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Carlos

Part 3 of 3

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

Under the BOND offset, instead of falling to $0, Carlos's cash benefit is reduced by just $1 for every $2 of countable income he earns above the BOND yearly amount (which is the annualized SGA of $1,010). The table below shows the calculations, including how his impairment-related work expenses (IRWEs) are deducted.

Carlos's new SSDI benefit is calculated as follows:

Step 1 Annual estimate of gross earnings ($1,257 per month for 12 months) $15,084
Step 2 Total BOND countable wages are reduced by $100/month for IRWEs ($1,257 − $100 = $1,157 for 12 months) $13,884
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 $1,764
Step 5 Divide the amount determined in Step 4 by 2 (for $1 for $2) $882
Step 6 Divide the amount determined in Step 5 by 12 (12 months in the offset period for this year) $74

Even with the IRWE deduction, if Carlos was not in BOND, he would be able to receive his full benefit only by cutting back his hours. However, the offset gives him the freedom to choose to work 40 hours per week—or slightly more, or slightly less—without any concern about losing his entire benefit.

Future Monthly Income Under BOND Policy
Earnings $1,257
SSDI benefit $726
Total monthly income $1,983

Under the BOND offset, instead of losing his entire benefit, Carlos keeps most of it. Since only $1,157 of his monthly income is counted, his SSDI benefit per month is $726 ($800 − $74 = $726). This makes his income significantly higher than with his part-time hours and also higher than it would be if Carlos was working full-time under current policy. Being in BOND gives Carlos an income of $1,983 per month.

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