You must average countable earnings over the period of work requiring evaluation unless
there is a significant change or a regulatory change in the SGA earnings level. A
significant change marks the beginning or ending of an averaging period. Average earnings
over each separate period of work. Although there is not an established monetary earnings
amount that represents a significant change in earnings or work activity, you can
determine if a significant change has occurred by considering the following work issues:
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•
Was there a change in job duties or hours (i.e., changing from part-time to full-time
work)?
-
•
Did the person change his or her position?
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•
Is this person no longer working at the job?
-
•
Did the person have any non-work months?
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•
Did the person have a month with zero countable earnings?
NOTE: Typically a month with zero earnings represents a significant change, however,
if impairment related work expenses (IRWE) or a combination of work incentives reduce
countable earnings to zero, the regulations require us to average if the period of
work was continuous.
-
•
Did the person have a partial month of work?
1.
Examples of no significant
change
a. Continuous work
Mr. A begins working at The Superstore 10/02/2017. He does not report that he started
working and we detect the work through an earnings enforcement. A technician opens
a work review and Mr. A returns form SSA-821-BK. Paystubs are not available at the time of the review. He does not indicate any change
in work patterns or earnings. The technician retrieves his earnings from The Work
Number. His earnings are as follows:
|
|
|
|
Month |
2017 |
2018 |
2019 |
January |
|
$1,200 |
$1,300 |
February |
|
$1,200 |
$1,300 |
March |
|
$1,200 |
$1,300 |
April |
|
$1,200 |
|
May |
|
$1,200 |
|
June |
|
$1,150 |
|
July |
|
$1,100 |
|
August |
|
$1,250 |
|
September |
|
$1,200 |
|
October |
$1,100 |
$1,200 |
|
November |
$1,150 |
$1,200 |
|
December |
$1,100 |
$1,150 |
|
Since the work was continuous, earnings fluctuate above and below SGA from 01/2018
to 12/2018, and there is no significant change in earnings or work pattern, the technician
averages all months in the averaging period. Average earnings for 2018=$1,187.50 ($14,250/12).
His TWP months are 10/2017-06/2018. Since the earnings average more than the 2018
SGA threshold of $1,180, the technician determines that the cessation month is 07/2018,
the first month of the EPE. His grace period is 08/2018-09/2018. Benefits are suspended
10/2018, 11/2018, 01/2019, and continuing. Benefits are due in 12/2018 because we
cannot apply averaging after a cessation month.
b. No significant change in work pattern
Mr. B calls on 12/03/2018 to report that he returned to work as a part-time Shift
Manager at We Are Tires on 01/05/2018. He submits his wages via myWR. Mr. B returns
the SSA-821-BK, which indicates that he is still working and that there are no changes
in his job duties or salary. He provides proof that 10/02/2018 and 10/03/2018 were
paid vacation days, and that 10/23/2018 was a sick day. His countable earnings are
as follows:
|
|
|
Month |
2018 |
2019 |
January |
$1,225 |
$1,300 |
February |
$1,150 |
|
March |
$1,250 |
|
April |
$1,200 |
|
May |
$1,250 |
|
June |
$1,200 |
|
July |
$1,250 |
|
August |
$1,250 |
|
September |
$1,200 |
|
October |
$1,050 |
|
November |
$1,200 |
|
December |
$1,250 |
|
The technician completes the review in 01/2019. In determining countable earnings,
the technician excludes the vacation and sick pay in 10/2018, per DI 10505.010. The technician determines that the work is continuous, there is no significant change
in work pattern or earnings, and there is no partial work month. The technician averages
the earnings. Average earnings 01/2018-12/2018 are $1,206.25 ($14,475/12). This is
above the SGA threshold for 2018 of $1,180. The technician determines that Mr. B engaged
in SGA in all months of 2018. Based on his allegation, SGA work continues. His TWP
months are 01/2018-09/2018, and his cessation month is 10/2018, the first month of
the EPE. Even though countable earnings in October are below SGA, we will consider
them SGA since earnings in 2018 average over the limit. The grace period is 11/2018-12/2018
and suspension begins 01/2019.
2. Examples of significant change
a. Reduction in hours
Ms. M completed her TWP in 06/2017 and stopped working due to her disabling condition
shortly after. In 01/2018, she starts a new job. In 05/2019, SSA initiates a work
review. The technician calls Ms. M and has her attest to the information on the SSA-821-BK.
During that interview, she indicates that her earnings decreased in 04/2018 because
her employer complied with her request to reduce her hours to part-time due to her
disability. She then tells the technician that with some therapy, she was able to
work back up to full-time effective 09/02/2018 and that full time work continues.
Her earnings are as follows:
|
|
|
Month |
2018 |
2019 |
January |
$1,205 |
$1,225 |
February |
$1.195 |
$1,230 |
March |
$1,200 |
$1,250 |
April |
$690 |
$1,300 |
May |
$755 |
|
June |
$825 |
|
July |
$795 |
|
August |
$760 |
|
September |
$1,175 |
|
October |
$1,205 |
|
November |
$1,250 |
|
December |
$1,200 |
|
The technician determines that work from 01/2018-03/2018 is an unsuccessful work attempt.
This period is less than six months, is preceded by a period of non-work, and the
work was reduced to non-SGA levels due to the disabling condition. The technician
has evidence of a significant change in work pattern 04/2018 through 08/2018; therefore,
the technician does not include those months in the averaging period, and instead
only averages 09/2018-12/2018. That period results in average earnings of $1,207 ($4,830/4).
Since Ms. M continues to work and SGA level work activity is ongoing, her cessation
month is 09/2018, with grace months of 10/2018-11/2018, and benefit suspension 12/2018
and continuing.
b. Change in position
Ms. J begins working at ACME Law Firm on 10/03/2017. She completed her TWP in 06/2018.
She completes form SSA-821-BK and reports that she worked as an entry-level administrative
assistant at the firm through 09/2018. She indicates in the remarks of the work activity
report that effective 10/03/2018 she received a promotion to executive administrative
assistant. She tells us that with the promotion came increased duties and hours. She
also received an increase in pay. Her earnings are as follows:
|
|
|
|
Month |
2017 |
2018 |
2019 |
January |
|
$1,000 |
$1,550 |
February |
|
$1,100 |
$1,450 |
March |
|
$1,150 |
$1,550 |
April |
|
$1,200 |
|
May |
|
$1,150 |
|
June |
|
$1,150 |
|
July |
|
$1,100 |
|
August |
|
$1,200 |
|
September |
|
$1,200 |
|
October |
$1,100 |
$1,500 |
|
November |
$1,150 |
$1,450 |
|
December |
$1,100 |
$1,500 |
|
We have evidence that there was a significant change in work pattern effective 10/2018,
when she received the promotion. Since there was no significant change in work pattern
or earnings between 01/2018 and 09/2018, the technician averages earnings for that
period. Average earnings for this period = $1,138.89 ($10,250/9). Since the earnings
average less than the 2018 SGA threshold of $1,180, the technician determines that
Ms. J did not engage in SGA after the end of the TWP through 09/2018. She works above
SGA 10/18 and continuing. Her cessation month is 10/2018. Benefits are suspended effective
01/2019, the month after the grace period, and continuing.
c. Significant change in earnings
A technician receives an earnings enforcement alert in 07/2019 showing Ms. E works
at The Warehouse, Inc. and reviews the prior decisions in eWork. Ms. E previously
completed the TWP. A call to Ms. E is unsuccessful. The technician sends an SSA-821-BK
to Ms. E, but she does not return it. The technician reviews the earnings per the
earnings hierarchy found in DI 10505.005C.2. The best available evidence is the National Directory of New Hires (NDNH) query.
NDNH shows a hire date of 04/05/2018 and earnings posted through the first quarter
of 2019. There is no indication that Ms. E has stopped working. The technician distributes
the earnings evenly for each quarter. The earnings are as follows:
|
|
|
Month |
2018 |
2019 |
January |
|
$1,321 |
February |
|
$1,321 |
March |
|
$1,321 |
April |
$1,122 |
$1,321 (estimate) |
May |
$1,122 |
$1,321 (estimate) |
June |
$1,122 |
$1,321 (estimate) |
July |
$1,185 |
|
August |
$1,185 |
|
September |
$1,185 |
|
October |
$322 |
|
November |
$322 |
|
December |
$322 |
|
The distributed monthly earnings for the second quarter are $1,122 ($3366/3) and $1,185
($3555/3) for the third quarter. Since the earnings in the fourth quarter of 2018
are significantly lower than the other quarters in 2018, the technician does not include
that quarter in the averaging period. Average earnings 04/2018-09/2018 are $1,153.50
($6921/6) which is less than the SGA threshold for 2018. The distributed earnings
for the first quarter of 2019 are over SGA. The technician has no proof that the work
has ended and therefore estimates continuing monthly earnings based on those posted
for the first quarter through the month of effectuation. Ms. E’s cessation month is
01/2019 with grace months of 02/2019-03/2019 and suspension as of 04/2019 and continuing.