Benefit Offset Four-State Pilot Demonstration

In August 2005, the Social Security Administration (SSA) initiated a pilot demonstration in four States to test alternate methods of treating work activity in the Social Security Disability Insurance (SSDI) program. The purpose of the Benefit Offset projects is to determine the effect of various interventions in combination with a benefit offset on employment outcomes including wages, benefits, hours worked, and job retention.

Findings from the pilot will provide information for the National Benefit Offset Demonstration, scheduled for implementation in late 2008.

The Benefit Offset demonstration pilot program is being tested in the four States listed.

SSA is testing a $1 reduction in SSDI benefits for every $2 in earnings in combination with employment supports, with the goal of helping beneficiaries with disabilities return to work. The project will allow beneficiaries to face this gradual reduction in their benefits, eliminating the abrupt loss of cash benefits in the SSDI program when a beneficiary works and has earnings over a specific amount.

In both the pilot and the national demonstration, participants will also maintain ongoing eligibility for health care benefits and other supports linked to SSDI eligibility.

SSA anticipates that the strategies developed for this project will reduce barriers to work and allow beneficiaries with disabilities to increase their employment, earnings and financial independence. SSA will use the results from this 4-State pilot project to inform the national demonstration project.

There is a summary page and full description fact sheet that provides information about the Benefit Offset National Demonstration.