Pathways Taken by New Social Security Disability Insurance and Supplemental Security Income Awardees

Abstract

We use administrative data to examine the various milestones achieved and pathways followed by new Social Security Disability Insurance (DI) and Supplemental Security Income (SSI) awardees. Our findings show that 80% of DI-first awardees and 53% of SSI-first awardees either achieved none of the milestones we tracked in the 10 years after their initial award or their only milestone was death or attainment of full retirement age. Furthermore, many DI and SSI awardees who achieved work-or program-related milestones during the analysis period did not make additional progress toward exiting the program. For example, one third of DI-first and one fifth of SSI-first awardees who enrolled in employment services had no other milestones and one quarter of DI-first awardees who completed a trial work period either had no other milestones or their only additional milestone was enrolling in employment services. We also found that approximately one quarter of SSI-beneficiaries who later received DI had their SSI benefits suspended and terminated due to excess income that included DI payments as the only additional milestones. Finally, our analysis reveals great diversity in the paths taken to achieve work-and program-related milestones, which policy makers should consider when designing interventions to help awardees return to work.

Employment Patterns of SSI-First Awardees Who Enter SSDI After Achieving Disability-Insured Status

“…Most notably, we find that SSI-first awardees in this group show an ability to work and that they decrease their work activities after they enter SSDI. These findings reinforce the observation in Anand and Ben-Shalom (2018) that people in this group might be especially good candidates for outreach programs that encourage them to work above SGA and maintain their attachment to the labor force. Such interventions have the potential to improve the well-being and self-sufficiency of some of these individuals and others like them.…”

“…In previous research, Anand and Ben-Shalom (2018) found that close to 25% of first-time SSI awardees were subsequently awarded SSDI benefits in the 10-year period following their initial award. Some of these awardees applied for and were awarded both benefits at the same time but only became eligible to receive SSDI benefits after the initial SSI award because of the SSDI 5-month waiting period.…”

“…There are various paths an individual can follow to enter both programs. Some people apply for and are awarded SSI and SSDI at the same time; some individuals first enter SSDI and later qualify for means-tested SSI payments; some enter SSI first and later qualify for SSDI benefits (Anand & Ben-Shalom, 2018; Ben-Shalom & Stapleton, 2015; Rupp & Riley, 2011). This article explores the employment patterns and characteristics of a particular subgroup of individuals in the third group: those who enter SSI first and later qualify for SSDI benefits after achieving disability-insured status.…”

Characteristics of adults with psychiatric disabilities participating in the federal disability programs.

“…Most beneficiaries remain on SSDI and SSI until they convert to the Social Security retirement or SSI aged programs or die. A recent study that followed new SSDI and SSI awardees for 10 years after entry in the programs found that only approximately 4% of SSDI beneficiaries and 7% of SSI recipients had their cash benefits suspended or terminated because of earnings during that period (Anand & Ben-Shalom, 2016).…”

Labor supply response to overpayment notifications: Evidence from Social Security Disability Insurance

“…Indeed, we observe a 40‐percentage point drop in the proportion of our sample engaging in SGA by the start of our analysis period that may occur for a multitude of reasons that are not related to being notified of a work‐related overpayment. Furthermore, the percent of SSDI beneficiaries who engage in SGA and therefore may experience an overpayment is small: only 4.3% of people awarded SSDI in 2001 had their benefits suspended due to SGA for at least 1 month in the subsequent 10 years (Anand & Ben‐Shalom, 2018). However, the same research shows that 3.1% of beneficiaries had their benefits terminated or suspended for 12 months or longer due to SGA, suggesting that many beneficiaries who are subject to overpayments due to SGA for at least 1 month continue to work for an extended period of time.…”