Eileen Sweeney

Many steps should be taken to improve the asset development opportunities in key means-tested programs serving people with disabilities. Changes in SSI are likely to be the most helpful to the greatest numbers of people with disabilities. These steps could include:

1. Increase the SSI resource limits: The SSI resource limits - $2,000 for an individual and $3,000 for a married couple - froze in 1989. When the SSI program was first implemented in 1974, the resource levels were $1,500 for an individual and $2,250 for a couple. Had these original amounts been indexed, the SSI resource levels in 2004 would be $5,705 for an individual and $8,558 for a couple. In inflation-adjusted terms, the resource-eligibility limits have fallen 65 percent. Whatever increased level is chosen, the statute also should be amended to include a new level that is indexed for future increases in the cost of living.

2. Disregard retirement accounts from countable resources: It is a work and savings disincentive to count funds set aside in a retirement account as a resource in SSI. The rules should be changed to provide that SSA disregards retirement accounts so long as the person does not withdraw the funds for another purpose. And, just like current rules for counting monthly retirement benefits as unearned income, at the point when the person can convert the account to an annuity with regular payments, the amount of the monthly payment should be counted as income to the individual.

3. Create new vehicle for home-ownership by SSI recipients: Allow SSI recipients to have PASS-like accounts they can use to save to purchase a home, without the need to use a specially-funded IDA account.

4. Treat all IDAs the same, regardless of funding: Provide that all IDA accounts, regardless of the funding source for the match, will be disregarded in determining eligibility for federally funded means-tested programs. (States already have the flexibility to have such rules in their TANF-funded and state SSI supplemental programs.)