SSR 80-35: Rescinded 1984

SSR 80-35

PURPOSE:

To revise current SGA guidelines to reflect a statutory change creating

an SGA dollar amount for persons disabled by blindness under title II of

the Social Security Act.

CITATIONS (AUTHORITY):

Section 335 of Public Law 95-216; Section 223(d)(4) of the Social

Security Act, as amended; Regulations No. 4, section 404.1584(d).

PERTINENT HISTORY:

Prior to the 1997 Amendments to the Social Security Act, the law did not

provide specific dollar guidelines or other criteria for evaluating work

activity. Instead, the law directed the Secretary to prescribe, by

regulations, the criteria for determining when services performed or

earnings derived from services demonstrate an individual's ability to

engage in SGA. Accordingly, the regulations established criteria based on

energies, responsibilities, skills, hours, regularity, and related factors

pertaining to work, regardless of the nature of the disability. The

regulations included an earnings test with upper and lower dollar

guidelines to assist in determining when an individual's work activity

demonstrated ability to engage in SGA. To reflect increases in average

earnings levels, the guidelines have been periodically increased and the

latest of these regulations sets the upper and lower guidelines at $300

and $190 (average earnings per month), respectively for calendar years

after 1979.

The 1977 Amendments established an additional test for determining

whether blind individuals have demonstrated an ability to engage in SGA.

Under this test, a blind individual whose earnings do not exceed a

specific dollar amount is not regarded as having demonstrated an ability

to engage in SGA. The Congress stressed that they did not intend that the

new SGA level established for the blind should be applied to disability

beneficiaries with other types of disabilities.

POLICY STATEMENT:

nstrated an ability to engage in SGA.

Under this test, a blind individual whose earnings do not exceed a

specific dollar amount is not regarded as having demonstrated an ability

to engage in SGA. The Congress stressed that they did not intend that the

new SGA level established for the blind should be applied to disability

beneficiaries with other types of disabilities.

POLICY STATEMENT:

Beginning with months in the taxable years ending after 1977, an

individual disabled due to blindness under the title II disability

insurance program will not be considered to have demonstrated an ability

to engage in SGA if earnings do not exceed the prorated monthly exempt

earnings amount that applied to retired individuals age 65 or

older. [1] These monthly amounts

are:

1978—$333.33 1/3 (rounded to $334) 1979—$375.00 1980—$416.66 2/3 (rounded to $417) 1981—$458.33 1/3

(rounded to $459) 1982—$500.00

After 1982, the exempt amount is subject to change from year to year

depending on increases in the cost of living.

The statute explicitly states that no blind individual shall be

considered as having demonstrated an ability to perform SGA on the basis

of earnings not in excess of the specified SGA amount. It does not provide

for a secondary dollar amount guide such as provided in the regulations

for evaluating work of the nonblind. Thus, where average monthly earnings

of a blind individual are at or below the amount specified in the statute,

the individual is considered as not engaging in SGA. However, where

earnings of the blind are above the statutory amount, the same

considerations applicable to other disabled persons apply to the blind in

determining whether their earnings demonstrate ability to engage in SGA.

EFFECTIVE DATE:

Beginning with months in taxable years ending after 1977.

DOCUMENTATION:

cified in the statute,

the individual is considered as not engaging in SGA. However, where

earnings of the blind are above the statutory amount, the same

considerations applicable to other disabled persons apply to the blind in

determining whether their earnings demonstrate ability to engage in SGA.

EFFECTIVE DATE:

Beginning with months in taxable years ending after 1977.

DOCUMENTATION:

Only those individuals who meet the criteria for blindness as defined in

Section 216(i)(1) of the Social Security Act will have their work activity

evaluated under the new guidelines.

FURTHER INFORMATION:

The earnings level for all title II disabled individuals, including those

disabled by blindness, in effect prior to the Social Security Amendments

of 1977 will continue in use for the evaluation of earnings from work

activity performed in taxable years ending before 1978. Final regulations

covering these policies were published in the Federal Register on August

20, 1980, at 45 FR 55566.

CROSS-REFERENCES:

Claims Manual sections 6400ff, T6400 and A6400. Program Operations Manual

System sections 2051ff and 2354ff. Disability Operations Manual section

630.

[1] As opposed to the retirement

which reduces benefits if earnings are above the exempt amount, earnings

of blind individuals which average in excess of the prescribed amount may

result in benefit cessation.