Joint Hearing of the Human Resources and Social Security Subcommittees of the House Ways and Means Committee - Work Incentives in Social Security Disability Programs

Statement

"Mr. Chairman, every American who wants to work should have the opportunity to do so. This opportunity should not be limited to just those who are in good health or those who do not suffer from a disabling condition. It is important that we have a strong workforce that creates jobs for individuals at all functional levels, and makes reasonable accommodations to those who are capable of getting and maintaining a job but need some services and supports to be successful in that effort.

"We must also recognize that there are some people who have a disabling condition that is so severe that they are not going to be able to participate at a meaningful level in the workforce. Those who are unable to work must have the guarantee of a safety-net that helps them live in dignity. As the recent release of data by the U.S. Census Bureau shows, an increasing number of people with disabilities are poor. Today, nearly 28% of people who suffer from a disability live in poverty.

"The Supplemental Security Income, or SSI, program provides a critical safety-net to roughly 8 million people who have very limited income and resources, and are elderly or suffer from a severe disability. The majority of recipients have a disability that it is expected to last at least a year or result in death, and renders them incapable of performing a substantial level of work (as determined by SSA). Many have little to no attachment to the workforce because of their condition and have limited assets on which to depend on. This is truly a program of last resort for our most vulnerable Americans.

"The program provides an important source of income for its recipients, with an average monthly benefit of $499 in 2011. While this payment provides a lifeline to those who use it to meet their most basic needs, let's keep in mind that the payment is modest at best.

"According to the Congressional Research Service, the average SSI payment represents just 55% of the Federal poverty measure. In light of how the SSI payment compares to the poverty line, one would have to assume that if a SSI recipient were capable of working, they would being doing so.

"While the Social Security Administration has a number of programs designed to help the disabled participate in the workforce, there is one significant barrier to employment that exists in the SSI program. Individuals who earn even a modest level of income from work jeopardize their continuing eligibility for SSI. After the first $20 of income from any source, a SSI benefit is reduced by $1 for every $2 of earned income exceeding $65 per month until the benefit level reaches zero. This income disregard, used to determine program eligibility and benefit levels, has not been updated since the program began in 1974. If we are truly serious about doing more to incentive more SSI recipients to work, then we must take action to increase these disregards in a meaningful way.

"We have made some progress in providing other incentives to help disabled recipients return to work. The Protection and Advocacy for Beneficiaries of Social Security, or PABSS, program established under the Ticket to Work Act provides legal advocacy services that help disabled beneficiaries overcome barriers to work, as well as information and advice on how to get vocational rehabilitation and employment services. There are currently 62 such organizations in all 50 States and territories.

"In my home State of Texas, one such organization is the Disability Rights Texas. This organization helped a 41-year-old gentleman in Austin with spina bifida who receives SSI and has always assumed that he would not be able to work because he was afraid he would lose his benefits. Although he has acknowledged that his disability is severe and that he has no work experience or training, he nonetheless decided he wanted to work. Disability Rights Texas referred him to rehabilitative services and a customized employment program that ultimately helped him received a job placement where he is experiencing success.

"As we work together to improve the work incentive programs, we also must protect the basic entitlement to disability assistance for those who need and deserve them. And we must ignore calls from so-called fiscal conservatives who are more fixated on slashing spending on Federal programs that support our neediest citizens than ending irresponsible tax cuts to the wealthiest and closing corporate tax loopholes.

"Reductions in SSA's budget ultimately will lead to poor service delivery for the millions of people who depend on their programs and undermine progress that has been made to reduce the disability claims backlog. These are human beings in need of help who should not have to wait years for a decision on their disability or SSI application. In many cases the time spent waiting for a decision has further compromised their health and overall well-being.

"One such example is a gentleman who lives in Manor, Texas, outside of Austin who experiences a combination of both physical and mental problems including schizoaffective disorder, diabetes, and other conditions. The Administrative Law Judge who decided his case noted that he was "living in a car in the woods, and would just sit there most of the day and talk to himself and the animals." By the time he had his disability determination hearing, he had been living in the non-running vehicle for over four years and had undergone 5 psychiatric hospitalizations. Now that he receives SSI benefits, he has access to housing and regular medical and psychiatric care.

"Mr. Chairman, I thank you for holding this important hearing and look forward to working with you on these important issues."

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