---------- Forwarded message ----------
Date: Fri, 18 Oct 1996 21:38:39 -0400 (EDT)
From: Jim Gashel <jgashel@blazie.com>
To: Dave Andrews <dandrews@visi.com>
Subject: material for distribution
For more information contact:
James Gashel
Director of Governmental Affairs
IMPORTANT NOTICE ON SGA FOR BLIND PERSONS
The Social Security Administration has just announced the earnings
guideline for blind
persons to be used in determining Substantial Gainful Activity (SGA)
during 1997. The SGA
earnings guideline applies to eligibility decisions in the Social Security
Disability Insurance
(SSDI) program. It does not apply in any respect whatsoever to
determinations of eligibility
or payment amounts in the Supplemental Security Income (SSI) program.
Beginning in January, 1997, average monthly earnings for a blind
person which are
less than $1,000 will not count as SGA. The comparable amount for 1996 is
$960. The
change in the SGA exempt amount for blind people is the result of an
automatic adjustment
made annually.
From January, 1978, until March, 1996, the SGA exempt amount for
blind persons
was identical to the exempt amount for persons who retire at age 65.
However, the earnings
exemption for seniors was raised above the automatic adjustment level in
March, 1996, and
will increase further in six mandated steps to reach an annual exempt
amount of $30,000
beginning in 2002.
Although the SGA exempt amount for blind people was specifically
excluded from the
mandated adjustments, it will still be raised gradually and automatically
year by year. By the
year 2002, when the exempt amount for seniors reaches $30,000, the SGA
guideline for
blind people is expected to be $14,400.
It is important to provide correct and complete information to blind
people who may be
affected by the annual changes in SGA. This is particularly so
now--beginning with the 1997
change--since the exempt amounts for blind people and for seniors are
different. Because
more than thirty-five million seniors receive retirement benefits, and
fewer than one hundred
thousand blind people receive SSDI checks, the wrong information about the
exempt
earnings standard may be given in response to some inquiries. This was
less likely to occur
when the exemptions were linked.
In view of the change in earnings exemptions, the Social Security
Administration is
aware of the possibility that confusing and incorrect information may be
given. Therefore, a
reminder notice is being circulated to personnel in Social Security
offices and to specialists
who answer calls in the teleservice system. The text of the notice from
the Social Security
Administration follows:
SOCIAL SECURITY ADMINISTRATION
INFORMATION ON GUIDELINES FOR SUBSTANTIAL GAINFUL ACTIVITY
1997 SGA Amount for the Blind
Effective January 1, 1997, the monthly substantial gainful activity
(SGA) amount for
persons receiving Social Security disability benefits based on blindness
will be $1,000. This
represents an increase over the amount in 1996, which was $960 per month.
The non-blind
SGA amount remains at $500 per month.
It is important to remember that beginning in 1997, the blind SGA
amount is no longer
tied to the over age-65 retirement earnings test. That amount will rise
significantly over the
next five years based on legislation signed in March, 1996, until it
reaches $30,000 per year
in 2002.
Although de-coupled from the retirement earnings test, the blind SGA
amount
continues by law to be adjusted annually based on the national average
wage index.
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