Benefit Offset National Demonstration

The Social Security Administration (SSA) will initiate a national demonstration to test alternate methods of treating work activity in the Social Security Disability Insurance (SSDI) program. The purpose of the Benefit Offset projects is to determine the effect of various interventions, in combination with a benefit offset, on employment outcomes including wages, benefits, hours worked, and job retention.

The Benefit Offset National Demonstration is scheduled for implementation in FY 2010. Prior to its implementation, SSA is conducting a four-State pilot demonstration, which began in August 2005. Findings from the pilot have provided information for the national demonstration.

The demonstration project will be conducted in the following SSA Regions/Areas:

Atlanta Region:
      Area 1 – Alabama
      Area 2 – South Florida

Boston Region:
      Area 3 – Vermont, New Hampshire, Maine, and part of Massachusetts

Chicago Region:
      Area 2 – Wisconsin
      Area 3 – Michigan

Dallas Region:
      Area 2 – SE Texas

Denver Region:
      Area 2 – Colorado, and Wyoming

New York Region:
      Area 3 – Upper New York State

Philadelphia Region:
      Area 3 – Silver Springs Maryland, DC, Virginia, and West Virginia

San Francisco Region:
      Area 8 – Arizona, and S. California

In the Benefit Offset demonstration, SSA will conduct tests of a $1 reduction in benefits for every $2 in earnings over Substantial Gainful Activity (SGA) levels in combination with benefits counseling, with the goal of helping beneficiaries with disabilities return to work. The project will allow beneficiaries to face this gradual reduction in their benefits, eliminating the abrupt loss of cash benefits in the SSDI disability program when a beneficiary works and has earnings over a specific amount. Participants will maintain ongoing eligibility for health care benefits and other supports linked to SSDI eligibility.

SSA anticipates that the strategies developed for this project will reduce barriers to work for beneficiaries, and allow them to maintain or increase their employment, earnings and financial independence.

There is a summary page and full description factsheet that provides information about the Benefit Offset Four-State Pilot.