Benefit Offset Four-State Pilot Demonstration

In August 2005, the Social Security Administration (SSA) initiated a pilot demonstration in four States 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.

Findings from the pilot have provided information for the Benefit Offset National Demonstration, scheduled for implementation in 2010.

The Benefit Offset demonstration pilot program is being tested in the four States listed.

SSA is testing a $1 reduction in SSDI benefits for every $2 in earnings in combination with employment supports, 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 program when a beneficiary works and has earnings over a specific amount.

In both the pilot and the national demonstration, participants will also 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 and allow beneficiaries with disabilities to increase their employment, earnings and financial independence. SSA used the results from this 4-State pilot project to inform the national demonstration project.

On December 11, 2008, SSA published a notice in the Federal Register announcing our plans for a gradual phase-out of this project. Approximately 300 beneficiaries who completed their trial work periods by December 31, 2008 will continue in the project until the end of the special 72-month Extended Period of Eligibility. Beneficiaries who did not complete their trial work periods by December 31, 2008 returned to regular program rules effective January 1, 2009.

There is a summary page and full description fact sheet that provides information about the Benefit Offset National Demonstration.