TWWIIA Initiatives and Work Incentives: Return-to-Work Implications

Abstract

Signed into law on December 17, 1999 by President Clinton, the Ticket to Work and Work Incentives Improvement Act (TWWIIA) addresses a very important question, what will it take to increase the return-to-work rate for Social Security beneficiaries and recipients? Prior to TWWIIAA, efforts to improve employment rates of beneficiaries and recipients have not had great success. Less than one percent of people receiving Social Security ever resumed employment. If only twice that small number returned to work, the lifetime savings to the Disability Insurance Trust and General Revenue Funds would be approximately $3.5 billion (McManus, 2001). Effective return-to-work supports and incentives are, therefore, very important to the Federal Government and to the some 15% to 30% of beneficiaries and recipients who maintain an interest in employment (Marini & Reid, 2001). Whether TWWIIAA initiatives have their intended impact depends a great deal on their ability to remove or reduce barriers to employment that people with disabilities experience. Although myriad barriers exist (Marini & Reid, 2001; Marini & Stebnicki, 1999), the primary concern of many people receiving Social Security is the perceived cost of going to work. Their fears may be summed up very succinctly, go to work and lose your check or, perhaps more to the point, go to work and lose your medical benefits (O'Day, 1998). These costs reduce the extrinsic value of the work goal, thereby decreasing the probability that individuals will make the effort to seek employment (Moore & Powell, 1990). Thus, the success of TWWIIA initiatives rests on their ability to enable people to return to work without incurring unacceptably high costs. In this article, the provisions of TWWIIAA are reviewed, with an emphasis on their potential to help beneficiaries and recipients successfully return to work (Jensen & Silverstein, 2000). TWWIIA Initiatives Ticket to work. First and foremost, TWWIIA initiatives include a no-cost return-to-work ticket that will help individuals with significant disabilities resume employment and reduce their need for cash benefits. Individuals may use their tickets to obtain vocational rehabilitation services from an approved provider referred to as an Employment Network or EN. As of January l, 2001, cessation of continuing disability reviews (CDRs) occurs while a person is using a ticket. Moreover, it is understood that CDRs are not triggered by the attempt to work (Social Security Administration, 2001). Referred to as the Ticket to Work and Self-Sufficiency Program, the ticket program involved 13 states in its first phase. Ticket services are provided by members of the Employment Network which is managed by Maximus, Inc. (Satterfield, 2001). Eligible beneficiaries and recipients will receive a ticket in the mail that they may assign to an Employment Network. Participation in the TWWIIA ticket program is voluntary, and ticket holders may also retrieve and reassign a ticket if they choose to do so. The ticket is a personal document with the person's name and Social Security number on it. Employment Networks include any qualified state, local, or private organization, including state VR agencies, one-stop career centers, public or private schools, and employers. Part of an approved network of service providers, Employment Networks are commissioned to develop Individual Work Plans with beneficiaries and recipients (McManus, 2001). Employment Networks may receive payments on either a 60 month outcome plan or an outcome-milestone plan. The proposed outcome payment for Employment Networks over 60 months is 40% of the average monthly SSDI or SSI benefit for every month the beneficiary does not receive due to earnings from work. The proposed outcome-milestone payments occur for certain achievements such as working three and seven months of a 12 month period, with subsequent payments for outcomes. …