Protocol for Implementing the Core Net Outcomes ...

State Partnership Initiatives: Design, Testing and Implementation of the Net Outcomes Evaluation

Protocol for Implementing the Core Net Outcomes Evaluation of the State Partnership Initiative December 2002 Nazmul Khan Roberto Agodini Nora Paxton Craig Thornton

Submitted to: Social Security Administration Office of Research, Evaluation, and Statistics OP 9th Floor, ITC Building 500 E. Street, SW Washington, DC 20254-0001 Project Officer: Kalman Rupp Task Manager: James Sears

Submitted by: Mathematica Policy Research, Inc. 600 Maryland Avenue S.W. #550 Washington, DC 20025-2512 (202) 484-9220 Project Director: Craig Thornton MPR Reference No: 8663-600 SSA Contract No: 0600-96-27333 Task No: 0440-99-38637

CONTENTS

Chapter I

Page OVERVIEW OF THE PROTOCOL............................................................................... 1 A. CREATING THE MATCHING FILES.................................................................. 3 1. 2. 3. 4.

Verifying Participants’ SSNs .......................................................................... 4 Creating the Finder File................................................................................... 4 Obtaining and Processing the SSA Extracts ................................................... 5 Merging the Processed Extracts to Create Two Matching Files ..................... 5

B. SELECTING COMPARISON GROUPS ............................................................... 6 C. PRODUCING NET OUTCOME ESTIMATES ..................................................... 9

II

CREATING THE MATCHING FILES........................................................................ 11 A. VERIFYING PARTICIPANTS’ SOCIAL SECURITY NUMBERS................... 15 B. CREATING THE FINDER FILE ......................................................................... 15 1. 2. 3.

SSI Finder File .............................................................................................. 15 SSDI Finder File............................................................................................ 17 Combined Finder File.................................................................................... 18

C. REQUESTING AND READING EXTRACTS.................................................... 19 1. 2. 3. 4.

MBR 810/811 ................................................................................................ 20 SSI Longitudinal ........................................................................................... 21 831 Disability File ......................................................................................... 21 SER................................................................................................................ 22

D. CREATING THE COMBINED MATCHING FILE............................................ 23 1. 2.

SSI/Concurrent Matching File ...................................................................... 24 SSDI-Only Matching File ............................................................................. 24

E. CREATING STATE-SPECIFIC MATCHING FILES......................................... 25 1. 2.

State-Specific SSI/Concurrent Matching Files ............................................. 26 State-Specific SSDI Matching Files.............................................................. 26

iii

Chapter III

Page USING NEIGHBOR.SAS AND CALIPER.SAS TO SELECT COMPARISON GROUPS ............................................................................ 29 A. INPUTS AND OUTPUTS .................................................................................... 29 B. AN EXAMPLE ..................................................................................................... 30 C. CONDUCTING THE HECKMAN-HOTZ VALIDITY ANALYSIS.................. 35

IV

PRODUCING NET OUTCOME ESTIMATES ........................................................... 37

REFERENCES.............................................................................................................. 41 TABLE OF ACRONYMS ............................................................................................ 43

APPENDIX A:

DEFINITION OF ACTIVE STATUS FOR SSI BENEFICIARIES

APPENDIX B:

SPI PROJECT OFFICE DATA COLLECTION FORMS

APPENDIX C:

NEIGHBOR.SAS: EXAMPLE OUTPUT

APPENDIX D:

STATE PARTNERSHIP INITIATIVE WAIVER DEMONSTRATION PROJECT—FIELD OFFICE INSTRUCTIONS

APPENDIX E:

SPI NET OUTCOME EVALUATION DATA DICTIONARY

APPENDIX F:

LIST OF PROGRAMS FOR IMPLEMENTING THE PROTOCOL

(APPENDIX E AND APPENDIX F ARE BOUND TOGETHER, AS A SEPARATE VOLUME)

iv

I OVERVIEW OF THE PROTOCOL

T

his report describes the data processing protocol required to implement the net outcomes evaluation of the State Partnership Initiative (SPI). Agodini et al. (2002) present the full design for the evaluation and a description of the Social Security Administration (SSA) data files used in the evaluation. Additional information about the SSA data files is presented in Agodini et al. (2001). Table I.1 summarizes the protocol that Mathematica Policy Research, Inc. (MPR) developed. This process, which is run on SSA’s computer, uses 34 computer programs and more than 100 primary and intermediate data files to construct two files for each State Project. The first file, the SSI matching file, contains information on participants who receive benefits from the Supplemental Security Income (SSI) program (including those who concurrently receive benefits from the Social Security Disability Insurance [SSDI] program) and on potential comparison group members. The second, the SSDI-only matching file, contains SSDI-only participants and their potential comparison group members. The matching files are used to select comparison groups for participants in each State Project, separately for SSI and SSDI-only participants. The data files from which the matching files are constructed include SPI Project Office data for the list of participants, SSA data for the list of potential comparison group members, and SSA data for both baseline information and outcome information on participants and on potential comparison group members. Analysis files that contain information just for participants and selected comparison group members are extracted from the matching files. The analysis files are used to produce net outcome estimates. We have developed all the computer programs required to estimate net outcomes. Thus, to implement the design in the future, a researcher need only obtain the final data sets, select well-matched comparison groups, and estimate net outcomes. It is important to note, however, that the researcher time may be substantial, given the complex and iterative nature of the comparison group selection process. For example, our preliminary assessment of the matching process involved processing about 85 SSA data files that make up eight distinct types of extracts, each of which contains millions of records. This chapter presents an overview of the protocol used to implement the core evaluation. The overview includes a description of the way in which (1) the matching files are created, (2) comparison groups are selected, and (3) net outcomes are estimated. The next three chapters describe in detail the way in which each of these steps is executed, including a description of the computer programs that must be run to complete each step. Six appendices provide additional details about the definitions of key concepts and data sources. In particular, Appendix E provides a full data dictionary for the files created from the SSA extracts and Appendix F lists the computer programs required to implement the protocol (the programs are contained on a companion compact disk).

2 TABLE I.1 SUMMARY OF THE PROTOCOL FOR IMPLEMENTING THE CORE EVALUATION

Step 1. Obtain the final list of participants and the list of potential comparison group members

Input List of participants and their Social Security numbers from the SPI Project Office Lists of potential comparison group members from a series of SSA data extracts containing point-in-time snapshots of the beneficiary population (the REMICS for SSI beneficiaries, and the ZIP for SSDI beneficiaries)

2. Obtain SSA extracts for beneficiaries in the finder file

Finder file

3. Construct analysis variables in the SSA extracts and merge the extracts

The four SSA data extracts plus the Historical REMICS and Historical ZIP

4. Select comparison groups, using the neighbor.sas and caliper.sas macros 5. Compute net outcomes

24 matching files

a

The 24 to 48 analysis files

Output Finder file

Longitudinal file containing key fields from the series of point-in-time snapshot files (these files are called the Historical REMICS for SSI beneficiaries and the Historical ZIP for SSDI beneficiaries) Four SSA data extracts (SSI Longitudinal, MBR 810/811, 831 Disability, and SER) 24 matching files (separate SSI and SSDI matching files for each of the 13 State Projects in the net outcomes evaluation)a Between 24 and 48 analysis filesb 24 to 48 sets of net outcome estimates

Two states enroll only SSI beneficiaries. Thus, only 24 files are required to cover the 13 State Projects.

b

The design suggests that, when a State Project’s samples size permits it, separate analysis files should be created for beneficiaries in populous counties and for beneficiaries in nonpopulous counties. If these files were to be created in all states, a total of 48 files would be required to cover the SSI and SSDI beneficiaries in the 13 states. However, it appears that in at least some states there will not be enough sample members to support separate estimates for populous and nonpopulous counties.

I. Overview of the Protocol

3 A. CREATING THE MATCHING FILES All the SSA administrative data used in this evaluation are contained in five large data systems: (1) the Supplemental Security Record (SSR), (2) the Master Beneficiary Record (MBR), (3) the 831 Disability File, (4) the Numident, and (5) the Summary Earnings Record (SER). The SSR contains the information necessary to generate SSI benefit checks, and the MBR contains the information needed to generate SSDI benefit checks. Each of these data systems also contains information that is not specifically required to generate benefits checks, but that is useful for research purposes. For example, each data system contains data on the race/ethnicity of beneficiaries. The 831 Disability File contains information from disability determination decisions. The Numident contains the master file of assigned Social Security numbers (SSNs). The SER, an extract from the Master Earnings File, contains calendar-year earnings information dating to 1951, as well as other identifying information, for individuals who have worked in covered employment. Each of these data systems contains tens of millions of records. The core net outcomes component of the SPI evaluation uses information from each of these five data systems, although the amount of information obtained from each file differs. In particular, most of the information comes from the SSR and the MBR. Only information about a beneficiary’s education is obtained from the 831 Disability File, and only calendar-year earnings information is obtained from the SER. The Numident is used to verify participant SSNs obtained from participant data collected by the SPI Project Office directed by Virginia Commonwealth University (VCU). Information from the 831 Disability File and the SER is obtained in a straightforward way, through a “finder file” process. This process consists essentially of submitting a list of SSNs to SSA, which, in turn, creates extracts that contain data only for that list of SSNs. The process of obtaining data from the SSR and the MBR is more complicated. It is not currently possible to extract data directly from these files using a field other than SSN. For example, it is not possible to extract information on those beneficiaries residing in the states with a State Project or the selected comparison states. Instead, a finder file listing the beneficiaries in the desired states (along with their SSNs) is created from two sets of extracts that SSA routinely produces from the SSR and the MBR. The SSR extracts, the REMICS files, are point-in-time snapshots of the SSR at the end of each month. The MBR extracts, the ZIP files, are point-intime snapshots of the MBR at the end of each quarter. Variables in these extracts include information only at, or around the time of, the snapshot—not from earlier points in time. Thus, files for each month or quarter covered by the analysis period must be analyzed to ensure that the finder file contains all eligible beneficiaries. Once a complete finder file is created, SSA staff used standardized extraction programs to obtain longitudinal data from the SSR or the MBR. Variables in these longitudinal extracts include information as far back as the start of the SSI or SSDI programs. The extract from the SSR is called the “SSI Longitudinal,” and the extract from the MBR is called the “MBR 810/811.” Because SSA overwrites some SSR and MBR data from earlier time periods and because the standard extraction programs do not obtain all the data required for the evaluation, we pull several variables from the REMICS and ZIP files and create separate longitudinal files that are subsequently merged with the SSI Longitudinal and MBR 810/811 files created by SSA staff. I. Overview of the Protocol

4 1.

Verifying Participants’ SSNs

The first step in developing the matching files is to verify the SSNs of participants in the State Projects. To do so, a text file is submitted to SSA that contains participants’ SSNs, names, dates of birth, and sex; the format is specified by SSA (see Agodini et al. 2001). The source for this information is data collected by the State Projects and reported to the SPI Project Office. SSA compares the list of participants’ SSNs with the master list in its Numident file. So far, we found that virtually all of the SSNs provided by the State Projects are valid. The few that were not were sent back to the Project Office which then worked with the State Projects to obtain the valid number.

2.

Creating the Finder File

The finder file is created by running computer programs that initially create two finder files, one for SSI beneficiaries and the other for SSDI beneficiaries. Both files contain SSNs of participants who enrolled in the State Projects up to the point of interest. Both files also contain the SSNs of individuals who, at any time between January 1999 and the point of interest, met the following criteria: (1) were 11 to 64 years old, (2) had an active case,1 and (3) lived in any one of the demonstration or comparison areas. The first two criteria, along with the “lived in any one of the comparison areas” portion of the third criteria, are used to identify the pool of potential comparison group members. The SSI finder file was created from the monthly REMICS files, which contain data from the SSR records of SSI beneficiaries during a particular month. The SSDI finder file was created from the quarterly ZIP files, which contain data from the MBR records of SSDI beneficiaries during a particular quarter. Because some individuals receive both SSI benefits and SSDI benefits, a final computer program is used to merge the two finder files to create one finder file with unique SSNs. This computer program also merges the verified SSNs of participants to ensure that these SSNs are contained in the finder file. As the monthly REMICS and quarterly ZIP files are processed, two other files required to create the matching file are generated. The first file which we refer to as the “Historical REMICS,” contains the same individuals included in the SSI finder file—that is, every SSI beneficiary who meets the finder file inclusion criteria described above. It also includes 34 variables from each of the monthly REMICS files for the period from January 1997 to the point of interest. The variables include sex, race, date of birth, primary diagnosis, earned

1

Appendix A describes the criteria used to determine whether a case was active. We defined active status in an effort to include all beneficiaries who might have enrolled in a State Project. Active status includes all beneficiaries who are receiving cash payments plus those who do not receive payments but still are attached to the program. For example, we included SSI beneficiaries in 1619(b) status, who do not receive payments, but who continue to be eligible for Medicaid and would receive payments if their earnings fell substantially. Similarly, we included beneficiaries who were temporarily suspended while SSA identified a new representative payee. In practice, we found that almost all of the actual SPI participants were in active status; in only one or two percent of the cases were we unable to find evidence of a beneficiary being in active status during the eligibility period used in the evaluation.


5 income, unearned income, use of SSI work incentives, Medicaid eligibility, alien status, residence state, residence county, and residence zip code. These variables are used to fill in missing data in the SSI Longitudinal files. The Historical REMICS contains information from the monthly REMICS files for the two years before the start date of the finder file time frame (that is, between January 1997 and December 1998) in order to include monthly earnings during the two years before any individual met the inclusion criteria for the finder file. The second file is what we refer to as the “Historical ZIP,” which contains the same individuals as are included in the SSDI finder file—that is, every SSDI beneficiary who meets the finder file inclusion criteria described above. It also includes the residence state, county, and zip code from each of the quarterly ZIP files between January 1999 and the point of interest. Unlike the Historical REMICS, the Historical ZIP does not contain information from the quarterly ZIP files for the two years before the start date of the finder file time frame (that is, between January 1997 and December 1998), because those early ZIP files do not contain any information that is necessary for the matching process (and that therefore would have to be included in the matching file).

3.

Obtaining and Processing the SSA Extracts

The combined finder file is then submitted to SSA, and a request is made for four extracts: (1) the SSI Longitudinal, (2) the MBR 810/811, (3) the 831 Disability File, and (4) the SER. SSA uses a standardized format to produce all extracts. For the SPI evaluation, SSA staff custom-made the final extract from the MBR 810/811 such that it contains only the relevant data elements needed to estimate net outcomes. Because each of these extracts is extremely large, SSA breaks each one into several files. For example, the MBR 810/811 with which we worked was provided as 22 files. Similarly, the SSI longitudinal was provided as 14 files, the 831 Disability File as 13 files, and the SER as 11 files. Several computer programs are used to create one file from each set of files. In the future, before these programs can be run, it will be necessary to change a couple of lines in each program to reflect the month and year of the new extract. In addition, a couple of lines in the program that processes the MBR 810/811 files must be changed to reflect new record positions of a couple of variables in the extract. The latter changes are necessary because the position of these and subsequent variables changes in the custom version of the MBR 810/811 extract that SSA creates. One line in the program that processes the SER files must be changed to reflect additional calendar-year earnings data that will be included in the future SER files. The positions of these variables are obtained from the file layout that SSA provides with the MBR 810/811 and SER extracts.

4.

Merging the Processed Extracts to Create Two Matching Files

After all the extracts have been processed, two intermediate matching files are created, one for SSI/concurrent beneficiaries and the other for SSDI-only beneficiaries. These programs I. Overview of the Protocol

6 simply merge the MBR 810/811, SSI Longitudinal, 831 Disability File, and the Historical REMICS. When the SSDI-only matching file is created, the Historical ZIP is merged as well. SSA staff create the final matching files by merging the SER data to each of the matching files. Only SSA staff can add the SER data, as restrictions limit the use of these data to SSA employees. After the SER data have been added to the SSI and SSDI-only matching files, a pair of SSI and SSDI-only matching files is created for each of the 13 State Projects in the core evaluation.

B. SELECTING COMPARISON GROUPS Comparison groups can be selected from each State Project’s matching file, using two SAS macros that we developed: (1) neighbor.sas, and (2) caliper.sas. The macro use propensity scores to select comparison groups. The first one (neighbor.sas) uses the so-called “nearest neighbor” method to select a comparison group; the second one (caliper.sas) uses the “caliper” method to select a comparison group. In particular, the two macros select a comparison group according to the following three steps:

1. A probability model of participant status is estimated. A logit model is estimated in which a binary dependent variable that equals one for participants and that equals zero for potential comparison group members is regressed on independent variables representing individual characteristics. 2. A propensity score is assigned to each individual. The propensity score is a single number that equals the weighted sum of an individual’s values for the characteristics included in the logit model, where the weights are the parameter estimates of the logit model. 3. Comparison group members are selected using propensity scores. Neighbor.sas selects, for each participant, the potential comparison group member with the closest absolute propensity score, or the “nearest neighbor.” Caliper.sas selects, for each participant, all the potential comparison group members whose propensity scores fall within a specified range, or “caliper,” of the participant’s propensity score. Both selection processes are performed with replacement, so that a potential comparison group member can be matched to several participants. Ideally, the logit model should include all the available characteristics that are related to both participant status and the outcomes for which impacts will be computed. Including all these characteristics would help to ensure that the comparison group experiences the outcomes that participants would have experienced had they not been offered and/or not been exposed to the treatment. In other words, it would help to ensure that any difference in outcomes between participants and the comparison group reflects the effect of the treatment, as opposed to underlying differences between the two groups that affect outcomes.


7 Unfortunately, it is not always possible to include in the logit model all the characteristics of interest. In particular, in some State Projects, the number of characteristics exceeds the number of participants. Even in those cases were there are enough individuals to estimate such a logit model, it might not be possible to include all the characteristics of interest because some of them might be correlated. In this case, the parameter estimates of the logit model would suffer from collinearity problems. One way to address this issue is to include in the logit model the subset of available characteristics that produces a comparison group that is similar (within each stratum) to participants along all (or at least most of) the available characteristics. The issue then is to determine which subset of characteristics should be included. As described in Agodini et al. (2002), a good starting point is to include the subset of characteristics that statistical tests indicate are different across participants and potential comparison group members. Neighbor.sas and caliper.sas do not automatically select a useful comparison group. In addition to showing the usefulness of propensity scores for selecting comparison groups, Rosenbaum and Rubin (1983) also showed that a comparison group selected using propensity scores could produce unbiased impact estimates if two conditions have been satisfied: (1) all the characteristics that are related to both participant status and outcomes are observed, and (2) participants and comparison group members with similar propensity scores are similar along these characteristics. The second condition means that the logit model must produce an estimate of the propensity score such that, at each value of the estimated propensity score, the characteristics of participants and comparison group members are similar. It is difficult to determine whether a comparison group satisfies the first condition. Although many important characteristics typically are included in the matching process, it is possible that participants and the comparison group differ along important characteristics for which data are not available and, therefore, which could not be included in the matching process. For example, the type of individual who is motivated to work also may be the type who is interested in participating in a job-training program. Unfortunately, data sets rarely contain direct measures of the extent to which an individual is motivated to work. Whether it is important to include any of these characteristics in the matching process depends on the extent to which they influence outcomes among individuals who have been matched along all the characteristics already included in the matching process. Therefore, this is often an open issue. To understand whether a selected comparison group satisfies the first condition, the design includes two validity analyses that must be conducted. The first analysis (hereafter, the Heckman-Hotz approach) uses characteristics measured several periods before enrollment to match beneficiaries. Net outcomes are then estimated for the period after the matching has occurred, but before enrollment. If the matching process has been effective, the outcomes between the earlier point during which matching occurred and enrollment should equal zero, because neither participants nor comparison group members received any project services. The second analysis is based on the State Projects that are conducting experiments. In particular, we select comparison groups matched to the Projects’ randomly assigned treatment groups. Net outcomes based on the treatment and comparison groups are then compared with net outcomes based on the treatment and randomly assigned control groups. Both of these validity analyses are described in greater detail in Agodini et al. (2002). I. Overview of the Protocol

8

Before conducting these validity analyses, it is important to first determine whether the comparison group satisfies the second condition. To make this determination, the characteristics of participants and the characteristics of comparison group members with similar propensity scores must be compared. Neighbor.sas and caliper.sas conduct this analysis in a way that other researchers often do (see, for example, Dehejia and Wahba 1998). In particular, the collection of participants and comparison group members is first ranked according to their propensity scores. Individuals are then equally divided into as many strata as the user specifies. (We used three strata for the SPI evaluation.) Each stratum should contain enough individuals to ensure that statistical tests conducted within each one have enough power to detect any meaningful differences in the characteristics of participants and comparison group members. Within each stratum, three statistical tests are conducted: (1) a t-test of the similarity of the average propensity score across participants and comparison group members, (2) an F-test of the similarity of the collection of characteristics included in the logit model across participants and comparison group members, and (3) a series of t-tests of the similarity of each characteristic included in the logit model across participants and comparison group members. Researchers often consider the second condition to be satisfied if the comparison group passes the first statistical test and at least one of the other two statistical tests. What if the comparison group does not satisfy the second condition that Rosenbaum and Rubin (1983) proposed? In this case, the science of propensity scoring turns to art, and the output produced by neighbor.sas and caliper.sas can be used to modify the selection process in a way that may produce a comparison group that satisfies the second condition. The literature indicates that the logit model must be respecified by adding higher-order and/or interaction terms, and the comparison group reselected until one that passes the necessary statistical tests (Dehejia and Wahba 1998; and Rosenbaum and Rubin 1983). The output produced by neighbor.sas and caliper.sas can be used to determine the variables that should be included in a more complex way. In particular, higher-order and/or interaction terms should be included for characteristics that are not similar across participants and the selected comparison group. Each time neighbor.sas and caliper.sas are run, they create an analysis file that can be used to estimate net outcomes. This file contains all the variables contained in the matching file (unless variables have been deleted intentionally while running the macro) for all the participants and the set of selected comparison group members. Neighbor.sas and caliper.sas also add several variables to the analysis file, including the propensity score, the strata to which individuals were assigned, and a weight. The weight equals one for participants; for comparison group members, it equals the number of times that each comparison group member was matched to a participant.2 For each participant, neighbor.sas adds a final variable that indicates the SSN

2

If comparison groups are selected using caliper.sas and the same (weighted) number of comparison group members is selected for each participant, the weight variable produced by caliper.sas can be used to compute net outcome estimates. If, however, the (weighted) number of comparison group members selected for each participant differs, it may be necessary to modify the weight variable. For example, if many more comparison group members


9 of the selected comparison group member. This variable is coded as missing for comparison group members. Caliper.sas does not add this variable to the analysis file because many potential comparison group members could be selected for each participant, depending on the size of the caliper.

C. PRODUCING NET OUTCOME ESTIMATES As described in Agodini et al (2002), net outcomes are estimated using the method of difference-in-differences (D-in-D). This difference compares the average pre-post enrollment change in outcomes of participants with the average pre-post enrollment change in outcomes of comparison group members. The D-in-D method is operationalized by estimating a statistical model using an expanded data set that contains a separate observation for each pre- and post-enrollment outcome observed for each person. For example, if we were to analyze monthly earnings using the currently available information, the data set would contain 24 months of pre-enrollment earnings and 3 months of post-enrollment earnings—a total of 27 observations for each person. In future implementations of the core evaluation, there will be 60 or more months of post-enrollment earnings. Therefore, future implementations of the core evaluation will use a data set that contains, for each person, separate observations of earnings for each of the 24 pre-enrollment months plus separate observations for each of the post-enrollment months—a total that could easily exceed 80 observations for each person by the time of the final evaluation. This expanded data set is created by running a computer program that creates each of the monthly observations from the data in the analysis file created by neighbor.sas and caliper.sas. The program creates all the variables necessary to estimate the statistical model that is used to produce net outcomes using the D-in-D method.

(continued) are selected for participants with low propensity scores, than with high propensity scores, it may be necessary to decrease the weight for comparison group members that were selected for participants with low propensity scores. Smith and Todd (2000) discuss the way in which they used a comparison group to compute impacts when more than one comparison group member was selected for participants.


II CREATING THE MATCHING FILES

T

he bulk of the information in the matching files comes from five of the large data systems that SSA maintains. These data are available in the form of extracts of various sizes. Some of the extracts are snapshots of the files at regularly scheduled times, such as every month. The following SSA extracts are used to build the matching files: T REMICS extracts containing monthly snapshots of SSR records. These files were used to identify the specific SSI beneficiaries who reside in the demonstration and comparison states. They also contain information about total earnings and use of SSI work incentives that are unavailable on other standard extracts. T ZIP extracts containing quarterly snapshots of MBR records. These files, like the REMICS files, were used to select the specific SSDI beneficiaries who reside in the demonstration and comparison states. T SSI Longitudinal extract containing the eligibility status, payment history, demographics, and countable income of SSI beneficiaries T MBR 810/811 extract containing the eligibility status, benefit history, and demographics of SSDI beneficiaries T 831 Disability file extracts containing information on beneficiaries’ educational attainment as recorded in their disability decision record T SER extract containing annual earnings from the Master Earnings File In addition to these SSA extracts, the evaluation uses the list of State Project participants that VCU maintains based on reports from the State Projects. These data along with other program participation data collected by the State Projects are being analyzed by VCU and MPR to describe the characteristics of beneficiaries who participate in the State Projects, the services the beneficiaries received, and their outcomes.3 This chapter describes the process used to create the matching files. Figure II.1 shows a graphic presentation of this process. The results of the process are two matching files, one for SSI beneficiaries (including concurrent beneficiaries) and the other for SSDI-only beneficiaries. Table II.1 presents the input-output relationships and the programs used in the various steps.

3

See Appendix B for the complete contents of the State Project data being collected by the Project Office.

12

FIGURE II.1 PROCESS USED TO CREATE THE MATCHING FILES Monthly REMICS extracts 01/97-month of interest

Quarterly ZIP extracts 01/99-quarter of interest

Participant data from VCU

Create SSI finder file and Historical REMICS file

Verify participant SSN and name using the Numident

Create SSDI finder file and Historical ZIP file

Merge the SSI and SSDI finder files with the list of verified participant SSNs to create one finder file, and submit it to SSA

Historical REMICS file

SSI Longitudinal extract divided into many files

MBR 810/811 extract divided into many files

Run several computer programs to create one MBR 810/811 file

Run several computer programs to create one SSI Longitudinal file

One MBR 810/811 file

One SSI Longitudinal file

Historical ZIP file

831 Disability extract divided into many files

SER extract divided into many files

SSA runs several computer programs to create one SER file

Run several computer programs to create one 831 Disability file

One 831 Disability file

Create SSI and SSDI matching file, both without SER data

SSI matching file without SER data

SSDI matching file without SER data

SER file

SSA merges SSI matching file with the SER file

SEREnhanced SSI matching file

II. Creating the Matching Files

SSA merges the SSDI matching file with the SER file

SEREnhanced SSDI matching file

13 TABLE II.1 INPUTS, PROGRAMS, AND OUTPUTS FOR NET OUTCOMES EVALUATION

Inputs Monthly REMICS extracts PROZIP database Quarterly ZIP extracts Multiple SAS files of monthly REMICS Multiple SAS files of quarterly ZIP MBR 810/811 Extract SSI Longitudinal Extract

831 Disability Extract SER Extract with unadjusted earnings Multiple SAS files of 810/811 Multiple SAS files of SSI Longitudinal Multiple SAS files of 831 Disability Multiple SAS files of SER A. Merged SAS file of Historical REMICS B. Combined SAS file of 810/811 C. Combined SAS file of SSI Longitudinal D. Combined SAS file of 831 Disability A. Merged SAS file of Historical ZIP B. Merged SAS file of Historical REMICS C. Combined SAS file of 810/811 D. Combined SAS file of SSI Longitudinal E. Combined SAS file of 831 Disability

Programs REMBATn FINDSSI MAKEZIP READZIP COMBREM COMBZIP MBRBATn READ810 LNGBATn READLNG FILE831 PROG831 SERBATn READSER COMB810 COMBLNG COMB831 COMBSER SSIMTCH

SSDMTCH

Outputs Multiple SAS files of monthly REMICS Multiple SAS files of quarterly ZIP Merged SAS file of Historical REMICS Merged SAS file of Historical ZIP Multiple SAS files of 810/811 with analysis variables of interest Multiple SAS files of SSI Longitudinal with analysis variables of interest Multiple SAS files of 831 Disability file with analysis variables of interest Multiple SAS files of SER with analysis variables of interest Combined SAS file of 810/811 Combined SAS file of SSI Longitudinal Combined SAS file of 831 Disability file Combined SAS file of SER Merged SAS file of combined SSI/concurrent matching file without SER data

Merged SAS files of combined SSDIonly matching file without SER data


14

Inputs A. Merged SAS file of combined SSI/concurrent matching file without SER data B. Combined SAS file of SER A. Merged SAS file of combined SSDI-only matching file without SER data B. Combined SAS file of SER Combined SSI/concurrent matching file with SER data

Programs MRGSSI

Outputs Merged SAS file of combined SSI/concurrent matching file with SER data

MRGSSDI

Merged SAS file of combined SSDIonly matching file with SER data

SSIBATn READSSI

Combined SSDI-only matching file with SER data

SSDBATn READSSD

State-specific SSI/concurrent matching file

RUNst NEIGHBOR

State-specific SSI/concurrent matching file

StHECK NEIGHBOR

State-specific SSI/concurrent matching files with participants and potential comparison group members from selected counties State-specific SSDI-only matching files with participants and potential comparison group members from selected counties State-specific SSI/concurrent analysis file with participants and matched comparison group members State-specific SSI/concurrent analysis file with participants and matched comparison group members using enrollment date six months earlier than actual date State-specific SSDI analysis file with participants and matched comparison group members State-specific SSDI analysis file with participants and matched comparison group members using enrollment date six months earlier than actual date State-specific SSI analysis file with person-month level observation State-specific SSI analysis file with person-month level observation Regression-adjusted net outcomes for SSI/concurrent beneficiaries for a state project Regression-adjusted net outcomes for SSDI-only beneficiaries for a state project

State-specific SSDI-only matching file MCHst NEIGHBOR State-specific SSDI-only matching file HECKst NEIGHBOR

State-specific SSI analysis file State-specific SSI analysis file State-specific SSI analysis file with person-month level observation State-specific SSDI analysis file with person-month level observation


SSTRNSPn PMSSI SDTRNSPn PMSSDI SSIMPst

SDIMPst

15 A. VERIFYING PARTICIPANTS’ SOCIAL SECURITY NUMBERS The VCU data are used to create a text file that contains each participant’s SSN, name, date of birth, and sex according to a format specified by SSA. An encrypted version of this file is created, using PGP software, and is sent to SSA by e-mail. SSA uses its Numident file—the master list of SSNs—to verify each participant’s SSN. This verification process produces two output files, one that contains participants whose reported SSNs were verified and another that contains participants whose numbers were not. SSA considers an individual to have passed the verification process if at least one of the following two conditions is met: (1) the SSN and name match an entry in the Numident file exactly; or (2) the name and date of birth match, using single select routines or alpha search routines. The protocol retains SSA data only for participants who satisfy the first condition. SSA data are not obtained for the small number of cases that satisfy the second condition, and those cases are sent to the SPI Project Office which works with the State Projects to obtain correct SSNs.

B. CREATING THE FINDER FILE Monthly REMICS and quarterly ZIP extracts are readily available from SSA’s data library. Others SSA data files need a special “finder file” to extract data. Initially, two finder files are created—one for SSI/concurrent beneficiaries (hereafter, the SSI finder file) and the other for SSDI-only beneficiaries (hereafter, the SSDI finder file). Each file contains the SSNs of beneficiaries who met the following criteria between January 1999 and the most recent month of the analysis periods: (1) were 11 to 64 years old, (2) had an active case, and (3) lived in any of the demonstration or comparison states.4 The two finder files, along with the verified participant data, are combined to create one finder file with unduplicated SSNs. A combined finder file is the most efficient because it does not duplicate data on beneficiaries who are eligible for both SSI and SSDI.

1.

SSI Finder File

To create the SSI finder file, we used monthly REMICS files from January 1997 to the most current month available to build a historical database for SSI cases that were active, and that lived in any of the 25 states at any month since January of 1999.5 We began the process by

4

The first two criteria, along with the "lived in the demonstration area" portion of the third criteria, are the minimum that beneficiaries must meet in order to participate in any State Project. However, most of the State Projects require that beneficiaries meet additional criteria as well, such as possessing a particular type of disability. 5

Unlike the case with the ZIP files, which contain state and county variables that are fully populated, we could not use the state and county variables in the REMICS files to determine a beneficiary’s residence (a critical piece of information for determining whether a beneficiary should be included in the SSI finders file). That information is missing for a large percentage of cases. To address this data limitation, we transformed the residence zip codes (information that is included in the REMICS files and that is reliable) to state and county codes, using a crosswalk


16 creating a SAS data set for each of the monthly REMICS files. The REMICS files contain multiple observations for a small percentage of cases. To retain the most-recent information, we kept the observation for each case with the most-recent record establishment date. The monthly files were then merged to create one Historical REMICS file. The SSI finder file also was created at that time keeping only the SSNs of the individuals. The programs REMBATn process the monthly REMICS files.6 These programs are divided into multiple steps, with each step executing the FINDSSI program that creates a SAS file for each of the extracts. The SAS files contain the SSNs as well as 34 other variables for individuals who meet the finder file inclusion criteria. These variables include sex, race, date of birth, primary disability diagnosis, earned and unearned incomes, Medicaid eligibility, alien status, residence state, residence county, and residence zip code. This process uses the following input and output files: Input files: Programs used: Output files:

MTOSSI.REMICS.MRG.Dyymm AIS.P1251.$uuuu.FLAT.MPR.PICKZIP REMBATn, FINDSSI ORS.P1171.$uuuu.REMyymm.SSD

The suffix yymm in the last node of the input file refers to the year and month of the REMICS extract. This, in turn, corresponds to the suffix yymm in the fourth node of the output file. The expression uuuu is the programmer’s user identification number for the SSA data system. The “ORS” prefix in the first node retains the output file in SSA’s repository for a period of five years. The second input file translates the ZIP codes in the REMICS file into FIPS state and county codes. The state information is required to select individuals from 25 demonstration or comparison states included in the evaluation (see Agodini et al. 2002 for the list of these states). The county information is required to select individuals from specific comparison counties chosen by the State Projects. After the SAS files for each monthly REMICS have been created, a program, named “COMBREM,” merges them to create the Historical REMICS that is required to create the matching files. The same program also creates the SSI finder file. (continued) file created from the PROZIP database with a July 2001 release date (Professional Computer Consulting, Inc., 6500 Falconsgate Ave. Fort Lauderdale, FL 33331; dba: GreatData.com). The crosswalk file contains each zip code in the demonstration and comparison states, along with its corresponding state and county code. Because zip codes are likely to change in the future, the crosswalk file should be updated with the latest releases of PROZIP database, when available. 6

The JCL portion of these programs contains a maximum of 12 steps, each with a SYSIN reference to a separate SAS program (FINDSSI) that reads the REMICS files as SAS files. The programs are mutually independent, and all of them can be submitted at the same time. They are distributed into multiple steps to speed their execution by minimizing the time needed for resource allocation. This arrangement also makes it possible to restart the programs without major modification, should they terminate abnormally.


17 The input and output files for this process are: Input files: Program used: Output files:

ORS.P1171.$uuuu.REMyymm.SSD COMBREM ORS.P1171.$uuuu.COMBREM.Dmmyy.SSD ORS.P1171.$uuuu.SSIFIND.Dmmyy.FLAT

The suffix yymm in the last node of the input files refers to the year and month of the REMICS extracts. The suffix mmyy in the fifth node of the output file refers to the end of the analysis period, which is the month of the most recent REMICS used for the output files. The following lines near the beginning of COMBREM must be changed to reflect the year and month of the last REMICS file that will be used to create the SSI finder file and the Historical REMICS: %let endyr=2001; /* change as needed */ %let endmn=10; /* change as needed */ The program uses this information to define macro variables that create variables (with a suffix of yymm) from each of the monthly REMICS files that are included in the Historical REMICS.

2.

SSDI Finder File

The SSDI finder file is created from the quarterly ZIP extract, which is readily available from SSA’s data library. These extracts contain a small number of data elements on the Old Age and Survivors Insurance (OASI) and SSDI beneficiaries from the MBR file. We used ZIP extracts from March 1999 to the most recent quarter available to create the SSDI finder file. The process for creating the SSDI finder file is identical to that for creating the SSI finder file. First, a SAS data set containing the SSNs and zip code information is created for each of the quarterly extracts. The SAS files are then merged to create one Historical ZIP database. The SSDI finder file is created at the same time by retaining only SSNs in the file. A SAS program, MAKEZIP, creates the SSDI finder file. This program is divided into multiple steps, with each step executing the READZIP program that creates a SAS file from each of the quarterly extracts. The SAS file contains the SSN and residence state, county, and zip codes of individuals who meet the finder file inclusion criteria. The Historical ZIP file contains the SSNs and residence state, county, and zip codes of the SSDI beneficiaries. Unlike the Historical REMICS, the Historical ZIP does not contain information from the two years preceding the start date of the finder file time frame (that is, between January 1997 and December 1998), because the ZIP files do not contain any of the information from that time frame that is required to create the matching file or for other evaluation purposes. The input and output files for this process are:


18 Input files: Programs used: Output files:

ORS.P1171.$6967.ORZIP.Rmmyy MAKEZIP, READZIP ORS.P1171.$uuuu.READZIP.JOBxxx.SSD

The suffix mmyy in the last node of the input file refers to the month and the year of the ZIP extract. The suffix xxx in the fifth node of the output file corresponds to the month and year of the input files, which are numbered sequentially starting with the first ZIP file from March 1999. For example, when mmyy = 0399, xxx = 010; when mmyy = 0699, xxx = 020; when mmyy = 0300, xxx = 050. After the SAS files have been created, another program, COMBZIP, merges the SAS data sets (by SSN) to create the SSDI finder file and the Historical ZIP file that are necessary to create the matching file. The input and output files for this process are: Input files: Program used: Output files:

ORS.P1171.$uuuu.READZIP.JOBxxx.SSD COMBZIP ORS.P1171.$uuuu.COMBZIP.Dmmyy.SSD ORS.P1171.$uuuu.SSDFIND.Dmmyy.FLAT

The suffix mmyy in the fifth node of the output file refers to the end of the analysis period, which would be the month of most recent REMICS file. The following lines near the beginning of the COMBZIP program must be changed to reflect the year and month of the last ZIP file that will be used to re-create the SSDI finder file and the Historical ZIP file: %let endyr=2001; /* change as needed */ %let endmn=10; /* change as needed */ The program uses this information to define macro variables that create variables (with a suffix of yymm) from each of the quarterly ZIP files that are included in the Historical ZIP.

3.

Combined Finder File

A separate program, MAKEFIND, combines the two finder files to create one finder file with unique SSNs. This program also uses a file containing the verified SSNs of participants to make sure that they are all included in the combined finder file. This finder file is then submitted to SSA, which, in turn, uses it to extract data from the various SSA files described previously. The combined finder file is saved on the disk as a flat file with a fixed format and a logical record length of 80. The input and output files for this process are:


19 Input files:

Program used: Output files:

ORS.P1171.$uuuu.SSDFIND.Dmmyy.FLAT ORS.P1171.$uuuu.SSIFIND.Dmmyy.FLAT ORS.P1171.$uuuu.PARTSSN.Dmmyy.FLAT MAKEFIND ORS.P1171.$uuuu.FINDER.Dmmyy.FLAT

The suffix mmyy in the fifth node of the output file refers to the end of the analysis period, which is the month of the most recent REMICS used for these input and output files.

C. REQUESTING AND READING EXTRACTS After the finder file has been created, a formal request for the extracts containing the MBR 810/811, SSI Longitudinal, 831 Disability, and SER data is sent to the Project Officer. The Project Officer forwards the request to the Data Linkage Team (DLT) of the Office of Research, Evaluation, and Statistics, which is responsible for processing the data requests. The request for the MRR 810/811 extract should mention the end month of the analysis time frame (that is, the month of the most recent REMICS extract used to create the finder file). The DLT analysts extract the data, manipulate and analyze them as necessary, and make the output files available with summary statistics on the record counts. A file layout for the MBR 810/811 extract, which is custom made for the SPI project, also is provided. The contact persons at SSA for the extracts are: 1. 2. 3. 4.

Joel Packman for the MRB 810/811 extract Mike Abramo for the SSI Longitudinal extract Mary Barbour for the 831 Disability extract Patricia McFadden for the SER extract

Several weeks are required to make the extracts available for processing. The specific length of time required depends primarily on the overall workload of the SSA staff member charged with producing the extracts. After the extracts have been obtained, they are processed to create intermediate files with relevant analysis variables. Each extract is provided in several files, and a SAS data set is created for each of the files. These SAS files are then combined to create one SAS data set of the entire extract. The following sections describe the process of creating the SAS files for each extracts. Note that it is important to monitor closely the structure of the SSA extracts used to create the matching files. In the course of this project, the structure of the REMICS and SSI Longitudinal files changed. For example, in the previous version of the SSI Longitudinal extract, the payment status of a terminated case was coded as terminated during every month after termination. To save space on SSA’s computer, SSA modified that file to include a missing value for the future payment status of a case that was terminated. As a result, we had to modify the way in which we use payment status from the SSI Longitudinal when creating the matching file. In particular, for those cases that were terminated, we coded their future payment status as terminated. This experience suggests that it will be important to closely monitor the structure of the SSA extracts used to create the matching files.


20

1.

MBR 810/811

This extract is custom made for the SPI evaluation, and its structure varies in each round of processing. The extract is provided in several files, each of which contains about two million records. The programs MBRBATn process this extract to create SAS files with the required analysis variables. The programs are divided into multiple steps, with each step calling the READ810 program that reads the files, constructs the variables, and saves them as SAS files onto disk. The following lines in the READ810 program must be changed during future processing in order to accommodate the structural changes of 810/811, and to expand the end period of the extract: %let endyr=2001; /* change end year as needed */ %let endmn=10; /* change end month as needed */ %let mbapos=1542; /* change the position of 1st mba data element */ %let lafpos=2122; /* change the position of 1st laf data element */ These lines set macro variables. The first two macro variables set the end period of the extract. They are needed for the time-series variables. The last two macro variables identify the positions of the MBA and LAF variables in the extract. They are needed because the positions of these and subsequent variables change in the custom version of the extract. These positions are noted on the file layout that the DLT analyst provides with the extract. The input and output files for this process are: Input files: Programs used: Output files:

ORS.P1171.$4285.MPR.SUMMARY.PRIMARY.RUNn MBRBATn, READ810 ORS.P1171.$uuuu.READ810.JOBxxx.Dmmyy.SSD

The suffix xxx in the fifth node of the output file corresponds to n of the last node of the input file. For example, when n = 1, xxx = 010. The suffix mmyy in the sixth node of the output file denotes the end period of the analysis and corresponds to the last month of the REMICS extract used in creating the finder file. After the SAS files for each of the 810/811 files have been created, another program, COMB810, combines them into one SAS file and saves it onto tape. Only the last record for each SSN is included in this file. The input and output files for this process are: Input files: Program used: Output file:

ORS.P1171.$uuuu.READ810.JOBxxx.Dmmyy.SSD COMB810 ORS.P1171.$uuuu.COMB810.Dmmyy.SSD

The suffix mmyy in the sixth and fifth nodes of the input file and output file, respectively, denotes the end of the analysis period and correspond to the last month of the REMICS extract used in creating the finder file. II. Creating the Matching Files

21

2.

SSI Longitudinal

The SSI Longitudinal extract is given in several files. The programs LNGBATn are used to process the extract in multiple steps, with each step calling the READLNG program that reads the files, constructs the variables, and saves them as SAS files onto disk. The following lines in the READLNG program must be changed before future SSI Longitudinal extracts are processed: %let endyr=2001; /* change as needed */ %let endmn=10; /* change as needed */ These lines set macro variables that create time-series variables based on the end date of the extract. The input and output files for this process are: Input files: Programs used: Output files:

MTOSSI.MPRSP.Dyymm.LONG.Rn LNGBATn, READLNG ORS.P1171.$uuuu.READLNG.JOBxxx.Dmmyy.SSD

The suffix xxx in the fifth node of the output file corresponds to n of the last node of the input file. For example, when n = 1, xxx = 010. The suffix mmyy in the sixth node of the output file denotes the end period of the analysis and corresponds to last month of the REMICS extract used in creating the finder file. The suffix yymm of the third node of the input file indicates the year and month that the files are created. After the SAS files have been created from each of the SSI Longitudinal files, another program, COMBLNG, combines them into one SAS file and saves it onto tape. Only the last record for each SSN is included in this file. The input and output files for this process are: Input files: Programs used: Output files:

ORS.P1171.$uuuu.READLNG.JOBxxx.Dmmyy.SSD COMBLNG ORS.P1171.$uuuu.COMBLNG.Dmmyy.SSD

The suffix mmyy in the sixth and fifth nodes of the input file and output file, respectively, denotes the end period of the analysis and corresponds to last month of the REMICS extract used in creating the finder file.

3.

831 Disability File

The 831 Disability extracts are given in several files, each of which contains data on disability decisions for a specific year. The 831 data are available starting with the year 1988. The program FILE831 processes the extracts. The program is divided into multiple steps, with each step calling another program (PROG831) that reads each of the 831 files, constructs II. Creating the Matching Files

22 variables, and saves them as SAS files onto disk. The following line in the PROG831 program must be changed before future 831 Disability extracts are processed: %let end=2000; /* change as needed */ This line sets macro variables that create time-series variables based on the end year of the extract. The input and output files for this process are: Input files: Programs used: Output files:

MTOSSI.MPRSP.Dyymm.F831.CYyyyy FILE831, PROG831 ORS.P1171.$uuuu.READ831.JOBxxx.SSD

The suffix yymm in the third node of the input file refers to the year and month that the extract was created. The suffix yyyy in the last node of the same file denotes the year of the 831 data. The first year of the 831 Disability extract is 1988. The suffix xxx in the fifth node of the output file corresponds to the year and month of the 831 input file. For example, when n = 1988, xxx = 010; when n = 1989, xxx = 020. After a SAS file has been created from each of the 831 raw data files, a separate program, COMB831, combines them into one SAS file and saves it to tape. The input and output files for this process are: Input files: Program used: Output file:

ORS.P1171.$uuuu.READ831.JOBxxx.SSD COMB831 ORS.P1171.$uuuu.COMB831.Dmmyy.SSD

The suffix mmyy in the fifth node of the input file denotes the end period of the analysis and time frame and corresponds to the last month of the REMICS extract used in creating the finder file.

4.

SER

The SER extract is provided in two sets of files, one set with adjusted earnings and the other set with unadjusted earnings. The files with unadjusted earnings are used in matching. The last node of these files is named EARNNA, and the files are processed using SERBATn programs. The programs are executed in multiple steps, with one step for each unadjusted earnings file. These steps call another program, READSER, that reads the files, constructs the variables, and saves them onto disk. The dimension of the array that creates the annual earnings variables in the READSER program must be increased for future processing of SER extracts. This is accomplished by adding additional elements at the end of the array statement, as shown here: array earn{*} e52-e99 e00 e01; /* earnings for 1952-2001 */


23 For example, to add a variable for 2002 earnings, the “e02” variable is added to the array statement as follows: array earn{*} e52-e99 e00 e01 e02; /* earnings for 1952-2002 */ The input and output files for this process are: Input files: Programs used: Output files:

$2708.SPInnn.EARNNA FILE831, PROG831 ORS.P1171.$uuuu.READSER.JOBxxx.Dmmyy.SSD

The suffix xxx in the fifth node of the output file corresponds to nnn of the second node of the input file. For example, when n = 1st, xxx = 010. The suffix mmyy in the sixth node of the output file denotes the end period of the analysis and corresponds to the last month of the REMICS extract used in creating the finder file. After the SAS files for each of the 831 Disability files have been created, a separate program, COMBSER, combines them into one SAS file and saves it onto tape. Due to special security arrangements, only SSA staff may run this program. The input and output files for this process are: Input files: Programs used: Output files:

ORS.P1171.$uuuu.READSER.JOBxxx.Dmmyy.SSD COMBSER ORS.P1171.$uuuu.COMBSER.Dmmyy.SSD

The suffix mmyy in the sixth and fifth node of the input file and output file, respectively, denotes the end period of the analysis and corresponds to the last month of the REMICS extract used in creating the finder file.

D. CREATING THE COMBINED MATCHING FILE After all the extracts have been read and saved as SAS files, two combined matching files are created—one for SSI and concurrent beneficiaries and the other for SSDI-only beneficiaries. The process for creating the matching file is straightforward, consisting simply of merging the intermediate files (by SSN) and saving the output file onto tapes. However, because of the exceptionally large sizes of the matching files, additional memory and tapes volumes are required to create them. Special JCL codes are incorporated in the matching program to make requests for additional resources from SSA’s computer system. In order to maintain the confidentiality of SER earnings data, the merges are performed in two steps—one without SER data and one with SER data. Only SSA staff can perform the latter step.


24 1.

SSI/Concurrent Matching File

The combined SSI matching file is constructed using the SSIMTCH program. This program simply merges the Historical REMICS with the other intermediate SAS files (the SSI Longitudinal, MBR 810/811, and 831 Disability files) that were created earlier in the process. The SER data are not used in this step of the matching process. The following two lines should be changed in the SSIMTCH program before future matching files are created: %let endyr=2001; /* change as needed */ %let endmn=10; /* change as needed */ These lines set macro variables that create time-series variables based on the date of the SSA extracts. The input and output files for this part of the matching process are: Input files:

Program used: Output files:

ORS.P1171.$uuuu.COMBLNG.Dmmyy.SSD ORS.P1171.$uuuu.COMB810.Dmmyy.SSD ORS.P1171.$uuuu.COMBREM.Dmmyy.SSD ORS.P1171.$uuuu.COMB831.Dmmyy.SSD SSIMTCH ORS.P1171.$uuuu.COMBSSI.Dmmyy.SSD

After completion of the SSIMTCH program, SSA staff use the program, MRGSSI, to create the SER-enhanced SSI matching file. The MRGSSI program also adds the participant data to the matching file. The input and output files used in this process are: Input files:

Program used: Output file:

ORS.P1171.$uuuu.COMBSER.Dmmyy.SSD ORS.P1171.$uuuu.COMBSSI.Dmmyy.SSD AIS.P1251.$uuuu.PARTSSN.TXT MRGSSI ORS.P1171.$uuuu.MRGSSI.Dmmyy.SSD

The suffix mmyy in the fifth node of the input and output files denotes the end period of the analysis and corresponds to the last month of the REMICS extract used in creating the finder file. The third input file contains the participant data collected from VCU and uploaded to the mainframe computer.

2.

SSDI-Only Matching File

The program, SSDMTCH, is used to create the matching file. This program simply merges the SAS files containing the Historical REMICS, MBR 810/811, SSI Longitudinal, 831 Disability, and Historical ZIP file. The result is an SSDI matching file that does not contain the


25 SER data. In the future, the following two lines in the SSDMTCH programs should be changed before matching files are created: %let endyr=2001; /* change as needed */ %let endmn=10; /* change as needed */ These lines set macro variables that create time-series variables based on the date of the SSA extracts. The input and output files for this process are: Input files:

Programs used: Output files:

ORS.P1171.$uuuu.COMBLNG.Dmmyy.SSD ORS.P1171.$uuuu.COMB810.Dmmyy.SSD ORS.P1171.$uuuu.COMBZIP.Dmmyy.SSD ORS.P1171.$uuuu.COMBREM.Dmmyy.SSD ORS.P1171.$uuuu.COMB831.Dmmyy.SSD SSDMTCH ORS.P1171.$uuuu.COMBSSD.Dmmyy.SSD

After completion of the SSDMTCH program, SSA staff uses the program, MRGSSDI, to create the SER-enhanced SSDI matching file. The MRGSSDI program also adds the participant data to the matching file. The input and output files for this process are: Input files:

Program used: Output file:

ORS.P1171.$uuuu.COMBSER.Dmmyy.SSD ORS.P1171.$uuuu.COMBSSD.Dmmyy.SSD ORS.P1171.$uuuu.COMBZIP.Dmmyy.SSD AIS.P1251.$uuuu.PARTSSN.TXT MRGSSDI ORS.P1171.$uuuu.MRGSSDI.Dmmyy.SSD

The suffix mmyy in the fifth node of the input and output files denotes the end period of the analysis and corresponds to last month of the REMICS extract used in creating the finder file. The fourth file contains participant data collected from VCU.

E. CREATING STATE-SPECIFIC MATCHING FILES Combined matching files contain all the individuals in the finder file. These files were broken into 24 state specific files—13 for SSI/concurrent beneficiaries and 11 for SSDI-only beneficiaries.7 This step is conducted to identify the matching comparison groups from specific

7

The projects in New York and in Oklahoma do not target SSDI-only beneficiaries.


26 geographic areas within the comparison states. The state-specific matching files contain additional variables that are required for matching and for estimating the net outcomes. These additional variables reflect the individuals’ earnings, employment, eligibility, and benefit status during the pre-enrollment and the post-enrollment periods.8 Certain area characteristics of the demonstration and comparison counties also are added to the state-specific files for matching.

1.

State-Specific SSI/Concurrent Matching Files

The programs, SSIBATn, create the state-specific SSI/concurrent matching files. SSIBATn contain 13 steps, with each step calling the READSSI program that constructs the required variables and that saves them onto disk. This process creates 13 files—one per state project. In the future, the following two lines of the READSSI programs should be changed future matching files are created: %let endyr=2001; /* change as needed */ %let endmn=10; /* change as needed */ These lines set macro variables that create time-series variables based on the date of the SSA extracts. The input and output files for this process are: Input files:

Programs used: Output file:

AIS.P1251.$uuuu.STCNTY.EXP ORS.P1171.$uuuu.MRGSSI.SSD AIS.P1251.$uuuu.COUNTY.SSD SSIBATn, READSSI ORS.P1171.$uuuu.SSInn.SSD

The first input file is a crosswalk file to select comparison groups from specific counties within the comparison states for a demonstration state. The third input file contains county characteristics to be added to the state-specific matching files.9 These two files are created on a PC and then uploaded to the mainframe. The suffix nn in the fourth node of the output file denotes the FIPS state code for the state project.

2.

State-Specific SSDI Matching Files

The programs, SSDBATn, create the state-specific SSDI matching files. These programs have 11 steps, with each calling the READSSD program that constructs the required variables

8

A pseudo enrollment date is assigned for the potential comparison groups (see Agodini et al. 2002 for details about the definition of the pseudo enrollment dates). 9

See Agodini et al. (2002) for details of the county characteristics.


27 and that saves the file onto disk. The 11 steps are designed to create 11 state-specific files—one for each state project. The following two lines should be changed in the READSSD programs before future matching files are created: %let endyr=2001; /* change as needed */ %let endmn=10; /* change as needed */ These lines set macro variables that create time-series variables based on the date of the SSA extracts. The input and output files for this process are: Input files:

Programs used: Output file:

AIS.P1251.$uuuu.STCNTY.EXP ORS.P1171.$uuuu.MRGSSDI.SSD AIS.P1251.$uuuu.COUNTY.SSD SSDBATn, READSSD ORS.P1171.$uuuu.SSDInn.SSD

The suffix nn on the fourth node of the output file denotes the FIPS state code for the state projects.


III USING NEIGHBOR.SAS AND CALIPER.SAS TO SELECT COMPARISON GROUPS his chapter describes two SAS macros that can be used to select comparison groups. One of the macros, neighbor.sas, uses what is often referred to as the “nearest neighbor” method to select a comparison group. The other macro, caliper.sas, uses what often is referred to as the “caliper” method to select a comparison group. As described in Chapter I, both macros use propensity scores to select comparison groups.

T

A. INPUTS AND OUTPUTS The only input that neighbor.sas and caliper.sas require is a SAS data file (hereafter, matching file) containing one observation for each participant and potential comparison group member, along with the following information for each observation: T A continuous variable that uniquely identifies each observation T A binary variable coded one for participants and zero for potential comparison group members T Binary and/or continuous variables that represent individual characteristics Each time that neighbor.sas and caliper.sas are run, they produce a SAS data file (hereafter, analysis file) as output containing the SSNs of participants, the SSNs of the unique selected comparison group members, and all the variables contained in the matching file. Neighbor.sas and caliper.sas also add several variables to the analysis file, including: T _pscore.

The estimated propensity score

_stratum. The propensity-score stratum to which individuals were assigned T _cntwgt. A weight that equals one for participants; for comparison group members, it T equals the number of times that each comparison group member was matched to a participant. This weight should be used when conducting all analyses that include the comparison group.

30 Neighbor.sas adds yet another variable to the analysis file: _match. A variable that indicates, for each participant, the identification number of T the selected comparison group member—that is, the nearest neighbor. This variable is coded as missing for comparison group members.

Caliper.sas does not add this variable to the analysis file because many potential comparison group members could be selected for each participant, depending on the size of the caliper.

B. AN EXAMPLE In this section, we present a SAS program that illustrates how neighbor.sas is used. The illustration uses a matching file that contains 230 participants and 48,813 potential comparison group members. The matching file also contains the following variables: T ssn. A continuous variable that contains the Social Security number of each individual T Partcpnt. A binary variable coded one for participants and zero for potential comparison group members T Age. A continuous variable that contains the age of each individual T Male. A binary variable coded one for males and zero for females T Educate. A continuous variable that contains years of schooling. For individuals who are missing years of schooling information, this variable equals the average value of educate based on those for whom years of schooling information is available. T Edmiss. A binary variable coded one for individuals who are missing information for years of schooling, and zero otherwise. T dx_mdo. A binary variable coded one for individuals who were diagnosed as having a mental disorder (other than mental retardation) and zero otherwise. For individuals who are missing diagnosis information, this variable equals the average value of dx_mdo based on those who have diagnosis information. T dx_ret. A binary variable coded one for individuals who were diagnosed as having mental retardation, and zero otherwise. For individuals who are missing diagnosis information, this variable equals the average value of dx_ret based on those who have diagnosis information. T dx_mss. A binary variable coded one for individuals who are missing diagnosis information, and zero otherwise

III. Using Neighbor.sas and Caliper.sas to Select Comparison Groups

31 T rcvssi1. A binary variable coded one for individuals who were on the SSI roles during the month before the baseline month, and zero otherwise. T rcvssd1. A binary variable coded one for individuals who were on the SSDI roles during the month before the baseline month, and zero otherwise

The illustration assumes that the goal is to select a comparison group that is similar to participants along age, male, educate, edmiss, dx_mdo, dx_ret, dx_mss, rcvssi1, and rcvssd1.

1 2 3 4 5 6 7 8 9

//$uuuu JOB (12510000,T715,,SAS,,ITC9FL),uuuuXXX, // MSGCLASS=Q,MSGLEVEL=(1,1),NOTIFY=$uuuu //EXEC SAS8,WORK='18000,9000' //IN DD DSN=ORS.P1171.$uuuu.SSI55.SSD,DISP=SHR //NEIGH DD DSN=AIS.P1251.$uuuu.CNTL(NEIGHBOR),DISP=SHR //OUT DD DSN=ORS.P1171.$uuuu.SSI55B.SSD, // DISP=(NEW,CATLG,DELETE), // SPACE=(TRK,(50,50),RLSE) //SYSIN DD *

10 options nodate nocenter noovp linesize=135 pagesize=50; 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

%let title=An Example of the Output Produced by Neighbor.sas; %let iden=ssn; %let part=partcpnt; %let strata=3; %let numexpls=9; %let expl1=age; %let expl2=male; %let expl3=educate; %let expl4=edmiss; %let expl5=dx_mdo; %let expl6=dx_ret; %let expl7=dx_mss; %let expl8=rcvssi1; %let expl9=rcvssd1; %let out_file=analysis;

26 data temp; 27 set in.matching; 28 run; 29 %include neigh; 30 %neighbor(data=temp);


32 Lines 1 through 9 are the Job Control Language (JCL) commands that specify the input and output files and the neighbor.sas program. Line 10 specifies standard SAS options. Line 11 sets the “title” macro variable equal to text that the user would like to have appear on the first line of each page of the output. Line 12 sets the “iden” macro variable equal to the variable in the matching file that uniquely identifies each observation. Line 13 sets the “part” macro variable equal to the variable in the matching file that indicates who is a participant and who is a potential comparison group member. This variable is used as the dependent variable in the logit model. Line 14 sets the “strata” macro variable equal to the number of strata into which the user would like the collection of participants and selected comparison group members to be divided. Line 15 sets the “numexpls” macro variable equal to the number of variables that will be used in the matching process. Lines 16 through 24 set the “expl1” through “expl9” macro variables equal to the variables that will be used as independent variables in the logit model. The number of these macro variables must equal the number in the “numexpls” macro variable. Line 25 sets the “out_file” macro variable equal to the name that the user would like to call the analysis file output produced by neighbor.sas. Lines 26 through 28 read the matching file into the “temp” data set. This data step is used to make any changes to the matching file before neighbor.sas uses it to select a comparison group. Line 29 invokes neighbor.sas from its location, and line 30 tells it to use the “temp” data set. In order to use caliper.sas, it is necessary to define another macro variable, called “caliper,” which indicates the size of the caliper that the user would like to specify. For example, if the goal is to select, for each participant, all the potential comparison group members whose propensity score is +/–0.0001 of the participant’s propensity score, then the following line would be added between, say, lines 13 and 14 of the SAS program shown above: %let caliper=0.0001; When using caliper.sas, lines 29 and 30 in the SAS program shown above must be changed to invoke caliper.sas from its location, and to instruct it to use the “temp” data set. The specific input and output files used to select comparison groups for SSI/concurrent participants are: Input file: Programs used: Output file:

ORS.P1171.$uuuu.SSInn.SSD NEIGHBOR, RUNst ORS.P1171.$uuuu.SSInnB.SSD

The program, RUNst, calls the NEIGHBOR program. This is the generic version of the program. The suffix st should be renamed to the standard state abbreviation (for example, NY) for specific state project. The suffix nn on the fourth node of the input and output files denotes the FIPS state code for the state projects. The input and output files used to select comparison groups for SSDI-only participants are: Input file: Programs used: Output file:

ORS.P1171.$uuuu.SSDInn.SSD NEIGHBOR, MCHst ORS.P1171.$uuuu.SSDInnB.SSD


33

The program, MCHst, calls the NEIGHBOR program. This is the generic version of the program. The suffix st should be renamed to the standard state abbreviation (for example, NY) for specific state project. The suffix nn on the fourth node of the input and output files denotes the FIPS state code for the state projects. Appendix C contains the output produced by neighbor.sas. In Appendix C: T Page 1 is a cover page. T Page 2 is a table that reports, separately, average values of the characteristics used in the matching process for participants and for potential comparison group members. In this case, participants and potential comparison group members differ along many of the matching characteristics. T Page 3 reports the results of an F-test of the similarity of the collection of matching characteristics across participants and potential comparison group members. If the number of potential comparison group members is less than or equal to the number of participants, then all the potential comparison group members are used when conducting the F-test. Otherwise, a random sample of potential comparison group members is used, where the size of the random sample equals the number of participants. In this case, a random sample of 230 potential comparison group members was used. In this case, the collection of matching characteristics is significantly different across the two groups (p-value = 0.0000). This test serves as a general assessment of the degree of similarity between the participants and the potential comparison group members. It does not play a key role in the matching, but does help the analyst assess the need for matching when the two groups differ substantially. The use of a randomly-selected subset of the potential comparison population is a partial attempt to counter the fact that virtually all differences would be statistically significant if the full sample of potential comparison group members was used since in many cases there were 50,000 or more such individuals in the full sample. T Pages 4 and 5 report the results of the logit model of partcpnt. Note that the model converged, and that the parameter estimates and standard errors are not extremely large, as this is a good indication that the model is overidentified. In this case, the estimates seem fine. T Page 6 is a table that reports the number of participants, the number of potential comparison group members, and the unweighted number of selected comparison group members in each propensity score decile. This table is used to examine the overlap of the propensity score among participants, potential comparison group members, and selected comparison group members. In this case, there is considerable overlap among the three groups. Only the eight participants with propensity scores between 0.5 and 0.7 do not have comparison group members with a propensity score in the same range. These participants were matched to the comparison group members with a propensity score between 0.4 and 0.5.


34 T Page 7 is a table that reports the number of participants and the unweighted number of selected comparison group members in each stratum that the user defines. It is used to determine the number of individuals that will be used to conduct the statistical tests within each stratum. T Page 8 reports the results of a t-test of the similarity of the average propensity score across participants and selected comparison group members in the first stratum. The weight, _cntwgt, is used when conducting this test. In this case, the results indicate that the average propensity score of the two groups is not significantly different (p-value = 0.8848). This observation is further supported by other statistics, such as the similarity of the minimum and maximum values of the propensity score across the two groups. T Page 9 reports the results of an F-test of the similarity of the collection of matching characteristics across participants and selected comparison group members in the first stratum. The weight, _cntwgt, is used when conducting this test. In this case, the collection of matching characteristics is not significantly different across the two groups (p-value = 0.5273). T Pages 10 and 11 report the results of a series of t-tests of the similarity of each matching characteristic across participants and selected comparison group members in the first stratum. The weight, _cntwgt, is used when conducting these tests. In this case, only one of the matching characteristics—age—is significantly different (at the 0.05 level) across the two groups. T Pages 12 through 15 report the results of the tests described in the three preceding bullets for individuals in the second stratum; pages 16 through 19 report the results of these tests for individuals in the third stratum. In this case, the results indicate that neither the average propensity score of participants and selected comparison group members in second and third strata (pages 12 and 16) nor the collection of matching characteristics across the two groups (pages 13 and 17) are significantly different. In the second stratum, none of the individuals’ matching characteristics are significantly different across participants and selected comparison group members (pages 14 and 15), and only one of the matching characteristics—educate—is significantly different (at the 0.05 level) across the two groups (pages 18 through 19). Taken together with the results in the first stratum, the results indicate that, in this case, a comparison group that is wellmatched to participants along the matching characteristics has been selected. T Page 20 is a table that reports, separately for participants and selected comparison group members, average values of the matching characteristics. Pages 21 and 22 report the results of a series of t-tests of the similarity of each matching characteristic across overall participants and overall selected comparison group members—that is, regardless of the stratum to which they were assigned. The weight, _cntwgt, is used both to compute the statistics in the table and to conduct the statistical tests. In this case, the two groups are nearly identical along each of the matching characteristics.

The output produced by caliper.sas is similar. III. Using Neighbor.sas and Caliper.sas to Select Comparison Groups

35

C. CONDUCTING THE HECKMAN-HOTZ VALIDITY ANALYSIS The input and output files used to conduct the Heckman-Hotz validity analysis for SSI/concurrent beneficiaries are: Input file: Programs used: Output file:

ORS.P1171.$uuuu.SSInn.SSD NEIGHBOR, stHECK ORS.P1171.$uuuu.SSInn.HECK.SSD

The program, stHECK, calls the NEIGHBOR program. This is the generic version of the program. The suffix st should be renamed to the standard state abbreviation (for example, NY) for specific state project. The suffix nn on the fourth node of the input and output files denotes the FIPS state code for the state projects. The input and output files used to conduct the Heckman-Hotz validity analysis for SSDIonly beneficiaries are: Input file: Programs used: Output file:

ORS.P1171.$uuuu.SSDInn.SSD NEIGHBOR, HECKst ORS.P1171.$uuuu.SSDInn.HECK.SSD

The program, HECKst, calls the NEIGHBOR program. This is the generic version of the program. The suffix st should be renamed to the standard state abbreviation (for example, NY) for specific state project. The suffix nn on the fourth node of the input and output files denotes the FIPS state code for the state projects.


IV PRODUCING NET OUTCOME ESTIMATES

T

he macro, neighbor.sas, creates an analysis file containing the SSNs of participants and of selected comparison group members. Although this file has all the variables required to conduct the net outcomes estimates, it is a person-level file. In order to conduct the regression-adjusted net outcomes relative to the pre-enrollment months, the file must be transposed to create one observation for each person month of follow-up. The program, SSTRNSPn, performs this transposition for SSI/concurrent beneficiaries. It has 13 steps, with each step calling the PMSSI program that uses the analysis file created by neighbor.sas, performs the person-month transformation, and saves the file onto disk. The input and output files for this process are: Input files: Programs used: Output file:

ORS.P1171.$uuuu.SSInnB.SSD SSTRNSPn, PMSSI ORS.P1171.$uuuu.SSInnC.SSD

The suffix nn in the fourth nodes of the input and output files denotes the FIPS state code for the state project. The program, SDTRNSPn, performs the same kind of transposition for the SSDI-only beneficiaries. It has 11 steps, with each step calling the PMSSD program that uses the analysis files created by neighbor.sas, performs the person-month transformation, and saves the file onto disk. The input and output files in this process are: Input files: Programs used: Output file:

ORS.P1171.$uuuu.SSDInnB.SSD SDTRNSPn, PMSSDI ORS.P1171.$uuuu.SSDInnC.SSD

The suffix nn the fourth nodes of the input and output files denotes the FIPS state code for the state project. Net outcomes are estimated adjusting for the unmeasured characteristics by using the D-inD method.10 This approach is used by comparing the pre-post intervention change in average outcomes of participants with those of comparison group members. When computing net outcomes, this approach implicitly accounts for all characteristics, both measured and unmeasured, that do not change over time. The SSIMPst program produces the regression-

10

See Agodini et al. (2002) for details of the D-in-D method of estimating net impacts.

38 adjusted D-in-D net outcomes for SSI/concurrent beneficiaries. produces the same estimates for SSDI-only beneficiaries.

The program, SDIMPst,

The input file for the SSI/Concurrent beneficiaries is: Input files: Programs used: Output file:

ORS.P1171.$uuuu.SSInnC.SSD SSIMPst None

The input file for the SSDI-only beneficiaries is: Input files: Programs used: Output file:

ORS.P1171.$uuuu.SSDInnC.SSD SDIMPst None

The suffix nn in the fourth node of the input file denotes the FIPS state code for the state project. The programs SSIMPst and SDIMPst are the generic versions. The suffix st should be renamed to the standard state abbreviation (for example, NY) for specific state project. In order to analyze monthly earnings outcomes using data from the SSR and Historical REMICS files, the evaluation must correct for underreporting of participants’ earnings in three states (California, New York, and Wisconsin). These states implemented a “$1 for $4” SSI waiver that reduces the rate at which participants’ benefits are reduced due to earnings. Under standard SSI rules, benefits are reduced by $1 for every $2 of earnings, but the waiver would change that rate to $1 for every $4 of earnings. The waiver creates problems in the SSA administrative data files because it is implemented using an ad hoc system whereby SSA field office staff underreported beneficiaries’ earnings. The underreporting enables the staff to “trick” the standard system into paying the correct amount that is due under the waiver. In this way, the waivers can be implemented without changing the basic programs that calculate benefits. For example, under the ad hoc waiver procedures, field office staff would record earnings of $542.50 for a beneficiary who earned $1,000 dollars. Specifically, if a beneficiary has no other income, the field office staff would first subtract the standard SSI disregards (the first $20 in any income plus the first $65 in earnings). They would then divide the remaining amount by 2. The resulting amount would then be subtracted from the earnings recorded in the administrative data. Specifically, they would subtract $85 from $1,000, producing $915, which would then be divided by 2 to produce a total of $457.50. That amount would be subtracted from the $1,000 in actual earnings, and the remainder, $542.50, would be recorded in the SSA records. The standard SSA benefit calculation programs would then apply the usual $1 for $2 disregard to this lower recorded amount and would therefore pay the beneficiary the appropriate amount. The procedures for implementing the waiver, including the method of reporting earnings, are described in “State Partnership Initiative, Waiver Demonstration Project, Field Office Instructions,” in Appendix D. This process creates substantial problems for the evaluation, as the data set would bias the evaluation against the State Projects if the reported data were not corrected,. Specifically, earnings would be underreported for participants, but accurately reported for the comparisongroup (and control-group) members. The Project Office implementation analysis is collecting IV. Producing Net Outcome Estimates

39 information on specific details about this process and also will have data about when each beneficiary’s earnings were first covered by the waiver. After that information becomes available, it will be possible to adjust the recorded earnings amounts for participants, and to produce unbiased data. Basically, the evaluation will have to undo the field office underreporting by following the following steps (which should be confirmed when the full implementation information is available): 1. Determine whether the beneficiary was covered by the waiver during a given month. If yes, proceed; otherwise, skip that beneficiary-month. 2. Determine whether the beneficiary had unearned income of at least $20. 3. Determine whether the beneficiary used a PASS or other work incentive during the month. If yes, identify the amount of income disregarded under the incentive. 4. Subtract $65 from the reported earnings if the beneficiary had unearned income of at least $20; otherwise, subtract $85. 5. Subtract the amount of earnings covered by the PASS or other work incentive. 6. Multiple the remaining amount by 2 and then add back the amounts subtracted in steps 4 and 5. Ultimately, the evaluation will focus on the calendar-year earnings measures available from the SER. Those earnings measures are accurately recorded and do not need to be adjusted in the three waiver states. The regression models that use monthly variables can be easily modified to use the calendar year measures from the SER. However, the SER data become available approximately 14 months after the end of a calendar year. Given this lag, intermediate impact analyses conducted in the next couple of years will probably want to continue to use the monthly earnings estimates used in our tests.

IV. Producing Net Outcome Estimates

REFERENCES Agodini, Roberto, Craig Thornton, Nazmul Khan, and Deborah Peikes. “Design for Estimating the Net Outcomes of the State Partnership Initiative: Final Report.” Washington, DC: Mathematica Policy Research, Inc., September 2002. Agodini, Roberto, Kate Bartkus, Vinita Jethwani, Theresa Kim, Nora Paxton, Deborah Peikes, Rachel Sullivan, and Craig Thornton. “Initial Assessment of SSA Administrative Data for Use in the Net-Outcomes Evaluation of the State Partnership Initiatives.” Princeton, NJ: Mathematica Policy Research, Inc., 2001. Dehejia, Rajeev H., and Sadek Whaba. “Propensity Score Matching Methods for NonExperimental Causal Studies.” Working Paper 6829. Cambridge, MA: National Bureau of Economic Research, December 1998. Jethwani, Vinita, Deborah Peikes, Nora Paxton, and Kate Bartkus. “Characteristics of State Project Participants Enrolled Through December 31, 2001.” Princeton, NJ: Mathematica Policy Research, Inc., August 2002. Rosenbaum, Paul R., and Donald B. Rubin. “The Central Role of the Propensity Score in Observational Studies for Causal Effects.” Biometrika, vol. 70, 1983, pp. 41-55. Smith, Jeffrey, and Petra Todd. “Does Matching Overcome LaLonde’s Critique of Nonexperimental Estimators?” Working paper on website http://www.ssc.uwo.ca/economics/faculty/JSmith/nsw112200.pdf. Accessed January 2001.

TABLE OF ACRONYMS

BLS

U.S. Department of Labor, Bureau of Labor Statistics

CBO

Congressional Budget Office

CMS

Centers for Medicare & Medicaid Services

D-in-D

Method of difference-in-differences

DLT

Data Linkage Team

DOL

U.S. Department of Labor

ENP

Eligible nonparticipants

IRWE

Impairment-related work experience

JCL

Job Control Language

LMA

Labor market area

MBR

Master Beneficiary Record (basic SSDI administrative file)

MDD

Minimum detectable differences

MEF

Master Earnings File

MPR

Mathematica Policy Research, Inc.

OASI

Old Age and Survivors Insurance

PASS

Plan for Achieving Self Sufficiency

REMICS Revised Management Information Counts System RSA

Rehabilitation Services Administration

SAMHSA Substance Abuse and Mental Health Services Administration SAS

Statistical programming package produced by the SAS Institute

SER

Summary Earnings Record

44 SGA SPI

Substantial gainful activity State Partnership Initiative (also referred to as the “State Partnership and Systems Change Initiative”)

SSA

Social Security Administration

SSDI

Social Security Disability Insurance (Title II of the Social Security Act)

SSI

Supplemental Security Income (Title XVI of the Social Security Act)

SSN

Social Security number

SSR

Supplemental Security Record

TANF

Temporary Assistance for Needy Families program

TETD

Transitional Employment Training Demonstration

UI

Unemployment Insurance system

VCU

Virginia Commonwealth University

VR

Vocational Rehabilitation System

Table of Acronyms

APPENDIX A DEFINITION OF ACTIVE STATUS FOR SSI BENEFICIARIES

SSI ACTIVE STATUS DEFINITION

ACTIVE STATUS = 1 in a given month if a beneficiary’s value of PSTAT for that month takes on any of the following variables: C01 E01 E02 M01 M02 N01 N02 N04 N05 N06 N09 N20 N22 S05 S06 S07 S08 S09 S21 T30 T32 T22

Current Pay Eligible but no payment is due Eligible but not payable (suspense) Force payment case/ Current pay or non-pay Force due case - FO has taken control Non-pay recipient's charge income exceeds Title XVI & state’s payment standard Non-pay recipient is inmate/ institution Non-pay recipient non-excludable resources exceed TITLE XVI Non-pay FO unable to determine eligibility exists Non-pay recipient failed file for other benefits Non-pay recipient refused VR w/o cause Recipient fails to furnish a report of evidence Non-pay recipient is inmate /penal institution System unable to determine prerequisite month for 1619(A) Suspended Recipient's address unknown Suspended. Returned checks Suspended. development pending Suspended. Recipient refuses to cooperate Suspended/ presumptively disabled/ 6 payments Terminated record must be reestablished/(i.e., marriage) Terminated. Electronic termination of paid record that has exceeded certain size limitations Terminated manually through MSSICS. Received payments, but record must be re-established to correct SSR

A-3

ACTIVE STATUS = 0 if a beneficiary’s value of PSTAT for a month is one of the following variables (or any variable not listed above) H10 H20 H30 H40 H50 H70 H60 H80 H90 N03 N07 N08 N10 N11 N12 N13 N14 N15 N16 N17 N18 N19 N27 N33 N39 N44 N50 N23 N24 N25 N30 N31 N32 N34 N35 N36 N37 N38 N40 N41 N42 N43 N45 N46 N47

Hold living arrangements/ change Hold marital status/ change Hold resource change in process Hold student status/ change Hold head of household/ change Hold pending post of pay out system Hold pending receipt of DOD Hold /waiting on a disability determination Hold systems limitation Non-pay recipient is outside U.S. Non-pay cessation of recipient's disability Non-pay cessation of recipient's blindness Non-pay recipient refused treatment for drug addiction Non-pay recipient refused treatment for alcoholism Non-pay recipient withdrew from program Non-pay not a citizen or eligible alien Non-pay aged claim denied for age Non-pay blind claim denied. Applicant not blind Non-pay disability claim denied. Applicant disabled Non-pay failure to pursue claim by applicant Non-pay failure by applicant to cooperate Recipient voluntarily terminates in SSI program Termination of disability due to SGA status Non-pay engaging in SGA despite impair, No VI Non-pay applicant fails to follow treatment Non-pay engaging in SGA despite impairment Non-pay applicant fails to follow treatment/VI Non-pay recipient is not a resident of US Non-pay recipient convicted-felony to receive benefits Non-pay recipient fleeing to avoid prosecution Non-pay slight impairment/no visual impairment Non-pay (SGA)/no visual impairment Non-pay capacity for SGA/other work/No visual impairment Non-pay Impairment no longer severe Non-pay Impairment is severe/ not expected to last 12 months Non-pay insufficient or no medical data furnished Non-pay failure/refusal to consultative exam Non-pay applicant does not want to continue Non-pay impairment(s) does not meet or equal Non-pay slight impairment/visual imp Non-pay capacity for SGA/past work/visual impairment Non-pay capacity for SGA/other work/visual impairment Non-pay impairment no longer severe Non-pay Impairment severe/ not expected to last 12 months Non-pay insufficient/no evidence/visual imp A-4

N48 N49 N51 N52 N53 N54 P01 S01 S04 S10 S20 T01 T20 T22 T31 T50 T51

Non-pay failure/refusal to consult exam/VI Non-pay applicant not want to continue development of claim/visual impairment Non-pay impairment does not meet or equal Non-pay deleted from state rolls Non-pay deleted from state rolls Non-pay D/O unable to locate applicant Suspension of disability payments due to SGA Suspended due to report of death by treasury Suspension system is awaiting disability determination Adjudicative suspense (system generated) Suspended the recipient is subject to rollback Terminated death of recipient Terminated duplicate payment/2 different numbers Terminated duplicate payment/ same number Terminated recipient met denial criteria Terminated record must be reestablished (false start) Terminated recipient met denial criteria

A-5

APPENDIX B SPI PROJECT OFFICE DATA COLLECTION FORMS

6WDWH3DUWQHUVKLS,QLWLDWLYH 'HPRQVWUDWLRQ6LWH,QIRUPDWLRQ)RUP Revised 6/15/99

1. Demonstration Site (agency name or city): ________________________________ 2. State: _______________ 3. Primary contact person for data: _______________________________________ 4. Geographic area in which the demonstration site office is located (check only one):

❍ Urban ❍ Suburban ❍ Rural 5. Geographic catchment area for the demonstration site (check all that are applicable to the demonstration site):

❍ Urban ❍ Suburban ❍ Rural

)RU DVVLVWDQFH ZLWK WKLV IRUP FRQWDFW 0LFKDHO :HVW E\ SKRQH DW E\ ID[ DW RU E\ HPDLO DW PZHVW#YFXRUJ

VCU-SPI Form #: 06/99-01

Page 1 of 12

6WDWH3DUWQHUVKLS,QLWLDWLYH 3DUWLFLSDQW'HPRJUDSKLF'DWD)RUP Revised 6/15/99 Note: Items marked with an asterisk (*) are not required for projects funded through the Rehabilitation Services Administration (RSA).

1. Participant’s Name:*

Last _________________________________________

First _______________________________ MI ____ 2. Participant’s Social Security Number: __ __ __ - __ __ - __ __ __ __ 3. Zip Code of the participant’s place of residence: __ __ __ __ __ 4. Participant Date of birth (MM/DD/YYYY format):

__ __ / __ __ / __ __ __ __

5. Date of intake into the State Project (MM/DD/YYYY format): __ __ 6. Date of onset of disability: Year: __ __ __ __

__ __ / __ __ / __ __

Month (if available): __ __

If actual date of disability onset is unavailable, did the disability begin prior to the age of 22?

❍ Yes ❍ No 7. Type of disability: Please indicate the participant’s disability, using RSA 911 diagnostic categories or numbers. _______________________________________ 8. Vocational Rehabilitation status: Has the participant ever been determined eligible or ineligible for services by the State Vocational Rehabilitation agency?

❍ Yes, eligible ❍ Yes, ineligible ❍ No If Yes, eligible is the participant currently receiving VR services?

❍ Yes ❍ No If current, what is the participant’s active status with the agency? Status code: __ __


Page 2 of 12

9. Severity of disability: If the participant is a current or prior VR client, what is his/her VR-determined severity status?

❍ Significant / Severe ❍ Not Significant / Nonsevere If the participant has never been referred to the State VR agency, what is the severity of his/her disability (based on RSA definition of severity)?

❍ Significant ❍ Not Significant 10. Participant’s sex:

❍ Male ❍ Female 11. Participant’s race:

❍ ❍ ❍ ❍ ❍

American Indian or Alaska Native Asian Black or African American Native Hawaiian or Other Pacific Islander White

12. Participant’s ethnicity:

❍ Hispanic or Latino ❍ Not Hispanic or Latino 13. What are the participant’s living arrangements (check the most appropriate option):*

❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Alone Single adult with children With spouse/significant other With spouse/significant other and children With parents With other family members With other adults (non-related) N/A (RSA-funded State Projects only)

14. If the participant is living with children:* How many are less than six years of age? ____ How many are between the ages of six and 18? ____ How many are above the age of 18? ____ ❍ N/A (RSA-funded State Projects only)


Page 3 of 12

15. Is the participant a recipient of Social Security Benefits? ❍ Yes ❍ No If yes, type of beneficiary. Check only one and provide the total monthly amount. (Amounts not required for RSA States):

❍ ❍ ❍ ❍ ❍

SSDI beneficiary SSI disability recipient SSI blind recipient Both SSI and SSDI (concurrent) Both SSDI and SSI blind

$______________ $______________ $______________ $______________ $______________

16. If the participant currently receives SSDI, number of months receiving SSDI at intake:

❍ Less than 6 months ❍ 6 to 12 months ❍ More than 12 months

17. If the participant currently receives SSI, number of months receiving SSI at intake: ❍ Less than 6 months ❍ 6 to 12 months ❍ More than 12 months 18. Does the participant receive private disability benefits: ❍ Yes ❍ No 19. Is the participant a Medicare recipient? ❍ Yes ❍ No 20. Is the participant a Medicaid recipient? ❍ Yes ❍ No 21. Receipt of federal, state or local assistance. Check yes or no for each. If yes, also indicate the monthly amount (Amounts not required for RSA States). a. Subsidized housing or other rental subsidies? b. Food stamps? c. General Assistance? d. Temporary Assistance to Needy Families (TANF)? e. Veteran’s Benefits f. Worker’s Compensation g. Other Federal supports (____________________) h. Other State supports (____________________) i. Other local supports (____________________)


❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________)

❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No

Page 4 of 12

22. Prior education (highest educational level attained): ❍ No Formal Schooling ❍ Elementary Education (Grades 1-8) ❍ Secondary Education, no high school diploma (grades 9-12) ❍ Special Education certificate of completion/attendance ❍ High school diploma equivalent (e.g., GED) ❍ High school diploma ❍ Post-secondary education, no degree ❍ Associate Degree or Vocational Technical Certificate ❍ Bachelor’s Degree ❍ Master’s Degree or higher 23. Other prior training: Check for each option ever received, and identify each option received in the past 6 months: a. Job Training Partnership Act or equivalent ❍ Ever ❍ Past 6 mo. b. Advanced training through the armed forces ❍ Ever ❍ Past 6 mo. c. Employer provided training programs ❍ Ever ❍ Past 6 mo. d. English as a Second Language (ESL) ❍ Ever ❍ Past 6 mo. e. Supported Employment ❍ Ever ❍ Past 6 mo. f. Projects with Industry (PWI) training ❍ Ever ❍ Past 6 mo. g. Formal computer training ❍ Ever ❍ Past 6 mo. h. Life skills training ❍ Ever ❍ Past 6 mo. i. Other (________________________) ❍ Ever ❍ Past 6 mo 24. Work experience prior to onset of disability: Was the participant employed prior to onset of disability? ❍ Yes ❍ No If Yes, Please complete the following questions about the participant’s most recent pre-disability job: Type of work (Select the most appropriate EEOC Job Classification):

❍ ❍ ❍ ❍ ❍ ❍ ❍

Executive/administrative/managerial Professional Secretarial/clerical Technical/paraprofessional Skilled craft Service maintenance Unable to classify (Specify job title or description): ____________________

Job type:

❍ Part-time (under 30 hours a week) ❍ Full-time (30 or more hours a week) Estimated earnings for the last full pre-disability month employed: $ ______________

Date Job ended: Year:__ __ __ __ Month (if available): __ __


Page 5 of 12

25.

Work experience since onset of disability: Has the participant been employed since onset of disability? ❍ Yes ❍ No If Yes, Please complete the following questions about the participant’s most recent post-disability job: Type of work (Select the most appropriate EEOC Job Classification):

❍ ❍ ❍ ❍ ❍ ❍ ❍


Job type:

❍ Part-time (under 30 hours a week) ❍ Full-time (30 or more hours a week) Estimated earnings for the most recent full post-disability month employed: $___________ Date Job ended: Year:__ __ __ __

Month (if available): __ __

26. Employment status at time of referral to the project: Is the participant currently employed? ❍ Yes ❍ No If Yes, Please complete the following questions about the participant’s current job: Type of work (Select the most appropriate EEOC Job Classification):

❍ ❍ ❍ ❍ ❍ ❍ ❍


Job type:

❍ Part-time (under 30 hours a week) ❍ Full-time (30 or more hours a week) Earnings for the most recent full month (current job): $ ______________

27. Total years of work experience since age 16*: __________


Page 6 of 12

28.

Does the participant have a reliable and stable mode of transportation that could be (or is) used to travel to and from work? ❍ Public transportation, reliable and stable ❍ Public transportation, but not reliable and stable ❍ Private transportation arrangement, reliable and stable ❍ Private transportation arrangement, but not reliable and stable



Page 7 of 12

6WDWH3DUWQHUVKLS,QLWLDWLYH 3DUWLFLSDQW(PSOR\PHQW'DWD)RUP Revised 6/15/99

Note: Items marked with an asterisk (*) are not required for projects funded through the Rehabilitation Services Administration (RSA). 1. Participant Identifiers: Social Security Number

__ __ __ - __ __ - __ __ __ __

Date of birth (MM/DD/YYYY format):

__ __ / __ __ / __ __ __ __

2. Type of work performed by the participant (please select the most appropriate EEOC Job Classification):

❍ ❍ ❍ ❍ ❍ ❍ ❍

Executive/ administrative /managerial Professional Secretarial/clerical Technical/paraprofessional Skilled craft Service maintenance Unable to classify (Specify job title or description: ___________________________) 3. Type of business, industry, or organization (check the most appropriate option):

❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ 4.

Retail sales Industrial (manufacturing) Human services (church, private agency, etc.) Construction Custodial, janitorial, building maintenance Other service, repairs Hospitality (food) Hospitality (lodging) Health care Data processing/information technology Temporary services/employee leasing company Child care Wholesale Management corporation Government agency Other (Specify:________________________)

Was the Work Opportunity Tax Credit program available to the employer? ❍ Yes

❍ No


Page 8 of 12

5.

Type of Employer:

❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Private non-profit organization For-profit business Consumer-owned business (self-employment) Local government agency State government agency Federal government agency Sheltered Employment Work crew / Enclave

Size of employing organization (if able to identify):

6.

❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

organization consists of the applicant him/herself under 25 employees 25 to 50 employees 51 to 100 employees 101 to 500 employees 501 to 1000 employees over 1000 unable to determine

7.

Beginning date of employment (first day of work, or date of first earnings if self-employed): __ __ / __ __ / __ __ __ __

8.

Number of hours worked per month (all jobs): _______

9.

Monthly gross earnings (all jobs): $ _____________

10.

Monthly take home pay (all jobs)*: $ _____________

11. Fringe benefits received: a. Health and medical insurance ❍ Yes ❍ No ❍ Pending If Yes or Pending to a. (health and medical insurance), Do the benefits have exclusions related to your disability? ❍ Yes ❍ No b. c. d. e. f.

Pension or retirement benefits Paid vacation leave Paid sick leave Transportation or transportation allowance Worker’s Compensation g. Unemployment Insurance h. Disability Insurance i. Other (Specify:________________________)

❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Yes Yes Yes Yes Yes Yes Yes Yes

❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

No No No No No No No No

❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Pending Pending Pending Pending Pending Pending Pending Pending



Page 9 of 12

6WDWH3DUWQHUVKLS,QLWLDWLYH &KDQJHLQ(PSOR\PHQW6WDWXV)RUP Revised 6/15/99 1. Participant Identifiers: Social Security Number

__ __ __ - __ __ - __ __ __ __


__ __ / __ __ / __ __ __ __

2. Employment change date (MM/DD/YYYY format): __ __ / __ __ / __ __ __ __ 3. Primary reason for employment status change (check most appropriate reason): ❍ Career advancement within the same company ❍ Job change within the same company – due to worsening of disability ❍ Other job change within the same company ❍ Resignation – found employment at a different company ❍ Resignation – currently not employed ❍ Termination ❍ Reduction in hours worked – due to worsening of disability ❍ Other changes in hours worked ❍ Temporary suspension or layoff ❍ Conclusion of temporary job ❍ Conclusion of contract job 4. If the participant is currently not employed, please indicate the participant’s self-reported primary reason: ❍ Progressive worsening of the participant’s disability ❍ Participant hospitalized ❍ Other medical or health problems ❍ Fear of losing benefits ❍ Retired ❍ Moved ❍ Lack of adequate transportation ❍ Lack of adequate housing ❍ Lack of adequate personal assistance services ❍ Lack of health insurance ❍ Problems with job demands ❍ Problems with supervisors and/or coworkers ❍ Problems with job accommodations ❍ Family obligations ❍ Deceased ❍ Other (Please describe____________________________) 5. Continuing project status: If the participant is currently not employed, will the participant remain with the project for future placement? ❍ Yes ❍ No )RU DVVLVWDQFH ZLWK WKLV IRUP FRQWDFW 0LFKDHO :HVW E\ SKRQH DW E\ ID[ DW RU E\ HPDLO DW PZHVW#YFXRUJ


Page 10 of 12

6WDWH3DUWQHUVKLS,QLWLDWLYH 3DUWLFLSDQW8SGDWH)RUP Revised 6/15/99 Note: Items marked with an asterisk (*) are not required for projects funded through the Rehabilitation Services Administration (RSA). 1. Participant Identifiers: Social Security Number


__ __ __ - __ __ - __ __ __ __

__ __ / __ __ / __ __ __ __

2. Earned Income Tax Credit receipt:* ❍ Yes ❍ No ❍ N/A (RSA-funded states only) 3. Receipt of federal, state or local assistance. If yes, also indicate the monthly amount (Amounts not required for RSA States).: a. b. c. d. e. f. g. h. i. j. k. l. m.

Subsidized housing or other rental subsidies? Food stamps? General Assistance? Temporary Assistance to Needy Families (TANF)? SSDI? SSI? Veteran’s Benefits Medicare? Medicaid? Worker’s Compensation? Other Federal supports (____________________) Other State supports (____________________) Other local supports (____________________)

❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ❍ Yes ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________) ❍ Yes ($________)

❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No ❍ No

4. Vocational Rehabilitation case status:* Has the participant’s state Vocational Rehabilitation (VR) case been closed since the last update? ❍ Yes ❍ No ❍ N/A (not a VR consumer) If Yes; please indicate the participant’s case closure status? _____________ 5. Does the participant have a reliable and stable mode of transportation that could be (or is) used to travel to and from work? ❍ Public transportation, reliable and stable ❍ Public transportation, but not reliable and stable ❍ Private transportation arrangement, reliable and stable ❍ Private transportation arrangement, but not reliable and stable


Page 11 of 12

6. Amount and type of direct services received: Check to indicate that a service was received in the past three months. For each service provided, give an appraisal of the total number of service hours per month (service hours N/A for RSA-funded State Projects). For each direct service, indicate if the service was funded directly from State Partnership Initiative funds.

❍ Case management (____ hr.* project-funded ❑) ❍ Job accommodations (____ hr.* project-funded ❑) ❍ Job coaching or supported employment (____ hr.* project-funded ❑) ❍ Job service vouchers (____ hr.* project-funded ❑) ❍ Job training (____ hr.* project-funded ❑) ❍ Placement assistance (____ hr.* project-funded ❑) ❍ Psychosocial rehabilitation (____ hr.* project-funded ❑) ❍ Situational assessment (____ hr.* project-funded ❑) ❍ Social Security benefits/work incentives counseling (____ hr.* project-funded ❑) ❍ Transitional employment program (TEP) (____ hr.* project-funded ❑) ❍ Transportation assistance (____ hr.* project-funded ❑) ❍ Services or support from local MH or DD providers? (____ hr.* project-funded ❑) ❍ Integrated Career Centers/One-Stop Centers (____ hr.* project-funded ❑) ❍ Peer mentoring services (____ hr.* project-funded ❑) ❍ School to work transition services not mentioned above (____ hr.* project-funded ❑) ❍ Other (Specify:_______________________________) (____ hr.* project-funded ❑) 7.

Utilization of Social Security work incentives: Does participant have an approved Plan for Achieving Self-Sufficiency (PASS)? ❍ Yes ❍ No ❍ N/A, not an SSA beneficiary Does participant utilize Impairment-Related Work Expenses (IRWE)? ❍ Yes ❍ No ❍ N/A, not an SSA beneficiary Does the participant utilize other Social Security work incentives? ❍ Yes ❍ No ❍ N/A, not an SSA beneficiary

8.

Receipt of Medicare/Medicaid eligibility waivers / buy-ins: Did the participant take advantage of the waiver / buy-in? ❍ Yes ❍ No When did the waiver / buy-in take effect? (MM/YYYY format): __ __ / __ __ __ __ When did the participant start to benefit from the waiver / buy-in?: __ __ / __ __ __ __

)RU DVVLVWDQFH ZLWK WKLV IRUP FRQWDFW 0LFKDHO :HVW E\ SKRQH DW E\ ID[ DW or by e-mail at PZHVW#YFXorg.


Page 12 of 12

APPENDIX C NEIGHBOR.SAS: EXAMPLE OUTPUT

EEEEE E E EEEE E E EEEEE

III I I I I I III

GGGG G G G GGG G G G G GGGG

H H H H H H HHHHH H H H H H H

BBBB B B B B BBBB B B B B BBBB

OOO O O O O O O O O O O OOO

RRRR R R R R RRRR R R R R R R .. ..

SSS S S S SSS S S S SSS

A A A A A A A AAAAA A A A A

SSS S S S SSS S S S SSS

1

C-3

This output was produced by a SAS macro called neighbor.sas that uses propensity scores to select a comparison group for a group of participants. Details about the way in which neighbor.sas is used are contain in the file called comparison.pdf.

N N N N NN N N N N N NN N N N N

The SAS System

HFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFNFFFFFFFFFFFFFFFFFFFFFFFFFFFI G G *URXS G G LFFFFFFFFFFFFFNFFFFFFFFFFFFFM G G G 3RWHQWLDO G G G3DUWLFLSDQWV G &RPSDULVRQV G LFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFPFFFFFFFFFFFFFPFFFFFFFFFFFFFM G$JH G G G LFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFPFFFFFFFFFFFFFPFFFFFFFFFFFFFM G0DOH G G G LFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFPFFFFFFFFFFFFFPFFFFFFFFFFFFFM G F

0.25 0.38 -1.05 -0.29 0.19 -0.19 0.52 -0.28 0.14

t Value

F Value

434 434 434 434 434 434 434 434 434

DF

An Example of the Output Produced by Neighbor.sas T-test of Each Matching Characteristic Participants vs Selected Comparisons (Statistics Were Computed Using Weights)

C-24

22

APPENDIX D STATE PARTNERSHIP INITIATIVE WAIVER DEMONSTRATION PROJECT FIELD OFFICE INSTRUCTIONS

TABLE OF CONTENTS

PAGE

SECTION NUMBER

4

001.

Introduction: SPI Work Incentive Demonstration Project

7

002.

Policy: Three for Four Earned Income Waiver

9

.003

Policy: Work-Related Unearned Income Waiver

13

.004

Policy: Independence Account Waiver

15

.005

Policy: Suspension of Medical CDRs Waiver

18

.006

Using the Waiver Calculator

22

.007

Waiver Computations Using the Calculator

26

.008

Manual Waiver Computations

34

.009

Systems Inputs for Earned Income Waivers

37

.010

Systems Inputs for Work-Related Unearned Income Waivers

39

.011

Systems Inputs: Both Earned and Unearned Income Waivers in Same Month

43

.012

Systems Input for Independence Account Waiver

44

.013

Verifying Waiver Participant’s Income and Resources

48

.014

Processing Diaries and Alerts

50

.015

The Monthly Reporting Form

53

.016

Waiver Case Examples D-3

SECTION .001 INTRODUCTION: SSI WORK INCENTIVE DEMONSTRATION PROJECT

BACKGROUND State Partnership Initiative Executive Order 13078 of March 13, 1998 created the National Task Force on the Employment of Adults with Disabilities. The State Partnership Initiative (SPI) is the first activity launched under the Executive Order and is designed to help States develop employment support programs for their residents with disabilities. SPI’s goal is to increase job opportunities, foster development of community resources, and decrease dependence on Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits. Description of the Work Incentive Waivers Under SPI, SSA will waive certain SSI provisions in order to conduct a demonstration project to test SSI work incentives. These are the 4 waiver elements. • SSA will exclude the first $65 of monthly earned income plus an additional 75 percent of any remaining earned income. • SSA will exclude the first $65 and 75 percent of the remainder for 4 types of temporary work-related unearned income. • SSA will allow participants to maintain a separate “Independence Account” in addition to the current $2,000 resource limit. SSA will exclude from resource counting one separate account for saved wages, with deposits limited to 50 percent of gross wages, not to exceed $8,000 per year. • SSA will suspend medical continuing disability reviews (CDRs) for participants in the demonstration project who are SSI-only beneficiaries with “medical improvement possible” or “medical improvement not expected” diaries. Participating States Four States will participate in this waiver demonstration project. Three of the States (California, New York, and Wisconsin) will test all four of the waivers. Vermont will test all of the waivers except the “three for four” earned income waiver. Number of Participants • • •

California’s Individual Self-Sufficiency Planning project will serve about 150 participants in San Mateo and Kern Counties. The New York WORKS: Self-Sufficiency Through Employment Incentives project will serve about 900 participants in New York City and Erie County. The Vermont Work Incentive Initiative will serve about 1,200 participants in a Statewide program. D-4

•

The Wisconsin’s Pathways to Independence will serve about 1,400 participants in 15 sites throughout Wisconsin.

Key Dates of the Demonstration Project

Effective Date of the Demonstration Project The SSI waivers under the demonstration project became effective following the publication of a notice in the Federal Register on January 25, 2001. Starting Date for Participants The waivers will apply to participants beginning on the first day of the month following the month that they enroll in the waiver project with one of the four States. For example, if a participant enrolls in a State’s waiver project on 4/23/01, the waivers will be applied beginning on 5/1/01. Enrollment in the SPI project is not considered enrollment for the waivers. Ending Date for Participants The waivers will continue through September 30, 2003. Beginning October 1, 2003, SSI eligibility for all of the participants will revert back to normal SSI rules. If the individual’s participation in the project ends earlier than 9/30/03, the waivers will end as of the first day of the month following the month the individual’s participation ends. Spend Down Period The 24-month spend down period for the Independence Account will begin on October 1, 2003 and end on 9/30/05. If an individual’s participation in the waiver project ends before 9/30/03, his or her 24-month spend down period will begin on the first day of the month following the month that his or her participation ends. See Section .004 for more information about Independence Accounts. PROCEDURE—IDENTIFYING WAIVER PARTICIPANTS Input the following information to identify waiver participants. If feasible, input the whole list of a State’s participants at the outset of the demonstration project. As new waiver participants enroll with the States, input those cases as soon as they are identified.

D-5

CG Field Depending on the State, input the following in the CG field: • for California participants: SPWC, MMYY • for New York participants: SPWN, MMYY • for Vermont participants: SPWV, MMYY • for Wisconsin participants: SPWW, MMYY NOTE: The “SPW” portion of the acronym stands for “State Partnership Waiver.” The fourth letter identifies the State. The date field is the enrollment month of the participant. CAUTION: Every waiver participant must have this CG entry. It is extremely important for the waiver demonstration research that the CG field is not inadvertently overlaid by a subsequent input. SSR Remarks Field Depending on the State, input the following in the SSR Remarks field: • “California ISSP work incentive waiver case: special income and resource exclusions: call FO xxx, retain this remark until 10/1/05” • “New York Works waiver case: special income and resource exclusions: call FO xxx, retain this remark until 10/1/05” • “Vermont Work Incentive Initiative waiver case: special income and resource exclusions: call FO xxx, retain this remark until 10/1/05” • “Wisconsin Pathways work incentive waiver case: starting date MM/YY: special income and resource exclusions: call FO xxx, retain this remark until 10/1/05” NOTE: The “FO” is the field office serving the waiver participant. REFERENCES Federal Register, January 25, 2001, Vol. 66, No. 17, page 7829 Case Characteristics (CG) field, SM 01301.820 SSR remarks (R1-R5 field), SM 01301.841

D-6

SECTION .002

POLICY: THE THREE FOR FOUR EARNED INCOME WAIVER

BACKGROUND SSA will test the effectiveness, as a work incentive, of using a modified earned income exclusion in determining an SSI beneficiary’s countable income. This exclusion applies only to SSI beneficiaries and concurrent SSI/SSDI beneficiaries enrolled in the California, New York, and Wisconsin waiver projects. POLICY “Three for Four” Earned Income Exclusion Under this waiver, SSA will exclude the first $65 of monthly earned income plus an additional 75% of any remaining earned income ($3 for every $4 earned). Example: John Jones enrolls in the New York WORKS waiver project on 4/20/01. Starting in May, 2001, his wages will be computed based on the waiver. In May, Mr. Jones receives $885 of wages. His countable earnings for May under the waiver are: $885.00 -20.00 general exclusion $865.00 -65.00 earned income exclusion $800.00 x .25 $3 for $4 exclusion $200.00 countable earned income NOTE: Under this waiver, the exclusion applies to the net amount of earnings from selfemployment. Effect on Other Earned Income Exclusions The “three for four” waiver does not change the other earned income exclusions that may apply to a participant (e.g., student child earned income exclusion, IRWE, BWE, P.A.S.S.). See SI 00820.500 for the order that the earned income exclusions are applied. Effect on Wages of Spouse or Deemor The “three for four” waiver applies only to the earned income of waiver participants. It does not apply to the earned income of a non-participating eligible spouse or a deemor.

D-7

Effect on Income Counting Rules Under this waiver, the normal rules for determining what is income and for distinguishing between earned and unearned income apply. The normal rules for Retrospective Monthly Accounting (RMA) also apply. Effect on 1619(b) Eligibility For waiver participants, normal 1619(b) eligibility rules will apply. But due to the “3 for 4” exclusion, waiver participants will not go into N01 pay status until a relatively high income level is reached. If the participant goes into N01 status, a charted or individualized threshold determination will be needed to determine whether the participant is 1619(b) eligible. See SI 02302.010ff for a discussion of 1619(b) policy, SI 02302.045 for the threshold tests, and SM 01305.991 for 1619(b) systems inputs. Notices A special manual notices is not required when the waiver participant’s earnings are input through MSSICS or the batch process. A waiver participant’s countable earned income will differ from his or her gross earned income. But the notice that is automatically generated will correctly reflect the countable earned income used to compute the SSI benefit. Overpayments If a waiver participant is overpaid by SSI due to earned income, the overpayment amount will be based on the “three for four” exclusion and will be processed using normal overpayment procedures. REFERENCES General income exclusion, SI 00810.420 Net earnings from self-employment, SI 00820.200 Earned income exclusions, SI 00820.500 Student child earned income exclusion, SI 00820.510 Blind work expenses (BWE), SI 00820.535 Income related work expenses (IRWE), SI 00820.540 Unearned income exclusions, SI 00830.050 Plan for Achieving Self Support (P.A.S.S.), SI 00870.008 Overpayment recovery, SI 02220.001 1619(b) policy, SI 02302.010 1619(b) threshold tests, SI 02302.045 1619(b) systems process, SM 01305.991

D-8

SECTION .003

POLICY: THE THREE FOR FOUR WORK-RELATED UNEARNED INCOME WAIVER

BACKGROUND SSA will test, as a work incentive, applying the “three for four” exclusion to temporary unearned income related to work. This exclusion will apply only to SSI beneficiaries and concurrent SSI/SSDI beneficiaries enrolled in the California, New York, Vermont, and Wisconsin waiver projects. POLICY “Three for Four” Work-Related Unearned Income Exclusion Under this waiver, SSA will exclude the first $65 of monthly work-related unearned income plus an additional 75% of any remaining work-related unearned income ($3 for every $4 received). Example: James Smith enrolled in the Wisconsin Pathways project on 5/20/01. Starting in June, 2001, the “3 for 4” exclusion is applied to his wages. In July, 2001 Mr. Jones is laid off. In August, 2001 he receives no wages, but receives unemployment benefits of $600 and the “3 for 4” exclusion is applied to his unemployment benefits. His countable work-related unearned income is: $600.00 -20.00 general exclusion $580.00 -65.00 earned income exclusion $515.00 x .25 $3 for $4 exclusion $128.75 countable work-related unearned income NOTE: The $20 and $65 exclusions apply only once during a month. Therefore, if the waiver participant has both earned and work-related unearned income in the same month, these 2 exclusions are deducted only once. Types of Unearned Income Only the following 4 types of income are subject to this waiver exclusion: • unemployment insurance benefits; • worker’s compensation benefits; • State disability benefits; • disability benefits paid through private insurance plans.

D-9

Effect on Other Unearned Income Exclusions This “three for four” waiver does not change other unearned income exclusions that may apply to a participant (e.g., the $20 general exclusion, P.A.S.S., expenses normally excluded from worker’s compensation). NOTE: Earned income exclusions (IRWE, BWE, and the student child earned income exclusion) do not apply to the work-related unearned income. Effect on Income of Spouse or Deemor The “three for four” exclusion applies only to the work-related unearned income of waiver participants. It does not apply to the income of a non-participant eligible spouse or a deemor. Effect on Counting Unearned Income All other types of unearned income will be counted and input under normal rules. The normal rules for Retrospective Monthly Accounting (RMA) will also apply. Effect on 1619(b) Eligibility Work-related unearned income under this waiver will be input to the SSI system as earned income in order to allow the system to recognize potential 1619(b) eligibility. For waiver participants, normal 1619(b) eligibility rules will apply except that the workrelated unearned income will be treated as earned income when the 1619(b) threshold test is applied. Due to the “3 for 4” exclusion, waiver participants will not go into N01 pay status until a relatively high income level is reached. However, if the participant goes into N01, a charted or individualized threshold determination will be needed to determine whether the participant is 1619(b) eligible. See SI 02302.010ff for a discussion of 1619(b) policy, SI 02302.045 for the threshold test, and SM 01305.991 for systems inputs. Notices A special manual notice is required for a waiver participant to supplement the automated notice generated when the participant’s work-related unearned income is input through MSSICS or the batch process. A waiver participant’s work-related unearned income will not be identified as such on the automated notice. But the automated notice will correctly reflect the amount of countable income used to compute the SSI benefit (either earned, work-related unearned, or both). Whenever the field office inputs work-related unearned income for a participant, the field office will mail a form letter to the participant which explains that the work-related

D-10

unearned income will be shown as earned income on the automated notice. (See D. below for sample letter). Overpayments If a participant is overpaid by SSI due to work-related unearned income, the overpayment amount will be based on the “three for four” exclusion and will be processed using normal overpayment procedures. REFERENCES Unearned income exclusions, SI 00830.050 Unemployment insurance benefits, SI 00830.230 Worker’s compensation, SI 00830.235 State disability benefits, SI 00830.250 Overpayment recovery, SI 02220.001 1619(b) policy, SI 02302.010 1619(b) thresholds, SI 02302.045 1619(b) systems process, SM 01305.991 SAMPLE LETTER—WORK-RELATED UNEARNED INCOME If the participant receives work-related unearned income subject to the waiver exclusion, it will be necessary to send a manual notice. The manual notice will supplement the automated notice generated by the system. It explains that the work-related unearned income will be listed with the earned income on the automated notice. Use the SSA-L8165-U2 (SSI Important Information) for this manual notice. See sample below.

D-11

Social Security Administration Supplemental Security Income Important Information Office Address: Street Address City, State, Zip Code Recipient Name Street Address City, State, Zip Code

Telephone Number: (999) 999-9999 Date: Social Security Number: 888-88-8888

We are writing to tell you about changes in your Supplemental Security Income (SSI) record. The rest of this letter will tell you more about this change. Because you are participating in the (name of waiver project), we are applying a special exclusion to the (type of work-related unearned income) you receive. The SSI notice we sent you from our main computer system is not able to show the amount of (type of work-related unearned income) that we are counting in your case. This income is listed as wages on that notice. However, that notice does show the correct SSI payment amount you are due. If you have any questions, please call, write, or visit the Social Security office listed above. If you call or visit our office, please have this letter with you and ask for (Claims Representative’s name). (His/her telephone number is (XXX) XXX-XXXX, extension XXX. Also, if you plan to visit our office, you may call ahead to make an appointment. This will help us serve you more quickly when you arrive at the office. Signature Name of Manager Title

D-12

SECTION .004

POLICY: INDEPENDENCE ACCOUNT WAIVER

BACKGROUND SSA will test the effectiveness, as a work incentive, of an additional resource exclusion. The waiver participants will be allowed to maintain a special “Independence Account” in addition to the current $2,000 resource limit. This waiver applies to participants enrolled in the waiver projects in California, New York, Vermont, and Wisconsin. POLICY Account Limits The Independence Account must be a separate account, must not be commingled with any other funds, and must be used to save earned income. Deposits to the account may be up to 50% of gross annual earnings, not to exceed $8,000 deposited per year. Interest earned by the Independence Account will not be counted as unearned income through the end of the participant’s spend down period. Type of Accounts Permitted The Independence Account can be a checking or savings account, a certificate of deposit, a money market account, or a mutual fund account. It cannot be a retirement fund such as an IRA, Roth IRA, 401(k) plan, or 403(b) plan. Although not required under this waiver, encourage the participant to title his or her Independence Account in a way that identifies it as a special waiver account (e.g., “John Smith—Waiver Account” or “Jane Smith—Independence Account”). Restriction on Deposits The waiver limits the participant to deposits of $8,000 per year from the participant’s earned income only. Deposits are not permitted from the work-related unearned income covered by the waiver. For purposes of monitoring the $8,000 annual limit, the year begins on the date the account was opened and ends one year later. If the participant deposits less than $8,000 in one year, the deposit limit is still $8,000 for the following year. Also, not every participant will be permitted to deposit $8,000. Because the deposits are limited to 50% of the participant’s gross earnings, only a participant who earns $16,000 or more in the year can deposit the full $8,000. Example: Ms. Jones opens an Independence Account on 6/7/01. The CR explains that she may deposit up to $8,000 between 6/7/01 and 6/6/02. The CR further explains that if Ms. Jones earns $10,000 gross wages during this period, she is allowed to deposit only $5,000 (50% of gross wages). And, if she deposits $5,000 during this one-year period, she is still limited to a maximum of $8,000 in the following year.

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Use of the Funds SSA does not place any restrictions on the participants’ use of the money. It is a stated purpose of this waiver to test whether the opportunity to save money above the normal SSI limit will motivate SSI beneficiaries to seek employment. Spend Down Period The waiver demonstration ends on 9/30/03. On 10/1/03, a 24-month spend down period begins for the Independence Account. The 24-month spend down period ends on 9/30/05. Beginning on 10/1/05, funds remaining in the Independence Account will be counted under normal SSI income and resource rules. NOTE: If an individual’s participation in the waiver ends before 9/30/03, the 24-month spend down period will begin in the month following the month the individual’s participation ends. For example, if the participant drops out of the demonstration on 11/12/02, his or her 24-month spend down period would begin on 12/1/02 and end on 11/30/04. Relationship to Other Resources The Independence Account is not counted as a resource for purposes of determining SSI eligibility. However, the waiver participant is still subject to the $2,000/$3,000 SSI resource limit. Normal resource-counting rules apply to all other resources of the participant and the participant’s spouse or deemor. Transfers of Resources The normal rules for transfers of resources also will apply to participants. The transfer of a resource for less than fair market value during the waiver demonstration could result in a period of ineligibility for SSI. However, if the participant transfers funds from the Independence Account for less than fair market value during the waiver demonstration or the spend-down period, a period of ineligibility would not result because the Independence Account is an excluded resource (SI 01150.125). REFERENCES Retirement funds, SI 01120.210 Checking and savings accounts, SI 01140.200 Certificates of deposit, SI 01140.210 Mutual funds, SI 01140.230 Period of ineligibility due to resource transfer, SI 01150.110 Transfers of excluded resources, SI 01150.125

D-14

SECTION .005

POLICY: SUSPENSION OF MEDICAL CDRS WAIVER

BACKGROUND SSA will suspend medical CDRs for participants enrolled in the waiver project who are SSI-only beneficiaries with “medical improvement possible” (MIP) or “medical improvement not expected (MINE) diaries. SSA will not initiate a medical CDR during the period the waiver is in effect as long as the individual remains a project participant. The waiver ends on 9/30/03. NOTE: The suspension of CDRs will not apply to redeterminations of disability that are required for childhood disability recipients who attain age 18 or work CDR diaries that mature during the life of the waiver project. PROCEDURE—BATCH CDR SCREEN-OUT (STATE STAFF ONLY) The Office of Disability (OD) will suspend medical CDRs for SSI-only waiver participants during the life of the waiver project. To suspend CDRs, OD must be given a complete list of SSI-only waiver participants each month. State staff from the 4 waiver States will provide the list to OD. SSA field offices will not be involved in providing these lists to OD. Follow these instructions for providing the participant lists to OD.

STEP Step 1 Step 2

Step 3

Step 4

Step 5

ACTION State staff in the participating States must set up an Excel spreadsheet to list the waiver participants. The Excel spreadsheet file should list all of the T-16 only waiver participants for whom CDRs are to be postponed for at least the following month. The spreadsheet should have one Excel row for each participant consisting of: • the SSN in a 9-position cell; • the date of birth in a 6-position cell (YYYYMM); • the State code in a 2 position field; • the site code (if appropriate), in a one-position field. The site codes are: A for San Mateo County, and B for Kern County. No other locations should submit site codes. Follow this example: If the SSN is 555-11-5555, the SSN cell would appear as 555115555. If the individual’s DOB is May 23, 1975, the DOB field would appear as 197505. The State code would be WI for Wisconsin. No spaces, dashes, or slashes are permitted. Also, do not create a cell for the participant’s name. State staff must compile the waiver participant list from the State benefit specialists and update the list each month (i.e., add new participants, delete participants who have withdrawn from the waiver). D-15

STEP Step 6

Step 7

Step 8

ACTION The Excel spreadsheet file must be received by SSA by the Friday preceding the week before the first Monday of the following calendar month. (For example, OD will do an input to exclude CDRs on Monday 5/7/01. The spreadsheet file must be received no later than 4/30/01.) State staff should submit the Excel spreadsheets on diskette by mail to the following address: Elissa Ness Social Security Administration, OESP 6401 Security Blvd. 107 Altmeyer Building Baltimore, MD 21235 NOTE: Do not email the spreadsheets. OESP staff will submit the Excel spreadsheet files to the Office of Disability for the necessary input.

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PROCEDURE—CDRCF INPUTS (FIELD OFFICES) If, despite the batch screenout process, an SSI-only waiver participant is scheduled for a MIP or MINE CDR (other than the age 18 childhood redeterminations), the field office should suspend the CDR using the Continuing Disability Review Control File (CDRCF). The field office should not initiate a MIP or MINE CDR for any active SSI-only waiver participant. Use the following procedure to suspend MIP or MINE CDRs: STEP Step 1

Step 2 Step 3 Step 4 Step 5

Step 6

ACTION From the SSA Main Menu, select Continuing Disability Review File (Option 32) to get the MCDR screen which is a submenu for CDRCF functions. From the MCDR screen, select “FO Update” (field #2) which will bring up the IFOA screen. On the IFOA screen, in the “Select Event Type” field, select #5 (SSR/MBR/OTHER CONDITIONS-STOP CDR). In the IFOA “Remarks” field, select “yes” which will bring up the IRMK screen (CDR Remarks). On the IRMK screen, input the reason that the CDR is being stopped (e.g., “SPI waiver participant; CDR suspended during waiver project”). Return the folder to the appropriate component and input the SSA8028 for the folder transfer.

REFERENCES CDR process and the CDRCF, DI 40525.030 CDRCF inputs, MSOM 185

D-17

SECTION .006

USING THE WAIVER CALCULATOR

The SSI system and MSSICS have not been modified to compute SSI benefits based on the “three for four” income waivers. Therefore, it will be necessary to do a special computation of the “amount not counted.” When this special “amount not counted” is input to the SSI system, the waiver participant’s SSI benefit will correctly reflect the “three for four” waiver exclusion. BACKGROUND The Waiver Calculator was developed by Wisconsin State staff specifically for this demonstration waiver project. It will calculate: • the “amount not counted” of earned income to input to the SSI system so that the SSI benefit will be computed based on the “$3 for $4” earned income waiver; • the “amount not counted” of work-related unearned income to input to the SSI system so that the SSI benefit will be computed based on the “$3 for $4” work-related unearned income waiver; • the amount of the Federal SSI benefit that is payable based on the “$3 for $4” waiver exclusions. (CAUTION: Due to the complexity and variety of SSI benefit computations, this amount is to be considered “informational” only.) PROCEDURE—NAVIGATING AROUND THE WAIVER CALCULATOR To navigate around the calculator, use the following techniques: • Use the TAB key, ENTER key, or Down Arrow key to move to the next field; use SHIFT+TAB to move back to a previous field; • Mouse click to fill in the “Value One Third” indicator box if the individual (or couple) is in FLA/B; • Mouse click to fill in the “SSI Couple” box if the participant is a member of an eligible couple; • After entering a dollar amount, hit the ENTER or TAB key on your keyboard; • Include decimal point and cents when entering a dollar amount unless the amount is a whole dollar (e.g., $325.00). For $325.00, simply input 325 and hit ENTER; • Mouse click the “Calculate Benefits” button to do a computation; • Mouse click the “Refresh Screen” button for a new computation; • Mouse click the “Print” button to print your computation; • Mouse click on the “Exit” button to leave the calculator. PROCEDURE—FILLING IN THE CALCULATOR FIELDS The Waiver Calculator’s fields are divided into 4 sections. All fields marked by an asterisk (*) on the calculator are calculation fields and do not require an input by the claims representative. D-18

Indicators Value Third Reduction: Input this field (by clicking in the field with your mouse) if the participant is in Federal living arrangement B (SI 00835.200). Individuals who reside in the household of another and receive both food and shelter receive a one-third reduction in their benefits ($176.66 in 2001, $265.33 for an eligible couple). SSI Couple: Input this field if the waiver participant is a member of an eligible couple. The SSI benefit will be calculated using the Federal benefit rate for an SSI eligible couple. Remember that the waiver exclusions apply to both members of an eligible couple only if both members are enrolled as participants. Unearned Income Amounts PASS Amount: Input this field if the individual has income that is being put into a PASS plan. The amount of income designated for the PASS is excluded from countable income (SI 00870.008). Unearned Income Amount: Input in this field the total of all unearned income received by the participant (e.g., SSDI, pensions, child support, deemed income, PMV ISM, etc.). Exception: Do not include in this field: the 4 types of work-related unearned income covered by the waiver; SSI benefits; IBON; or income excluded under the infrequent/irregular income exclusion (SI 00810.410). Unemployment Insurance, Private Disability, Workers’ Compensation, and State Disability Benefits: In these 4 fields, input the 4 types of work-related unearned income. The work-related unearned income types will receive a “3 for 4” exclusion. *Waiver Specific Amount Not Counted: Take this amount from the calculator and input it in the “amount not counted field” on the MSSICS IWAG used to record the work-related unearned income. This amount is needed in order for the system to correctly compute the participant’s SSI benefit under the waiver. Disregard/Reduction/Eligibility Amounts Value Third Reduction: This amount will be pre-filled if the Value Third Reduction has been checked under Indicators. This amount will be either the individual or couple VTR. *Federal Eligibility Amount: This is the maximum benefit an individual can receive each month as an SSI beneficiary. The Federal benefit rate is $530 for FY 2001 ($790 for an eligible couple). This amount is pre-filled by the calculator. *General Disregard Amount: This is the $20 general exclusion that is applied to unearned/earned income. This amount is pre-filled by the calculator (SI 00810.420). *Exclusion Amount: This is the $65 earned income exclusion amount. This amount is pre-filled by the calculator. Earned Income Amounts Wages Amount: Input the waiver participant’s gross wages in this field. This is the amount of earned income received by the participant during the month. D-19

Student Exclusion Amount: Input the amount of the participant’s student child earned income exclusion in this field. An individual between 18 and 22 years of age who is working and is a student can exclude up to $1,290 a month and $5,200 per year from counting as earned income (SI 00820.510). IRWE Amount: Input in this field the amount of expense for items or services which are directly related to enabling a person with a disability to work and which are incurred by that individual because of a physical or mental impairment (SI 00820.540). Blind Worker Expenses Amount: Input in this field the amount of earned income of a blind person that is used to meet any expenses reasonably attributable to earning the income (SI 00820.535). *Earned Income Amount Not Counted: Take this amount from the calculator and input it in the “amount not counted” field of the MSSICS IWAG screen used to record wages. This amount is needed to enable the automated system to compute the SSI benefit as if the “3 for 4” waiver exclusion was applied to the participant’s earned income. *New Benefit Amount: This is the individual’s Federal SSI benefit amount after applying the waiver(s). NOTE: The calculator does not include the State Supplement payment. And, due to the complexity of SSI benefit computations, this amount is to be considered “informational” only. PROCEDURE—ACCESSING THE CALCULATOR Downloading the Waiver Calculator The waiver calculator was developed using Microsoft Access® database software. OESP in Central Office will provide the calculator program via email to the 4 SSA regional offices participating in the waiver project. And the regional offices will provide the calculator to the participating field offices. When the field office receives the calculator, the Systems LAN Coordinator (SLC) or other appropriate FO employee should install the program on the shared drive. Installing the Calculator on the Shared Drive a. When the Access calculator file is received, the SLC should verify that it is set up for shared access: • On the Access TOOLS menu, click OPTIONS, then ADVANCED; • Choice is either “SHARED” or “EXCLUSIVE” (SHARED is the default value); • If “SHARED” is checked, close the file; • If “EXCLUSIVE” is checked, then change to “SHARED” and close the file. b. Create a folder on the shared drive (e.g., SSI WAIVERS). c. Save the Calculator and guide files to the shared drive/folder in field office. d. Verify shared access. e. Create shortcuts to desktops. NOTE: Each user must have Microsoft Access on his/her computer in order to use the calculator.

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REFERENCES Infrequent or irregular income exclusion, SI 00810.410 General income exclusion, SI 00820.420 Order of earned income exclusions, SI 00820.500 Student child earned income exclusion, SI 00820.510 Blind work expenses, SI 00820.535 Impairment-related work expenses, SI 00820.540 Order of unearned income exclusions, SI 00830.050 Unemployment benefits, SI 00830.230 Workers’ compensation, SI 00830.235 State disability insurance, SI 00830.250 Value of the one-third reduction, SI 00835.200 Plan for achieving self-support, SI 00870.001

D-21

SECTION .007

WAIVER COMPUTATIONS USING THE WAIVER CALCULATOR

PROCEDURE—COMPUTING “AMOUNT NOT COUNTED” FOR EARNED INCOME ONLY (CALIFORNIA, NEW YORK, WISCONSIN) The SSI system and MSSICS have not been modified to compute SSI benefits based on the “three for four” income exclusions. Therefore, it will be necessary to do a special computation of the “amount not counted.” When this special “amount not counted” is input on MSSICS, the SSI benefit will correctly reflect the “three for four” waiver exclusion. Use the following Step/Action Chart to compute the “amount not counted” when the participant has earned income subject to the waiver. STEP Step 1 Step 2

ACTION Open Calculator in Access Database TAB to the Indicators section and use a mouse click to fill in “Value One Third” or “SSI Couple” if needed. Step 3 TAB to “PASS Amount” field, input amount of PASS exclusion if applicable, and hit ENTER. Step 4 TAB to “Unearned Income Amount” field and input the total of participant’s other unearned income (e.g., T2, VA, H income, etc.). Do not include the 4 types of work-related unearned income, SSI benefits, IBON, or infrequent and irregular income. Hit ENTER. Step 5 TAB to “Wages Amount.” Input gross wages. Hit ENTER. Step 6 Input “Student Exclusion Amount,” “IRWE Amount,” or Blind Worker Expense Amount” if appropriate, and hit ENTER. Step 7 Mouse click the “Calculate Benefits” button to do a computation. Step 8 Use amount computed in the “Earned Income Amount Not Counted” field for your input to MSSICS. (Section .009) Step 9 Mouse click the “Print” button to print the computation. Step 10 Mouse click the “Refresh Screen” button or “Exit” button. NOTE: If the participant has 2 or more employers in the same month, you must add up the total wages and input that total into the calculator. Doing separate calculations for each employer will result in an incorrect computation of the “amount not counted.”

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PROCEDURE—COMPUTING “AMOUNT NOT COUNTED” FOR WORK-RELATED UNEARNED INCOME ONLY (ALL 4 STATES) Use the following Step/Action Chart to compute the “amount not counted” for the 4 types of unearned income covered under the waiver. NOTE: For Vermont participants, use this chart to compute the “amount not counted” only if the participant has no earned income during the month. If the participant has both earned and work related unearned income during the month, the “amount not counted” must be computed manually per Section .008. STEP Step 1 Step 2 Step 3 Step 4

Step 5

Step 6

Step 7 Step 8

Step 9 Step 10

ACTION Open the calculator in Access Database TAB to the Indicators section and use a mouse click to fill in “Value One-Third” or “SSI Couple” if needed. TAB to “PASS Amount” field, input amount of PASS exclusion if applicable, and hit ENTER TAB to “Unearned Income Amount” field, input the total of the participant’s other unearned income (e.g., T2, VA, type H income, etc.). Do not include the 4 types of work-related unearned income, SSI benefits, IBON, or infrequent and irregular income. Hit ENTER. TAB to the applicable “work-related unearned income field (e.g., unemployment benefits, worker’s compensation, etc.) and input the gross amount. Hit ENTER. Do not input Student Exclusion Amount, IRWE amount, or Blind Worker Expense Amount because these exclusions do not apply to work-related unearned income. Mouse click the “Calculate Benefits” button to do a computation. Use the amount computed in the “Waiver Specific Amount Not Counted” field of the calculator for your input on the IWAG screen in the “Amount Not Counted” field. Mouse click the “Print” button to print the computation to be used when you input the wages on the system. Mouse click the “Refresh Screen” or “Exit” button.

PROCEDURE—COMPUTING “AMOUNT NOT COUNTED” FOR BOTH EARNED AND WORK-RELATED UNEARNED INCOME IN SAME MONTH (CALIFORNIA, NEW YORK, WISCONSIN) Use the following Step/Action Chart to compute the “amount not counted” if the participant has both earned income and work-related unearned income waivers in the same month. CAUTION—VERMONT: Do not use the calculator if participant has earned and workrelated unearned income in the same month. CAUTION—OTHER STATES: See Section D. for certain exceptions to using calculator. D-23

STEP Step 1 Step 2 Step 3 Step 4

Step 5

Step 6 Step 7 Step 8 Step 9

Step 10

Step 11 Step 12

ACTION Open the calculator in Access Database TAB to the Indicators section and use a mouse click to fill in “Value One-Third” or “SSI Couple” if needed. TAB to “PASS Amount” field, input amount of PASS exclusion if applicable, and hit ENTER TAB to “Unearned Income Amount” field, input the total of the participant’s other unearned income (e.g., T2, VA, type H income, etc.). Do not include the 4 types of work-related unearned income, SSI benefits, IBON, or infrequent and irregular income. Hit ENTER. TAB to the applicable “work-related unearned income field (e.g., unemployment benefits, worker’s compensation, etc.) and input the gross amount. Hit ENTER. TAB to “Wages Amount” and input gross wages. Hit ENTER. Input “Student Exclusion Amount,” “IRWE Amount,” or Blind Worker Expense Amount” if appropriate. Hit ENTER. Mouse click the “Calculate Benefits” button to do a computation. On the IWAG screen for work-related unearned income, use the “Waiver Specific Amount Not Counted” amount from the calculator for your input in the IWAG “Amount Not Counted” field. On the IWAG screen for wages, use the “Amount Not Counted” (of wages) from the calculator for your input in the “Amount Not Counted” field. (See Section .009 for inputs.) Mouse click the “Print” button to print the computation. Mouse click the “Refresh Screen” or “Exit” button.

PROCEDURE: EXCEPTIONS TO USING CALCULATOR (CALIFORNIA, NEW YORK, WISCONSIN) Both Earned and Work-Related Unearned Income in the Same Month and “Excess” BWE Do not use the waiver calculator if the participant has: • both earned and work-related unearned income in the same month; and • excludable blind work expenses that are greater than one-fourth of the gross earned income minus $20. Example: The participant gets both $400 unemployment benefits and $600 wages in the same month. He also has excludable BWE. If the excludable BWE are under $130, the waiver calculator may be used ($600 divided by 4 = $150 minus $20 = $130). If the excludable BWE are $130 or higher, a manual computation of the “amount not counted” should be done. Both Earned and Work-Related Unearned Income in the Same Month and “Excess” IRWE Do not use the waiver calculator if the participant has: • both earned and work-related unearned income in the same month, and D-24

•

the excludable impairment-related work expenses are not at least $65.00 less than the gross earned income.

P.A.S.S. Excluded Amount That Exceeds Other Unearned Income Do not use the waiver calculator if the participant has: • a P.A.S.S. exclusion; and • regular unearned income (e.g., T2, a pension, etc.); and • the regular unearned income does not exceed the P.A.S.S. exclusion by more than $20. Example: The participant is earning about $800 per month. She also gets $200 of T2 benefits and has a P.A.S.S. exclusion of $300 per month. The waiver calculator should not be used in this case. Rationale: If the P.A.S.S. exclusion exceeds the regular unearned income (T2) by more than $20, the $20 general exclusion will be deducted in the wrong sequence in the computation and result in an error. Therefore, a manual computation of the “amount not counted” should be done. PROCEDURE—UPDATING OR CORRECTING PAST MONTHS Claims representative will need to make inputs to correct past months for waiver participants. For example, when a participant’s unemployment benefits are verified it will be necessary to re-input the unemployment as verified. And, if the verified amount differs from the alleged amount previously input, the correct amount must be input. When making an input for a past month: • On the waiver calculator, re-input all of the participant’s income and exclusions for the month as if the computation was being done for the first time (because a change in the amount of one type of income can affect the “amount not counted” for another type of income); • Check the income, the “amount(s) not counted,” and the exclusions posted to the system for the month and make the necessary corrections. Example: Mr. Harlan reports that he received wages of $500 and an unemployment check for $200 in September 2001. The CR computes the “amounts not counted” on the waiver calculator. On MSSICS, the CR inputs the wages ($500) and the “amount not counted” ($217.50), and unemployment benefits ($200) and “amount not counted” ($90.00). Subsequently, when verification of the wages and unemployment are received, the CR determines that Mr. Harlan did receive $500 in wages in September but did not receive unemployment benefits until October 2001. The CR uses the waiver calculator to recompute the “amount not counted” for September. In September, Mr. Harlan’s verified wages were $500 and the “amount not counted” was $207.50 (and he received no unemployment). Rationale: Although Mr. Harlan’s wages in September had not changed, the “amount not counted” for wages changed due to the change in unemployment benefits. Simply removing the unemployment benefits from MSSICS without adjusting the “amount not counted” for wages would result in a payment error.

D-25

SECTION .008

MANUAL WAIVER COMPUTATIONS

The SSI system and MSSICS have not been modified to compute SSI benefits based on the “three for four” income exclusions. Therefore, it will be necessary to do a special computation of the “amount not counted.” If the waiver calculator cannot be used for a particular case, use the following instructions to compute manually the “amount not counted.” COMPUTING AMOUNT NOT COUNTED: EARNED INCOME ONLY (CALIFORNIA, NEW YORK, WISCONSIN) If the waiver calculator cannot be used for a particular case, compute the “amount not counted” as follows. $800.00 - .00 800.00 -20.00 780.00 -65.00 715.00 .00 715.00 x 0.50 $357.50

Wages Student Child Earned Income Exclusion (if applicable; $0 in this example) General Exclusion (if not applied to other unearned income) Earned Income Exclusion IRWE (if applicable; $0 in this example) “$1 for $2” Earned Income Exclusion “Amount Not Counted”

On the MSSICS IWAG screen, the claims representative would input $800.00 as the “alleged amount” or “verified amount” of wages and $357.50 as the “amount not counted.” Based on this input, the system will correctly compute the SSI benefit as if the “3 for 4” exclusion was applied to the actual gross wages. REMINDERS: • The “amount not counted” is an interim computation that is required so that the SSI automated system will compute the participant’s SSI benefit as if the “3 for 4” earned income exclusion was applied by the system. • Vermont: This computation does not apply because Vermont is not participating in the “3 for 4” earned income waiver. COMPUTING AMOUNT NOT COUNTED: WORK-RELATED UNEARNED INCOME ONLY (ALL 4 STATES) If the waiver calculator cannot be used on a particular case, compute the “amount not counted” as follows. $800.00 -20.00

Worker’s Compensation General Exclusion (if not applied to other D-26

780.00 -65.00 715.00 x 0.50 $357.50

unearned income) Earned Income Exclusion “$1 for $2” Earned Income Exclusion “Amount Not Counted”

On the MSSICS IWAG screen, the claims representative would input $800.00 as if the unemployment benefits received were earnings and $357.50 as the “amount not counted.” Based on this input, the system will correctly compute the SSI benefit as if the “3 for 4” waiver was applied to the gross amount of unemployment received by the participant. Section .009 provides detailed instructions about how to input these waiver cases. REMINDERS: • The “amount not counted” is an interim computation that is required so that the SSI automated system can compute the participant’s SSI benefit as if the “3 for 4” workrelated unearned income exclusion was applied by the system. • The $20 general exclusion and the $65 earned income exclusion is applied only once in a month. Therefore, if the participant has both earned income and work-related unearned income, deduct $20 and $65 only once.

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COMPUTING AMOUNT NOT COUNTED: WAIVERS IN SAME MONTH

BOTH EARNED AND UNEARNED

(CALIFORNIA, NEW YORK, WISCONSIN) If the waiver participant has both earned income and work-related unearned income in the same month and resides in California, New York, or Wisconsin, compute the “amount not counted” as follows. Note that the $20 general exclusion and the $65 earned income exclusion apply only once in a month if the participant gets both earned and work-related unearned income waivers in the same month. In this example, assume that the waiver participant receives wages during a month, gets laid off, and then starts getting unemployment benefits in the same month. $300.00 -20.00 280.00 x 0.50 $140.00

Unemployment Benefits General Exclusion (if not applied to other unearned income) “$1 for $2” Earned Income Exclusion “Amount Not Counted”

$400.00 - .00 400.00 - .00 400.00 - 65.00 335.00 -100.00 235.00 x 0.50 $117.50

Wages Student Child Earned Income Exclusion (if applicable; assume $0 in this example) $20 General Exclusion (already applied to unearned income above) $65 Earned Income Exclusion IRWE (if applicable; $100 in this example) “$1 for $2” Earned Income Exclusion “Amount Not Counted”

On the first MSSICS IWAG screen, the CR would input $300.00 as the “alleged amount” or “verified amount” as if the unemployment benefits were earnings and $140.00 as the “amount not counted.” On the second IWAG screen, the CR would input $400 of wages as the “alleged amount” or “verified amount” and $117.50 as the “amount not counted.” REMINDERS: • Based on this input, MSSICS will correctly compute the SSI benefit as if the “3 for 4” waiver was applied to both the wages and the unemployment benefits received by the participant. Section .011 provides detailed instructions about inputting this type of waiver case. Vermont: This computation does not apply because Vermont is not • participating in the “3 for 4” earned income waiver.

D-28

AMOUNT NOT COUNTED: BOTH EARNED AND UNEARNED INCOME WAIVERS IN SAME MONTH (VERMONT ONLY)

Because Vermont is not participating in the “3 for 4” earned income waiver, the computation of the “amount not counted” is different for Vermont participants for months when both earned and work-related unearned income is received. Use the following computation: Assume that the individual received $400 wages in the month, became unable to work due to illness, and received $500 of State disability insurance in the same month. Remember that the $20 general exclusion and the $65 earned income exclusion is applied only once during the month, so if wages are $85 or more, neither the $20 general exclusion nor the $65 earned income exclusion will apply to the work-related unearned income. The $20 and $65 exclusions will be applied automatically to the wages that are input to the system. $400.00 $ .00

Wages received in the month “Amount Not Counted” (in Vermont, wages are not subject to the waiver so they are counted and input normally.)

$500.00 - .00 $500.00 - .00 $500.00 x 0.50 $250.00

State disability insurance $20 General Exclusion (will be applied by the system to the wages received in the month) $65 Earned Income Exclusion (will be applied by system to the wages) “Amount Not Counted”

On the first MSSICS IWAG screen, the CR would input $500.00 as the “alleged amount” or “verified amount” as if the State disability payments were earnings and $250.00 as the “amount not counted.” On the second IWAG screen, the CR would input $400 of wages as the “alleged amount” or “verified amount” and put no entry in the “amount not counted” field (i.e. $0).

D-29

COMPUTING COUNTABLE INCOME FOR WAIVER PARTICIPANTS (CALIFORNIA, NEW YORK, AND WISCONSIN) If a participant’s case cannot be processed by the automated system and a fully manual computation of benefits is needed, compute the countable income as follows.

Waiver Countable Income Worksheet Unearned Income

$________

(all unearned income except IBON and work-related)

General Exclusion

-_________ ($20 general exclusion)

IBON

+_________ (Add amount of any income based on need)

P.A.S.S.

-_________ (subtract P.A.S.S. excluded amount)

Countable Unearned Income $_________

Work-Related Unearned Income

$_________ (e.g., unemployment benefits)

General Exclusion

-_________ (-$20 if not used for unearned income)

Earned Income Exc.

-_________ (-$65 only if not used for earned income exclusion)

Multiply by 0.25

=

(“3 for 4” waiver exclusion amount)

P.A.S.S.

-_________ (subtract if any remainder after excluding from unearned income above) Countable Work-Related Unearned Income $_________ Earned Income

$__________ (gross wages)

S.E.I.E.

-__________ (Student earned income exclusion)

General Exclusion

-__________ (-$20 if not used for unearned income)

Earned Income Exc. IRWE Multiply by 0.25 BWE

-__________ (-$65 earned income exclusion) -_________ (subtract this amount if applicable) =

(“$3 for $4 waiver exclusion) -__________ (subtract BWE if applicable)

D-30

P.A.S.S.

-__________ (subtract if any remainder after excluding from unearned or work-related unearned income )

Countable Earned Income

$__________

$ ________

Countable Unearned Income

+ ________

Countable Work-Related Unearned Income

+ ________


=$________

Waiver Participant’s Total Countable Income

D-31

COMPUTING COUNTABLE INCOME FOR WAIVER PARTICIPANTS (VERMONT )

If a Vermont participant’s case cannot be processed by the automated system and a fully manual computation of benefits is needed, compute the countable income as follows.

Waiver Countable Income Worksheet—Vermont Unearned Income

$________

General Exclusion

-_________ ($20 general exclusion)

IBON P.A.S.S.

(all unearned income except IBON and work-related)

+________ (Add amount of any income based on need) -_________ (subtract P.A.S.S. excluded amount)

Countable Unearned Income

Work-Related Unearned Income

$_________

$_________ (e.g., unemployment benefits, etc.)

General Exclusion

-_________ (-$20 if not used for unearned income)

Earned Income Exc.

-_________ (-$65 only if not used for earned income)

Multiply by 0.25

=

(“3 for 4” waiver exclusion amount)

P.A.S.S. -_________ (subtract if any remainder after excluded above) Countable Work-Related Unearned Income $_________

Earned Income

$__________ (gross wages)

S.E.I.E.

-__________ (Student earned income exclusion)

General Exclusion

-__________ (-$20 if not used for unearned income)

Earned Income Exc.

-__________ (-$65 earned income exclusion)

IRWE Multiply by 0.50

-__________ (subtract this amount if applicable) =

(“$3 for $4 waiver not applicable in Vermont) D-32

BWE P.A.S.S.

-__________ (subtract BWE if applicable) -__________ (subtract if any remainder after excluding from unearned or work-related unearned income above)


$__________

$ _________ Countable Unearned Income +_________

Countable Work-Related Unearned Income

+_________


=$________

Vermont Waiver Participant’s Total Countable Income

D-33

SECTION .009 SYSTEMS INPUTS FOR EARNED INCOME WAIVERS

Waiver participants’ cases should be processed on MSSICS unless there is a systems limitation that precludes use of MSSICS. If the participant’s case is not on MSSICS, seed the case. MSSICS CASES—EARNED INCOME ONLY, ONE EMPLOYER (CALIFORNIA, NEW YORK, WISCONSIN) Input waiver-excluded earned income on MSSICS as follows: STEP Step 1 IWAG Step 2 Step 3

Step 4 Step 5 Step 6 Step 7 IBIE Step 8 ISCH

ACTION Input the required IWAG fields as you normally would (e.g., employer’s name and address, etc.). Input the waiver participant’s gross wages in the “Alleged Amount” or “Verified Amount” field for the appropriate month(s). Input the “amount not counted” derived from the waiver calculator in the IWAG “Amount Not Counted” field for the appropriate month(s). See Section .007. Input the wage estimate for the next month and the estimate of the “amount not counted.” Input “SPI Waiver Exclusion” in the “Reason Not Counted field on IWAG. Input the following in IWAG Remarks: “3 for 4 wage exclusion— contact FO # before changing wage postings.” Input (if applicable) the amount of excluded IRWE or BWE on the IBIE screen. Check that school attendance is shown as verified on the ISCH screen if the student child earned income exclusion applies. (SI 00820.510)

NOTE: If the participant is self-employed, follow the same basic procedure using the ISIE screen instead of IWAG.

D-34

MSSICS CASES—EARNED INCOME ONLY, MULTIPLE EMPLOYERS (CALIFORNIA, NEW YORK, WISCONSIN)

If the participant has more than one employer in a month, input the earned income as follows: STEP Step 1 IWAG Step 2

Step 3

Step 4

Step 5 Step 6 Step 7 Step 8 IBIE Step 9 ISCH

ACTION Input the waiver participant’s gross wages from one employer on the first IWAG screen in the “Alleged Amount” or “Verified Amount” field. Input the waiver participant’s gross wages from the second employer on second IWAG screen in the “Alleged Amount” or “Verified Amount” field. Input the “amount not counted” for both employers (as computed by the waiver calculator) in the IWAG “Amount Not Counted” field for the employer with the highest gross wages. Do not input an “Amount not Counted” that exceeds the gross earnings from that employer. If the “amount not counted” for the multiple employers exceeds the gross wages of the employer with the highest gross wages, prorate the “amount not counted” between the employers. Input the wage estimates for the next month and the estimate of the “amount not counted.” Input “SPI Waiver Exclusion” in the “Reason Not Counted” field on IWAG. Input the following in IWAG Remarks. “3 for 4 wage exclusion— contact FO # before changing wage postings.” Input (if applicable) the amount of excluded IRWE or BWE on the IBIE screen. Check that school attendance is shown as verified on the ISCH screen (if the student child earned income exclusion applies).

NOTE: As explained in Section .007, if the participant has 2 or more employers in the same month, it is necessary to add up the total wages and input that total into the calculator to determine the correct “amount not counted” for the month. Doing separate calculations on the calculator for each employer will result in an incorrect computation of the “amount not counted” and an incorrect SSI benefit amount.

D-35

NON-MSSICS CASES—EARNED INCOME ONLY (CALIFORNIA, NEW YORK, WISCONSIN) If the participant’s case cannot be processed in MSSICS due to a systems limitation, use the following procedure to input earned income. STEP Step 1

Step 2 EN field Step 3 Step 4 Step 5

ACTION First, it is necessary to compute the wage amount that will be input. From the participant’s gross wages subtract the “amount not counted” derived by the waiver calculator. Example: The participant’s gross wages are $800 and the “amount not counted” from the calculator is $357.50 ($800 minus $357.50 equals $442.50 which would be input in the EN field.) Input the amount from Step 1 in the EN field of the 1719B for the appropriate month. This will result in an SSI benefit that reflects the “3 for 4” waiver exclusion. Input (if applicable) the amount of excluded IRWE (Type T income) in the EN field. Input (if applicable) the amount of excluded BWE (Type C income) in the EN field. Input (if applicable) the amount of the P.A.S.S. exclusion (Type D income) in the EN field.

EARNED INCOME ONLY—VERMONT If a Vermont participant has only earned income in a month, special input procedures are not required. Because Vermont is not participating in the “3 for 4” earned income waiver, follow normal rules for inputting wages on MSSICS or on a 1719B.

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SECTION .010 SYSTEMS INPUTS FOR WORK-RELATED UNEARNED INCOME WAIVERS

MSSICS CASES—WORK-RELATED UNEARNED INCOME ONLY (CALIFORNIA, NEW YORK, WISCONSIN, VERMONT) Work-related unearned income must be input as earned income on the IWAG screen to help maintain Medicaid eligibility for participants who will be in 1619(b) status. If the participant has only work-related unearned income in the month, input as follows: STEP Step 1 IWAG

Step 2

Step 3 Step 4 Step 5 Step 6 IBIE Step 7 IUEM

Step 8 ISCH

ACTION Input the required IWAG fields to show the agency paying the unearned income as the employer. Example: The participant receives worker’s compensation. On IWAG, the employer would be the agency paying the compensation. Input the gross amount of the work-related unearned income in the “Alleged Amount” or “Verified Amount” field on IWAG for the appropriate month(s). Input the “amount not counted” derived from the waiver calculator in the “Amount Not Counted” field on IWAG. Input “SPI Waiver Exclusion” in the “Reason Not Counted” field on IWAG Input in IWAG Remarks. “3 for 4 unearned income exclusion—contact FO # before changing wage postings” Check the IBIE screen or the SSR for the presence of excluded IRWE or BWE. Delete the exclusion amount because IRWE and BWE exclusions do not apply to the work-related unearned income waiver. For documentation purposes, input the gross amount of the work-related unearned income and an equivalent amount in the “amount not counted” field on IUEM (unemployment), IWCP (worker’s compensation), or IPEN (disability insurance). Example: The participant gets $600 of unemployment. Input $600 in the “alleged amount” or “verified amount” field and $600 in the “amount not counted” field on IUEM. If the participant is under age 22 and attending school, check the ISCH screen and input that the school attendance is unverified. This will stop the system from automatically applying the child student earned income exclusion which does not apply to the “unearned” waiver.

D-37

NON-MSSICS CASES—WORK-RELATED UNEARNED INCOME ONLY (CALIFORNIA, NEW YORK, WISCONSIN, VERMONT)

If the participant has only work-related unearned income in the month, and a systems limitation prevents processing the participant’s case in MSSICS, input as follows:

STEP Step 1

Step 2 EN field Step 3

Step 4

Step 5

Step 6

ACTION First, it is necessary to compute the amount of work-related unearned income that will be input in the EN field. Do this by subtracting the “amount not counted” derived by the waiver calculator from the participant’s gross work-related unearned income. Example: The participant’s s unemployment is $800 and the “amount not counted” derived by the calculator is $357.50 ($800 – 357.50 = $442.50) Input $442.50 in the EN field. Input this amount ($442.50) in the EN field of the 1719B for the appropriate month. Check the SSR for the presence of excluded IRWE (Type T income) and delete it for the appropriate month(s) because the IRWE exclusion does not apply to the work-related unearned income waiver. Check the SSR for the presence of excluded BWE (Type C income) and delete it for the appropriate month(s) because the BWE exclusion does not apply to the work-related unearned income waiver. If the participant is under age 22 and attending school, check the SY field on the SSR. If necessary, input code “N” and the month the participant started getting only work-related unearned income. This will stop the system from automatically applying the child student earned income exclusion. This exclusion does not apply to the work-related unearned income waiver. (SM 01305.780) Do not delete Type D income from the SSR because the P.A.S.S. exclusion does apply to the work-related unearned income waiver.

D-38

SECTION .011 SYSTEMS INPUTS: BOTH EARNED AND WORK-RELATED UNEARNED INCOME IN SAME MONTH

MSSICS CASES—EARNED AND WORK-RELATED UNEARNED INCOME (CALIFORNIA, NEW YORK, WISCONSIN) If the participant receives both earned and work-related unearned income in the same month, input the income as follows. STEP Step 1 IWAG Step 2 Step 3

Step 4 Step 5

Step 6 Step 7 Step 8 IBIE Step 9 ISCH Step 10 IUEM

ACTION Input the required IWAG fields as you normally would (e.g., employer’s name and address, etc.). Input the waiver participant’s gross wages in the “Alleged Amount” or “Verified Amount” field. Input the earned income “amount not counted” derived from the waiver calculator in the “Amount Not Counted” field for the appropriate month(s). Input an additional IWAG screen to record the work-related unearned income and include the name and address of the source of the income. Input the gross amount of work-related unearned income in the “Alleged Amount” or “Verified Amount” field. Input the “Amount Not Counted” using the “Waiver Specific Amount Not Counted” field on the waiver calculator. Input estimates of wages and work-related unearned income for the next month including the “amounts not counted.” In IWAG Remarks, input “3 for 4 for wages and unemployment benefits—contact FO# before changing postings.” Input (if applicable) the amount of excluded IRWE or BWE on the IBIE screen. Check that the school attendance is shown as verified on the ISCH screen (if the student child earned income exclusion applies to the participant. For documentation purposes, input the gross amount of the work-related unearned income and an equivalent amount in the “amount not counted” field on IUEM, IWCP, or IPEN. Example: The participant gets $600 of unemployment. Input $600 in the “Alleged Amount” or “Verified Amount” and $600 in the “Amount Not Counted” field.

D-39

NON-MSSICS—EARNED AND WORK-RELATED UNEARNED INCOME (CALIFORNIA, NEW YORK, WISCONSIN)

If the participant has both earned and work-related unearned income in the same month, and the case cannot be processed in MSSICS, input as follows: STEP Step 1 Step 2

Step 3 Step 4 EN field Step 5

Step 6

Step 7

ACTION Compute the “amount not counted” on the waiver calculator as explained in Section 007C. Add the gross wages and gross work-related unearned income. Example: The participant received $300 wages and $250 unemployment benefits ($300 + $250 = $550). From this total, subtract the “amount not counted” that you derived from the waiver calculator. Input the remainder from Step 3 as wages in the EN field of the 1719B for the appropriate month(s). This will result in an SSI benefit that reflects the “3 for 4” waiver exclusions. Input (if applicable) the amount of excluded IRWE (Type T income) in the EN field. The IRWE exclusion applies only to earned income, not the work-related unearned income (see the Note below). Input (if applicable) the amount of excluded BWE (Type C income) in the EN field. Remember that the BWE exclusion applies only to earned income, not the work-related unearned income (see the Note below). Input (if applicable) the amount of the P.A.S.S. exclusion (Type D income) in the EN field. The P.A.S.S. exclusion applies to both earned and work-related unearned income. (See Note if the participant has other unearned income).

NOTE: See Section .007D. for the exceptions to using the waiver calculator if the participant has both earned income and work-related unearned income in the same month and: • Blind Work Expenses (BWE); or • Impairment Related Work Expenses (IRWE); or See Section .007D. for the exception to using the waiver calculator if the participant has other unearned income that does not exceed the P.A.S.S. exclusion by more than $20.00.

D-40

MSSICS CASES—EARNED AND WORK-RELATED UNEARNED INCOME (VERMONT)

Because Vermont is not participating in the “3 for 4” earned income waiver, a manual computation of the “amount not counted” must be done (See Section .008D). Use the following procedure for a Vermont participant who has both earned income and work-related unearned income in the same month: STEP Step 1 IWAG Step 2

Step 3

Step 4 Step 5 Step 6 Step 7 IBIE Step 8 IUEM

ACTION Input the required IWAG fields as you normally would (e.g., employer’s name and address, etc.). Input the waiver participant’s gross wages in the “Alleged Amount” or “Verified Amount” field for the appropriate month(s). For Vermont participants, wages are input under normal rules. It is not necessary to input an “Amount Not Counted” because Vermont is not participating in the “3 for 4” earned income waiver. Input an additional IWAG screen to record the work-related unearned income and include the name and address of the source of income (e.g., the worker’s compensation agency). Input the gross amount of work-related unearned income in the “Alleged Amount” or “Verified Amount” field. Input the “amount not counted” that you computed manually per Section .008D. in the “Amount Not Counted” field on IWAG. In IWAG Remarks, input “3 for 4 exclusion of unemployment benefits—contact FO# before changing postings. Input (if applicable) the amount of excluded IRWE or BWE on the IBIE screen. IRWE and BWE apply only to the participant’s earned income for the month. For documentation purposes, input the gross amount of work-related unearned income and an equivalent amount in the “amount not counted” field on IUEM, IWCP, or IPEN. Example: The participant gets $600 of unemployment. Input $600 in the “Alleged Amount” or “Verified Amount” field and $600 in the “Amount Not Counted” field.

D-41

NON-MSSICS—EARNED AND WORK-RELATED UNEARNED INCOME (VERMONT)

Before inputting the work-related unearned income waiver, a manual computation of the “amount not counted” must be done (See Section .008D). Use the following procedure for a Vermont participant who has both earned income and work-related unearned income in the same month: STEP Step 1 Step 2

Step 3 Step 4 EN field Step 5

Step 6

Step 7

ACTION Manually compute the “amount not counted” as explained in Section 008D. Add the gross wages and gross work-related unearned income. Example: The participant received $300 wages and $250 unemployment benefits ($300 + $250 = $550) From this total, subtract the “amount not counted” that you computed manually in Step 1. Input the remainder from Step 3 as wages in the EN field of the 1719B for the appropriate month(s). This will result in an SSI benefit that reflects the “3 for 4” waiver exclusions. Input (if applicable) the amount of excluded IRWE (Type T income) in the EN field. The IRWE exclusion applies only to earned income, not the work-related unearned income (i.e., the IRWE amount may not exceed the amount of gross wages). Input (if applicable) the amount of excluded BWE (Type C income) in the EN field. The BWE exclusion applies only to earned income, not the work-related unearned income (i.e., the BWE amount may not exceed the amount of gross wages). Input (if applicable) the amount of the P.A.S.S. exclusion (Type D income) in the EN field. The P.A.S.S. exclusion applies to both earned and work-related unearned income.

REFERENCES IPEN Screen, MSOM 132-G IUEM Screen, MSOM 134-A IWCP Screen, MSOM 134-B IWAG Screen, MSOM 138-B ISIE Screen, MSOM 138-C IBIE Screen, MSOM 138-E

D-42

SECTION .012 SYSTEMS INPUTS FOR INDEPENDENCE ACCOUNT WAIVERS

INPUTTING INDEPENDENCE ACCOUNT WAIVERS—ALL STATES Use the following MSSICS procedure when a waiver participant reports ownership of an Independence Account: STEP Step 1 RMEN Step 2 RFIA Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10

Step 11

ACTION On the RMEN screen, answer “yes” to the question about ownership of financial institution accounts. On the RFIA screen, input “7” (Other) in the “type of account” field. Input “Waiver Independence Account” in the “If Other” field Answer “no” in the “Earns Interest” field. Input the bank’s name and address. Answer “no” in the “co-owned” field. Answer “no” in the “set aside for burial” field. Answer “no” in the “PASS exclusion” field. Answer “no” in the “Resource Disposal” field. Input the account balance in the “Alleged Value” or “Verified Value” field and input the same amount in the “Excluded Amount” field (the funds in the Independence Account do not count toward the SSI resource limit). Input “Waiver Independence Account” in the “Exclusion Reason” field.

NON-MSSICS INPUT OF INDEPENDENCE ACCOUNT—ALL STATES If the participant’s case is a MSSICS limitation, add a short description of the participant’s Independence Account to the SSR Remarks field. For example, “has Independence Account, First National Bank of Buffalo, opened 7/01, balance $3500.” NOTE: Do not overlay the general waiver remarks required for all participants (see Section 001.) REFERENCES SSR Remarks field, SM 01301.841 RMEN Screen, MSOM 121-A RFIA Screen, MSOM 121-F

D-43

SECTION .013

VERIFYING WAIVER PARTICIPANTS’ INCOME AND INDEPENDENCE ACCOUNTS

BACKGROUND The POMS already provides requirements and procedures for verifying income and resources. In general, the normal requirements and procedures will be followed for the waiver participants. PROCEDURE—VERIFYING PARTICIPANTS’ EARNED INCOME Use Existing Procedures Follow POMS requirements for wage verification and local field office practices for verifying earned income (SI 00820.130). If the field office currently does monthly (or periodic) wage verification for SSI beneficiaries, it can extend this practice to waiver participants. If the field office links wage verification with the redetermination process, it can extend this practice to the waiver participants. Limited Role of State Benefit Specialist State benefit specialists are required to submit the Monthly Report Forms to SSA, but are not responsible for reporting all of a participant’s activities and changes to SSA. Therefore, remind participants that they are still responsible for reporting significant changes directly to SSA. Develop Local Best Practices Because the benefit specialist will have frequent contact with participants and SSA field office, a field office may want to take advantage of this close relationship to develop a local process for verifying the wages of the waiver participants. For example, the field office may choose to provide the benefit specialist with selfaddressed envelopes so that original pay stubs can be mailed to the field office to save time verifying wages. While development of best practices is encouraged, POMS requirements for wage verification must be followed. CAUTION: The Monthly Report Forms are not evidence of wages. Similarly, benefit specialists are not authorized by SSA to certify the authenticity of documents. Therefore, pay stubs photocopied or faxed by a benefit specialist are not evidence of wages.

D-44

PROCEDURE—VERIFYING WORK-RELATED UNEARNED INCOME •

Follow normal POMS requirements for verifying unearned income when verifying a participant’s work-related unearned income. (See SI 00830.005) • Use normal procedures and timeframes for obtaining proof of the work-related unearned income. • The field office may set up a local process with the benefit specialist to expedite obtaining evidence from the participants. CAUTION: The Monthly Report Forms are not evidence of the amount and receipt dates of work-related unearned income. Similarly, benefit specialists are not authorized by SSA to certify the authenticity of documents. Therefore, award letters or checks that are photocopied or faxed by a benefit specialist are not evidence of wages. PROCEDURE—VERIFYING THE INDEPENDENCE ACCOUNT Verify a participant’s Independence Account at the following 3 points. Verifying When the Account is Established • • • • •

When the participant first reports (including on the Monthly Report Form) that he or she has opened an Independence Account, verify the type of account, the bank, the date the account was opened, and the current month balance. Use the participant’s own records (e.g., a bankbook or bank statement) to verify the account and the current month’s balance per SI 01140.200C. Verify the account using the SSA-4641 only if the participant is unable to provide evidence from his or her own records. (See 1140.200D.) Input the information about the account on MSSICS (See Section .012.) Remind the participant that deposits are limited to 50% of gross earnings not to exceed $8,000 per year.

Verifying During the Demonstration Project • •

• •

Review the participant’s Independence Account as part of routine resource development when conducting scheduled redeterminations for the participant. Follow the normal requirements for posteligibility development of liquid resources in SI 01140.020ff. Develop the participant’s other resources as if the participant had no Independence Account. For example, use the $1250 liquid resource development tolerance in SI 01140.010B. if the participant’s other liquid resources are within that tolerance. Determine whether the participant’s other resources are within the $2,000 SSI resource limit. The individual must continue to meet normal SSI resource eligibility requirements during the waiver demonstration. Verify the monthly balances and deposits to the Independence Account for the period of review using the participant’s own records if the participant alleges that the Account balance exceeds $4,000 for any month of the period of review. If the D-45

•

participant alleges that the account balance was less than $4,000 for all months during the review period, it is not necessary to verify the balances or deposits. If a redetermination is not being conducted, assume that the participant’s deposits to the Independence Account do not exceed the annual limit (50% of gross earnings not to exceed $8,000 per year. However, if there is an indication that a participant’s deposits to the Independence Account exceed the annual limit, verify the deposit dates and amounts for the period in question using the participant’s records or by contacting the financial institution.

Verifying During the Spend Down Period •

Verify spend down or closing of the Independence Account at the earlier of the following dates: 24 months after the end of the waiver project in 9/30/03 (i.e., 10/1/05); or 24 months after the participant withdraws from the waiver project. • Depending on the scheduled redetermination diaries for the participant, it may be necessary to set an RT diary for the end of the participant’s spend down period to ensure that the participant has complied with the spend down requirement. This diary date would be either 10/1/05 or, if earlier, 24 months after the participant withdrew from the waiver project. • If the participant has funds in the Independence Account after the end of the spend down period, the funds are counted as a resource as of the first moment of the month the spend down period is over. Interest income is countable starting in the month after the spend down period. Document the file with the alleged account balance and develop using the normal rules for developing liquid resources (SI 01140.020) and interest income (SI 00830.501). Example: Mr. Johnson is contacted on 10/10/05 to review spend down of his Independence Account. The claims representative determines that Mr. Johnson’s Independence Account is still open and has a 10/1/05 balance of $650. The claims representative determines that the $650 is a countable resource for Mr. Johnson starting in October 2005. The claims representative then reviews Mr. Johnson’s other resources to determine whether he continues to be eligible for SSI. NOTE: The normal rules for transfers of resources apply to participants. However, if the participant transfers funds from the Independence Account for less than fair market value during the waiver demonstration or the spend down period, this would not result in a period of ineligibility because the Independence Account is an excluded resource (SI 01150.125). PROCEDURE—DEVELOPING IMPROPER DEPOSITS • •

Assume, absent evidence to the contrary, that deposits to the Independence Account are all from earned income. It is not necessary to ask the participant about each deposit to the account or verify the source of the deposits. However, if information is received that the account contains funds that are not earned income or that the deposits exceed the annual limit, develop the amount, source, and dates of these deposits, and document the file. Accept the participant’s allegations as to the source of the deposits (e.g., earnings) since it may not be possible for the participant to directly connect deposit records with proof of earnings. D-46

•

If a participant deposited funds to the Independence Account that are not earned income, count those funds as a resource starting in the month after the deposit was made. • If the participant’s deposits exceed the annual limit, count the excess deposits as a resource starting in the month after the deposits exceeded the limit. • If the individual withdraws the excess or improper funds from the account, the funds are then considered cash and normal resource rules apply. NOTE: The interest on the amount of deposits over the annual limit is not countable as unearned income. Example 1: Waiver participant, Jane Howard, has an Independence Account with a 12/1/01 balance of $3,600. While conducting a redetermination on 12/5/01, the CR learns that Ms. Howard deposited $1,000 into her Independence Account on 8/21/01. Ms. Howard mentions that this money came from selling her only automobile on 8/19/01. The CR explains to Ms. Howard that this $1,000 was an inappropriate deposit for the Independence Account and advises her to withdraw $1,000. The CR also explains that the $1,000 is countable as a resource as of 9/1/01. On 10/9/01, Ms. Howard withdraws $1,000 uses it as a downpayment on an automobile. On 11/1/01 the $1,000 is no longer counted as a resource. Example 2: Mr. Smith opens an Independence Account on 8/15/01 and deposits $400 from his wages. For the next year he continues to work and make deposits. While conducting a redetermination in October 2002, the CR learns that Mr. Smith’s account has a current balance of $5,850. Because his balance exceeds the $4,000 developmental tolerance, the CR develops the account’s deposits and monthly balances for the period of review. Because the account was opened on 8/15/01, the CR determines the amount of deposits between 8/15/01 and 8/14/02. In addition, the CR computes the gross wages received by Mr. Smith between 8/15/01 and 8/14/02 and determines that Mr. Smith earned $10,200. Mr. Smith’s deposit limit for the year is 50% of $10,200 (i.e., $5,100). The CR determines that he deposited $5,800 during the year. The remaining $50 in the account came from interest. Thus, Mr. Smith exceeded his limit by $700 ($5,800 minus $5,100). The $700 is counted as a resource starting on 9/1/02 because the one-year period for determining the limit on deposits ended on 8/14/02. All interest earned by the account is excluded under the waiver. REFERENCES Verification of earned income, SI 00820.130 Verification of unearned income, SI 00830.005 Liquid resource developmental tolerance, SI 01140.010 Developing liquid resources, SI 01140.020 Verification of bank accounts, SI 01140.200

D-47

SECTION .014 PROCESSING DIARIES AND ALERTS

POLICY—GENERAL When you process diaries and alerts for waiver participants, the following general policies apply. • Assume, absent evidence to the contrary, that the waiver participant (or benefit specialist) has correctly reported wages, work-related unearned income, and Independence Account information to SSA. • Follow existing POMS procedures for doing limited development of the diaries unless there is an indication that required information has not been reported. PROCEDURE: IRS INTERFACE (5B DIARY) SSA matches the SSR against data the IRS gets from Forms 1099 from financial institutions, employers, and government agencies. The SSI system generates a 5B diary when the IRS data exceed certain tolerances as described in SI 02310.045. Follow the procedures for limited development in SI 02310.007 and in SI 02310.047. PROCEDURE: MASTER EARNINGS FILE MATCH (K6 DIARY) The Master Earnings File match compares the annual earnings amount as reported on Form W-2 or Schedule SE to the amount on the SSR for the tax year. The interface sets a K6 diary if the recipient’s earnings on the Master Earnings File exceed the amount on the SSR by $1,000 or more. Follow the procedures for limited development in SI 02310.007 and in SI 02310.055. PROCEDURE: STATE WAGE RECORD MATCH (S2 DIARY) SSA matches the SSR against the Office of Child Support Enforcement (OCSE) wage database. The system posts an S2 diary when the wages on the OCSE database exceed wages on the SSR by more than $250 for a quarter. Follow the procedures for limited development in SI 02310.007 and in SI 02310.062. PROCEDURE: UNEMPLOYMENT COMPENSATION MATCH (U5 DIARY) Unemployment compensation data obtained from OCSE is matched against Type S income on the SSR. The system generates a U5 diary when the unemployment compensation on the OCSE record exceeds the amount on the SSR for the quarter. Follow the procedures for limited development in SI 02310.007 and in SI 02310.065.

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REFERENCES Limited development of computer matches, SI 02310.007 Internal Revenue Service interface (5B diary), SI 02310.045 Master Earnings File match (K6 diary), SI 02310.055 State Wage Match (S2 diary), SI 02310.062 Unemployment Compensation match (U5 diary), SI 02310.065 Diary deletion, SM 01301.220 Inputting earned income, SM 01301.101 Inputting unearned income, SM 01301.200 Inputting resource field, SM 01305.400 Systems processing of IRS interfaces, SM 02002.400 MSSICS diary clearance inputs on DDOC screen, MSOM 145-K

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SECTION .015

THE MONTHLY REPORTING FORM

BACKGROUND Each month, the State benefit specialists will report waiver information about waiver participants to SSA. The required method of reporting is the Monthly Reporting Form which was developed jointly by SSA and State staff. The information that must be reported on the Monthly Reporting Form is: • earned income for the month; • work-related unearned income for the month; • opening of an Independence Account during the month; • a participant withdraws from the waiver project; • a new participant enrolls in the waiver project. PROCEDURE—SENDING THE FORM TO FIELD OFFICES Schedule for Reporting State benefit specialists should submit Monthly Reporting Forms to SSA field offices for each waiver participant during the first week of the month. The report provides information about the preceding month. Timely reporting will enable SSA field offices to input wages and unearned income amounts so that the participants’ SSI payments will be correct. For purposes of the waiver project, the Monthly Reporting Form will be treated as a first-party report (SI 02301.010). Example: On June 2, 2001 the benefit specialist in Milwaukee faxes a Monthly Reporting Form to SSA’s Milwaukee field office for wages earned by the participant in May, 2001. The field office uses the Waiver Calculator to determine the amount of income to input to the SSR and inputs the participant’s March wages on 6/3/01. Method of Reporting The preferred method of submitting the monthly reports is by fax. Where faxing is not feasible, submit the reports by mail. Due to Privacy Act concerns, the Monthly Reporting Form must not be emailed to SSA. Local Best Practices The above procedures are meant as a guide, and are not intended to prevent local SSA offices from developing more efficient ways to obtain these reports. PROCEDURE—COMPLETING THE FORM Header Section The blocks in this section of the form are self-explanatory for the most part. However, it is important to use the correct dates on the form. The “date of report” is the date the benefit specialist completes the report. The “report for (month)” block records the month D-50

that the report covers. For example, the benefit specialist completes the report on June 2, 2001 and the report covers wages for May, 2001. Earned Income Section In this section, the benefit specialist records the gross wages earned by the participant in the preceding month. This should be the actual amount of wages based on, if available, pay stubs or other documents the participant provides. Accurate wage reports will prevent overpayments. Also in this section, the benefit specialist records the participant’s estimate of his or her gross wages for the current month. Often, this will be the same amount as the preceding month. But, if the participant’s wages are expected to change (e.g., more hours, fewer hours, higher hourly rate) the estimate should reflect the change. Work-Related Unearned Income Section In this section, the benefit specialist records the amount of money received in the preceding month from one of the four work-related unearned income programs covered under the waiver. And, as in the earned income section, the benefit specialist records an estimate of this income for the current month. Independence Account Section In this section, the benefit specialist notifies the SSA field office that a participant has opened an Independence Account. If the name of the bank and the balance of the account is known, that information can be added to the report, too. This section is completed only once. It is not necessary to provide monthly updates to SSA about the account balance. SAMPLE OF THE FORM See the following page for facsimile of the Monthly Report Form

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STATE PARTNERSHIP INITIATIVE WAIVER

MONTHLY REPORTING FORM

To(SSA Field Office/Claims Rep) ___________________________ From(State Site/Benefit Specialist/Phone)_____________________ Date ________________________ Report for(month)_________ Participant__________________ SS# _____________________ 1. Participant’s Enrollment Dates ________ Date enrolled in Waiver Project(report only on 1st report) ________ Date enrolled in SPI (report only on 1st report) ________ Date withdrew from Waiver Project (report if applicable) 2. Participant’s Earned Income Gross Wages $______________received in_____________(month/year) Estimated Wages $_____________expected in_____________(following month)

3. Participant’s Waiver Specific Unearned Income Type Unemployment Insurance State Disability Benefit Private Disability Insurance Worker’s Compensation

Amount Received (month/year) $_______ _____________________ $_______ _____________________ $_______ _____________________ $_______ _____________________

Total Amount $_______________received in _____________(month/year) Estimated Amount $____________expected in _____________(following month)

4. If Participant Opened Independence Account Since Last Monthly Report Date Account Opened_________(month/day/year) Opening Balance $________ Bank Name & Address______________________________ ______________________________ ______________________________

5. Signature of Benefit Specialist___________________

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SECTION .016 WAIVER CASE EXAMPLES

PARTICIPANT GETS EARNED INCOME WAIVER ONLY Case Scenario: Jack Smith is enrolled in the waiver project. In July 2001 he receives $1,200 wages and $525 in T2 disability benefits. He has an approved P.A.S.S. that excludes $400 per month and IRWE of $100 in July. On 8/2/01, the local SSA field office receives the Monthly Reporting Form for July from the State Benefit Specialist and processes the case.

Computing the “Amount Not Counted” Before the case can be input into MSSICS, the claims representative (CR) must compute the “Amount Not Counted” using the waiver calculator. This amount, when input to the system, will make the SSI system compute the participant’s SSI payment as if the “3 for 4” earned income waiver was computed by the automated system. On the calculator, the CR enters the $525 unearned income, the $400 P.A.S.S., the $100 IRWE, and $1,200 wages into the calculator. The calculator makes the following computation: $ 525.00 - 20.00 505.00 - 400.00 $ 105.00

$1,200.00 - 00.00 1,200.00 - 65.00 1,135.00 - 100.00 1,035.00 x 0.50 $ 517.50

Title II income received in 7/01 General Exclusion P.A.S.S. exclusion Countable Unearned Income (NOT SHOWN ON CALCULATOR) Wages received in 7/01 $20 General Exclusion was used for unearned income Earned Income Exclusion IRWE exclusion $1 for $2 “Amount Not Counted” computed by the waiver calculator for input on IWAG screen

Inputting the Case on MSSICS The $525.00 Title II income and the $400 P.A.S.S. exclusion are already posted on the SSR. On the MSSICS IWAG screen, the CR inputs the actual gross wages of $1,200.00 in the “Amount Alleged” field and inputs $517.50 in the “Amount Not Counted” field. The CR also inputs $100 IRWE on the IBIE screen. Based on these inputs the SSI system makes the following automated computation.

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$ 525.00 - 20.00 505.00 - 400.00 $ 105.00

$1,200.00 - 517.50 682.50 .00 $ 682.50 - 65.00 $ 617.50 - 100.00 $ 517.50 x 0.50 $ 258.75

Title II income General Exclusion P.A.S.S. exclusion Countable Unearned Income (the amount of unearned income the system will use to compute the SSI benefit) Gross Wages input on IWAG in “Amount Alleged” field Input in “Amount Not Counted” field on IWAG Amount of wages posted to SSR $20 exclusion will be applied by system to unearned income (Title II) $65 earned income exclusion will be applied by the system IRWE (will be applied by the system) $1 for $2 exclusion computed by the system Countable Earned Income (the amount of earned income that the system will use to compute the SSI benefit amount)

SSI Benefit Computation Due to RMA, the July income will used to compute the September 2001 SSI payment. The SSI benefit for September will be based on the following countable income which reflects the “3 for 4” earned income waiver. $ 105.00 Countable Unearned Income for September 2001 Countable Earned Income for September 2001 + 258.75 $ 363.75 Countable Income for September 2001(This countable income is used to compute the SSI benefit.)

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PARTICIPANT GETS WORK-RELATED UNEARNED INCOME ONLY Case Scenario: Barbara Jackson is enrolled in the waiver project. In June 2000 she was injured on the job and stopped working. In July 2000 she received $1,400 in worker’s compensation. This was her only income in July. On 8/2/01 the local SSA field office receives the Monthly Reporting Form for July from the State Benefit Specialist and processes the case. In addition, Ms. Jackson is in Federal living arrangement B (the VTR).

Computing the “Amount Not Counted” Before the case can be input into MSSICS, the CR computes the “Amount Not Counted” using the waiver calculator. This amount, when input to the system, will make the SSI system compute the participant’s SSI payment as if the “3 for 4” work-related unearned income waiver was applied by the system. On the calculator, the CR inputs $1,400 in the “worker’s compensation” field. The calculator determines that the “waiver specific amount not counted” is $657.50. The CR also checks the “Value Third Reduction Ind” field on the calculator. NOTE: In this case, Ms. Jackson is already in FLA/B on the SSR. Therefore, the CR needs to take no additional action. The system automatically will factor in the FLA/B status when it computes the SSI benefit. Adding the “Value Third Reduction Ind” on the calculator lets the calculator compute the new SSI benefit amount but does not affect the computation of the “Amount Not Counted.” $1,400.00 Worker’s compensation received in 7/01 - 20.00 General $20 exclusion (applied here because no other 1,380.00 unearned income in the month) $65 earned income exclusion (applied here because no - 65.00 1,315.00 earned income in this month) $1 for $2 exclusion x 0.50 $ 657.50 “Waiver Specific Amount Not Counted” as determined by the waiver calculator

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Inputting the Case on MSSICS Under this waiver demonstration project, the work-related unearned income is input as earned income. So, the CR inputs $1,400 in the “Amount Alleged” field on the IWAG screen and $657.50 in the “Amount Not Counted” field and information about the workers’ compensation agency’s name and address. To document the workers’ compensation, the CR inputs $1,400 in either the “Amount Alleged” or “Amount Verified” field and $1,400 in the “Amount Not Counted” field on the MSSICS IWCP screen. Based on these inputs the system makes the following computation. $1,400.00 - 657.50 742.50 - 20.00 722.50 - 65.00 657.50 x 0.50 $ 328.75

Input as wages on IWAG in “Amount Alleged” field Input on IWAG in “Amount Not Counted” field Amount posted to SSR as “wages” $20 general exclusion applied by the system $65 earned income exclusion applied by system $1 for $2 exclusion applied by the system Countable work-related unearned income (the amount of income the system will use to compute SSI benefit based on the “3 for 4” waiver)

Computing the SSI Benefit Due to RMA, the July income will used to compute the September 2001 SSI payment. The SSI benefit for September will be based on the following countable income. $ .00 $ .00 $ 328.75 $ 328.75

Other unearned income Earned income Countable work-related unearned income in 9/01 Countable Income in 9/01 (This is the countable income used to compute the SSI benefit amount.)

$ 530.00 - 328.75 $ 201.25

Federal Benefit Rate in 9/01 Countable Income in 9/01 SSI Payable in 9/01

BOTH EARNED AND WORK-RELATED UNEARNED INCOME IN SAME MONTH Case Scenario: Edward Wilson, a New York waiver participant earns $450 in August 2001. On 8/15/01, Mr. Wilson is laid off and begins to collect unemployment insurance. In August he receives $350 of unemployment benefits. His living arrangement is FLA/A and New York OS/A.

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Computing the “Amount Not Counted” Before the case can be input into MSSICS, the claims representative (CR) must compute the “Amount Not Counted” using the waiver calculator. This amount, when input on the IWAG screen, will make the SSI system compute the participant’s SSI payment as if the “3 for 4” waivers were applied by the automated system. On the calculator, the CR inputs $450 of wages and $350 of unemployment benefits. The calculator determines that the “earned income amount not counted” (wages) is $192.50 and the “waiver specific amount not counted” (unemployment benefits) is $165.00. $ 350.00 - 20.00 $ 330.00 x 0.50 $165.00

Unemployment benefits received in 8/01 General exclusion

$ 450.00 - 65.00 $ 385.00 x 0.50 $ 192.50

Wages received in 8/01 Earned income exclusion

$1 for $2 exclusion “Amount Not Counted” for unemployment benefits

$1 for $2 exclusion “Amount Not Counted” for wages

Inputting the Case on MSSICS The CR inputs the actual gross wages of $450 on the IWAG screen in the “Amount Alleged” or “Amount Verified” field and $192.50 in the “Amount Not Counted” field. On the next IWAG screen, the CR inputs the unemployment agency’s name and address, $350 in the “Amount Alleged or “Amount Verified” field, and $165 in the “Amount Not Counted” field. To document the unemployment benefits, the CR inputs $350 in either the “Amount Alleged” or “Amount Verified” field and $350 in the “Amount Not Counted” field on the IUEM screen. Based on these inputs, the system makes the following automated computations. $450.00 Gross wages input as “Alleged Amount” on IWAG Unemployment benefits input on IWAG $350.00 $800.00 Total gross wages input on IWAG -192.50 Minus the “Amount Not Counted” of wages Minus the “Amount Not Counted” of unemployment -165.00 $ 442.50 Total earnings posted to SSR - 20.00 $20 general exclusion applied by the system $ 422.50 - 65.00 $65 earned income exclusion applied by system $ 357.50 x 0.50 $1 for $2 exclusion applied by system $ 178.75 Countable earned and work-related unearned income SSI Benefit Computation Due to RMA, the August 2001 income will be used to compute the October 2001 SSI payment. The SSI payment for October will be based on the following countable income as derived by the SSI system.

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$ .00 $ 178.75 $ 178.75

Other Unearned Income Countable Earned and Work-Related Unearned Income Countable Income in 10/01 (This is the countable income used to compute the SSI benefit amount.)

$ 530.00 - 178.75 $ 351.25 + 87.00 $ 438.25

Federal Benefit Rate in 9/01 Countable Income in 9/01 Federal SSI Payable in 9/01 New York State Supplement Total SSI Payable for 10/01

VERMONT: BOTH EARNED AND WORK-RELATED UNEARNED INCOME IN THE SAME MONTH Case Scenario: Joe Jones, a Vermont waiver participant receives $200 T2 disability each month. He receives wages of $500 in July 2001, gets injured on the job and stops working on 7/11/01. During July he receives $400 in worker’s compensation. Mr. Jones also had an IRWE exclusion of $100 in July for the wages he earned before getting injured.

Computing the “Amount Not Counted” Before the case can be input into MSSICS, the CR must manually compute the “amount not counted” of the worker’s compensation received by Mr. Jones using the waiver computation format in Section .008D. For Vermont participants, manual computations are required in months that the participant gets both earned income an work-related unearned income because the waiver calculator cannot do the computation correctly. The computation is done as follows: $500.00 $ .00

Wages received in the month “Amount Not Counted” (in Vermont, wages are not subject to the waiver so they are counted and input normally.)

$400.00 - .00 $400.00 - .00 $400.00 x 0.50 $200.00

Worker’s Compensation $20 General Exclusion (will be applied by the system to the T2 income received in the month) $65 Earned Income Exclusion (will be applied by system to the wages received in the month) “Amount Not Counted”

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NOTE: The system will automatically apply the $20 exclusion to Mr. Jones’ Title 2 benefits and the $65 exclusion automatically to the $500 wages that we are inputting. Because the $20 and $65 exclusions can be applied only once during a month, they are not deducted from the $400 of worker’s compensation when we calculate the “amount not counted.” Inputting the Case On MSSICS On the IWAG screen, the CR inputs the gross wages of $500 in the “Amount Alleged” or the “Amount Verified” field. The CR does not make an entry in the “Amount Not Counted” field because the “3 for 4” earned income waiver is not applicable in Vermont. For Vermont cases, wages are input normally. On the next IWAG screen, the CR inputs the name and address of the worker’s compensation agency. In the “Amount Alleged” or “Amount Verified” field the CR inputs the gross amount of worker’s compensation ($400). In the “Amount Not Counted” field, the CR inputs $200 as calculated above. The CR also inputs a $100 IRWE exclusion on the IBIE screen. The SSI system will apply the IRWE exclusion to the $500 wages earned by Mr. Jones. To document the workers’ compensation, the CR inputs $400 in either the “Amount Alleged” or “Amount Verified” field and $400 in the “Amount Not Counted” field of the IWCP screen on MSSICS. The CR makes no input for the $200 T2 income which is already posted on the SSR and will be considered when computing the SSI benefits. SSI Benefit Computation Following the Vermont Countable Income Worksheet in Section .008F. we have the following computation. $200.00 Title 2 Benefits - 20.00 General Exclusion $180.00 Countable Unearned Income $ 500.00 - 65.00 $ 435.00 - 100.00 $ 335.00 x 0.50 $ 167.50

Wages Earned Income Exclusion

$400.00 x 0.25 $100.00

Worker’s Compensation $3 for $4 Waiver Exclusion Countable Work-Related Unearned Income

$180.00 $167.50 $100.00 $447.50

Countable Unearned Income Countable Earned Income Countable Work-Related Unearned Income Countable Income in 10/01 (This is the countable income used to compute the SSI benefit amount.)

IRWE Exclusion $1 for $2 Exclusion Countable Earned Income

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$ 530.00 - 447.50 $ 82.50

Federal Benefit Rate in 10/01 Countable Income in 10/01 Federal SSI payable in 10/01

D-60

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