For the past two years those who receive Social Security Disability and Retirement have not received a cost of living increase to their benefit amount. But in 2012 this is expected to change, when an announcement is made this week and will be effective starting this January.

This increase is because for the first time in the last 2 years the consumer price index – a measure of how much it costs consumers, on average, to buy things like food and transportation – rose considerably from a year ago.

Social Security cost-of-living adjustment (or COLA) is calculated using this index, and payments are increased when the measure jumps from one year to the next.

Based on this index data, the raise is likely to be about 3.5%. A person who receives $10,000 from Social Security last year would receive an extra $350 in 2012.

However, some of this increase will be lost to higher Medicare premiums, which are deducted from Social Security payments.

Medicare Part B premiums for 2012 are expected to be announced next week, and the trustees who oversee the program are projecting an increase.

Virginia Attorney Sheri R. Abrams along with Attorney Benjamin W. Glass has published a new guide for anyone filing for Social Security Disability benefits. This comprehensive legal book explains the process of filing for Social Security Disability benefits in easy-to-understand language, describes how an experienced attorney can guide a claimant through the maze of administrative work involved, and answers frequently-asked questions about the process.

The clear organization and down-to-earth approach makes this book a valuable reference tool for a layperson who seeks to understand how and when to apply for Social Security Disability benefits-and when to hire an attorney to help.

Sheri Abrams practices Social Security Disability law in Virginia, Maryland, and the District of Columbia. Sheri is “of counsel” to the law firm of Needham Mitnick & Pollack. Virginia attorney Benjamin Glass has authored six previous legal books.

This book is available for purchase at Amazon.com and through Word Association Publishers.

You can also download a free copy at www.sheriabrams.com.

Michael J. Astrue, Commissioner of the Social Security Administration, announced that the agency has entered into an agreement with Microsoft to test the use of Microsoft’s HealthVault application in the disability process.

HealthVault is a free online service that enables people to gather, store and manage their families’ health information, and share that information with their physicians and healthcare providers.   These “personal health records” contain the same types of information that Social Security generally obtains from people applying for disability benefits.

The use of personal health records holds great promise for ensuring that the medical information we collect from someone applying for disability benefits is accurate and complete,” Commissioner Astrue said. “Combined with other advancements in health information technology, our use of HealthVault should result in faster decisions for disability applicants. I look forward to working closely with Microsoft, a world-wide leader in information technology.”

Social Security and Microsoft are developing a technical prototype connecting the two organizations that will be available later this year. The agency also will collaborate with Microsoft to study current personal health record standards, gaps in those standards, and options for filling those gaps.

Special Topic Seminar:

ENHANCING THE QUALITY OF LIFE WITH LUPUS DEALING WITH DISABILITIES AND OTHER ISSUES

Topics Include:

Independent Living

Employment

Communicating with Others

Financial Resources
SPEAKERS:

Patricia Jackson
LFAGW Support Group Leader
Sheri Abrams, P.C.
Fairfax Virginia Attorney specializing in Social Security Disability Law
Steven Nissen, M.S., CRC
National Multiple Sclerosis Society- National Capital Chapter
Director of Employment Programs
Director of Operation Job Match (OJM)

WHEN: Saturday, September 12, 2009

TIME: 9:30AM-12:00PM

WHERE: Carnegie Endowment for International Peace
1779 Massachusetts Avenue, NW
Washington, DC 20036

REGISTER: Go to this site to register

Visit Lupus.org to register!

This Special Topic Seminar is offered as a free service of the LFAGW. All costs of services for patients and families are underwritten by the fundraising efforts of the LFAGW, including the Walk for Lupus Now held in April of each year.

Speaker Bios:
Patricia Jackson:
Pat Jackson is an LFAGW Support Group Leader with over thirty years of experience developing, managing, marketing, and evaluating diverse workforce employment and training programs for persons with disabilities. She was with St. John’s Community Services, advancing community support and opportunities for people living with disabilities. She was a Program Manager for Lockheed Martin Corporation, responsible for managing national information technology programs and recruiting a diverse workforce. She has directed national programs for the U.S. Department of Labor, U.S. Department of Homeland Security, the Social Security Administration and the National Council on Disability. In 2005, Ms. Jackson was commissioned by the National Council on Disability to direct a comprehensive assessment and produce a rigorous, relevant impact study of the American’s with Disabilities Act on the lives of people with disabilities. Ms. Jackson served as the Executive Director of Mainstream Inc., a national nonprofit organization that developed programs and services for youth and adults with disabilities. She has comprehensive direct services, placement, technical assistance and consultation experience with employers, and extensive knowledge of practical solutions to increase employment outcomes for people with disabilities.

Steven W. Nissen, M.S., CRC:
Steven W. Nissen is Director of Employment Programs at the National Capital Chapter of the National MS Society in Washington, DC and Director of Operation Job Match (OJM), the employment assistance and support program of the chapter. He is also an Employment Consultant to the national office’s Client Programs and Services Department. Before coming to the National MS Society, he worked extensively in the vocational rehabilitation field including as a Rehabilitation Counselor for the Virginia Department of Rehabilitative Services, the state vocational rehabilitation agency. In addition to his experience in the public sector, Steve worked for a private vocational rehabilitation and case management company where he provided job development and placement assistance to individuals with physical disabilities. Steve has a B.S. degree in psychology, an M.S. degree in rehabilitation counseling, and is a Certified Rehabilitation Counselor (CRC). He recently co-authored Employment Issues and Multiple Sclerosis, 2nd edition (P. D. Rumrill, Jr., M.L. Hennessey, and S.W. Nissen, 2008, available from Demos Medical Publishing [www.demosmedpub.com]).

Sheri Abrams, Attorney at Law:
Sheri R. Abrams is a Fairfax Virginia attorney specializing in Social Security Disability Law. She founded her own law firm in 1995. Since that time she has concentrated her law practice to the areas of Social Security Disability Law, Wills, Living Wills, Powers of Attorney and Special Needs Trusts. Ms. Abrams regularly handles cases in Virginia, Maryland, and the District of Columbia. She received a B.S. B.A. degree from Boston University, School of Management, and received a law degree from George Washington University School of Law. Ms. Abrams has been invited to speak to numerous groups, including the Virginia Trial Lawyers Association, the Multiple Sclerosis (MS) Society, and the Virginia Department of Rehabilitation Services. Ms. Abrams was selected for the 2009 Best of Fairfax Award in the Local Business category.

The Associated Press reports that millions of older people and the disabled face shrinking Social Security checks next year, the first time in a generation that payments would not rise.

The trustees who oversee Social Security are projecting there won’t be a cost of living adjustment (COLA) for the next two years. That hasn’t happened since automatic increases were adopted in 1975.By law, Social Security benefits cannot go down.

Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.

“I will promise you, they count on that COLA,” said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. “To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal.”

Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.

Advocates say older people and the disabled still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.

“For many elderly, they don’t feel that inflation is low because their expenses are still going up,” said David Certner, legislative policy director for AARP. “Anyone who has savings and investments has seen some serious losses.”

About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.

More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.

Millions of people with Medicare Part B coverage for doctors’ visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.

There is no such hold-harmless provision for drug premiums.

Kennelly’s group wants Congress to increase Social Security benefits next year, even though the formula doesn’t call for it. She would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.

The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes, Kennelly said. Workers only pay Social Security taxes on the first $106,800 of income, a limit that rises each year with the average national wage.

But the limit only increases if monthly benefits increase.

Critics argue that Social Security recipients shouldn’t get an increase when inflation is negative. They note that recipients got a big increase in January – after energy prices had started to fall. They also note that Social Security recipients received one-time $250 payments in the spring as part of the government’s economic stimulus package.

Consumer prices are down from 2008 levels, giving Social Security recipients more purchasing power, even if their benefits stay the same, said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank.

“Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt,” Biggs said. “Congress has to be able to tell people they are not getting everything they want.”

Social Security is also facing long-term financial problems. The retirement program is projected to start paying out more money than it receives in 2016. Without changes, the retirement fund will be depleted in 2037, according to the Social Security trustees’ annual report this year.

President Barack Obama has said he would like tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.

Lawmakers are preoccupied by health care, making it difficult to address other tough issues. Advocates for older people hope their efforts will get a boost in October, when the Social Security Administration officially announces that there will not be an increase in benefits next year.

“I think a lot of seniors do not know what’s coming down the pike, and I believe that when they hear that, they’re going to be upset,” said Sen. Bernie Sanders, an independent from Vermont who is working on a proposal for one-time payments for Social Security recipients.

“It is my view that seniors are going to need help this year, and it would not be acceptable for Congress to simply turn its back,” he said.

The Baltimore Sun reports that nearly 30 years after the Social Security Administration opened its $92 million Metro West complex on Baltimore’s west side, federal officials are planning to move 1,600 employees from there to an office building to be constructed near the Reisterstown Plaza Metro station in Northwest Baltimore.

The state Board of Public Works is scheduled to consider Aug. 26 a request from the Maryland Department of Transportation to transfer an 11.3-acre parcel at 6100 Wabash Ave. to the U.S. General Services Administration in preparation for the proposed development.

The GSA is seeking a private developer to construct a 538,000-square-foot office building and 1,076-space garage and lease it to the Social Security Administration.

According to state and federal officials, the building is needed by 2012 to accommodate 1,600 SSA employees who work in “functionally obsolete” space at the Metro West complex at 300 N. Greene St. About 400 more Metro West employees will be relocated to the Social Security Administration headquarters complex in Woodlawn, leaving none at Metro West.

The Reisterstown Plaza project will be one of the largest and most expensive federal office buildings to rise in Baltimore in years. The GSA has not disclosed a construction price, but using an industry standard of $200 per square foot, it would cost more than $100 million to build. It is expected to result in the creation of hundreds of construction jobs and to bring federal employees to a section of Baltimore that has been hard hit by the recession.

“This is not a stimulus project, but it will do exactly what stimulus money is meant to do,” said City Councilwoman Rochelle “Rikki” Spector, whose district includes 6100 Wabash Ave. “It is really an economic generator for the next 40 years.”

“Keeping these employees in Baltimore City will further strengthen our neighborhood as we continue to recover from this terrible economic recession,” said Rep. Elijah E. Cummings, a Maryland Democrat. “This is a huge victory for our community.”

It’s a “major construction investment in Baltimore,” said Laurie Feinberg, chief of comprehensive planning in Baltimore’s planning department.

The project will be the first phase of a larger “transit-oriented development” that is expected to bring housing, stores, office space and parking to land around the Reisterstown Plaza Metro station.

The state owns two dozen acres close to the station and plans next year to seek a developer interested in building a large mixed-use project next to the SSA facility, according to Christopher Patusky, director of the Office of Real Estate for Maryland’s Department of Transportation.

Gov. Martin O’Malley has made transit-oriented development a high priority for Maryland, and the SSA project puts Reisterstown Plaza in a position to become a model for other transit stops, Patusky said. “Locations around transit are becoming more and more desirable for everyone,” even government agencies, he said. “We anticipate that this will bring up [property] values all around the site. It’s a home run for the entire area.”

The Reisterstown Plaza site was selected over at least 24 others considered by the General Services Administration. Now used mostly for parking, it is bounded by Wabash Avenue, Mount Hope Drive, the Powder Mill Branch stream and the Seton Business Park. The Metro station borders the site’s northeastern portion.

The state intends to “transfer” the land to the GSA for $6 million, and the agency is expected to assign it to the developer it selects to build the Social Security Administration offices. According to regional public affairs officer Gina Blyther Gilliam, the General Services Administration expects a selection by next spring, and the developer will lease the building for 20 years to the SSA. Congress authorized federal funding for the project in 2006.

Metro West was hailed as a key to the revitalization of Baltimore’s west side when it opened in 1980. Federal employees were expected to help revive the area by shopping at Lexington Market and along Howard and Lexington streets.

According to public officials, the 15-story tower and two five-story wings no longer meet the needs of the Social Security Administration for a variety of reasons, including technological inadequacy and the security risk posed by a sky bridge over a major highway. According to Gilliam, the GSA’s goal is to “dispose of” the Metro West facility after the SSA moves out. One potential user is the University of Maryland, whose Baltimore campus is several blocks to the south.

A federal judge in San Francisco gave preliminary approval this August to a plan by the Social Security Administration to pay $500 million to settle a class action lawsuit brought on behalf of 80,000 recipients who lost their benefits, starting in 2007, after being classified as individuals using government benefits to flee arrest.

The Social Security Administration program was administered via a computer program that simply matched names of those named in arrest warrants to those receiving social security.  However, the majority of class members were not fleeing at all or never knew that criminal charges were pending against them, let alone that a warrant had been issued.

In addition to the 80,000 recipients who are due withheld Social Security benefits, another 120,000 individuals who were reportedly told between 2000 and 2006 that they weren’t eligible for benefits may now re-establish their eligibility.

(Time Magazine) Social Security officials say they expect an even larger spike in new disability claims than before, as aging, injured baby boomers tumble out of the work force and need income.Officials estimate they’ll receive 3.3 million new disability claims over the next year, up from their previous estimate of 3 million projected just five months ago.

The wave of new applications comes just as officials were making progress in curbing a massive backlog of disability appeals cases, which has plagued the agency for years. Also adding to the problem are recent moves in at least 10 states to furlough hundreds of employees that process initial benefit claims.

Agency officials say the extraordinary increase is driven by the recession and an aging baby boomer work force reaching their most injury-prone years. Long waits for the agency to process claims and resolve appeals can leave some claimants struggling to make ends meet.

Since October, the number of people waiting to have a claim processed has jumped a stunning 30 percent, from about 556,000 eight months ago to more than 736,000 in July. “We’re going to be moving backwards this year, the question is how much,” Social Security Commissioner Michael Astrue said in an interview. “The trend line isn’t good.”

Social Security disability benefits are available to people who can no longer work due to injury or illness. The disability program has been the fastest rising part of Social Security, with spending on disability benefits growing at almost twice the rate of spending on retirement benefits.

Astrue said he is frustrated that some states coping with budget shortfalls have decided to furlough state employees that include workers who process claims. Although the workers are employed by the state, their salaries are paid by the federal government, so Astrue said the states save no money by requiring them to take unpaid furloughs. “At a time when the case load is surging like that, it just makes the task that much more difficult,” Astrue said.

The economic stimulus package gave the agency $500 million to help cut the appeals backlog. The agency is hiring hundreds more judges and staff to reduce the case load. The number of cases awaiting a hearing has gone down six months in a row.

Astrue had predicted earlier this year that the agency would cut the appeals backlog to normal levels by 2013 and says he remains confident of meeting that deadline. But the sharp rise in new claims may knock that schedule off track, especially if congressional funding doesn’t keep pace with the increase. “The tsunami hasn’t hit … yet, but it will unfortunately,” said Alan Cohen, senior budget adviser for the Senate Finance Committee, in remarks at a recent meeting of Social Security judges.

To be eligible for Social Security Disability benefits, a claimant must not be able to return to their past work, nor do any other work that exists in the national economy. A disability under Social Security must also last at least 12 months or be expected to result in death.

Submitting an application for Social Security Disability benefits is you saying that you are entitled to benefits under the above definition – in other words, that you are not able to work. In signing your application, you swear, under penalty of law, that you are making no false statements on your application.

If you apply for unemployment insurance you must also swear, under penalty of law, that you are making no false statements on your application.  Persons who collect unemployment insurance swear that they have looked for work each week, and that, if work was found, they would be ready, willing and able to do it.

Therefore, an unemployment claim is tantamount to saying “I am able to work,” while an Social Security disability claim is stating “I am not able to work.”  Both statements are made under penalty of perjury, but both cannot be true.

Filing both at the same time is, at the most fraudulent and in the least may affect your credibility to both Unemployment and Social Security.

By June 4, 2009 more than 52 million stimulus payments of $250 each should have been received by eligible Social Security and Supplement Security Income (SSI) recipients.

If you feel you should have received a payment, and did not, call 1-800-772-1213 (TTY 1-800-325-0778) or contact your local Social Security office.

Not everyone receiving Social Security and SSI payments is entitled to the stimulus payment. The following is a list of individuals not entitled to this payment:

Anyone living outside of the United States or its territories;

Individuals who are no longer lawfully present in the United States;

Individuals whose benefits have been suspended under the law for giving false or misleading statements;

Social Security beneficiaries who are minor children (disabled adult children receiving Social Security or children receiving SSI payments will receive the one-time payment);

SSI beneficiaries who receive benefits at a reduced rate of $30 because they live in a medical treatment facility (such as a nursing home or hospital) and Medicaid pays over 50 percent of the cost of their care;

Individuals only entitled to Medicare and not to Social Security or SSI benefits; and

Prisoners, fugitive felons, and probation and parole violators.

Although the typical Social Security Disability Insurance (SSDI) recipient has worked for a fairly long time before the onset of his/her disabling condition, an adult who became disabled before turning 22 can also qualify for SSDI if she/he has a parent who meets certain qualifications.

SSDI is a federal program primarily designed to aid people who have become disabled after having worked for a certain amount of time. Unlike Supplemental Security Income (SSI), SSDI is not a needs-based program, which means that there are no income and asset restrictions. Instead, a beneficiary typically has to have paid into the Social Security system for at least 10 years prior to his disability. An SSDI benefit depends on the beneficiary’s income before he/she became disabled, the size of his/her family, and the amount he/she paid into the Social Security system. Finally, SSDI recipients can receive Medicare two years after qualifying for SSDI.

Most people who have a serious disability before turning 22 are not able to assemble the necessary work record to qualify for SSDI on their own. But people in this situation may instead be able to qualify for SSDI on their parents’ work record, in certain situations.

First, the “adult disabled child” (the Social Security Administration’s (SSA) term for a person with a disability that manifested itself before age 22) must be completely disabled according to the SSA’s adult disability standards. Second, the disability must have occurred before the potential beneficiary turned 22. Third, the potential beneficiary’s parent must have paid into the Social Security system for the required number of quarters. Finally, and most importantly, the potential beneficiary’s parent must be either dead, permanently disabled, or receiving Social Security retirement benefits.

If an adult disabled child and her parent meets all of these qualifications, then the “child” should be able to receive a substantial benefit, often greater than an SSI award. On top of the monetary gain, the child does not have to worry about her/his own unearned income or assets, since SSDI does not take these into account. However, if a child earns enough income through employment, the SSA may determine that she is no longer disabled and cancel her SSDI benefits. The parent’s own retirement benefits are not affected by their child’s receipt of SSDI, and the child can still qualify for SSI benefits if her SSDI payments, which count as unearned income for SSI purposes, do not disqualify her/him.

Parents who have not begun to receive their own Social Security income but who think that their child may qualify for SSDI in the future may want to have their child screened by the Social Security system for his disability before he reaches age 22. If this is not possible, it pays to have the child’s physician clearly document all of the information surrounding the child’s disability from as early an age as possible. This way, when the parent does retire, the child has a long record showing the presence of the disabling condition before he/she turned 22, making the SSDI application easier.

Attorney Sheri Abrams can explain the rules for applying for SSDI and can give your family guidance if you think your child may qualify in the future.

For the first time in more than three decades, recipients of Social Security benefits (including Social Security Disability benefits) will not get any increase in their benefits next year, federal forecasts show.

Michael J. Astrue, the Commissioner of Social Security, says benefits for tens of thousands of people with disabilities are being delayed by furloughs and layoffs of state employees around the country.  State officials have announced furloughs, layoffs and hiring freezes to help balance budgets battered by the recession.

Claims are evaluated by state employees, but the federal government reimburses states for the salaries of those employees and pays the full cost of benefits for people found to be disabled.

“We pay the full freight,” Mr. Astrue said. “States do not save any money when they furlough or lay off these employees. They only delay payments to disabled citizens who rely on the monthly benefits.”

The cutbacks come as disability claims are rising because of high unemployment, the weak economy and the aging of the baby boom generation.

The Social Security Administration expects nearly 3 million new disability claims this year, up from 2.6 million in 2008. Each month the agency pays $12 billion in disability benefits to more than 13 million people.

The Social Security system is so clogged with disputed disability claims that some people wait years for hearings.  The stimulus bill signed by President Obama in February provided $500 million to “reduce the backlog of disability claims.”

But the impact of such spending could be offset by state cutbacks.  In a report last month, Patrick P. O’Carroll Jr., the inspector general of the Social Security Administration, said that at least five states accounting for 15 percent of all disability cases – California, Connecticut, Maryland, Massachusetts and Oregon – had decided to furlough some disability workers, freeze hiring or impose other restrictions. Social Security officials said about 10 other states were taking or considering similar actions.

The agency said it was looking for ways to avoid the delays. The federal government could, for example, take over work performed by the states, but such a change could probably not be made without action by Congress.

As part of the American Recovery and Reinvestment Act (aka the stimulus bill), Congress has authorized one-time $250 payments to most Social Security, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries. Checks to those who were eligible for benefits under the programs during November or December 2008 or January 2009 will begin hitting the mail in early May and continue through the month.

According to the Social Security Administration (SSA), the payments will be distributed to beneficiaries in the same manner that they currently receive their benefit (either by check, debit card, or direct deposit) but the payments will not be included in the same transaction as a beneficiary’s regular monthly payment. This means that beneficiaries should be on the lookout for two separate payments during May.

People with special needs who receive both SSDI and SSI benefits will receive only one $250 payment, and SSDI beneficiaries under age 18 (or 19 if they are still in school) will not receive any payments at all. However, anyone receiving a payment does not have to worry about the additional income affecting his government benefits — the stimulus payments do not count as “income” for either program, and will not count as an available resource for nine months following receipt of the funds.

With the current recession affecting nearly everyone in one way or another, most people would jump at the chance to earn additional income or to receive a large cash gift from a friend or relative. But for Supplemental Security Income (SSI) beneficiaries, extra income sometimes causes more problems than it’s worth. That’s because SSI recipients must follow very strict rules regarding how much income they can receive in any given month. If a beneficiary’s income goes over his allotted SSI award, he could lose not only his SSI eligibility, but also the all-important Medicaid assistance that often comes with it.

The Social Security Administration (SSA), the agency responsible for administering the SSI program, has a unique definition of income: “any item an individual receives in cash or in-kind that can be used to meet his or her need for food or shelter.” This means that a beneficiary’s wages are income (luckily, the SSA only counts $0.50 of each $1.00 of wages as income), as are any cash payments, or cash equivalent items like gift cards, that are given directly to a beneficiary by anyone or anything, including a trust. While a beneficiary is on SSI, her monthly income must be lower than the amount she receives as an SSI benefit. If the beneficiary’s income goes over this limit, even by one dollar, she loses SSI, at least temporarily.

Family members who have not consulted with an Attorney like Sheri Abrams generally learn about these restrictions the hard way. One of the most common scenarios involves a well-intentioned friend or relative giving a person with special needs a large cash gift, typically on a holiday or birthday, that cancels out the beneficiary’s SSI award. Fortunately, the SSA has a specific rule, called the “Infrequent or Irregular Income Exclusion,” that allows for small gifts to SSI beneficiaries.

Here’s how this rule works: During each quarter of the year, the SSA does not count the first $60 of a beneficiary’s infrequent or irregular unearned income, or the first $30 of a beneficiary’s earned income against his SSI award. The SSA defines infrequent income as any payment received from a single source that a beneficiary did not receive in the month before the payment and will not receive in the month after the payment. For example, if a beneficiary gets $30 in July for helping to paint a house, but does not do the work in June or August, the $30 counts as infrequent earned income. Irregular income is any income a beneficiary cannot reasonably expect to receive. In this case, if a friend of the beneficiary gives him $50 “just because,” that $50 counts as irregular income.

In both the house painting example and the gift giving example, SSI would not count the payments as income because the payments fall under the Infrequent or Irregular Income Exclusion. However, if the beneficiary does not spend the funds during the month in which they are received, any remaining money counts as an available resource in the following month, creating a separate problem for the beneficiary, who must keep assets under $2,000 in order to qualify for SSI.

Clearly, $60 each quarter is not a lot of money. But for SSI recipients, who have to deal with many different financial requirements, every little bit helps. Of course, there are other, much less restrictive ways to help an SSI recipient with his daily needs, often through the use of a special needs trust. Attorney Sheri Abrams can help you navigate the tricky world of SSI rules and propose solutions that can make an SSI beneficiary’s life much easier.

As part of the American Recovery and Reinvestment Act (“the stimulus bill”), Congress has authorized one-time $250 payments to most Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries.  Beneficiaries of either program who were eligible for benefits during November or December 2008 or January 2009 will probably receive the additional payment in May.

People with special needs who receive both SSDI and SSI benefits will receive only one $250 payment, and SSDI beneficiaries under age 18 (or 19 if they are still in school) will not receive any payments at all. However, anyone receiving a payment does not have to worry about the additional income affecting his/her government benefits — the stimulus payments do not count as “income,” for either program and will not count as an available resource for nine months following receipt of the funds.

If you or a loved one has a visual impairment and receives some form of Social Security benefit (which includes SSDI and SSI), or if you have a visual impairment and serve as a representative payee for someone who receives a Social Security benefit, a pending class action lawsuit filed in San Francisco may affect you.

The lawsuit, authorized by the federal court in September, alleges that the Social Security Administration (SSA) violates the rights of people with visual impairments by sending official communications in formats that they cannot read. Over the years, many people with visual impairments have complained that they miss out on important information about their benefits because they are unable to read the typical Social Security notices.

The lawsuit claims that a federal law, called the Rehabilitation Act, requires the SSA to provide notices in alternate formats to people with visual impairments. Several proposals are included in the lawsuit, including sending notices in Braille, by e-mail, or on audio tape. The case is scheduled to go to trial in the spring.

If you are interested in learning more about the case, and how it may affect you or your patients/clients please contact our office.

Social Security Announces Nationwide Launch of Compassionate Allowances

Process Will Fast Track Applications For People with Cancers and Rare Diseases

Michael J. Astrue, Commissioner of Social Security, on October 27, 2008 announced the national rollout of the agency’s Compassionate Allowances initiative, a way to expedite the processing of disability claims for applicants whose medical conditions are so severe that their conditions obviously meet Social Security’s standards.

Getting benefits quickly to people with the most severe medical conditions is both the right and the compassionate thing to do, Commissioner Astrue said.  This initiative will allow us to make decisions on these cases in a matter of days, rather than months or years.

Social Security is launching this expedited decision process with a total of 50 conditions. Over time, more diseases and conditions will be added. A list of the first 50 impairments — 25 rare diseases and 25 cancers — can be found at www.socialsecurity.gov/compassionateallowances.

Before announcing this initiative, Social Security held public hearings to receive information from experts on rare diseases and cancers. The agency also enlisted the assistance of the National Institutes of Health.

Compassionate Allowances is the second piece of the agency’s two-track, fast-track system for certain disability claims. When combined with the agency’s Quick Disability Determination process, and once fully implemented, this two-track system could result in six to nine percent of disability claims, the cases for as much as a quarter million people, being decided in an average of six to eight days.

“This is an outstanding achievement for the Social Security Administration,” said Peter Saltonstall, President of the National Organization for Rare Disorders. “It has taken Social Security less than a year to develop this much-needed program that will benefit those whose claims merit expedited consideration based on the nature of their disease. Disability backlogs cause a hardship for patients and their families. Commissioner Astrue and his staff deserve our thanks for a job well done.

Unfortunately, many hardworking people with cancer may not only face intensive treatment to save their lives, but they may also find themselves truly unable to perform their daily work-related activities and as result, may face serious financial concerns, such as the loss of income and the cost of treatment, said Daniel E. Smith, president of the American Cancer Society Cancer Action Network.  The Social Security Administration’s Compassionate Allowances program will help streamline the disability benefits application process so that benefits are quickly provided to those who need them most.

This is America, and it simply is not acceptable for people to wait years for a final decision on a disability claim, Commissioner Astrue said.  I am committed to a process that is as fair and speedy as possible. The launch of Compassionate Allowances is another step to ensuring Americans with disabilities, especially those with certain cancers and rare diseases, get the benefits they need quickly.

If you don’t have a bank account, your days of dealing with paper checks from Social Security may be over.

Social Security recipients can now get monthly payments on a prepaid debit card. The Direct Express Debit MasterCard is being rolled out in 10 states by the Treasury Department and Dallas-based Comerica Bank. It’s an alternative to paper checks and direct deposit. But as with every financial product, there is some fine print. Here’s what you need to know about the Social Security prepaid debit card.

The card is aimed at people without bank accounts. About 4 million Americans receiving Social Security benefits do not have bank accounts and must receive paper checks, which are vulnerable to financial crimes like check fraud and more minor problems such as delivery delay. There’s also the issue of where to cash them. “They have to use check-cashing services,” says Bill Hardekopf, CEO of the credit card comparison website LowCards.com, about people without bank accounts. Check-cashing services can average $40 per check, according to the Brookings Institution.

The southern states of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, and Texas will receive information about the debit card first because they have more low-income Americans without bank accounts than other areas of the country and are the most likely to be hit by nasty weather like hurricanes that can delay checks, according to Judith Tillman, the Treasury Department’s Financial Management Service commissioner.

There are no sign-up fees, monthly fees, or overdraft fees, which plague the users of many other prepaid cards. And no credit check is required to enroll. “With this particular card, the fees aren’t as high as many of the other prepaid cards,” says Michelle Jun, a staff attorney for nonprofit Consumers Union. You can get access to the cash loaded on your card from a bank or credit union teller or as cash back with purchases at retailers. You can also set up free “low balance” alerts when the account balance falls below a certain level and notification of deposits by phone, e-mail, or text message.

Debit card users can withdraw cash from Direct Express network ATMs free once a month. Additional cash withdrawals at network ATMs, which include Comerica Bank, Charter One, Privileged Status, Alliance One, PNC Bank, MasterCard ATM Alliance, and MoneyPass, are 90 cents each. If you use a nonnetwork ATM, you will be charged two fees: the Comerica 90-cent fee and a surcharge by the nonnetwork ATM, which can be as much as $3. To find a network ATM, you can use an ATM locator feature at USDirectExpress.com or call (800) 741-1115. Unused ATM withdrawals can be carried over from one month to the next.

If you’re going to be traveling abroad, you may want to leave your Social Security debit card at home. Comerica charges $3 and 3 percent of the amount withdrawn to use ATMs outside the United States in addition to a possible surcharge for using a nonnetwork ATM. For debit purchases in foreign countries, you’ll also be charged 3 percent of the price.

A paper statement mailed to you costs 75 cents per month. This fee is easily avoided by checking your account balance online and printing it out. But try not to pay any bills while you are logged in to Comerica’s website, or it will cost you 50 cents per bill. Instead pay bills online at the merchant or utility’s website if it accepts MasterCard. And hold on to your card. After one free replacement each year, it will cost you $4 per card?and an extra $13.50 if you need to have it delivered overnight.

If your card is lost or stolen, the amount of money you could lose depends on how quickly you notify Comerica. If you call within two business days, you may lose up to $50, but if you wait longer, you could lose up to $500. For fraudulent transactions, you need to let Comerica know within 90 days to limit your loss to $500, or you could be stuck paying an even larger amount. (For most other debit cards, you have only 60 days. The Department of the Treasury negotiated an extra 30 days of protection for the Direct Express card.) MasterCard says you will not be held liable for an unauthorized use of your card involving a signature-based transaction where your pin number was not entered.

If you already have a bank account, you can avoid many of these fees by signing up for direct deposit and using your own debit card. With your own bank account, you can get unlimited and free in-network ATM withdrawals from a financial institution near your home and accrue interest on your Social Security dollars until you spend them. (Balances on a prepaid debit card garner no interest.)

Social Security benefits for 50 million people will go up 5.8% next year, the largest increase in more than a quarter century. The increase, which will start in January, was announced October 16, 2008 by the Social Security Administration.

It’s the largest increase since a 7.4% jump in 1982 and is more than double the 2.3% rise that people getting Social Security got in their monthly checks this year.

The 5.8% rise in the cost of living adjustment is a sharp departure from recent years. The COLA increases have been below 3 percent for all but three of the past 15 years.

The biggest cost of living benefit on record was a 14.3% increase in 1980. Social Security benefits have been adjusted every year since 1975.

In more good news, the cost of living increase will not be eaten up by higher monthly premiums for the part of Medicare that pays for physician services. Because of gains in the Medicare Part B trust fund, that premium will hold steady at $96.40 a month, although higher-income people including couples making more than $170,000 annually will see their premiums increase.

The average retired couple, both getting Social Security benefits, will see their monthly check go up by $103 a month to $1,876.

The standard Supplemental Security Income payment for a couple will go from $956 per month to $1,011. The SSI payment for an individual will go from $637 per month to $674 per month.

The average monthly check for a disabled worker will go from $1,006 to $1,064.

The Social Security Administration’s Inspector General concludes in a recent report that many banks are violating federal law by garnishing accounts that receive electronic deposits of Social Security benefits.  The practice could imperil millions of low-income seniors and people with disabilities who rely on Social Security.  When people owe money to credit card companies and other types of lenders, the creditors often use garnishment as a way of gaining partial payment of the debt. In order to garnish a debtor’s account, a creditor must go to court and obtain an order compelling the debtor’s bank to relinquish a set portion of the account, often on a monthly basis in accordance with the debtor’s deposits.  However, federal law prohibits garnishment of accounts receiving direct deposit of Social Security benefits, except in very specific situations, such to collect child support or unpaid federal taxes.  Unfortunately for many indebted seniors and people with disabilities, many state courts and most banks are unaware of the federal law regarding garnishment.  Therefore, courts routinely issue, and banks carry out, garnishments of accounts they have no business depleting. These accounts often hold the only source of income of a senior or person with a disability.. After they were alerted to the situation, Sens. Herb Kohl (D-WI), Max Baucus (D-MT) and Claire McCaskill (D-MO) requested that the Social Security Administration’s Inspector General investigate.  In a recently released report, the Inspector General found that in a 12-month period, the 12 largest U.S. banks withheld more than $1 million from accounts holding government benefits and no other funds. The banks also withheld an additional $29 million from accounts holding benefits mixed with money from other sources.

Hundreds of thousands of Social Security disability (SSDI) claimants are waiting up to three years for a resolution of their disability appeals, according to a article in the New York Times. During the long wait for an appeals hearing, more and more claimants are losing their homes, filing for bankruptcy, dying from their illnesses or even committing suicide. The average wait now exceeds 500 days, and the backlog of cases numbers 755,000; in 2000 the wait was 258 days and the backlog was 311,000 cases. The Social Security Administration’s (SSA) plan to hire 150 appeals judges to tackle the backlog is caught in the showdown between Congress and the White House over domestic appropriations. President Bush proposed a $9.6 billion budget for the SSA for fiscal year 2008, but an additional $100 million is needed to hire more SSA judges. Congress had approved an increase of $275 million for the SSA in November, but Bush vetoed the bill that included the increase. If the standoff continues and the government operates through continuing resolutions, the SSAA’s spending will remain at last year’s level, which would not only scuttle the plan for new judges but conceivably lead to furloughs, according to SSA Commissioner Michael A. Astrue. The increased backlog in appeals over the last decade is the result of litigation, funding shortages, and the rising number of SSD applications from baby boomers in their 50s and 60s. About 2.5 million disability cases are filed each year, two-thirds of which are denied initially by state agencies based solely on the documentary record. Most claimants give up at that point or after their request for local reconsideration is denied. But two-thirds of the more than 575,000 claimants who appeal eventually win reversals after a hearing before an SSA judge. Federal officials predict that the lack of additional judges will mean even longer waits and more personal hardships for claimants. The long delays are also a strain for state welfare agencies that provide cash assistance to some SSD claimants during their long wait for an appeals hearing. Like his predecessors, Commissioner Astrue has promised faster decisions. He indicated that the SSA has begun a process for the speedier initial approval for claimants who are clearly eligible and that more hearings are being held by video. But indications are that there will be no significant impact on the backlog without major increases in funding, judges, and support staff.