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Julie

Part 3 of 3

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

Because Julie is in BOND, under the offset her cash benefit—instead of falling to $0—will be reduced by just $1 for every $2 she earns above the BOND yearly amount (annualized SGA of $1,690 per month, or $20,280 per year, for a blind individual).

Because she is in BOND, Julie's new SSDI benefit will be calculated as follows:

Step 1 Annual estimate of gross earnings ($2,600/month for 12 months) $31,200
Step 2 Total BOND countable wages are the same (assumes no impairment-related work expenses) $31,200
Step 3 BOND yearly amount in 2012 for blind beneficiaries $20,280
Step 4 Subtract the amount in Step 3 from the amount determined in Step 2 $10,920
Step 5 Divide the amount determined in Step 4 by 2 (for $1 for $2) $5,460
Step 6 Divide the amount determined in Step 5 by 12 (12 months in the offset period for this year) $455

These steps assume that Julie will work full-time for the entire 12 months of 2012 and that she will not need to incur special impairment-related work expenses in order to work. The offset amount applied to her monthly benefit, calculated in Step 6, is all that will be subtracted from her monthly SSDI benefit check due to BOND participation. So Julie's benefit will be $455 lower than her full SSDI benefit; it will be $1,600 − $455 = $1,145 per month.

The table below shows how the benefit offset will make Julie's income significantly higher than under current policy. Her SSDI benefit under BOND, combined with her monthly earnings, will give Julie an income of $3,745 per month. This is $1,145 more per month than if she was not in BOND and continued instead under current policy. Over the course of the year, her total income will be $13,740 greater ($44,940 − $31,200 = $13,740).

Future Income Under BOND Policy
  Monthly Annual
Earnings $2,600 $31,200
SSDI benefit $1,145 $13,740
Total income $3,745 $44,940

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