The Arc of the United States
1730 K Street, NW, Suite 1212, Washington, DC 20006
Phone 202/785-3388 * Fax 202/467-4179 * GAOinfo@thearc.org
February 1, 2001
Important Update on SGA Regulations
The Bush Administration has allowed the new regulations regarding the substantial gainful activity (SGA) level to go into effect as originally planned on January 29, 2001. As written, the new regulations apply to work beginning January 1, 2001.
The regulation in question was published in the Federal Register on December 29, 2000 with an effective date of January 29, 2001. The disability community had worked toward annual indexing of the substantial gainful activity (SGA) level for many years. The SGA level is an essential element of the current definition of disability for the Old Age, Survivors, and Disability Insurance (Title II) programs and the Supplemental Security Income program. It also limits the amount of earnings for beneficiaries in the Title II program. The SGA level historically has not kept pace with inflation, twice going nearly ten years without an increase. As a consequence, the definition of disability became stricter each year that the SGA level was not increased to keep pace with inflation.
These regulations were written in part to address that problem. The final rule establishes a formula for automatically adjusting the SGA level each year when other Social Security amounts are automatically increased. The new SGA level for 2001 is $740. In addition, this regulation increases the level of monthly earnings which trigger use of a trial work period (TWP) month in the Title II disability programs. The new level for counting a TWP month is $530 and the level will be annually indexed for inflation. Finally, this regulation raises the amount of earned income that can be excluded for certain beneficiaries who are students and indexes that amount annually for inflation. The new excludable amount is $1,290 a month with an annual limit of $5,200.
While technically not due to become effective until January 29, 2001, the regulations were clearly written to cover work efforts of people with disabilities beginning January 1, 2001. In fact, SSA's own website described the new regulations as beginning on January 1. However, it appeared that the regulations might fall under the regulatory delay announced in a Memorandum for the Heads and Acting Heads of Executive Departments and Agencies, dated January 20, 2001, from Andrew H. Card, Jr., Assistant to the President and Chief of Staff.
The Arc of the United States and other members of the Consortium for Citizens with Disabilities wrote to Bush Administration officials and worked with the Bush transition representative assigned to SSA. The advocates pointed out the problems that would be caused for individuals who had already relied upon the published regulation regarding the new earnings limits and the hardships that could result for some.
In response, the administration allowed the regulations to take effect without delay, thus avoiding untold confusion and hardship for people with disabilities who had already begun to work under the new limits. On January 31, 2001, SSA issued a memorandum to all of its regional, field, and processing offices to ensure that all are aware that the new regulations are in effect.
