A Plan for Achieving Self-Support (PASS) is a Social Security program that allows an individual to set aside money for a specified employment purpose. The purpose of a PASS is to assist him or her in obtaining items, services, or skills needed to reach his or her vocational goals. Also, the job that such an individual is considering as a part of the vocational goal should allow him or her to earn enough money to reduce or eliminate the need for Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) benefits.

HISTORY

In 1974, Social Security established Plans for Achieving Self-Support for SSI recipients. Social Security Claims Representatives initially administered the program. In April 1996, Social Security revised its guidelines for PASS and created the current structure of processing PASS applications. Social Security trained specialists called PASS Cadres to oversee the program. For a short time, there was one Cadre who handled all PASS Plans in the U.S. Now PASS Cadres are distributed in Social Security offices around the country. One can locate a Cadre by visiting the Social Security website.

BENEFIT

A Plan for Achieving Self-Support (PASS) allows SSI and SSDI beneficiaries to develop resources in order to reach a specific vocational goal that will not count as assets or income and affect eligibility. To accomplish this goal, PASS is designed to allow an individual to purchase equipment, services, or skills. For example, an individual can set aside money to go to school for specialized training for a job or to start a business.

Ultimately, the job should allow an individual to earn enough income to reduce or eliminate the need for SSI and SSDI.

An individual must provide receipts to verify expenses when using PASS funds. Funds intended for a PASS must be deposited into a separate account. PASS money cannot be entered into an account that is used for personal expenses. Failure to use the funds as approved, or keep them separate from personal living expenses, could result in:

• a Supplemental Security Income overpayment
• suspension of the PASS and
• jeopardizing future PASS participation.

PROGRAM ELIGIBILITY

To be eligible to use PASS an individual must:

• want to work
• be eligible to receive SSI because of disability or blindness and
• have other income and resources to complete a vocational goal.

A SSDI beneficiary can use PASS to set aside all benefits (except for $20) as a part of the Plan. This can enable the individual to become eligible for the maximum SSI benefit. With SSDI in PASS, living expenses can only be paid with SSI benefits. To qualify for SSI, the individual must meet the asset requirements for the SSI program.

Note: SSI recipients over age 65 do not qualify for PASS.

RESOURCES

An individual may not have liquid assets (accessible money) in excess of $2,000 ($3,000 for a couple). Also, ownership of one house, occupied by the individual, and one car will not be considered when determining the individual’s resource levels. However, PASS allows an individual to set aside earned and unearned income (except SSI) without jeopardizing resource requirements.

RESIDENCY REQUIREMENT

An individual must be a legal United States resident to use a Plan for Achieving Self-Support. Social Security provides an explanation of residency rules.

The People's Guide is another useful source of information for immigrants and Social Security.

INTEGRATION

Although this is a Supplemental Security Income (SSI) program, it requires the individual to use other income, such as wages, Social Security Disability Income (SSDI), State Disability Insurance (SDI), workers’ compensation settlements, or inheritances to utilize PASS.

The table below is an example of some of the rules for earned and unearned income that can be set aside in a PASS plan.

Individual Development Accounts (IDAs) and PASS

An Individual Development Account, also known as an “IDA,” is a savings account for low-income workers that can be used to fund small-business development, higher education, or the purchase of a first home. An IDA can be part of a PASS plan to either start a business or save for higher education.

Individuals participating in federally funded IDA programs are able to save money and receive a match, without fear of losing Supplemental Security Income (SSI) or Medi-Cal benefits. If an individual has an IDA that receives federal funding from block grants under Temporary Aid to Needy Families (TANF) or Assets for Independence Act (AFIA), then a savings cannot be considered as assets.

IDA programs that are not federally funded can count as assets and affect SSI eligibility unless the IDA is approved as part of a PASS plan. If an individual has a PASS plan and is participating in an IDA program, funds from the IDA can only be used for the specified work goal outlined in the PASS plan. An IDA program is one other avenue to develop resources without jeopardizing benefits.

APPLICATION

Processing a PASS can take between 1-3 months if all required documentation is provided. If a Plan is not approved, an individual can work with a PASS Cadre who will assist in making the Plan acceptable.

The application must:

1. be in writing
2. state a vocational goal
3. have a reasonable time frame and
4. describe and explain expenses necessary to achieve the vocational goal.

*Social Security does not consider earning a degree as a vocational goal in itself. A massage therapist, computer programmer, teacher, and mechanic are all examples of vocational goals.

**Expenses can include supplies to start a business, school expenses, equipment and tools, transportation,and uniforms. Savings from a PASS can be used for things such as a vehicle, wheelchair, or computer that are needed to accomplish a vocational goal.

Social Security provides applications in PDF format.

If the Plan is denied by Social Security, an applicant has the right to appeal this decision. The denial letter will include instructions on how to file an appeal. The applicant may alternatively choose to submit a new Plan for consideration.

CHANGING THE PASS

Once an individual has an approved PASS, he or she may decide to change the Plan. If this occurs, the individual must inform the PASS Cadre as soon as possible. Social Security must approve of these changes before a new Plan can be used.

NOT COMPLETING A PASS

If an individual cannot complete a PASS, he or she needs to contact Social Security immediately. A PASS Cadre may be able to help the individual change the Plan so that he or she can still reach the goal. Or the individual may decide to write a new Plan with a new work goal.

If the Plan is not completed, the income and resources that the individual set aside for the PASS will be counted as income and resources that will affect SSI eligibility. As a result, SSI payments may go down or stop altogether. If an individual waits to inform SSI about being unable to complete the Plan, this could result in an overpayment.

SUSPENDING A PASS

Social Security allows an individual to delay a Plan due to illness or disability.