What Is Substantial Gainful Activity (SGA)?

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Are SGA increases a work incentive for disabled persons?

When applying for SSDI (Social Security Disability Income) or SSI

(Supplemental Security Income) benefits, SGA (substantial gainful activity)

is used as a factor to decide if you have a disability. SGA is also used as

a factor to decide if your disability continues when you are already

receiving benefits (except during the trial work period...

The Social Security Administration had not increased the amount of average

monthly earnings that generally demonstrate substantial gainful activity

(SGA) for people with an impairment other than blindness since January 1,

1990. Nine years later, in 1999, the reassessment of guidelines resulted in

an increase to the earning amount used to determine SGA.

The revision raised the SGA earning limit from $500 to $700 per month,

effective July 1, 1999. The change applied to Social Security disability

benefits under title II of the Social Security Act and to Supplemental

Security Income benefits under title XVI of the Social Security Act.

Several new rules took effect January 1, 2001, that allow more persons with

disabilities to test their ability to work without fear of losing their cash

benefits and important health care coverage. The new rules were part of a

package of proposed regulations announced by President Clinton as part of

the 10th anniversary of the Americans with Disabilities Act.

The first new rule increased SGA to $740 a month and established that SGA

will be automatically adjusted annually based on increases in the national

average wage index.

The second rule applied to the Trial Work Period and increased that amount

to $530 per month also linking annual changes to increases in the national

average wage index. After completion of nine trial work months, the SGA

level is used to determine whether earnings are substantial or not. If

earnings fall below the SGA level, full benefits generally continue. If

earnings are higher than the SGA level, cash benefits are normally suspended

while medical benefits continue.

SGA for 2001: $740/month

SGA for 2002: $780/month

SGA for 2003: $800/month

SGA for 2004: $810/month

REFERENCE:

Social Security Administration, www.ssa.gov

http://www.ssa.gov/organizations/dibssidssdi.htm

What's the difference between SSID and SSDI?

There are actually several differences. SSID stands for Supplemental

Security Income disability. And many people refer to Social Security

disability benefits as Social Security Disability Insurance or SSDI. Both

disability programs are managed by the Social Security Administration, which

adds to the confusion. People with low incomes and few assets who are

disabled qualify for SSID. Disabled people who have worked and paid enough

Social Security taxes qualify for SSDI. Some people qualify for both

programs. Another important difference between the two programs is this:

SSID is financed through general revenues, while SSDI is financed though

Social Security payroll taxes.