 monthly SSDI
benefit.
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Geri and Usable Income

• Geri receives 1,020.00 per month SSDI. She is
  not eligible for SSI because her SSDI benefit is
  too high.

• With a PASS
• 1020 SSDI
  500 PASS savings
• - 20 disregard
  520 SSDI
• 1000
  123 SSI
• 500 PASS savings 1143.00
  Total income
• 500 SSI countable income with an
  approved
• 
  PASS
• 623 SSI rate
• - 500 SSI countable income
• 123 SSI payment
• Geri would have 643 for living expenses -- 520
  from her SSDI benefit and the 123 SSI payment.

Without a PASS 1,020 SSDI -
20 disregard 1,000 countable SSDI Since the
2007 SSI federal benefit rate is 623.00, Geri
is not eligible for SSI without a PASS. Her
total income would be her 1,020.00 monthly SSDI
benefit, which is available for living
expenses..
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The PASS and Resources

• Resources can be anything that is owned,
  including bank accounts, real estate,
  or personal property.
• A resource that would exceed the allowed SSI
  limit (2000.00 for an individual) can be set
  aside in a PASS.
• A resource exclusion is frequently applied to a
  PASS Account.

In January 2007, Geri inherits 2500.00, giving
her 3,000 in countable resources. Without a
PASS, her SSI payments would be suspended
effective February 2007, until she verifies that
her resources are again below the 2000.00
resource limit. If Geri adds 2000.00 of the
inherited funds to her PASS account, the excess
resource suspension would not apply.
Without a PASS, as soon as Geri accumulated over
2000.00 in her bank account, her SSI payments
would be suspended due to excess
resources. With an approved PASS, the account
she uses to save money for PASS approved expenses
does not count towards her SSI resource limit.
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Plan Requirements

• For a PASS to be approved several requirements
  must be met
• The plan must be in writing
• The plan must contain a feasible occupational
  (work) goal
• The plan must be viable and
• The plan must contain a savings/spending plan.

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A PASS must be
submitted in writing

• A PASS must be submitted in writing,
  preferably on form SSA-545-BK, signed by the
  individual and, if applicable, the representative
  payee.
• You can obtain a copy of the form from your local
  SSA office.
• You can obtain a copy in PDF format from SSAs
  website at http//www.ssa.gov/online/ssa-545.pd
  f
• You can complete a PASS application online with
  tutorial assistance at Cornells website
  www.passonline.org
• You can call your servicing PASS Cadre. (see
  Slide 2) http//www.ssa.gov/disabililityresearch/
  wi/passcadre.htm
• You can get help completing a PASS application
  from a WIPA (Work Incentives Planning and
  Assistance) agency. http//www.ssa.gov/work/Servic
  eProviders/WIPADirectory.html

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Occupational Goal

• A PASS must show one specific work goal

• ELEMENTARY SCHOOL TEACHER

• REGISTERED NURSE

• CHEF

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Occupational Goal

• Feasible means that the person must have a
  reasonable chance of being able to perform the
  work, considering
• Nature of the disability
• Limitations
• Strengths and abilities.

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Occupational Goal General Rules

• Expected to generate at least enough earnings to

• Substantially reduce the SSI payment for those
  eligible for SSI without a PASS.
• Eliminate the SSDI cash benefits for those not
  eligible for SSI without a PASS. (Earnings must
  be expected to be above the SGA limit - 900 per
  month in 2007.)
• An earnings level should be sought that would be
• sufficient to replace the benefits of the
  individual---
• and any auxiliaries, residing with the
  individual,
• whose benefits eventually could be affected by
  
• the individuals work.

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The Case of Thomas

• Thomas receives 1,000 a month in SSDI benefits
  based on his work record.
• His wife and children, who live with him, receive
  an additional 500 a month in auxiliary benefits
  combined, for a family total of 1,500.
• Without a PASS, Thomas and his family have 1,500
  per month in combined Social Security income
  (1,000 for Thomas, 500 for his wife and
  children).
• Thomas must have a goal that he will earn more
  than 900 per month when his PASS ends.
• His goal is to make 1,500 per month.
• When he reaches his goal, Thomas and his family
  will lose their Social Security checks because he
  is performing substantial gainful activity.

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The Plan must be viable

• The PASS must be realistic taking into account
• the individuals education and training needs
• any assistive technology required
• the milestones (and corresponding time frame to
  complete each step) necessary to reach the work
  goal
• whether the person will have sufficient means to
  cover PASS expenses, living expenses, and other
  necessary expenses.

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MILESTONES---
Significant, visible steps or events necessary to
achieve the occupational goal
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Milestones (steps)
BEGIN DATE- earliest date the individual began to
pursue the goal.
Show all of the steps needed to achieve the
chosen work goal. Show the expected beginning
date and completion date for each step.
END DATE-the date the individual expects to be
working in the chosen occupational goal.
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Milestone (Step)
Begin Complete Complete VR agency
vocational evaluation - 12/06 03/07
Apply for admission to college - 03/07
03/07 Complete PASS application and apply
for financial aid-
03/07 03/07 Receive acceptance,
register for classes, purchase computer with
adapted keyboard special software
05/07
06/07 Attend college -
09/07 05/11 Complete resume, purchase
van and arrange for modifications, begin
applying for teaching jobs -
05/11 contg Receive college diploma
06/11 06/11 Take State
exam for certification -
07/11 07/11 Receive certification
- 09/11 09/11 Begin working as
elementary school teacher
09/11 09/11
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Expenses
A PASS can be used to pay for a variety of
expenses that are necessary to assist the
disabled individual to reach the work goal
Education Vocational Training
Transportation Modifications
Computers Assistive Devices
Tools or other Items needed to start a business
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Deferred Expenses

• Although a PASS may be approved, a decision on
  certain items or services may be deferred until a
  later date. This can happen if a person needs to
  successfully complete one or more milestones
  before an item can be approved.
• Example Purchase of a vehicle would be
  deferred if the person needs to obtain a driver
  evaluation or does not currently have a license.
• Items and/or services are purchased when
  needed as outlined in the milestones.

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Money is also important!!!

• Be very specific about what items and/services
  you want your PASS to include.

• Show the specific reason the item/service is
  needed-eg. I need a computer to do school
  assignments during college. I need an adapted
  keyboard because I experience problems with fine
  motor coordination in my hands.

• Show accurate estimates for the cost of each
  item/service. Show how you arrived at the
  estimated cost. Include the documentation with
  your PASS.

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Funding the PASS

• Show how the individual plans to save for the
  items/services included in the PASS.

• Show the type of income and the monthly amount
  you plan to set aside. Example I plan to set
  aside 500.00 of my Social Security Disability
  Insurance (SSDI) benefit each month.

• Show the resource you plan to set aside.
  Example bank account, savings bonds, stocks,
  property. (Send proof with the PASS application.

OR
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PASS and AFP Loans A Good Fit

• A PASS provides extra money i.e., money
  excluded and not counted as income or a resource
  by SSI - to help offset out-of-pocket costs to
  reach a work goal.
• It does not usually provide lump sum payments
• A PASS user who needs a 10,000 AT device cant
  usually use a PASS to pay for it quickly.

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PASS and AFP Loans A Good Fit

• If the PASS user is approved for an AFP loan,
  however, s/he can buy the device right away.
• Income set aside through the PASS will help
  individual to afford the loan payments.
• The extra income may help the individual obtain
  loan approval if his/her income would be too low
  without the PASS.

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Some Considerations for AFP Loans for PASS
Users

• 1. Debt-to-Income Ratio
• Debt-to-income ratios often become meaningless
  when PASSes are involved.

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1. Debt-to-Income Ratio

• Example
• Jane receives a 820 per month SSDI payment and
  uses a PASS to pay for college costs (500/month)
  and to make AFP loan payments (300/month).
• She pays 400/month rent and has no other debts.
• Her total monthly debt with the PASS is 700
  (300 AFP loan payment 400 rent).
• Her PASS qualifies Jane for a full SSI payment
  (623/month in most states). Her total income
  with the PASS is 1,443/month (820 SSDI 623
  SSI). Her debt-to-income ratio with the PASS is
  700/1,443 48.5.

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1. Debt-to-Income Ratio

• Example
• However, the debt-to-income ratio does not
  reflect the fact that Jane must pay 500/month
  school expenses (in addition to the AFP loan
  payment) to receive the 623/month SSI income.
• The school expenses are required, not optional
  if she doesnt pay for school, she wont receive
  the full SSI check.
• Yet this very sizable, mandatory cost equal to
  nearly 35 of her income is not counted at all
  in her debt ratio.

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1. Debt-to-Income Ratio
Possible Solution Determine disposable
income rather than debt-to-income ratio for
every AFP applicant who uses a PASS.
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2. Loan Term

• An AFP must decide whether the loan term for PASS
  users may exceed the length of the PASS.
• When the PASS ends, the PASS user should either
  lose the SSI payment or have it substantially
  reduced. Will s/he have enough income after the
  PASS ends to continue to make loan payments?
• The goal of the PASS may be to secure a good job
  once the PASS is completed, providing sufficient
  income to continue payments, but should an AFP
  count on that when selecting the loan term?

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2. Loan Term

• Possible Solutions Assume higher earnings
• 1. Assume the PASS user will achieve the goal and
  receive higher earnings once the PASS has ended.
  If the projected earnings are high enough to
  support loan payments without the extra SSI the
  PASS provides, allow a loan term longer than the
  length of the PASS.

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2. Loan Term
Possible Solutions Assume a PASS
extension 2. Assume that the PASS user can get
the PASS extended once it ends if s/he still
needs the extra SSI to afford loan payments, and
approve the longer loan term.
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2. Loan Term
Possible Solutions Shorter loan
term 3. Approve a loan term no longer than the
length of the PASS. When the PASS ends, so will
loan payments. The monthly payments will be
higher than if the term were longer, but the
borrower should continue receiving extra SSI from
the PASS until the last loan payment has been
made. If the PASS ends prematurely, consider
refinancing the loan for a longer term to provide
lower payments.
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3. Ancillary Expenses Related to the AT
Some AT entails significant costs in addition
to loan payments. Vehicles must be insured,
fueled, maintained and repaired. Computers
usually need internet service. For many items,
maintenance and upgrade plans are a good idea.
PASS users may include some but not always all
- of these ancillary costs in PASSes.
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3. Ancillary Expenses Related to the AT
Solution If some ancillary expenses are not
included in the PASS, be sure the individual can
afford them without the help of the PASS before
approving the loan.
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4. Continuing Expenses

• A PASS covers start-up costs needed to achieve a
  work goal. In some cases, it may also be used to
  help pay for some continuing expenses.
• If the user can show that s/he could not afford a
  continuing expense without the help of the PASS,
  it may be allowed as a PASS expense for a period.

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4. Continuing Expenses

• The individual would need to demonstrate that
  s/he would not need the PASS to afford the
  expense indefinitely (e.g., expense will end or
  be reduced, individuals income will increase
  later).

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4. Continuing Expenses
Solution Consider continuing expenses when
determining whether an applicant can afford a
loan.
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5. Medicaid

• An individual whose income or resources would
  ordinarily be too high to receive SSI can often
  use a PASS to qualify for SSI.
• In most states, SSI recipients are automatically
  entitled to Medicaid as well.

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5. Medicaid

• Medicaid can cover a variety of medical expenses
  that the individual would otherwise need to pay
  out of pocket.
• List of 209(b) states (Medicaid not automatic for
  SSI recipients) Connecticut, Hawaii, Illinois,
  Indiana, Minnesota, Missouri, New Hampshire,
  North Dakota, Ohio, Oklahoma, and Virginia.

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5. Medicaid

• By qualifying a person for Medicaid, a PASS can
  substantially reduce his/her out-of-pocket
  medical expenses. This may help to make loan
  payments more affordable.

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6. PASSes for SSDI Beneficiaries

• For SSDI beneficiaries work goal, if achieved,
  involves earnings high enough to cut off SSDI
• Consider potential future impact of SSDI loss and
  increased earnings when reviewing AFP loan
  applications

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7. Help Writing A PASS

• Work Incentive Planning and Assistance (WIPA)
  organizations (formerly called Benefits Planning
  Assistance and Outreach (BPAOs) are usually the
  best source of help writing a PASS. There is no
  fee.

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7. Help Writing A PASS

• Social Securitys PASS Cadres can also help write
  PASSes, but they dont always have an advocates
  perspective. If you need help with your tax
  return, who would you rather ask an accountant
  or the IRS?

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7. Help Writing A PASS
AFPs should establish good working
relationships with both WIPAs and regional PASS
Cadres. WIPAs and PASS Cadres can help market
AFPs to potential applicants. WIPAs and PASS
Cadres also need to understand AFP loan criteria,
and how they interact with PASS rules.
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8. Additional SSI Work Incentive for People Who
are Blind

• Blind Work Expenses (BWE) may be used by SSI
  recipients whose primary disability is blindness.
• They are used to reduce countable earned income.
• They include most work-related expenses, not just
  those related to blindness. Most notably, they
  include taxes withheld from pay, meals eaten at
  work and mandatory pension contributions.
• Unlike PASS, they have no time limits.