Mary Doe was selected to participate in BOND in May 2011. We sent Mary a substantial
gainful activity (SGA) determination notice informing her that she completed her trial
work period (TWP) and her disability ceased due to SGA in January 2012. The notice
informed Mary that she would receive full benefit checks for January 2012, the month
of cessation, and the following two months of her grace period.
Mary’s benefits are offset, effective April 2012, the month after her grace period
ended.
Mary contacts the BOND site office, which collects an earnings estimate from her.
Mary estimates earned income of $32,000 in 2012, and indicates she pays $100 per month
in medication co-payments. Mary also reports that she needs medication to control
mood swings associated with her disabling impairment. Site staff enters the following
information from Mary in the BOND Operations Data System (BODS):
-
•
Date of report: 7/5/2012;
-
-
•
Estimated annual gross earnings for the calendar year: $32,000;
-
•
Estimated work incentive deductions for the offset period: $900; and
-
•
Estimated other allowable deductions for the offset period: $0.
We determine that Mary was paid $7,998 prior to April 2012, the first month of offset.
Since this is a partial year offset, SSA deducts nine months (April through December)
of the medication co-pays for a total of $900 in impairment-related work expense (IRWE)
deductions for the year. We use the following chart to determine the monthly offset
amount:
Partial Year $1 for $2 Offset Computation
Step 1
|
Annual Earnings Estimate
|
$32,000
|
Step 2
|
Total Non-Countable Income:
IRWE of $900 (Nine months at $100)
The beneficiary estimated earnings prior to first month of offset of $7998 (January
to March 2012)
|
$8,898
|
Step 3
|
Determine annual BOND countable estimate by subtracting the amount determined in step
2 from the amount determined in step 1.
|
$23,102
|
Step 4
|
Determine prorated BOND yearly amount (number of months in the offset period x monthly
BOND yearly amount, ($1,010 /mo. in 2012)
|
$9,090
|
Step 5
|
Subtract the amount determined in Step 4 from the amount determined in Step 3.
|
$14,012
|
Step 6
|
Divide the amount determined in Step 5 by 2 (to factor in the $1 for $2 offset)
|
$7,006
|
Step 7
|
Divide the amount determined in step 6 by the number of months in the offset period
for the year (9) to determine the monthly offset amount (rounding up to nearest dime).
|
$778.50
|
When applying the benefit offset, we reduced Mary’s monthly benefit amount by $778.50.