Griffin-Hammis Associates, LLC
Asset Development: Getting and Keeping Money
SSA, Assets, Self-Employment & Resource Ownership
Alliance for Full Participation November 18, 2011
Washington, D.C.
Business By Disability Type
Based on Sample of 76
DD34%
MH43%
Physical17%
TBI4%
Other2%
Griffin-Hammis Associates, LLC
Gross Income
76 Business Sample
0 20 40 60 80 100 120 140
High
Low
Average
Average Adjusted
Thousands
Average Gross Revenue: $28,241 Omitting 1 $900,000 Business
Griffin-Hammis Associates, LLC
$28,241
$39,712
$4,800
$130,000
Individual Funding Sources
0 75 150 225 300 375 450 525 600 675 750
Other Grant Funds
CE Funds
Bank/Non-Bank Loans
CRP & DDC Funds
PASS
VR
Personal/Family
Thousands
Sample 76 Businesses: Total Start-up Investment $2,145,000
Griffin-Hammis Associates, LLC
$99,395$737,600
$474,925
$59,000$394,600
$347,000
$33,200
Griffin-Hammis Associates, LLCMyths or Facts? SSA & Work?
If receiving SSI or SSDI: Never work for pay!
Just pocket any untraceable cash, if & when you get some, spend it, & don’t tell SSA
Work Incentives are terrible misguided federal laws that lure people to work & then punish them later
If you work for pay you will lose financial & medical security & will be forced to pay SSA back for years
0
500
1000
1500
2000
2500
SSI & Gross Wages
Gross WagesSSI
2010 SSI FBR Single Person: $674 per month
2010 SSI FBR (Married Couple): $1,011 per month
2010 MT 1619(b) SSI/Medicaid Threshold: $28,819/year
Griffin-Hammis Associates, LLCWork Incentives & Working
That last chart looked pretty good …. yet
That chart only shows SSI & Gross Wage interactions
It did not take into account payroll taxes, food stamps & energy assistance reductions & section 8 rent increased
Next Chart: 40 hours/week at $9.33/hour equals $1,493/month = $145 more/month than not working
203 403 674 803 1003 1203 Taxes, F/S, Sec 8, Energy
85 369 589 819 859 909 989 Net Wages Remaining
674 674 400 200 0 0 0 0 SSI
50 135 145 165 195 235 285 365$315 more/month by
earning $2,192/month
0
500
1000
1500
2000
2500
Interaction of SSI Reduction, Wages Increasing, Reduction in Food Stamps & Energy Assistance,
& Increase in Section 8 Rent
Payroll Taxes, Food Stamps, Section 8 & Energy Assistance
Net Wages Remaining
SSI
Griffin-Hammis Associates, LLCWork Incentives & Working
– That chart looked survivable …. yet
– SSI does not calculate check reductions correctly/timely
– SSI’s ongoing errors result in overpayments further reducing the SSI check by 10% (-$67) resulting in only $78 more/month from 160 hours/month of work … (*versus not working)
– SSA’s PASS creates significantly more revenue (next slide)
-
143 323 564 653 803 923 Taxes, F/S, Sec 8, Energy
203 403 674 803 1003 1203 Net Wages in PASS
85 145 165 195 235 285 365 Net Wages Remaining
674 674 674 674 674 674 674 674 SSI
50 135 398 618 919 1088 1338 1618 PASS + Remaining Income
0
500
1000
1500
2000
2500
3000
3500
Interaction of Food Stamps, Section 8, Energy Assistance when using a PASS, which results in no SSI Reduction With PASS
Payroll Taxes, Food Stamps, Sec-tion 8 & Energy Assistance
Net Wages in PASS
Net Wages Remaining
SSI
0
500
1000
1500
2000
2500
$1000 SSDI Example
Gross Wages
SSDI
2010 Non-Blind SGA: $1,000 per month gross wages
2010 Blind SGA: $1,640 per month gross wages
Griffin-Hammis Associates, LLCWork Incentives & Self-
Employment PESS – Property Essential to Self-
Support:
VR: $3,950Council: $9,000PASS: $12,286
Total: $25,236
Griffin-Hammis Associates, LLCExceeding $2,000 in Liquid
Assets SSI only
Stated goal was financial flexibility and owning his own home within 3 years of becoming wage or self-employed
- without losing Medicaid
Griffin-Hammis Associates, LLCExceeding $2,000 in Liquid
Assets PESS – Property Essential to Self-
Support:
VR: $21,400PASS: $9,000
Total: $30,400
Griffin-Hammis Associates, LLCWork Incentives & Self-
Employment PESS – Property Essential to Self-
Support:
SI 01130.501 Essential Property Excluded Regardless of Value or Rate of Return
A. POLICY PRINCIPLES 2. Trade Or Business Property
“Property essential to self-support used in a trade or business is excluded from resources regardless of value or rate of return effective May 1, 1990”
Griffin-Hammis Associates, LLCWork Incentives & Self-
Employment Self-Employment Generalizations
SSI Only = Very good policies to operate a business within
SSI & SSDI = Due to SSI receipt along with SSDI = very good policies and a bonus of mathematically excellent PASS’s (retroactive and forward PASS potentials = potential large up-front PASS funds to start a business with)
SSDI Only – Complicated if goal is to retain SSDI check – which results if possible in a PASS and intentionally losing SSDI during the PASS to retain SSI that PASS caused
Griffin-Hammis Associates, LLCWork Incentives & Self-
Employment PESS – Property Essential to Self-
Support:
SI 01130.501 Essential Property Excluded Regardless of Value or Rate of Return
C. DEVELOPMENT AND DOCUMENTATION — PROPERTY USED IN A TRADE OR BUSINESS 5. Liquid Resources Used In A Trade Or Business
“Effective May 1, 1990, all liquid resources used in the operation of a trade or business are excluded as property essential to self-support. Obtain an individual's signed allegation that liquid resources are used in the trade or business.”
Griffin-Hammis Associates, LLCWork Incentives & Self-
Employment PESS – Property Essential to Self-
Support:
PESS is limited (only applies to) Unincorporated Businessesthat generate Self-employment Income (SEI) for the owner or owners
Forms of businesses that PESS applies to: Sole Proprietorship Partnership
Griffin-Hammis Associates, LLCWork Incentives & Self-
Employment
Q & A
Griffin-Hammis Associates, LLC
http://www.griffinhammis.com