Social Security Questions and Answers

Medi

 >>How are they supposed to survive while waiting for a decision?<<

 I get asked this a lot  by my clients and the answer is not pretty.  You survive by surviving.  

It may be hard to accept but the SS system is not going to allow a person to maintain whatever life style the currently have.

SS merely is designed to provide some modest help to those unable to work.

So a person survives by selling those toys many are accoustomed to...

A person survives by selling their home.....

A person survives by selling their car(s)...

A person just survives....

The truth is getting SS is not going to let things stay the same, most peoples definition of survival is going to change.  A line that stuck form the Matrix movies (I think the second one) is something like ...their are levels of survival we are willing to accept.

And that is pretty much how one survivs on SS.

 >>If the claimant uses up all of their savings and still haven't been approved, can a family member or friend help them out by paying their rent, food bills, utilities and/or medical insurance or bills?<<

Can they? Yes.  Will it affect thier SS beenfit?  Yes and No.  The Title II DIB  (SSDI) is not affected.  Tittle XVI SSI is affected.

The SSI is purely a welfare benefit not fixed to any contributions from work.  As a pure welfare benefit program it is meant to help those with no resources at all.  Basically think of it as a policy decision not to have disabled persons on the street destitute.  It is simply meant to be just enough to help someone secure shelter and food for a month.

I don't have the SSI $$ amounts for the federal and/or state portions handy but it is right around $900.

So if a person is disabled and on SSI and thier rich Ucle send them $500 a month then SSA will deduct that amount from their benefit.

If someone is disabled and are given a room in a relatives home, that room as a market value.  Let's say $300.  SSA will deduct that amount from SSI payment as a gift in kind.  Same if you byuy $100 worth of groceries,

 Again SSI is meant to provide a maximum of $900 in support to a person per month.  Less any amounts received from private or other government sources.

 >>We were told you can't have more than $2,000.00 in any savings or checking account due to the SSI that becomes available during the 5 month wait for SSDI to kick in.<<

That is correct.  For married persons it is I believe $3,000.  If you are fetting SSI nd you win the lottery for $5,000 you will not get SSI until you spend it down below $2,000. 

Basically, for as long as you are on SSI you can never have more than $2,000 in resources in any month.

Steven

Special:



No, no income or resource limit for DIB. Yes for SSI. Easy way to think of it is a DIB has a work requirement but no income resource requirement. SSI has no work requirement but does have the income and resource limit.



Steven

Dusty



Not to sure. Here is a link to SSA describing program.



http://www.socialsecurity.gov/pubs/10061.html



Sounds like SSA may now you are working when you use twp.



Here is another link that shows you may want to contact SSA just to make sure.



http://www.socialsecurity.gov/pubs/10095.html#part5



Steven

Medi



It is not that a DIB claim is more liberal than SSI, just different. A DIB claim is not subject to any income limitations just like SSA retirement is not. Just like you can have a million in the bank and still get SSA retirement you can get SSA disability retirement. So making some limited money does not reduce a DIB benefit.



SSI on the other hand is a pure welfare program and as such Congress put into the legislation that a person financial resources would be means tested to determine eligibility beyond the medical test.



So having any sort of income, gift, lottery, or $100 mowing a lawn, is going to reduce the amount one can get from SSI.



Basically the best way to think of it is that as a matter of policy the federal government has determined that any person who is medically disabled will get a minimum benefit. Don't have the exact number but there is a federal portion (about $650) and state portion if a state wants to participate in SSI. (max is about $250). So let us say $900 max.



Example: if you have a DIB of $1,200 you would not get SSI.



If you have a DIB of $400 SSI with max state portion might give you another $500.



If you have $400 DIB and work part-time to make $500 no SSI.



Let us say you get only SSI of $900 and a rich uncle starts to send you a Check for $300 a month. SSI will go down by similar amount.



There are a lot of details but in general that is how SSI works different than DIB.



Steven



OSS

Mazie



Sorry about mis-spelling your name last time. My iPad self corrects. Lol



Anyway I went and took another look at SSA website. Found this on the FAQ section:



****



The trial work period allows Social Security disability beneficiaries to test their ability to work for at least nine months without losing benefits.  During the trial work period, you can receive full benefits no matter how much you earn, as long as you continue to have a disabling impairment and you report your work activity.  The trial work period continues until you have completed nine trial work months within a 60-month period.



In 2010, any month in which you earn more than $720 counts as one of the trial work months.  For 2009, this amount was $700.



After your trial work period ends, we look at your earnings to determine whether you are working at a level we consider substantial. If you are, your cash benefits will stop. In 2010, we consider average monthly earnings of $1000 substantial. For 2009, the amount was $980. There are different limits for people disabled because of blindness.



If you continue to work, other rules may allow you to continue to receive benefits. For example, for 36 months following completion of the trial work period, you can receive your full Social Security disability benefit for any month in which your earnings fall below the "substantial" level. You can find more information about available work incentives in our leaflet, Working While Disabled--How We Can Help (Publication No. 05-10095).



*****



You can see it here.



http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/523



So Ithink just follow the first paragraph.



Steven

Chick,



Exactly. The system is so large and contains so many twist and turns I have no doubt most field offices can't answer the questions.



Steven

Medi



It is true that once approved most people do continue to receive benefits. But remember that SS is not a medical disability system, but a medical-vocational system where medical problems cause vocational relevant limitations.



Now I believe that every omen who can work should work. But obviously if someone goes back to work they are making the case thatbthey are not in fact disabled by the fact they are working. Obviouslynhas we discussed SSA has programs that let people test the waters, but bottom line inn order to get SS benefits you must say you can't work...yet once you get them you want to work?



Not saying I agree with SSA just trying to explain how the system looks at it.



As far as Medicare...when my clients are waiting 1, 2, 3, 5, 10 years for a favorable decision they get treated however they can.



The most fortunate are married and covered by their spouse....others worked in a job that covers them in retirement..the vast majoritynend up in some type of local county welfare health care system...or go without.



If someone is on Medicare and has their benefits ceased they can ask for benefits to continue pending appeal to an ALJ. But if they lose there then they lose everything while they appeal beyond.



Which is the point I am trying to make. Yeah SS benefits of 1k or more does not cover a lot and there is the desire to make a little more part-time...but if you can't risk losing Medicare...then why take the chance. It is, like everything in life, a cost-risk to benefit analysis.



Steven