To be eligible for the $1 for $2 offset, a POD participant must:

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  be within the POD participation period (For a definition of POD participation period, please see DI 60075.035.);

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  earn above the POD monthly threshold. The POD monthly threshold is the greater of the trial work period (TWP) level or the total approved amount of the beneficiary’s monthly impairment related work expenses (IRWE); and

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  be entitled to Social Security Disability Insurance (SSDI) benefits.

The POD determines offset using a participant’s monthly gross earnings when paid. The POD does not deduct paid time off (PTO) from the gross total.

Non-countable income (NCI) is only involved when a beneficiary enters the POD in a partial year. The POD counts the earnings paid prior to random assignment from the beneficiary and documents it as NCI in the POD Automated System (PAS). The PAS subtracts the NCI total from the yearly Master Earnings File (MEF) total when calculating the End of Year Reconciliation (EOYR) for the initial POD offset year.

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 them of their random assignment to treatment group 1 and that their offset eligibility starts in December 2017. Abt also sent John a welcome package identifying their work incentive counselor (WIC).

John contacted their WIC in early December 2017 to report their November 2017 earnings. They reported to their WIC that they earned $2000 in November 2017 and had $300 in medication co-pays. John uploaded their paystubs via the POD website. John’s monthly benefit amount (MBA) is $1200. The WIC enters the following information from them in the POD Information Data System (IDS):

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  Date of report: 12/05/2017;

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  Earnings Month: 11/2017;

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  Earnings Report Amount: $2000;

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  Impairment Related Work Expenses: $300;

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  Monthly Benefit Amount: $1200

We use the following chart to determine the monthly offset amount:

Monthly $1 for $2 Offset Computation

When applying the benefit offset, we reduced John’s monthly benefit amount by $580. Their new POD offset monthly benefit amount is now $620.

When the monthly offset amount exceeds the monthly benefit amount, the beneficiary is in full offset. The MBR displays a LAF code of SQ, RFD code of Q and a RFST of DMPRDP indicating demo project “DP” POD offset case.

When the monthly offset amount is less than the monthly benefit amount, the beneficiary will be in partial offset. The WIC code “Z” indicates deduction for POD offset.

Any auxiliaries receiving benefits based on a POD participant’s record continue to receive full benefits until the POD participant goes into full offset. As long as the POD participant is eligible for a partial benefit amount, the auxiliaries continue to receive full monthly benefits. If the POD participant goes into full POD offset (LAF SQ.), any auxiliary benefits will also stop due to the POD participant’s work activity (LAF SQ).

POD participants are subject to regular medical CDRs. A POD participant who ceases to have a disabling impairment no longer qualifies for the POD participation period and is not eligible for the benefit offset unless they receive statutory benefit continuation payments based on a medical cessation appeal. In that case, the beneficiary may receive reduced benefit payments under the benefit offset during the appeal if the beneficiary:

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  is within the POD participation period (For a definition of POD beneficiary, please see DI 60075.035A); and

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  works above the POD monthly threshold amount.