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Rosa

Part 3 of 3

How does Rosa benefit by being in BOND?

Under BOND, Rosa's benefits are reduced or offset by $1 for every $2 she earns over SGA. Calculating Rosa's benefits under BOND using the steps outlined below, the offset to her SSDI benefits is $1,245. This is greater than her current benefit amount of $1,200. So her benefit is still reduced to $0 and her total monthly income remains $3,500 as under BOND.

Rosa's SSDI benefit will be calculated as follows:

Step 1 Annual estimate of gross earnings ($3,500/month for 12 months) $42,000
Step 2 Total BOND countable wages are the same (assumes no impairment-related work expenses) $42,000
Step 3 BOND yearly amount in 2012 $12,120
Step 4 Subtract the amount in Step 3 from the amount determined in Step 2 $29,880
Step 5 Divide the amount determined in Step 4 by 2 (for $1 for $2) $14,940
Step 6 Divide the amount determined in Step 5 by 12 (12 months in the offset period for this year). This is the monthly offset to SSDI benefits. $1,245
Future Monthly Income Under BOND Policy
Earnings $3,500
SSDI Benefit $0
Total monthly income $3,500

Although Rosa's income is the same in 2012 whether she is in BOND or not, there are still advantages to her being in BOND:

  • First, she can always receive work incentives counseling services tailored to BOND.
  • Second, changes in earnings, or the need to incur impairment-related work expenses, could bring the monthly offset down. If that happened, Rosa could take advantage of the offset, by submitting a revised annual earnings estimate.
  • In addition, her extended period of eligibility will be 5 years while she is in BOND, 2 years longer than under current policy. So if her health declines and she cannot work—or cannot continue to work as many hours—Rosa can start receiving her cash benefits again.

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