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Cliff

Part 3 of 4

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

However, Cliff became a BOND participant and (through random assignment) is eligible to use the benefit offset. As required by the BOND project, he submits an estimate of what his 2012 annual income will be. He expects to keep earning $3,000 per month and submits an annual estimate of $36,000 in earnings.

Cliff's initial offset will be calculated as follows:

Step 1 Annual estimate of gross earnings ($3,000/month for 12 months) $36,000
Step 2 Total BOND countable wages are the same (assumes no impairment-related work expenses) $36,000
Step 3 BOND yearly amount in 2012 $12,120
Step 4 Subtract the amount in Step 3 from the amount determined in Step 2 $23,880
Step 5 Divide the amount determined in Step 4 by 2 (for $1 for $2) $11,940
Step 6 Divide the amount determined in Step 5 by 12 (12 months in the offset period for this year) $995

Because he is in BOND, Cliff's monthly benefit is reduced by $995 per month instead of falling to $0. So his SSDI benefit under BOND will be $205, and his income will be $3,205 per month.

Future Monthly Income Under BOND Policy
Earnings $3,000
SSDI Benefit $205
Total monthly income $3,205

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