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Carlos

Part 3 of 3

How does the BOND benefit offset help Carlos earn more and still keep SSDI benefits?

Since Carlos is in BOND, under the offset, instead of falling to $0, Carlos's cash benefit is reduced by $1 for every $2 he earns over the BOND yearly amount. This is calculated based on an annual estimate of his earnings, compared to the BOND yearly amount (which is the annualized Substantial Gainful Activity figure). The table below shows the calculations.

Carlos's new SSDI benefit will be calculated as follows:

Step 1 Annual estimate of gross earnings ($1,257/month for 12 months) $15,084
Step 2 Total BOND countable wages are the same (assumes no impairment-related work expenses) $15,084
Step 3 BOND yearly amount in 2012 (for a non-blind individual) $12,120
Step 4 Subtract the amount in Step 3 from the amount determined in Step 2 $2,964
Step 5 Divide the amount determined in Step 4 by 2 (for $1 for $2) $1,482
Step 6 Divide the amount determined in Step 5 by 12 (12 months in the offset period for this year) $124

These steps assume that Carlos works full-time for the entire 12 months of 2012 and that he does not need to incur special impairment-related expenses in order to work. The offset amount applied to his monthly benefit, calculated in Step 6, is what is subtracted from his monthly SSDI benefit check. So Carlos's benefit is $124 lower than his current SSDI benefit; it will be $800 − $124 = $676.

The table below shows how the benefit offset makes his income significantly higher than under current policy. His SSDI benefit under BOND, combined with his monthly earnings, will give Carlos an income of $1,933 per month. This is $676 more per month than if Carlos did not join BOND and continued instead under current policy. Over the course of the year, his total income will be $8,112 greater. And, Carlos will have $2,286 more in income this year compared to his previous part-time schedule.

Future Income Under BOND Policy
  Monthly Annual
Earnings $1,257 $15,084
SSDI benefit $676 $8,112
Total income $1,933 $23,196

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