+--------------+--------------------------+----------------------------+
| **Item**     | **Prior Regulation**     | **New Ticket Regulation    |
|              |                          | effective July 21, 2008**  |
+--------------+--------------------------+----------------------------+
| *Return to   | Does not address the     | > Creates a three phase    |
| Work         | reality that entering    | > return to work process:  |
| Concept*     | the workforce or         |                            |
|              | returning to work for    | 1)  Starts with Phase 1    |
|              | SSA beneficiaries is an  |     Milestone payments     |
|              | incremental and often    |     based on work at the   |
|              | episodic process.        |     Trial Work level       |
|              | Payments are only        |     (\$670 a month in      |
|              | available once the       |     2008).                 |
|              | beneficiary's earnings   |     \[411.525(a)(2)\]      |
|              | reach the Substantial    |                            |
|              | Gainful Activity (SGA)   | 2)  Progresses to Phase 2  |
|              | level.                   |     Milestones based on    |
|              |                          |     earnings at gross SGA  |
|              |                          |     levels (does not       |
|              |                          |     require deductions for |
|              |                          |     Work Incentives). SGA  |
|              |                          |     levels in 2008 are     |
|              |                          |     \$940 for with         |
|              |                          |     disabilities other     |
|              |                          |     than blindness and     |
|              |                          |     \$1,570 for            |
|              |                          |     beneficiaries who are  |
|              |                          |     blind.                 |
|              |                          |     \[411.525(a)(2)(ii)\]  |
|              |                          |                            |
|              |                          | 3)  Moves to standard in   |
|              |                          |     prior rules where      |
|              |                          |     Outcome payments are   |
|              |                          |     triggered by net SGA   |
|              |                          |     earnings (i.e. after   |
|              |                          |     deductions for Work    |
|              |                          |     Incentives) and a zero |
|              |                          |     cash benefit status.   |
|              |                          |                            |
|              |                          | > The payment system and   |
|              |                          | > the way we measure       |
|              |                          | > timely progress are      |
|              |                          | > designed to facilitate   |
|              |                          | > this gradual return to   |
|              |                          | > self-sufficiency.        |
+--------------+--------------------------+----------------------------+
| *Who is      | Adult beneficiaries with | > Effective July 21, all   |
| eligible for | disabilities, ages 18    | > adult beneficiaries with |
| a ticket?*   | through 64:              | > disabilities will be     |
|              |                          | > eligible to receive      |
|              | -   All Medical          | > Tickets. Tickets will    |
|              |     Improvement Not      | > not be mailed to MIEs    |
|              |     Expected (MINEs) and | > until around Nov. 1,     |
|              |     Medical Improvement  | > 2008 due to computer     |
|              |     Possible (MIPs)      | > system delays.           |
|              |                          | >                          |
|              | -   Medical Improvement  | > \[411.125\]              |
|              |     Expected (MIEs)      |                            |
|              |     eligible only after  |                            |
|              |     having had a         |                            |
|              |     Continuing           |                            |
|              |     Disability Review    |                            |
|              |     (CDR)                |                            |
+--------------+--------------------------+----------------------------+
| *Outcome     | > **40%** of payment     | **67%** of the payment     |
| Only EN      | > calculation base       | calculation base           |
| Payment      | > (PCB---based on        |                            |
| System*      | > average benefit paid   | -   For up to 36 months    |
|              | > in prior year for SSDI |     for SSDI beneficiaries |
|              | > and SSI-only) for up   |     (\$657 a month). Total |
|              | > to 60 months of no     |     potential payments     |
|              | > cash benefit due to    |     equal \$23,652.        |
|              | > work activity          |                            |
|              |                          | -   For up to 60 months    |
|              |                          |     for SSI beneficiaries  |
|              |                          |     (\$377 a month). Total |
|              |                          |     potential payments     |
|              |                          |     equal \$22,620.        |
|              |                          |                            |
|              |                          | \[411.525(a)(1)(i);        |
|              |                          | 411.550\]                  |
+--------------+--------------------------+----------------------------+
| *Outco       | Up to 4 Milestone        | **Four Phase 1 Milestone   |
| me-Milestone | payments after 1,3,7,    | Payments** (based on       |
| EN Payment   | and 12 months of SGA     | months of work at Trial    |
| System*      |                          | Work level, i.e., \$670 a  |
|              | 1.  1^st^ month SGA →    | month) are available to    |
|              |     34% of PCB           | compensate for initial     |
|              |                          | efforts at self-supporting |
|              | 2.  3 months SGA → 68%   | employment.                |
|              |     of PCB               | \[411.500(f)(1)\]          |
|              |                          |                            |
|              | 3.  7 months SGA → 136%  | 1.  50% of TW in a month → |
|              |     of PCB               |     120% SSDI PCB(\$1177)  |
|              |                          |                            |
|              | 4.  12 months SGA → 170% | 2.  3 months (out of       |
|              |     of PCB               |     last 6) TW → 120% SSDI |
|              |                          |     PCB                    |
|              | (No equivalent to Phase  |                            |
|              | 2)                       | 3.  6 months (out of       |
|              |                          |     last 12) TW → 120%     |
|              | **Outcome payments** =   |     SSDI PCB               |
|              | 36% of PCB reduced for   |                            |
|              | Milestone recovery       | 4.  9 months (out of       |
|              |                          |     last 18) TW → 120%     |
|              |                          |     SSDI PCB               |
|              |                          |                            |
|              |                          | > \*In Phase 1, all        |
|              |                          | > payments based on 120%   |
|              |                          | > of SSDI PCB, for 2008 =  |
|              |                          | > \$1177,                  |
|              |                          |                            |
|              |                          | Payment of Milestone 4     |
|              |                          | requires substantial       |
|              |                          | completion of services     |
|              |                          | outlined in the            |
|              |                          | beneficiaries              |
|              |                          | Individualized Work Plan   |
|              |                          | (IWP).                     |
|              |                          | \[411.525(a)(2)(i)\]       |
|              |                          |                            |
|              |                          | **Phase 2** Milestone      |
|              |                          | Payments (per month of     |
|              |                          | work at gross earnings     |
|              |                          | equal to SGA level, i.e.,  |
|              |                          | \$940 non-blind and        |
|              |                          | \$1,570 blind)             |
|              |                          |                            |
|              |                          | -   Up to 11 payments of   |
|              |                          |     \$353 for SSDI or up   |
|              |                          |     to 18 payments of      |
|              |                          |     \$203 for SSI          |
|              |                          |                            |
|              |                          | > Each payment equal to    |
|              |                          | > 36% of respective PCB.   |
|              |                          | >                          |
|              |                          | > \[411.525(a)(2)(ii)\]    |
|              |                          | >                          |
|              |                          | > \*Milestone payments are |
|              |                          | > made on gross wages      |
|              |                          | > before deductions for    |
|              |                          | > Work Incentives.         |
|              |                          | > \[411.525(a)(2)(i) &     |
|              |                          | > (ii)\]                   |
|              |                          | >                          |
|              |                          | > **Milestones are         |
|              |                          | > consecutive and          |
|              |                          | > cumulative**             |
|              |                          |                            |
|              |                          | **Outcome Phase**          |
|              |                          |                            |
|              |                          | Monthly Payments           |
|              |                          |                            |
|              |                          | Up to 36 payments of \$353 |
|              |                          | for SSDI and up to 60      |
|              |                          | payments of \$203 for SSI. |
|              |                          | Amount is 36% of           |
|              |                          | respective PCB without     |
|              |                          | Milestone recovery.        |
|              |                          |                            |
|              |                          | \[411.525(a)(2)(iv);       |
|              |                          | 411.545\]                  |
+--------------+--------------------------+----------------------------+
| *Transition  | NA                       | A case will be             |
| to New       |                          | transitioned at the time   |
| Payment      |                          | we make the first payment  |
| System*      |                          | under the new rules for    |
|              |                          | work attained in July 2008 |
| \*Transition |                          | or later. Once we make a   |
| payment      |                          | payment under the new      |
| cases are    |                          | rules for July 2008 or     |
| those where  |                          | later, we will no longer   |
| some, but    |                          | make a payment under the   |
| not all, of  |                          | old rules. \[411.500(g);   |
| the EN       |                          | 411.551\]                  |
| payments     |                          |                            |
| have been    |                          | 1.  SSA will **e**quate    |
| made under   |                          |     prior four Milestones  |
| the prior    |                          |     with new Phase 1       |
| regulations. |                          |     Milestones and pay the |
|              |                          |     next unpaid Milestone. |
|              |                          |     \[411.551(a)\]         |
|              |                          |                            |
|              |                          | 2.  If all four prior      |
|              |                          |     Milestones were        |
|              |                          |     attained then the      |
|              |                          |     beneficiary enters the |
|              |                          |     new system at the      |
|              |                          |     beginning of Phase 2   |
|              |                          |     Milestones.            |
|              |                          |     \[411.551(b)\]         |
|              |                          |                            |
|              |                          | 3.  If Outcome payments    |
|              |                          |     started then Outcome   |
|              |                          |     payments will continue |
|              |                          |     at the new rates based |
|              |                          |     on a formula. Payments |
|              |                          |     made will be totaled   |
|              |                          |     and subtracted from    |
|              |                          |     the new "total" value  |
|              |                          |     of the Ticket, and     |
|              |                          |     then the remainder     |
|              |                          |     will be divided by the |
|              |                          |     applicable monthly     |
|              |                          |     Outcome payment amount |
|              |                          |     under the new rules to |
|              |                          |     determine the number   |
|              |                          |     of Outcome payments    |
|              |                          |     available (must be 60  |
|              |                          |     or less). Total        |
|              |                          |     payments cannot exceed |
|              |                          |     total value of the     |
|              |                          |     Ticket at the time of  |
|              |                          |     transition.            |
|              |                          |                            |
|              |                          | \[411.551(c)(1), (2) &     |
|              |                          | (3)\]                      |
|              |                          |                            |
|              |                          | 4.  All payment requests   |
|              |                          |     for all Milestones and |
|              |                          |     Outcomes earned under  |
|              |                          |     the prior rules must   |
|              |                          |     be submitted by March  |
|              |                          |     31, 2009. \[411.551\]  |
+--------------+--------------------------+----------------------------+
| *Milestone   | NA                       | Final rule adds a          |
| Re           |                          | "Milestone reconciliation" |
| conciliation |                          | payment that includes all  |
| -- when      |                          | Milestones available at    |
| Outcome      |                          | time of first Ticket       |
| payment      |                          | assignment that remain     |
| period       |                          | unpaid due to the start of |
| starts       |                          | the Outcome payment        |
| before all   |                          | period. The reconciliation |
| Milestones   |                          | payment is made when the   |
| are paid*    |                          | 12^th^ Outcome payment is  |
|              |                          | achieved. \[411.500(h);    |
|              |                          | 411.525(c); 411.536\]      |
+--------------+--------------------------+----------------------------+
| *Total       | -   Total of             | -   Outcome-Milestone      |
| Payments:*   |     Outcome-Milestone    |     payments increased to  |
|              |     payments equals 85%  |     90% of Outcome only    |
| *ENs must    |     of Outcome only      |     payments               |
| choose one   |     payments             |     \[411.525(b)\]         |
| of two       |                          |                            |
| payment      | -   SSDI total payments  | -   SSDI and SSI total     |
| system, the  |     about 70% higher     |     potential payments     |
| Outcome or   |     than SSI             |     about equal (\$21,299  |
| Outco        |                          |     for SSDI and \$20,542  |
| me-Milestone |                          |     for SSI).              |
| System*      |                          |                            |
+--------------+--------------------------+----------------------------+
| *Milestone   | Uniformly over the 60    | No recovery from Outcome   |
| Recovery*    | months of Outcome        | payments will be required. |
|              | payments (i.e. 1/60 of   |                            |
| *(lump sum   | total Milestones paid    |                            |
| payment)*    | will be recovered from   |                            |
|              | each monthly Outcome     |                            |
|              | payment).                |                            |
+--------------+--------------------------+----------------------------+
| *"Timely     | 1.  24 month review --   | Changes to Timely Progress |
| Progress"    |     "active"             | Review requirements        |
| Definition   |     participation        | \[411.180\]:               |
| of Using a   |     required. No work    |                            |
| Ticket for   |     requirement.         | 1.  12 month review - 3    |
| Purposes of  |                          |     months work at Trial   |
| Continuing   | 2.  36 month review - 3  |     Work level (\$670      |
| Disability   |     months work at SGA   |     in 2008) or 60% of     |
| Review (CDR) |     level                |     full time college      |
| Protection*  |                          |     credits for 1 year     |
|              | 3.  48 month review - 6  |     earned.                |
|              |     months work at SGA   |                            |
|              |     level                | 2.  24 month - 6 months    |
|              |                          |     work at TW level or    |
|              | 4.  60 month review - 6  |     75% of full time       |
|              |     months work above    |     college credits for 1  |
|              |     SGA and \$0 cash     |     year earned.           |
|              |     benefit level        |                            |
|              |                          | 3.  36 month - 9 months    |
|              | -   Successive 12 month  |     work \> SGA or         |
|              |     reviews - 6 months   |     completed 2 year       |
|              |     work above SGA and   |     program or an          |
|              |     \$0 cash benefit     |     additional 1year of    |
|              |     level                |     full-time college      |
|              |                          |     credit earned.         |
|              |                          |                            |
|              |                          | 4.  48 Month - 9 months    |
|              |                          |     work \> SGA or an      |
|              |                          |     additional 1 year of   |
|              |                          |     full-time college      |
|              |                          |     credit earned.         |
|              |                          |                            |
|              |                          | 5.  60 months - 6 months @ |
|              |                          |     \$0 payment level or   |
|              |                          |     an additional 1 year   |
|              |                          |     of full-time college   |
|              |                          |     credit earned.         |
|              |                          |                            |
|              |                          | 6.  72 months - 6 months @ |
|              |                          |     \$0 cash payment level |
|              |                          |     or completed 4 year    |
|              |                          |     college program.       |
|              |                          |                            |
|              |                          | -   Successive 12 month    |
|              |                          |     periods 6 months @ \$0 |
|              |                          |     payment level.         |
|              |                          |                            |
|              |                          | > \*10% variance tolerance |
|              |                          | > applies. \[411.166(h)\]  |
+--------------+--------------------------+----------------------------+
| *Transition  | N/A                      | At time of first review    |
| to Timely    |                          | after July 21, 2008, the   |
| Progress     |                          | beneficiary will receive a |
| Rules*       |                          | letter notifying him/her   |
|              |                          | of the new requirements    |
|              |                          | that will be applied one   |
|              |                          | year later at the time of  |
|              |                          | the next scheduled review. |
|              |                          | \[411.226(b)\]             |
+--------------+--------------------------+----------------------------+
| *Vocational  | A State VR agency can    | 1.  If VR agency provides  |
| Re           | elect to be paid under   |     services under Cost    |
| habilitation | Cost Reimbursement       |     Reimbursement method,  |
| (VR) Agency  | rules, BUT Ticket must   |     then a new "in         |
| Rules*       | be assigned to the VR    |     use-SVR" status        |
|              | agency to be eligible to |     provides CDR           |
|              | submit for Cost          |     protection for         |
|              | Reimbursement. No        |     beneficiary.           |
|              | payments allowed under   |     Beneficiary cannot     |
|              | either EN payment system |     assign the Ticket to   |
|              | if VR had ticket         |     an EN while VR has an  |
|              | assigned under Cost      |     open case. CDR         |
|              | Reimbursement.           |     protection is extended |
|              |                          |     for 90 days after VR   |
|              |                          |     case closure. VR       |
|              |                          |     agencies will be asked |
|              |                          |     to submit information  |
|              |                          |     on beneficiary cases   |
|              |                          |     being opened to be     |
|              |                          |     served under Cost      |
|              |                          |     Reimbursement          |
|              |                          |     electronically every   |
|              |                          |     month. \[411.166(a)\]  |
|              |                          |                            |
|              |                          | 2.  VR and EN can both     |
|              |                          |     receive payment        |
|              |                          |     sequentially, VR under |
|              |                          |     Cost Reimbursement and |
|              |                          |     EN under the elected   |
|              |                          |     EN payment system      |
|              |                          |     after VR case closure  |
|              |                          |     and assignment of      |
|              |                          |     Ticket to the EN. EN   |
|              |                          |     who accepts a ticket   |
|              |                          |     after VR achieves an   |
|              |                          |     employment outcome and |
|              |                          |     closes the case is     |
|              |                          |     only eligible for      |
|              |                          |     Phase 2 Milestone and  |
|              |                          |     Outcome payments.      |
|              |                          |     Phase 1 Milestone      |
|              |                          |     payments will not be   |
|              |                          |     available. \[411.135;  |
|              |                          |     411.140;               |
|              |                          |     411.535(a)(iii);       |
|              |                          |     411.585\]              |
+--------------+--------------------------+----------------------------+
| *Effect of   | NA                       | Final regulations contain  |
| Recent Work  |                          | a "recent work" rule which |
| and          |                          | will be applied when the   |
| Earnings.*   |                          | Ticket is                  |
|              |                          | [first]{.underline}        |
|              |                          | assigned. Under the new    |
|              |                          | rules, some Phase 1        |
|              |                          | Milestone payments may not |
|              |                          | be available if the        |
|              |                          | beneficiary worked above   |
|              |                          | the Trial Work level       |
|              |                          | during the 18 months prior |
|              |                          | to Ticket assignment.      |
|              |                          | \[411.535(a)(1)(ii)\]      |
|              |                          |                            |
|              |                          | -   Milestone 1 not        |
|              |                          |     available if earnings  |
|              |                          |     \> TWP level in the    |
|              |                          |     month prior to Ticket  |
|              |                          |     assignment             |
|              |                          |                            |
|              |                          | -   Milestone 2 not        |
|              |                          |     available if earnings  |
|              |                          |     in 3 of last 6 months  |
|              |                          |     \> TWP                 |
|              |                          |                            |
|              |                          | -   Milestone 3 not        |
|              |                          |     available if earnings  |
|              |                          |     in 6 of last 12 months |
|              |                          |     \> TWP                 |
|              |                          |                            |
|              |                          | -   Milestone 4 not        |
|              |                          |     available if earnings  |
|              |                          |     in 9 of last 18 months |
|              |                          |     \> TWP                 |
|              |                          |                            |
|              |                          | \* does not apply to       |
|              |                          | transition cases           |
+--------------+--------------------------+----------------------------+
| *EN          | ENs must repay if Ticket | SSA will not seek an       |
| Overpayments | payments were made and   | adjustment if a            |
| Due to       | SSA retroactively        | retroactive determination  |
| Benefits     | determined that the      | or decision about a        |
| Eligibility  | beneficiary was not      | beneficiary's right to     |
| Errors*      | eligible for disability  | benefits causes an         |
|              | benefits.                | overpayment to the EN.     |
|              |                          | \[411.555(c)\]             |
+--------------+--------------------------+----------------------------+
| *EN          | No requirement that EN   | Clarifies that ENs must    |
| Reporting*   | report when they want    | also report to the Maximus |
|              | Ticket taken out of      | (the OSM) when they want a |
|              | assignment.              | Ticket taken out of        |
|              |                          | assignment. \[411.145(a)\] |
+--------------+--------------------------+----------------------------+
| *EN Payments | NA                       | States that payments to    |
| to           |                          | beneficiaries are allowed. |
| Beneficiary* |                          | \[411.566\]                |
|              |                          |                            |
|              |                          | \*Payments to              |
|              |                          | beneficiaries currently    |
|              |                          | treated as unearned        |
|              |                          | income.                    |
+--------------+--------------------------+----------------------------+
| *DOL         | NA                       | States that SSA recognizes |
| Workforce    |                          | Workforce Investment       |
| One-Stop     |                          | Boards and One-Stop Career |
| Centers &    |                          | Centers \[411.310(d)\],    |
| American     |                          | and American Indian VR     |
| Indian       |                          | Service Projects           |
| Vocational   |                          | \[411.310(e)\] as          |
| Re           |                          | qualified to be ENs with   |
| habilitation |                          | streamlined contract       |
| (VR) Service |                          | requirements. These        |
| Projects*    |                          | entities are still         |
|              |                          | required to enter into a   |
|              |                          | contract with SSA and      |
|              |                          | comply with both general   |
|              |                          | and specific requirements  |
|              |                          | associated with being an   |
|              |                          | EN; however, they are now  |
|              |                          | considered to be           |
|              |                          | automatically "qualified"  |
|              |                          | to be ENs and have been    |
|              |                          | deemed to have met the     |
|              |                          | liability insurance        |
|              |                          | requirements in the EN     |
|              |                          | Request for Proposal. To   |
|              |                          | become an EN, such         |
|              |                          | entities need only         |
|              |                          | complete and submit to SSA |
|              |                          | a 12-page portion of the   |
|              |                          | RFP found in Part III\--EN |
|              |                          | Proposal Documentation     |
|              |                          | Requirements. This         |
|              |                          | completed                  |
|              |                          | documentation constitutes  |
|              |                          | their EN contract          |
|              |                          | proposal.                  |
+--------------+--------------------------+----------------------------+