U n i t e d S t a t e s G o v e r n m e n t

MEMORANDUM

FORM G-U5f(l-92)

R a i l r o a d R e t i r e m e n t B o a r d

TO

FROM

SUBJECT : Ticket to Work and Work Incentives Improvement Act of 1999

Public Law 106-170

In a memorandum dated July 19,1999, we provided the Board an analysis of two 

bills (S. 331 and H.R. 1180) entitled the Work Incentives Improvement Act of 1999. 

The purpose of each bill was to amend the Social Security Act to add incentives 

to encourage social security disability beneficiaries to return to work. H.R. 1180 

was signed by the President on December 17,1999, as Public Law 106-170.

The prime purpose of Public Law (P. L.) 106-170 is to expand the availability of 

health care coverage for working individuals with disabilities and to establish a 

“Ticket to Work and Self-Sufficiency Program” in the Social Security 

Administration to provide such disabled individuals with meaningful 

opportunities to work. P. L. 106-170 does not include disability beneficiaries 

under the Railroad Retirement Act. However, as explained in the following 

discussion, our review of the legislation indicates that it may affect railroad 

retirement disability annuitants who have been certified by the Board to be 

eligible for Medicare benefits.

P. L. 106-170 consists of 5 titles. Title I contains “Ticket to Work” and selfsufficiency provisions. Title II deals with expanded availability of health care 

services. Title III covers demonstration projects and studies, Title TV sets out 

miscellaneous and technical amendments, and Title V contains the Tax Relief 

Extension Act of 1999.1

1 P. L. 106-170 includes amendments which will affect recipients of Supplemental

Security Income and Medicaid. Those provisions and the provisions of the Tax Relief

Extension Act of 1999 set out in Title V of the legislation are not discussed in the text of this

memorandum.

The Board

Steven A Bartholow 

General Counsel

FOR BOARD INFORMATION 

L-2000-7

FEB 0 92000
Section 101 of P. L. 106-170 directs the Commissioner of Social Security to 

establish a “Ticket to Work and Self-Sufficiency Program” under Title XI of the 

Social Security Act. Each eligible social security disability insurance (SSDI) 

beneficiary would receive a “ticket” which could be used to obtain employment 

services, vocational rehabilitation services, and other support services from a 

participating “Employment Network” of his or her choice. The purpose of this 

program is to enable an SSDI beneficiary to enter the workforce. “Employment 

Networks” would have to consist of a single public or private provider or an 

association of providers combined into a single entity which assumes 

responsibility for the coordination and delivery of services. Employment 

networks would have to have experience providing relevant employment services 

and support for individuals with disabilities and would have to provide an array 

of such services under the program. Employment networks and beneficiaries 

would have to develop an individual employment plan so that the beneficiary can 

exercise informed choice in selecting an employment goal and specific services 

needed to achieve that goal. Employment networks would prepare and provide 

periodic performance reports to beneficiaries holding a ticket and would make the 

reports available to the public. The Commissioner would have to provide periodic 

quality assurance reviews of employment networks and would have to establish 

a method for resolving disputes between beneficiaries and employment networks.

The Legislation provides that payments to employment networks, including State 

agencies that elect to participate in the Ticket to Work and Self-Sufficiency 

Program (hereafter the Ticket to Work Program), shall be made from the Federal 

Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance 

Trust Fund, as appropriate, in the case of SSDI beneficiaries who return to work. 

P. L. 106-170 provides for the gradual implementation of this provision with full 

implementation within 3 years after enactment. The Section also provides for 

ongoing evaluation of the program with reports following the close of the third and 

fifth fiscal years ending after the effective date of the legislation and prior to the 

close of the seventh fiscal year ending after that date.

Section 101(f) of the legislation establishes a Work Incentives Advisory Panel to 

advise the President, Congress, and the Commissioner of Social Security on issues 

related to work incentives programs, planning, and assistance for individuals with 

disabilities, including work incentive provisions of the Social Security Act. The 

Panel is to submit interim reports and a final report not later than 8 years after the 

date of enactment. The Panel terminates 30 days after the submission of its final 

report.
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Section 111 of P. L. 106-170 amends section 221 of the Social Security Act to 

change the criteria for determining when a continuing disability review (CDR) 

would be conducted due to work activity by an SSDI beneficiary. The purpose of 

a CDR is to determine whether an individual remains disabled and thus eligible 

for continued benefits. Under present law, a CDR may be triggered by evidence 

of recovery from disability, including a return to work. In addition, the Social 

Security Administration is required to conduct periodic CDR’s every 3 years for 

any beneficiary who is determined to be non-permanently disabled and at times 

determined by the Commissioner for beneficiaries with a permanent disability. 

Section 111 of P. L. 106-170 provides that the a CDR for long-term SSDI 

beneficiaries, i.e., individuals who have been receiving disability benefits for at 

least 24 months, may not be scheduled based solely on work activity. In addition, 

section 111 provides that no work activity may be used as evidence that the 

individual is no longer disabled and no cessation of work activity may give rise to 

the presumption that the individual is unable to engage in work. CDR’s for such 

individuals may only be based on periodic reviews that are not triggered by work. 

Section 111 also provides that cash benefits may be terminated when an

•

 individual exceeds the earnings established to represent substantial gainful 

activity ($700 per month as of July 1, 1999).

The Board conducts continuing disability reviews pursuant to section 2(aX3) of the 

Railroad Retirement Act, which states in part that, “Such satisfactory proof shall 

be made from time to time as prescribed by the Board, of the... continuance of

such disability ” Subpart O of Part 220 of the Board’s regulations sets forth the

standards which the Board applies in conducting continuing disability reviews. 

Although the amendments to the Social Security Act with respect to CDR’s do not 

apply to this agency, the Board could conform its standards for CDR’s to those 

included in P. L. 106-170 by amending its regulations.2

Section 112 of P. L. 106-170 provides for an expedited reinstatement of benefits for 

an SSDI beneficiary whose benefits were terminated due to a return to work. 

Under current law, an individual entitled to SSDI benefits may receive expedited 

reinstatement of benefits following termination of benefits because of work 

activity any time during a 36-month extended period of eligibility (EPE). In other 

words, benefits may be reinstated during an EPE without the need for a new 

application and disability determination so long as reinstatement is being

2The Board has recently approved a proposed rule which would eliminate CDR’s where

no medical improvement is expected. That proposed regulation was published on November 18,

1999 (64 Fed. Reg. 62996).
requested due to the same physical or mental impairment that is the basis for the 

original finding of disability. Section 112 of P. L. 106-170 provides that an 

individual whose entitlement to SSDI benefits has been terminated on the basis 

of work activity may request reinstatement of those benefits without filing a new 

application within the 60-month period following the month of such termination. 

Under the amendment, while the Commissioner is making a determination of a 

reinstatement request, the individual will be eligible for provisional cash benefits, 

for a period of not more than 6 months. The purpose of this provision is to 

encourage SSDI beneficiaries to return to work by providing assurance that 

benefits could be restored in a timely fashion if an individual must discontinue 

employment and continues to meet standards for disability set by the Social 

Security Administration. The new legislation provides that if the Commissioner 

of Social Security makes a favorable determination with respect to a request for 

reinstatement, such individual’s prior entitlement to benefits would be reinstated, 

as would be the prior benefits of his or her dependents who continue to meet the 

entitlement criteria. If the Commissioner makes an unfavorable determination, 

provisional benefits would end, but the provisional benefits already paid would 

not be considered an overpayment.

The Railroad Retirement Act does not contain a provision dealing with 

reinstatement of a disability benefit. The Board has, however, provided for a reentitlement period of 36 months following the end of the annuitant’s trial work 

period in section 220.171 of its regulations. It is our opinion that the Board could 

extend the re-entitlement period currently in section 220.171 to conform it to P. L. 

106-170. However, statutory authority would be needed in order to allow the Board 

to pay provisional benefits for up to 6 months while a request for re-entitlement 

is being processed.

Section 121 of P. L. 106-170 directs the Commissioner of Social Security to 

establish a community-based work incentives outreach program. The law 

provides that the total amount of all grants, cooperative agreements, and contracts 

awarded under this section is limited to $23,000,000 per fiscal year This section 

would not extend to railroad disability annuitants.

Section 122 of P. L. 106-170 authorizes the Commissioner to make grants to 

existing protection and advocacy programs authorized by the States under the 

Developmental Disabilities Assistance and Bill of Rights Act. Services may 

include information and advice about obtaining vocational rehabilitation and 

employment services and advocacy and other services SSDI beneficiaries may 

need to secure or regain gainful employment. Like section 121, this section does 

not apply to the disability program administered by the Board.
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Section 202 of P. L. 106-170 amends section 226 of the Social Security Act (42 

U.S.C. § 426) to extend Medicare Part A coverage for SSDI beneficiaries and 

qualified railroad retirement beneficiaries who continue to work in substantial 

gainful activity beyond a trial work period for 78 months (increased from 24 

months). P. L. 106-170 requires the Comptroller General of the United States to 

submit a report to Congress no later than 5 years after enactment that will 

examine the effectiveness and cost of extending Medicare coverage.

Title III of P. L. 106-170 permanently authorizes the Commissioner of Social 

Security to conduct certain demonstration projects. Title III also provides 

authority for the Commissioner to conduct a demonstration project under which 

payments to SSDI beneficiaries would be reduced $1 for eveiy $2 of beneficiary 

earnings that is above a level to be determined by the Commissioner. Statutory 

authority would be necessary for the Board to conduct a similar project for 

railroad retirement disability annuitants.

Title IV of P. L. 106-170 contains a number of technical amendments, including 

one which would allow members of the clergy to revoke their exemption from 

social security coverage during a 2-year “open season,” one relating to disability 

benefits for drug addicts and alcoholics and one involving the prohibition of 

payment of benefits to prisoners.

cc: Director of Programs

Director of Legislative Affairs

bcc: Ann Alden, Policy & Systems

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