Congresswoman Tsongas (D-MA), along with Congressman Petri (R-WI), introduced the SSI Savers Act of 2010 (H.R. 4937), proposing to reform the asset test in the Supplemental Security Income (SSI) program, the primary provider of subsistence cash to extremely low-income individuals, seniors and people with disabilities.

In general, eligibility for SSI is limited to those who have no more than $2,000 in assets for an individual and $3,000 for a couple. The SSI test also generally counts all resources deemed accessible to an individual, including defined-contribution retirement accounts, such as 401(k)s and IRAs, as subject to the asset limit.

The current SSI asset test discourages many from working, saving and investing for fear of losing their benefits. The outdated limits force some of the most vulnerable individuals to deplete or spend down their savings, thereby limiting their independence, economic security and financial self-sufficiency.

H.R. 4937 proposes to remove savings disincentives in SSI by:

• Raising the asset limit to $5,000 for a single and $7,500 for joint filers and index these limits for inflation.
• For non-institutionalized individuals under the age of 65, excluding retirement savings from inclusion in the asset test.
• For non-institutionalized individuals age 65 or older, excluding savings in qualified retirement accounts below a specified ceiling of (indexed for inflation) $10,000 for an individual and $15,000 for a couple or household (indexed for inflation) and potentially treating excess savings in these accounts as an additional asset or alternatively as an imputed income stream.
• For non-institutionalized individuals age 65 or older, disregarding one-third of the funds drawn down from retirement accounts when calculating household income.
• Removing the requirement that SSI recipients, if eligible, must apply for periodic payments from their retirement savings.
• Excluding Education Savings Accounts and Individual Development Accounts funded all or in part with federal dollars or defined in federal programs for those under age 65.

SSI asset limits are set by the federal government, which gives Congress the direct ability to reform the guidelines of the program's asset tests.

The World Institute on Disability commends Congresswoman Tsongas (D-MA), along with Congressman Petri (R-WI), for introducing the SSI Savers Act of 2010 (H.R. 4937). "This is a step in the right direction to reduce the punitive nature of asset limits in the Supplemental Social Security Income program and allow people with disabilities to work save and build a more financially secure future for them self's and their families, " said Anita Aaron, WID's Executive Director.

"By addressing this single issue, congress will begin to change the economic expectation of millions of people with disabilities," said WID's Deputy Director, Thomas Foley.

WID also thanks our partner, Corporation for Enterprise Development (CFED), for their continuing policy efforts to improve economic outcomes for people with disabilities.

Please distribute CFED's action alert to all your networks.

CFED Action Alert

Legislation to reform asset limits in SSI program introduced!

Take Action!

Ask your legislator to cosponsor!

http://capwiz.com/idanetwork/utr/1/GDXOMGSQVK/EVWZMGSTFR/4922585681

Take Action: Urge your Representative to support reforming the SSI asset test by cosponsoring H.R. 4937.

The legislation will enable people with disabilities to invest in homeownership, education and small business and save for retirement and work without fear of losing their benefits in vulnerable financial times.

Click here to see how many people in your state may be impacted by this legislation.