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|