We can all agree that the sight of the numbers 2-0-2-2 brings a sense of hope! For those receiving Social Security disability benefits, 2022 also brings a bit of relief because of the annual Cost of Living Adjustment. COLA rates are adjusted each fall based on the Consumer Price Index, a measure of the average change in prices for the nation’s goods and services.
How does COLA help those receiving Social Security Disability Insurance?
Social Security’s Substantial Gainful Activity level and many of its work incentives follow the annual COLA rate. In 2021, for instance, that meant a person eligible for Social Security Disability Insurance earning less than $1,310 per month might still be eligible for benefits after their Trial Work Period ended. In 2022, the new SGA level for workers who are disabled is $1,350; for workers who are blind, the new SGA level is $2,260.
That slight increase in the SGA means a person can now earn $40 more per month ($480 per year) and still qualify for benefits. Let’s face it, every extra dollar really does count!
Do Supplemental Security Income recipients also benefit from COLA?
COLA also affects recipients of Supplemental Security Income. In 2021, the maximum SSI payment was $794. The new Federal Benefit Rate for 2022 is $841, an increase of $47 per month.
Students with disabilities who are working and using the Student Earned Income Exclusion are another group affected by COLA. In 2022, the Social Security Administration ensures that working students can keep more of their SSI check by not counting the first $2,040 per month ($8,230 annually) of earned income when calculating a student’s monthly SSI payment. This is a real incentive for students to try working.
What does an employment specialist need to know and do?
Reporting, reporting, reporting! The single most important piece of information you can share with your consumers is that they must report employment and earnings to the SSA if they receive benefits. As an employment specialist or consultant, you can support people when work starts and through extended services by helping them to report their earnings.
The good news is that this is much more simple than you might think. Here are some simple tips you can share with your consumers to help assist them with reporting:
- Report employment to the SSA as soon as work begins and continue reporting each month.
- Submit earnings reports to all agencies (not only the SSA) that coordinate need-based benefits (e.g., the Indiana Department of Family Resources, if receiving Medicaid).
- Get (and keep!) a receipt if they took their paystubs to an SSA office–it’s proof of reported income.
- Keep original paystubs and receipts in a safe, easily located place.
- Report other changes such as student status, marital status, living arrangement.
- Open ALL mail that comes from the SSA or any other agency and respond in a timely manner.
- For questions, contact the SSA by phone, mail, in-person, or via My Social Security account.
Regular reporting eliminates complications
You and your job seeker have worked hard to get a job, and regular reporting can help keep it! Failure to report can often lead to reduced or stopped checks due to overpayment or terminated benefits.
These unfortunate, easily avoidable situations can cause people to panic and quit their jobs, yet quitting because of disrupted benefits does not resolve the issues. In fact, quitting the job can lead to reduced or no income. Let’s work to not let these missteps stand in the way of successful employment in 2022.
You can help your consumer by educating and assisting them with reporting from the start of employment. Through your guidance and initial help, they will develop a reporting habit that can continue throughout their career, even after your extended services have ceased. By adding reporting education to your regular employment support, you will be handing them the keys to a more financially secure future. Remember, this can be a goal on the Employment Supports and Retention Plan (ESRP).
Have more questions?
Contact a Benefits Information Network (BIN) liaison. Many of Indiana’s community rehabilitation providers have certified BIN liaison(s) on staff. For a referral to a BIN liaison, contact your consumer’s Vocational Rehabilitation Counselor or talk to your co-workers. You may be working right next to a BIN liaison in your own agency!
Resources
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- SSA Cost-of-Living Adjustment (COLA) Information 2022
- 2022 Benefits Information Fact Sheets from the Center on Community Living and Careers (CCLC)
- Center for Community Living and Career’s (CCLC) Benefits Information Network trainings page for those interested in becoming an Indiana BIN liaison.