TN 9 (07-00)
SI 00870.070 Suspension Or Termination Of A PASS
A. Policy -- suspension
SSA will suspend a PASS when the individual's PASS is not terminated per SI 00870.070B., and the criteria for extending the PASS in SI 00870.055C.2. are not met. A PASS will be suspended when a new PASS with a new work goal is requested.
A PASS may be suspended for up to 12 consecutive months when, if it has not been resumed per SI 00870.080, it will be terminated per SI 008670.070B.
B. Policy -- termination
A PASS terminates when one of the following events occurs:
C. Policy -- effective dates
1. Income Excluded Under PASS
A PASS, under which income was set aside, is suspended or terminated effective with the month, if known, in which the suspension or termination event occurred. The set aside income is counted as of the suspension/termination month.
The date of the suspension/termination decision is used as the month of the suspension or termination event when no earlier month is determinable. The set aside income is counted as of the month of the decision.
2. Resources Only Excluded Under PASS
A PASS, under which only resources were set aside, is suspended or terminated effective with the month after the month, if known, in which the suspension or termination event occurred. The set-aside resources are counted as of the first moment of the month following the suspension/termination event unless otherwise excluded (see SI 01130.000 ff.). It is immaterial whether the individual intends to disburse these funds for the planned expenditures after SSA suspends or terminates the plan.
The date of the suspension/termination decision is used as the month of the suspension or termination event when no earlier month is determinable. The set-aside resources are counted as of the first moment of the month following the month of decision unless otherwise excluded (see SI 01130.000 ff.).
D. Policy -- final accounting
1. General Directions for the Final Accounting
A final accounting will be done when the PASS is suspended or terminated by comparing the monies spent with the monies excluded to determine whether the excluded funds and the approved expenditures are “equal” to each other. When the excluded funds equal the approved expenditures, no further action is necessary. When the amount of the excluded funds are not equal to the amount spent on the approved expenditures, a retroactive adjustment to the record will be made, subject to administrative finality, to reflect the fact that less funds were needed for the PASS, and that less funds should have been excluded.
2. Excluded Funds Equal Approved Expenditures
Expenditures will be considered to “equal” the excluded income and resources if the total for the excluded funds exceeds the total for expenditures (including items still planned to be purchased) by any tolerance amount (or less) provided in SI 02260.030. As long as these figures are considered equal, no overpayment can arise for periods during which the PASS was in effect.
NOTE: This “equals” computation incorporates the instructions in SI 02260.030 to waive an overpayment up to a “tolerance amount” if the individual protests the overpayment. (This policy presumes that any individual with a PASS would request a waiver.)
3. Examples of a Final Accounting
After determining that Mr. Johnson reached his goal as of 7/00, you reconcile the expenditures under the PASS and the amount of income excluded. Mr. Johnson submits receipts totaling 5,350. The total amount of income excluded under the PASS was $5,700. Since the difference is less than the tolerance ($500 for 7/00) provided in SI 02260.030, no overpayment exists. If the difference had been more than $500, you would adjust the type “D” earned income retroactively, subject to administrative finality.
During a progress review for a PASS that has been in existence for less than 12 months, the individual advises you that she is no longer pursuing the goal. She has conserved $1,200 of her SSDI benefit as explained in her plan. Although she saved the funds as required by the plan, the funds were not used as planned. You advise her that unless an amendment is approved with a timetable and milestone(s) for using the saved funds, the PASS will be suspended. She doesn't wish to submit an amendment. You offer to help her pursue a different work goal under a new PASS. She declines your offer. Because the expenditures do not equal the excluded income administrative finality is not a factor, you adjust the type “D” earned income back to the first month of the PASS.
E. Procedure -- notice preparation
1. General Directions for Suspension and Termination Notice
Prepare a manual notice per NL 00801.010 ff., NL00803.001 ff. and 2. or 3., below. Use Form SSA-L8166-C1 in NL 00802.035. Send the notice to the individual, any representatives, and the assisting agency, if any, provided a release from the individual has been signed and is with the file.
2. Content of Suspension Notice
Include the following in the suspension notice:
the reason for the suspension (e.g., abandonment of plan, no plan submitted at end of VR Evaluation, etc.);
the month in which you will count the income and/or resources previously excluded under the plan;
an explanation of other exclusions (see SI 00820.500 ff., SI 00830.050 ff. and SI 01130.000 ff.);
an explanation that a separate notice will explain any effects on the individual's SSI eligibility or payment amount;
the PASS may be resumed at any time within 12 months of the date of this notice if the individual resolves the reason for the suspension or if the person reached the occupational objective, evidence that outstanding debts remain for approved expenses;
whether SSA is sending a copy of the notice to a third party (if authorized by the individual); and
standard referral paragraph (see NL 00804.240).
3. Content of Termination Notice
Use the PASS Termination Notice on the FONS when the PASS is being terminated. If unavailable, provide a clear explanation as to the reason for the termination.
4. Notice Distribution and File Documentation
Follow instructions in SI 00870.040B.4.
5. Procedure -- systems input
Terminate the “D” type income exclusion in the EN field on the SSR per SM 01305.105. Make any other changes as needed, such as inputs for other exclusions (e.g., IRWE).
Adjust the “D” type income retroactively as appropriate and subject to administrative finality when the excluded funds exceed and do not “equal” the approved expenditures under the criteria in SI 00870.070D.2. Do not make any retroactive input until you have contacted the person and completed a final accounting for the PASS.