Jun 25, 2021

Work Incentive Experiment Ended

      From an Emergency Message:

... This emergency message (EM) provides notification for field offices (FO), National 800 Number Network (N8NN), and processing service centers (PSC) that the Promoting Opportunity Demonstration (POD) will end for all participating beneficiaries on 06/30/2021. ... 
SSA began recruiting volunteers—who may be SSDI or concurrent beneficiaries—for the POD in January 2018. Recruitment continued through December 2018, resulting in a total enrollment count of 10,070 participants. The random assignment process placed POD participants into one of three groups: two treatment groups and one control group. Treatment group 1 and treatment group 2 members both received the $1 for $2 offset. Treatment group 2 members had their entitlement to benefits terminated if they experienced 12 consecutive months in full offset (that is, when their SSDI benefit is reduced to $0 for 12 consecutive months). Treatment group 1 members would not have their entitlement to benefits terminated even if they experienced 12 consecutive months in full offset. The control group did not receive the $1 for $2 offset. Control group member’s earnings were subject to current SSDI rules. ...

     No word on the results of this experiment although I think we'd have heard more about it if it had been a success. Really, how much success can one expect when you impose a 50% tax on gross earnings in addition to ordinary payroll taxes? There's just not much left for the worker. In any case, I don't think you could design an experiment that would work. You have to be so damned sick to get on Social Security disability benefits that we shouldn't be expecting any significant number of Social Security disability recipients to be returning to sustained work. The experiments are based on the fallacies that it's easy to get on Social Security disability benefits and that many on Social Security disability benefits get better over time.

     I'm not sure how this demonstration relates to the Benefit Offset National Demonstration (BOND).  If I remember correctly that was pretty much the same thing except it was supposed to run for ten years. It won't work either.


1 comment:

Anonymous said...

The Interim Evaluation Report on POD was issued in April

https://www.ssa.gov/disabilityresearch/whatsnew.htm

• POD had no impact on the four primary outcomes (annual earnings, substantive employment, SSDI benefits, and total annual income)—-overall or for any subgroups.
• POD had positive impacts on employment-related activities (for example, job seeking).
• POD had no impact on other secondary health, program, or other outcomes.