For more information contact:

James Gashel

Director of Governmental Affairs

 

 

               IMPORTANT NOTICE ON SGA FOR BLIND PERSONS

 

 

     The Social Security Administration has just announced the earnings
guideline for blind persons to be used in determining Substantial Gainful
Activity (SGA) during 1997.  The SGA earnings guideline applies to eligibility
decisions in the Social Security Disability Insurance
 (SSDI) program.  It does not apply in any respect whatsoever to
determinations of eligibility or payment amounts in the Supplemental Security
Income (SSI) program.

 

     Beginning in January, 1997, average monthly earnings for a blind
person which are less than $1,000 will not count as SGA.  The comparable amount
for 1996 is $960.  The change in the SGA exempt amount for blind people is the
result of an automatic adjustment
 made annually.

 

     From January, 1978, until March, 1996, the SGA exempt amount for
blind persons was identical to the exempt amount for persons who retire at age
65. However, the earnings exemption for seniors was raised above the automatic
adjustment level in March, 1996, and will increase further in six mandated steps
to reach an annual exempt amount of $30,000 beginning in 2002.

 

     Although the SGA exempt amount for blind people was specifically
excluded from the
 mandated adjustments, it will still be raised gradually and automatically
year by year.  By the year 2002, when the exempt amount for seniors reaches
$30,000, the SGA guideline for blind people is expected to be $14,400.

 

     It is important to provide correct and complete information to blind
people who may be
 affected by the annual changes in SGA.  This is particularly so
now--beginning with the 1997 change--since the exempt amounts for blind people
and for seniors are different.  Because more than thirty-five million seniors
receive retirement benefits, and fewer than one hundred thousand blind people
receive SSDI checks, the wrong information about the exempt earnings standard
may be given in response to some inquiries.  This was
less likely to occur
 when the exemptions were linked.

 

     In view of the change in earnings exemptions, the Social Security
Administration is aware of the possibility that confusing and incorrect
information may be given.  Therefore, a reminder notice is being circulated to
personnel in Social Security offices and to specialists who answer calls in the
teleservice system.  The text of the notice from
the Social Security
 Administration follows:

 

 

 

 

 

                    SOCIAL SECURITY ADMINISTRATION

 

      INFORMATION ON GUIDELINES FOR SUBSTANTIAL GAINFUL ACTIVITY

 

                    1997 SGA Amount for the Blind 

 

     

     Effective January 1, 1997, the monthly substantial gainful activity
(SGA) amount for persons receiving Social Security disability benefits based on
blindness will be $1,000.  This represents an increase over the amount in 1996,
which was $960 per month. The non-blind SGA amount remains at $500 per month.

 

     It is important to remember that beginning in 1997, the blind SGA
amount is no longer tied to the over age-65 retirement earnings test. That
amount will rise significantly over the next five years based on legislation
signed in March, 1996, until it reaches $30,000 per year in 2002.

 

     Although de-coupled from the retirement earnings test, the blind SGA
amount
 continues by law to be adjusted annually based on the national average
wage index.