Increase for Recipients of SSI Benefits in 2012

After two years of no increases in the benefit amount for recipients of Supplemental Security Income (SSI), the government announced last fall that individuals receiving that benefit would see a cost of living increase. The increase took effect in the last days of December 2011.

The increase - 3.6 percent -- will affect the more than eight million people currently receiving SSI benefits. SSI is a federal program for the blind and disabled, as well as seniors who are ineligible for regular Social Security benefits for the elderly. Children who are blind or disabled may also be eligible to receive SSI benefits.

After the increase, the maximum amount available through the SSI program in 2012 is $698 for an individual and $1,048 for a couple. However, some states will add money to this amount and it may be possible to receive a higher benefit, depending on where the recipient lives.

The increased benefit amount is a cost of living adjustment (COLA) and is determined by the third quarter increase in the Consumer Price Index (CPI) over that of the previous third quarter. The preliminary amount of the benefit increase was announced in October after the CPI had been calculated.

Source: Social Security Administration Press Office, Social Security Announces 3.6 Percent Benefit Increase for 2012, Oct, 19, 2012.

Incarceration and its Affect on a Social Security Disability Claim

Last week, we discussed how an individual’s past relevant work, and their past in general, can have an affect on their Social Security Disability claim. In keeping with the same topic, we’ll discuss what happens to an individual’s Social Security Disability claim or their disability benefits when they are convicted of a felony offense and sentenced to a time of incarceration.

According to the Social Security Administration, the purpose of disability and medical care to those persons who suffer economic hardship produced by the inability to earn a subsistence level of wages. Prisoners, however, are not subject to identical economic hardships and do not need a continuing source of income because their basic needs are already furnished at public expense. Under Section 404.468 of the Code of Regulations, “No monthly benefits will be paid to any individual for any month any part of which the individual is confined in a jail, prison, or other penal institution or correctional facility for conviction of a felony.”

Essentially, an individual has applied for Social Security Disability benefits that have a past conviction and incarceration on their record is not eligible to receive any back-benefits for the time period in which they were incarcerated. Alternatively, if an individual receiving disability benefits commits and is later convicted of a felony offense, any disability payments they were receiving at the time of their incarceration will stop until such a time as the individual is released.

Both Social Security Disability and Supplemental Security Income payments are subject to termination if an individual is convicted of a felony offense and as a result is sentenced to a period of incarceration. However, in SSD cases, auxiliary benefits, paid to eligible family members- will continue even if the individual is not receiving benefits at the time because of the individual’s felony conviction and imprisonment.

The Social Security Administration will accept an application for disability benefits from an individual who is incarcerated. The process and the outcome, however, vary from the norm. If you’re a client and have any questions or concerns regarding incarceration and its affect on your Social Security Disability claim, please feel free to leave a comment and let us know!

If You’re Disabled, is Social Security an Option for You?

The general belief regarding disability benefits is: if you’re disabled, you can receive benefits. If only the system was that easy and uncomplicated, but it isn’t. And, if it was, we wouldn’t be here writing about it today! We’ve mentioned before how difficult and complex the system may be. That being said, even those who would qualify for disability based solely on their impairments, may not actually qualify for benefits in the long run.

Last month, we discussed the five-step process that one must be vetted through in order to be determined eligible for disability benefits. We’re not about to say that the five-step process is the only criteria for qualifying for disability, because it isn’t. A recent post on our Facebook page got us thinking. If you feel as if you meet the steps to qualify for disability, are there other issues standing in your way to receiving benefits? The simplest answer is: Yes.

As you may know, there are two different types of disability one can collect—Social Security Disability (SSD) and Supplement Security Income (SSI) benefits. SSD pays monthly cash benefits to people who have paid enough FICA taxes to qualify, and are now unable to work for a year or more because of a disability. Conversely, SSI is a governmental program that pays monthly cash benefits to people who are age 65 or older, those who are blind or those who have a disability and who do not own much or have a lot of income.

If you've worked most of your life and have paid your FICA tax, generally you're going to be eligible for SSD. Specifically, you must have worked ten years in your lifetime and five years out of the last ten at the time you became disabled for SSD eligibility. Unfortunately, if you do not fit the above-noted criteria, there is a chance that you may not qualify for SSD. SSI is available to certain people, like disabled adults and children who have limited income or resources. To qualify for SSI benefits, you must meet certain eligibility requirements, which can be confusing and may vary state by state.

There is, however, a slight chance that—due to individual, family or household circumstance—one may not be eligible for either SSD or SSI. Often times an individual will find out that their household income places them outside of the criteria for SSI. At the same time, they suffer from a disability that does not allow them to return to work, but they cannot qualify for SSD as they have not worked at least five years out of the last ten in order to be eligible. It’s an unfortunate and frustrating situation to be in, and the Social Security Administration’s regulations are not able to be adjusted.

Working While Receiving Social Security Disability Benefits

Kind of sounds like an oxymoron, doesn’t it? Receiving Social Security Disability benefits and working? It doesn’t necessarily seem like the two would go hand-in-hand, but they can. The Social Security Administration (SSA) has special rules that make it possible for those receiving Social Security Disability (SSD) or Supplemental Security Income (SSI) to work and still receive monthly payments.

Many of our clients express their continued desire to work, while reporting that their disabilities simply do not allow them to do the work they used to do. Social Security has a work incentive and a Ticket to Work program, both designed to encourage and enable those receiving disability to return to the work force if they are interested in doing so.

There are some important things to keep in mind, however. If you decide you are going to return to the work force, you need to inform the SSA as soon as possible. They will be able to explain their work incentives to you, which include continued cash benefits for a time while you are working, continued Medicare or Medicaid while you work, and help with education, training, and rehabilitation to start a new line of work.

Obviously, if you are able to return to work full-time, and begin to earn wages that are what the SSA considers Substantial Gainful Employments, your cash benefits may come to a stop. The upside to this, though? If you return to work only to find out that you are unable to continue doing so because of your medical condition, your benefits can start again, and you would not need to re-start the disability process. This means you would not need to fill out another application, and you would certainly not need to attend another hearing.

Please keep in mind, however, that there is a time limit to how long you are allowed to work before you would actually need to restart the disability process. After your benefits stop because your earnings are substantial, you have five years during which you may ask the SSA to start your benefits immediately if you find yourself unable to continue working because of your condition.

Much like the above-noted work incentives, the Ticket to Work program may also help if you would like to return to work. The SSA provides individuals with vocational rehabilitations, job training and referrals, and support services free of charge. Additionally, you will not undergo medical reviews while you are using the ticket and making timely progress your return to work plan.

We want to make you aware of all of your opportunities; it’s the least we can do! If you have any questions about the work incentives or Ticket to Work program, feel free to leave us a message and let us know what’s on your mind. We’d be happy to provide extra information if you are interested, and point you in the right direction if you’d like to return to work!

Speaking of Payments...

We are usually able to anticipate the first question from our clients following a fully-favorable decision: When will I begin to receive my payments?

It’s quite possibly one of the most important questions we get to answer; after all, this is what we’ve been fighting for since the Initial Application was filed. Understanding the payment process is quite easy—once you get past the slightly confusing part, that is.

For an individual who has applied for Social Security Disability benefits, as many of you may know, it’s required to identify the onset date of disability. If benefits are granted, an individual  is declared disabled as of the date they originally alleged their disability began (unless otherwise noted in the decision). More often than not, the alleged onset date is over a year past the current date. Not only will the individual begin to receive monthly payments based on their past earnings record, but they may also receive back payments for the months they were disable and not receiving payments. But, there’s a little bit of a catch.

Let’s say, for instance, Mr. K. applied for Social Security Disability benefits, alleging an onset date of January 1, 2010. If Mr. K’s benefits were to be granted, he would be entitled to back payments to the aforementioned date. However, the Social Security Administration cannot begin payments for 5 months after the established onset. As such, Mr. K. would not begin receiving his back payments until the 6^th full month after the disability began.

There are exceptions to this rule, however. The 5-month waiting period for Social Security Disability benefits does not apply to those applying as children of workers. Additionally, the regulations for receiving payments for a Supplemental Security Income claim are slightly different. Rather than a 5-month wait, individuals may begin receiving payments as early as 1 month after their application date or 1 month after they became eligible.

Electronic Social Security Checks Only?

The end of an era is coming soon. In less than two years, paper checks will cease to exist for those receiving any form of Social Security, including Social Security Disability and Supplemental Security Income benefit checks.

Currently, nearly 11 million people receive Social Security payments by check. And, it may come as a surprise, but it costs nearly $1 dollar more to issue a paper check than it does to electronically deposit money. Assuming each individual gets a check every month…well, it’s clear to see that the price to send said checks might add up really quick.

So, what does this mean for those who are collecting Social Security Disability or Supplemental Security Income benefits? It means that anyone applying for such benefits must plan on receiving them through direct electronic payment—such as direct deposit. Like we mentioned last week in our In The News post, the Social Security Administration is taking big steps to cut costs. Switching over to electronic Social Security checks will help save nearly $1 billion dollars over a span of ten years. The Treasury Department has indicated, for instance, that approximately $6.9 million dollars would be saved in just one year, if everyone receiving payments in the state of Texas signed up to receive their payments electronically.

Aside from the government saving some much-needed money, this change will also benefit those receiving payments. The number of paper checks that are reported missing or stolen even year totals over half a million. Electronic payments will almost guarantee that one’s payment cannot be misplaced, sent to the wrong address, ruined in the rain, or eaten by the dog. 

If you’re a current or former client of Binder and Binder® receiving paper checks and would like to switch over to electronic checks, just let us know! We’d be happy to help you with the transition.

Chronic Pain

Have you ever heard of an individual who suffered an injury or illness resulting in an amputated limb, be it an arm or a leg, but was still able to feel pain in that area? Have you ever witnessed an individual discuss pain that existed without a known cause? Chances are you’ve seen some mention of it on TV, or read a report in a newspaper at sometime. Perhaps you even know the feeling yourself. There’s a big issue that’s affecting millions of people…and that issue is chronic pain.

Those who don’t suffer from chronic pain may not understand, and may not believe in those who report complaints. Unfortunately, up until recently, chronic pain was a syndrome that consisted mainly of subjective complaints—meaning, the complaints of pain could not be proven by an objective test, such as an obvious broken bone seen on an x-ray, or degenerative disc disease indicated by an MRI. Did that make it any less real? Certainly not to those who suffered.

Times, however, are changing, and views towards chronic pain are beginning to take on a different light. Doctors have started acknowledging the existence of the often disabling pain as they look for new ways to treat it. They are beginning to acknowledge and accept that pain might not always be traceable to a broken bone that is easily proven with x-rays. In fact, brain-imaging studies have suggested that the brain of an individual who suffers from chronic pain not only looks different, but also responds differently, than a normal brain. Such a suggestion indicates that there is, indeed, a process occurring in the body of an individual suffering from chronic pain as opposed to one who is not.

Perhaps the most important element here is that the new research regarding chronic pain has added a great deal of credibility to what was previously considered to be subjective complaints. With regards to receiving Social Security Disability and Supplement Security Income benefits, it’s no secret that individuals with an objective disorder, for example—clinical blindness in both eyes, have a much easier time proving their disability than those with chronic pain syndromes such as fibromyalgia. The inability to identify the source of an individual’s complaints of pain has proven to be a major road block for the disability process; without a cause for the pain, individuals had a hard time proving it existed. It appears as if the road block may be beginning to break down.

Studies continue to be done, as doctors and researchers maintain their desire to locate a suitable treatment…and even a cure. We have clients that suffer from different forms of chronic pain. We believe in the severity and the realness of the syndrome, and will continue to follow the research as it unfolds.