Evaluation of the Ticket to Work Program Initial Evaluation Report

24
Under the outcome-only payment system, SSA makes up to 60 monthly payments to
the EN, one for each month in which the beneficiary receives no DI or federal SSI benefit
payments because of work or earnings. 5 After DI/SSI benefits reach zero, an outcome
payment occurs for any months in which the individual (1) has gross earnings from
employment (or net earnings from self-employment) that exceed the level defined as
substantial gainful activity (SGA) and (2) is not entitled to or eligible for any type of Social
Security or SSI benefit. The months need not be consecutive. Monthly outcome payments
are equivalent to 40 percent of the payment calculation base (PCB)—the prior calendar
year’s national average monthly DI or SSI disability payment amount. In 2003, TTW
monthly outcome payments to ENs were $328 for DI and $196 for SSI. For concurrent
beneficiaries, outcome payments are based on the average DI amount.
Under the milestone-outcome payment system, SSA makes up to four payments to
the EN, based on the beneficiary achieving certain self-sufficiency goals, or “milestones,”
while he or she is still receiving cash disability payments. The first milestone is achieved
when the beneficiary has worked for one month and has earnings in that month that exceed
the SGA level. The second milestone is achieved when the beneficiary has worked for 3
months within a 12-month period and has earnings for each of the 3 months in excess of the
SGA level. The third milestone is achieved when the beneficiary has worked for 7 months
within a 12-month period and has earnings over the SGA level for each of the 7 months.
The fourth milestone is achieved when the beneficiary has worked for 12 months within a
15-month period and has earnings for each of the 12 months that are above the SGA level.
Any of the months used to meet previous milestones can be included in the months used to
meet subsequent milestones. In addition to the milestone payments, ENs choosing this
option can also request monthly outcome payments after a beneficiary leaves the disability
program rolls, although each outcome payment will be reduced by an amount equal to 1/60 th
of the milestone payments made to the EN with respect to a particular beneficiary. 6
Each of the milestone payments is larger than the preceding one, reflecting the
progressively greater accomplishments represented by successive milestones. The first
5 The point at which beneficiaries’ federal payments reach zero is different in each
program. In general, DI beneficiaries receive zero benefits when monthly earnings, after
consideration of applicable work incentive provisions, are over the level defined as SGA—
$800 per month in 2003—and the nine-month trial work period and three-month grace
period have been completed. For SSI beneficiaries who have no non-SSI income besides
earnings, federal cash benefits are reduced to zero when all earnings, net of disregards, are at
least twice the full SSI benefit. If an SSI beneficiary has other income, then the amount of
earnings required to reduce the federal cash benefit to zero can be less than twice the full SSI
benefit. The amount of earnings required to reduce the federal SSI benefit to zero will also
be affected by numerous other factors, including the living arrangement and the couple
versus individual rate.
6 As under the outcome payment option, monthly payments under this option are
payable for a maximum of 60 months, and the months need not be consecutive.
II: Structure and Background of the Ticket to Work Program