Glossary of Social Security Definitions

This glossary of social security definitions we’ve created will help you understand some of the commonly used phrases, terms and abbreviations associated with social security programs. Read more about getting professional assistance with your disability case at our Social Security lawyer page.

Age 18 Re-determination (SSI)

Age 18 Re-determination applies to any person who was found eligible for SSI as a child in the month before they turned 18. They must have their eligibility for SSI re-determined as an adult. This review should be completed before the age of 19.

 

Appeals

Appeals are part of the review process for an individual if there is a disagreement concerning a claim for benefits. This applies to applications and termination notices. The timelines and the rules for an appeal must follow SSA procedures.
Applies to SSI and SSDI

 

Benefit

A benefit is a cash payment and/or health insurance received from the government due to a disability and the inability to work at SGA (Substantial Gainful Activity).
Applies to SSI and SSDI

 

Break Even Point

The Break Even Point occurs when an individual’s countable income level is high enough that the SSI payment amount reaches $0 zero dollars. A person’s break-even point depends on factors such as amount of earned and unearned income, income exclusions and state supplemental eligibility, if any.
Applies to SSI

 

BWE or Blind Work Expense

Blind Work Expense provides for any earned income a person under blind eligibility uses to meet out of pocket expenses to support the employment. These expenses will be deducted from countable earned income when determining the SSI monthly payments.  
Applies to SSI

 

CDR (Continuing Disability Review)

Continuing Disability Review is the process the SSA uses to determine if monthly cash payments will continue. SSA will review current information about a person’s medical condition to make this determination.  
Applies to SSI and SSDI

 

Childhood Disability Benefits (SSDI):

Childhood disability benefits are for adults with disabilities that meet certain criteria. Children who do not have sufficient social security-covered work history for insured status may receive social security benefits based on their parents’ insured status. To be eligible for social security as a disabled adult child, individuals must be: 18 years of age or older; disabled by SSA’s definition before age 22; and the child of an insured worker who is disabled, retired or deceased. (If adult child marries, benefits end unless marriage is to another Title II beneficiary.)
Applies to SSDI

 

CMS (Center for Medicare and Medicaid Services)

The Center for Medicare and Medicaid Services or CMS is a U.S. Department that oversees Medicare and Medicaid. (Previous name - HCFA.)

 

COLA (Cost of Living Adjustment)

COLA or cost of living adjustment is an annual percentage rate; it is an increasing amount to SSA Beneficiaries, both SSI and SSDI.
Applies to SSI and SSDI

 

Countable Earned Income

Countable earned income is gross income and/or unearned income less benefit allowable exclusions and work incentives.
Applies to SSI

 

DAC (Disabled Adult Child)

A Disabled Adult Child is a person with a disability that occurred before the age of 22, has never been married and has not earned enough of a work record to draw from F.I.C.A. but can draw from a parental work record that has been opened.  
Applies to SSDI

 

Disability

Disability is the inability to engage in Substantial Gainful Activity (SGA) by reason of any medical impairment.  It must have lasted longer or be expected to last for a continuous period of  not less than 12 months or result in death.

 

Earned Income

Earned income is the money a person receives from wages or from self-employment.

 

EPE (Extended Period of Eligibility)

The Extended Period of Eligibility begins the month after the TWP (Trial Work Period) is completed. It is a period of 36 consecutive months that can keep open medical eligibility even without receiving a monthly cash payment.
Applies to SSDI

 

Extended Medicare Coverage

Extended Medicare Coverage is coverage under Medicare during the 36 months following the TWP (Trial Work Period) even though a person is not receiving a monthly cash payment of SSDI. As of October, 2000, Medicare Part A has been extended another 4½ years beyond the 36 months.
Applies to SSDI

 

FBR (Federal Benefit Rate)

The Federal Benefit Rate is the maximum amount of dollars a person receiving SSI benefits can receive from the Federal government.   Usually changes the 1st of January of each calendar year.
Applies to SSI

 

Gross Income

Gross income is the money earned as wages or self employment before any deductions or exclusions are applied (IRS Term).
Applies to SSI and SSDI

 

HUD (Housing and Urban Development)

Housing and Urban Development is a U.S. Department that administers various housing programs throughout the United States.

 

In-Kind

In-Kind is a counted value of food, clothing or shelter provided at no cost. It is considered unearned income.
Applies to SSI

 

IRWE (Impairment Related Work Expense)

Impairment Related Work Expense is a work incentive that allows an individual to deduct certain work-related items and services that are needed to enable the beneficiary to work. The cost of expenses must be paid out of pocket with the income earned, not paid by some other agency providing services.  
Applies to SSDI and SSI

 

Medicaid

Medicaid is a federal medical assistance program administered by U.S. states.  Eligibility is based on resources, earned and unearned income levels of work.
Medical Benefit attached to SSI

 

Medicare

Medicare is a federal medical insurance program for SSDI and retirement recipients. Eligibility is based on a person’s work record, age, and medical eligibility.  
Medical Benefit attached to SSDI

 

Net Income

Net income is actual money received (cash in hand) as wages after required and voluntary funding programs are funded from the gross wage.

 

PASS (Plan for Achieving Self Support)

Plan for Achieving Self Support is an earned income and resource exclusion that allows a person who is disabled or blind to set aside income and/or resources to reach an occupational goal.
Applies to SSI

 

Payee

A payee is a person, agency organization or institution SSA approves to manage a person’s benefits when they are unable to manage the benefits themselves.
Applies to SSI and SSDI

 

Resources 

Resources can be anything a person owns that can be converted to cash to pay for food, shelter and clothing. The resource limit is $2000 for an individual and $3000 for a couple.
Applies to SSI and Medicaid

 

Section 1619 

Section 1619 is a work incentive that consists of two sections, 1619A and 1619B.  1619A allows a working SSI recipient to earn income at the SGA level while receiving both an SSI payment and Medicaid at no cost.  1619B status occurs when the income level eliminates an SSI cash benefit. Medicaid eligibility is retained with no cost to the recipient.

 

SGA (Substantial Gainful Activity)

Substantial Gainful Activity is the performance of paid work in which countable income exceeds SGA per month. This monthly SGA amount will change annually based on the national wage index.

 

SSA (Social Security Administration)

The Social Security Administration is the federal agency that administers the SSDI and SSI programs.

 

SSDI (Social Security Disability Insurance)

Social Security Disability Insurance is a program under Title II. It is a cash benefit program for individuals who have worked and paid into F.I.C.A. (Federal Insured Contribution Act) and who meet the medical eligibility criteria and the SGA Test.

 

SSI (Supplemental Security Income)

Supplemental Security Income, program under Title XVI. It is a cash benefit paid to individuals who meet criteria for medical and financial eligibility.

 

SEIE (Student Earned Income Exclusion)

Student Earned Income Exclusion is a work incentive that allows an SSI recipient under age 22 and regularly attending school to exclude certain amounts of earned income during a calendar year.  A student can exclude up to a certain amount of earned income per month, with a maximum annual exclusion.  
Applies to SSI

 

Self-Employment

Self-employment refers to earning wages by working for oneself rather than employed by someone else.

 

Subsidy

A subsidy is a support received on the job that results in more pay than the actual value of the services performed.

 

TWP (Trail Work Period)

Trail Work Period is a work incentive that offers a person an opportunity to test his/her ability to work without losing benefits.   Under this provision, the beneficiary is credited with a month of trial work for each month that earnings exceed the TWP dollar amount.  When the beneficiary has accumulated 9 such months (not necessarily consecutively earned), the trial work period is completed.  
Applies to SSDI

 

Threshold

A threshold is a ceiling on gross income established by a state where recipients of SSI are no longer eligible for 1619B status nor the continuation of Medicaid at no cost.
Applies to SSI and Medicaid

 

Unearned Income

Unearned income is any money a person receives but has not performed services (paid work) for. It can include SSDI or other governmental cash benefits, money directly paid to a person from a trust, interest, dividends, and/or a monthly provision by a family to subsidize living expenses.   Applies to SSI and Medicaid

 

Work Incentives

The Social Security Act outlines several work incentives intended to help SSI recipients and SSDI beneficiaries in two significant ways. First, they can help individuals pay for services or items that they need in order to work and to maintain, or even increase, their cash benefits until they are stable in employment. Second, in addition to the 1619-B work incentives, the Plan for Achieving Self-Support (PASS), Impairment Related Work Expense (IRWE), and Blind Work Expense (BWE) are incentives that enable people with disabilities to recover expenses they incur while working towards greater economic self-sufficiency. The goals of the work incentive programs are to assist individuals to achieve gainful employment, increase independence, facilitate empowerment, and acquire self-support.