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Last updated:
October 29, 2006


Title II Work Incentives

Title II provides cash and medical benefits to individuals who have contributed to the Social Security trust fund or are a spouse of child of an individual who has contributed. These contributions are made through FICA taxes from individual earnings There are three different types of programs under Title II program that offer the following work incentives.

1. Social Security Disability Insurance (SSDI). This is the program under Title II that available to those who have paid in sufficient FICA taxes to reach an insured worker status. They receive a benefit based on their own work record.
2. Disabled Widow(er)s Benefits (DBW). This is a program under Title II, is for a spouse (and in some cases ex-spouses) who will be eligible under the deceased insured worker’s record. There are other eligibility criteria for this program.
3. Childhood Disability Benefits (CDB). This is a program under Title II where an adult child with a disability can receive benefits based on the insured status of a parent who is retired, deceased, or disabled. There are other eligibility criteria for this program.

You can contact your local Social Security office to determine which benefit you receive.

Beneficiaries who receive Title II benefits are eligible for Medicare Part A after a 24-month waiting period and have the option of paying a monthly premium for Medicare Part B coverage.

Below are work incentives that may be used by Title II beneficiary:

Trial Work Period (TWP) – A nine-month period accumulated over a ‘rolling 60-month period’ during which a Title II beneficiary can test his or her ability to work without losing the Title II cash payments. A beneficiary can earn any amount of money during this period; however, any month that gross earnings over $640 (in 2007) will count as a trial work period service month.

After the Nine Month Trial Work Period – SSA will evaluate the beneficiary to see if he or she continues to meet the SSA definition of disability and thus eligible for continued Title II benefits. If earnings exceed a monthly gross earnings level of $900 ($1500 if blind) in 2007, referred to as SGA or Substantial Gainful Activity, the beneficiary is no longer disabled for Social Security purposes and will lose cash benefits after an additional three-month grace period.

Extended Period of Eligibility (EPE) – For 36 consecutive months, immediately following the end of the Trial Work Period, a Title II beneficiary, who continues to be medically disabled, can receive a Title II check for each month they have gross monthly earnings at or below the $900 ($1500 if blind) in 2007.

Medicare Continuation – Medicare Part A continues, at no charge, for at least 93 months after successfully completing the Trial Work Period if the beneficiary is still medically disabled. Medicare Part B and Part D are optional and can be purchased and billed to the beneficiary on a quarterly basis.

Impairment-Related Work Expenses (IRWE) – Documented expenses the beneficiary incurs due to their impairment and is needed to work. The total amount of the IRWEs is deducted from gross monthly earnings to determine if the beneficiary is working above the SGA level for initial and continuing Title II benefits.

Subsidy – The dollar amount of the subsidy is subtracted from the gross monthly earnings of the beneficiary, potentially reducing his or her earnings below the SGA level. Subsidy exists when an employer pays the beneficiaries with a disability more in wages than the reasonable value of the actual services performed.

Special Conditions – Items or supports provided by someone other than the employer that will reduce the amount of countable monthly-earned income. (Example: job coach).

A plan for returning to work begins with understanding the effect of work on your benefits. A Benefits Planning Query helps start the planning process. For more information, click here to download the Benefits Query Planning Handbook.

For more information Contact:


Stacey Sparks, Community Work Incentive Coordinator
421 Stephens Street
Clyde, Texas 79510
Office: 325-893-1968
Fax: 325-893-3825
Toll Free Pager: 888-635-6688
Email: Staceysparks45@aol.com

(Ms. Sparks Texas Counties) - Archer, Baylor, Brown, Callahan, Cochran, Coke, Coleman, Comanche, Concho, Crockett, Crosby, Dickens, Eastland, Fisher, Garza, Haskell, Hockley, Irion, Jones, Kent, Kimble, King, Knox, Lubbock, Lynn, Mason, McCulloch, Menard, Nolan, Runnels, Schleicher, Shackelford, Stephens, Stonewall, Sutton, Taylor, Terry, Throckmorton, Tom Green, Yoakum, & Young

Rosemary Burks, Community Work Incentive Coordinator
1120 Mulberry St.
Abilene, Texas 79601
Office: 325-676-8988
Fax: 325-676-2980
Toll Free Pager: 888-635-6688
E-mail: rosemabur@aol.com

(Ms. Burks Texas Counties) - Andrews, Armstrong, Bailey, Borden, Briscoe, Carson, Castro, Childress, Collingsworth, Cottle, Crane, Dallam, Dawson, Deaf Smith, Donley, Ector, Floyd, Foard, Gaines, Glasscock, Gray, Hale, Hall, Hansford, Hardeman, Hartley, Hemphill, Howard, Hutchinson, Lamb, Lipscomb, Martin, Midland, Mitchell, Moore, Motley, Ochiltree, Oldham, Parmer, Potter, Randall, Reagan, Roberts, Scurry, Sherman, Sterling Swisher, Upton, Ward, Wheeler, Wichita, Wilbarger, & Winkler

Frank Perez, Community Work Incentive Coordinator
9208 Igoe, Place
El Paso, Texas 79924
Office: 915-751-8463
Fax: 915-751-8464
Toll Free: 888-635-6688
E-mail: frank2perez@aol.com

(Mr. Perez Texas Counties) - Brewster, Culberson, El Paso, Hudspeth, Jeff Davis, Loving, Pecos, Presidio, Reeves, Terrell

You may also visit the Social Security Administration’s website at:
http://www.ssa.gov/work

 

 

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