	Introduction

The Social Security Administration’s (SSA) Disability Insurance (DI) and Supplemental Security Income (SSI) programs are the two largest federal programs providing cash and medical assistance to people with severe, long-term disabilities, at an annual cost of more than $100 billion. One such provision authorized the plan for achieving self-support (PASS) program as part of the SSI program in 1972. 2.1.) All 4 million DI beneficiaries are potentially eligible for a PASS. Participants Are Largely DI Beneficiaries; Many Gain SSI Eligibility Through PASS Program

The PASS program encompasses primarily DI beneficiaries, who can exclude their DI benefits under a PASS. Among the SSI population, former PASS program participants were more likely than other SSI recipients to have sufficient earnings to reduce their SSI benefits, but few left the rolls as a result of their earnings. However, applicants are not required to use this form. Compliance Monitoring Is Infrequent and Nonstandardized

The periodic reviews SSA requires to determine whether PASS program participants are complying with their plans are infrequent and nonstandardized. Few Penalties Exist for Willful Noncompliance

Guidance to field office staff does not make a distinction between willful noncompliance and noncompliance for other reasons. Conclusions, Matter for Congressional Consideration, and Recommendations

SSA has done a poor job implementing and managing the PASS program. Finally, SSA has not addressed internal control weaknesses that have left the program vulnerable to abuse and undermined program integrity. We recommend that the Commissioner take the following actions, or, if necessary, seek legislation to do the following: clarify the goals of the PASS program; decide whether fees paid to third parties should continue to be disregarded when calculating benefit payment amounts and whether the amount of disregarded fees should be capped; standardize the PASS program, including the application, reporting guidelines on expenditures for compliance reviews, and informational and educational materials for PASS preparers; improve support to field staff, including enhancing their ability to evaluate the feasibility of proposed work goals, and requiring PASSes to incorporate additional data relevant to determining their feasibility, including the applicant’s disability, previous work experience, if any, and education; gather additional management data on PASS program participation and impact, and use these data to evaluate the impact of PASS program participation on employment; and strengthen internal controls by establishing more specific guidelines on acceptable PASS expenditures, developing penalties for willful noncompliance with the PASS program, including a determination of whether subsequent plans are permissible, examining the role of third-party preparers, including their potential financial conflicts of interest, and considering the strength of existing safeguards against abuse when determining the appropriate limits on the length and number of PASSes individual participants may have.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the Social Security Administration's (SSA) Plan for Achieving Self-Support (PASS) Program, focusing on: (1) SSA management of the program and its impact on employment of the disabled; and (2) the program's vulnerability to abuse.

What GAO Found

GAO found that: (1) SSA has poorly implemented and managed the PASS program and has not given its field office staff adequate program guidance, support, or training; (2) the diversity of individual plans' goals and expenditures reflects the diversity of the disability population; (3) the PASS program has grown over the past 5 years as program awareness has increased, and further growth is predicted because millions of Supplemental Security Income (SSI) and Disability Insurance (DI) beneficiaries are eligible; (4) about 40 percent of PASS program participants, who are mainly DI beneficiaries, would not be eligible for SSI benefits if some of their income was not excluded under PASS; (5) the impact of the PASS program cannot be accurately determined because SSA does not have basic data on program participation and has not defined clear program goals; (6) former PASS participants are more likely than other SSI beneficiaries to have earnings that reduce their SSI benefits, but few have left the SSI and DI rolls; (7) PASS participation increases SSI benefit outlays by about $30 million annually; (8) the PASS program is vulnerable to abuse because internal controls are weak, guidelines are vague, applications are not uniform, there is no limit on individuals' participation, compliance monitoring is infrequent and nonstandardized, and few penalties exist for willful noncompliance; and (9) SSA has not addressed the potential financial conflicts of interest caused by professional PASS preparers.