CFED
Stay Informed!
The Inclusive Economy
Bill to reform the asset limit test of the Supplemental Security Income program proposed
By Kristin Lawton on 06/03/2011 @ 10:38 AM
Reform would enable people with disabilities to open bank accounts, work and save towards financial self-reliance
Today, a bill that would enable and encourage low-income people with disabilities to work, save and build wealth, and open bank accounts was introduced in the U.S. House of Representatives.
People with disabilities face significant challenges to building wealth and achieving financial self-reliance. Nearly 50 million Americans have a disability and close to 60% of these are asset poor, meaning they have insufficient assets to survive at the poverty level for three months. This population of people is often dependent on public assistance; however, the asset limits of these programs pose serious obstacles for low-income families trying to become self-reliant.
This is particularly true for recipients of the Supplemental Security Income (SSI) program, where eligibility is limited to those who have no more than $2,000 in assets for an individual and $3,000 for a couple. If they have an emergency—a family member dies, a car breaks down, a roof needs repair—they are allowed little in savings to fall back on, leaving them vulnerable to predatory lenders and deeper poverty, and requiring them to ultimately rely on greater government assistance. These outdated rules pose as a serious obstacle to becoming financial self-reliant.
The SSI Savers Act of 2011 (H.R. 2103), introduced by Congressman Tom Petri (R-WI) and Congresswoman Tsongas (D-MA), will reform the asset limit test of the Supplemental Security Income program. H.R. 2103 would help people with disabilities on SSI by reducing disincentives and allowing recipients to build a financial cushion while retaining their benefits.
The SSI Savers Act of 2011 proposes the following:
- Increase asset limits from $2,000 (single) and $3,000 (married) to $5,000 and $7,500 respectively, and indexes those limits to inflation.
- For recipients younger than 65, the bill excludes retirement accounts, education savings, and individual development accounts from counting against the limit.
- For recipients 65 and older, it allows retirement accounts up to $50,000 (single) / $75,000 (married) to reduce SSI benefits accordingly instead of creating an immediate cut off.
Take Action!
Take action by asking your legislators to become cosponsors of the SSI Savers Act of 2011 (H.R. 2103).
Copyright © 2012 CFED – Corporation for Enterprise Development 
1200 G Street, NW Suite 400 Washington, DC 20005 202.408.9788
Powered by ARCOS | Design by Plus Three
Comments
Leave a Comment