If you receive SSI and have a dream of working, starting a business, or going to school, there's a little-known Social Security program that might help you get there without losing your benefits. It's called a Plan to Achieve Self-Support—or PASS—and it's one of the most powerful work incentives available to SSI recipients.
In this article, we'll cover:
- What a PASS plan is and who qualifies
- How a PASS lets you save money without losing SSI
- What expenses a PASS can cover
- How to write and submit a PASS plan
- How long a PASS plan can last
- Where to get help creating your PASS plan
What Is a PASS Plan?
A Plan to Achieve Self-Support is a written plan that allows an SSI recipient to set aside income and resources toward a specific work goal—without that money counting against SSI eligibility. Normally, any income you earn or savings you accumulate can reduce or eliminate your SSI payment. A PASS plan creates an exception to those rules.
The idea is simple: if you have a realistic goal of becoming self-supporting through work, SSA will let you save money toward that goal while continuing to receive SSI benefits. The money you set aside in your PASS must be used for expenses related to achieving your work objective.
Who Can Use a PASS?
To be eligible for a PASS plan, you generally need to receive SSI (or be eligible for SSI) and have income or resources that you can set aside toward a work goal. The income could be SSDI payments, wages, a spouse's income, or other sources.
Your work goal needs to be specific and achievable. Examples include completing a degree or training program that leads to a specific career, purchasing equipment or tools needed to start a small business, paying for transportation to get to a job, or buying assistive technology needed for employment.
How PASS Protects Your SSI
Here's where the magic happens. Income and resources that you set aside under an approved PASS plan are excluded from SSA's calculations. That means if you're receiving SSDI of $1,200 per month (which would normally reduce your SSI to zero), a PASS plan could allow you to set aside most or all of that $1,200 toward your work goal—keeping your SSI payment intact.
The money set aside in a PASS must be kept in a separate account that you don't use for regular living expenses. You must spend the money only on the expenses outlined in your plan and keep records of all purchases.
How to Create a PASS Plan
You'll need to fill out SSA Form SSA-545 (Plan to Achieve Self-Support). The plan should include your specific work goal, a timeline for achieving it, a detailed budget showing what expenses you'll need to cover, where the money will come from, and how the goal will lead to you earning enough to reduce your need for SSI.
SSA has PASS Cadre specialists in each region who review and approve PASS plans. They can also help you develop your plan. Your local Work Incentive Planning and Assistance (WIPA) program can also provide free help with PASS development.
How Long Can a PASS Last?
Most PASS plans run for up to 48 months (four years), though extensions may be granted if you need additional time to reach your goal. SSA reviews your plan periodically to make sure you're making progress and spending the money as planned.
If your circumstances change or your plan isn't working out, you can modify it with SSA's approval. The key is maintaining communication with your PASS specialist and keeping thorough documentation.
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