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PASS - Plan for Achieving Self-Support

PESS - Property Essential to Self-Support

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PASS and PESS are SSI work incentives -- rules that determine how your Supplemental Security Income (SSI) benefits will be affected when you prepare for and go to work. They are designed to help you enter or reenter the workforce, and can give you some of the support you need as you move from benefit dependency to increased self-sufficiency.

Plan for Achieving Self-Support (PASS)

What is PASS?

PASS is a program that allows you to set aside income and/or resources to help you reach a work goal. Your goal must be a job that will produce sufficient earnings to reduce your dependency on Social Security and SSI payments. Examples of things you could set aside money for are education, vocational training, and starting a business.

Social Security will not count the income that you set aside under your PASS when determining your SSI payment amount. Further, they do not count the resources that you set aside under your PASS when determining your initial and continuing eligibility for SSI. Therefore, a PASS can help you establish or maintain SSI eligibility, and can increase your SSI payment amount.

How will a PASS affect my SSI benefit?

Under SSI rules, any income that you have may reduce your SSI benefit. But money that is set aside under a PASS is not counted in determining your SSI benefit amount. This means that you may get a higher SSI benefit to pay your living expenses.

In addition, your resources (money or property) cannot be worth more than $2,000 ($3,000 for a couple). But the resources you set aside for a PASS don't count against the limit. This could help you qualify for SSI.

Who can have a PASS?

You can, if:

• you want to work;
• you get SSI (or can qualify for SSI) because of disability or blindness ; and
• you have income and/or resources to use for a work goal.

How do I set up a PASS?

The info needed by the SSA is submitted in writing on PASS Application Form, SSA-545-BK. This form is available from your local Social Security office or from any PASS Expert. It is also available on line at http://www.socialsecurity.gov/disabilityresearch/wi/pass.htm

The 14-page form includes instructions for completion. You will be asked to provide:

• a specific work goal that you have a reasonable chance of achieving;
• a reasonable time frame, with starting and ending dates, and designated milestones; and
• expenses that are necessary to achieve the work goal.

Who can help me set up a PASS?

You can write your plan yourself, or get help from a local Social Security office, a vocational rehabilitation (VR) counselor, an organization that helps people with disabilities, an employer, or a friend or relative. Note that some organizations may charge you a fee for writing a PASS. The Social Security office may be able to refer you to someone who does not charge a fee.

How do I find out more about PASS?

On the Web, visit http://www.socialsecurity.gov/disabilityresearch/wi/pass.htm. To speak with a PASS Expert in our area, call 800-254-9489 (Birmingham, AL).

Property Essential to Self-Support (PESS)

What is PESS?

The Social Security Administration does not count some resources that are essential to your means of self-support when they decide your initial and continuing eligibility for SSI.

What is not counted?

• Property that you use in a trade or business (for example, inventory) or that you use for work as an employee (such as tools or equipment).
• Up to $6,000 of equity value of non-business property that you use to produce goods or services essential to daily activities (for example, land used to produce vegetables or livestock solely for consumption by your household).
• Up to $6,000 of equity value of non-business income producing property (for example, rental property) if the property yields an annual rate of return of at least 6%.
• Note: Liquid resources (for example stock, bonds, or notes) are not considered as PESS unless you use them as part of a trade or business
• Note: according to a paper by Griffin-Hammis Associates, LLC entitled Social Security Considerations for Small Business Owners with Disabilities, “PESS allows for the accumulation of unlimited funds in a small business operating account. There is no similar exclusion in regular wage employment.”