A POD participant’s benefits are offset $1 for every $2 earned above the POD monthly
threshold. The threshold is the greater of either the current year TWP level ($840
in 2017) or the total approved monthly amount of IRWE. The threshold cannot exceed
the current year SGA/Blind SGA rate even if a beneficiary’s IRWE are higher.
POD participants are required to report their earnings and IRWE, if any, to Abt monthly.
For each monthly report, we will calculate a new offset for the corresponding benefit
month. Earning reports will carry forward to the next month if a beneficiary fails
to report. However, IRWE will not carry forward to the following month(s). If IRWE
increases the threshold in an offset calculation for a given month and the beneficiary
fails to report earnings or IRWE the following month, the offset is recalculated using
the last reported earnings and the TWP amount as the threshold.
Example of a monthly offset calculation
John Doe volunteered to enroll in the POD in November 2017. Abt sent John a letter
informing him of his random assignment to treatment group 1 and that his offset eligibility
starts in December 2017. Abt also sent John a welcome package identifying his work
incentive counselor (WIC).
John contacted his WIC in early December 2017 to report his November 2017 earnings.
He reported to his WIC that he earned $2000 in November 2017 and had $300 in medication
co-pays. John uploaded his paystubs via the POD website. John’s monthly benefit amount
(MBA) is $1200. The WIC enters the following information from him in the POD Information
Data System (IDS):
-
•
Date of report: 12/05/2017;
-
-
•
Earnings Report Amount: $2000;
-
•
Impairment Related Work Expenses: $300;
-
•
Monthly Benefit Amount: $1200
We use the following chart to determine the monthly offset amount:
Monthly $1 for $2 Offset Computation
Step
|
Description
|
Outcome
|
Step 1
|
Monthly Earnings Report
|
$2,000
|
Step 2
|
IRWE report
|
$300
|
Step 3
|
TWP amount (2017)
|
$840
|
Step 4
|
Determine threshold used to calculate offset amount
*Greater of TWP amount or actual IRWE but IRWE amount can’t exceed yearly SGA amount
|
$840
|
Step 5
|
Subtract threshold determined in Step 3 from Monthly Earnings Report in Step 1.
|
$2000 - $840 = $1160
|
Step 6
|
Divide the amount found in Step 5 by 2. The result is the offset amount.
|
$1160/2 = $580
|
Step 7
|
Subtract the offset amount found in Step 5 from the Monthly Benefit Amount (MBA) for
the report month. The result is the offset monthly benefit amount.
|
$1200 - $580 = $620
|
When applying the benefit offset, we reduced John’s monthly benefit amount by $580.
His new POD offset monthly benefit amount is now $620.