Editor’s note: This commentary is by Miriam Stoll, who is chair of the Vermont Developmental Disabilities Council.
[A]re you an individual with a disability? A family member of a person with a disability? A friend of a person with a disability? Chances are you fit in one – or maybe several — of these categories as nearly 15 percent of Vermonters live with a disability. But did you know that the poverty rate for working age Vermonters with disabilities is more than double the rate for Vermonters without disabilities, (21.2 percent vs. 8.6 percent), one of the widest gaps in the nation?
Why is this? One issue, undeniably, is employment; in 2017 nationally only 29 percent of individuals ages 16 to 64 with disabilities were employed. In Vermont, even among those with disabilities who work full time, average pay is almost $2,000 less than for those without disabilities, and families in which there is a working-age person with a disability have incomes that are 30 percent less than families in which there is not a working-age person with a disability.
But employment status and income are not the only factors that hold many people with disabilities at or close to the poverty line. Another factor is that historically individuals with disabilities have been disincentivized — even penalized – if they save money or acquire assets. In fact, until recently, an individual with a disability who managed to save even $1 more than $2,000 — say to buy a car to get to work, to pay college fees, or to put towards first and last month rent on an apartment — could immediately be disqualified from receiving federal SSI benefits, even if these benefits were their only source of income.
The ability to save and acquire assets, even at a modest level, is integral to being self-sufficient and to setting and reaching many personal goals. The ability to make decisions regarding how to manage and spend personal funds, including the choice to save money in order to provide for one’s future, is empowering and should be open to all. Yet, until recently for many individuals with disabilities savings of any kind were not an option.
This year, however, in Vermont, the situation is changing for the better. In 2014 President Barack Obama signed the Achieving A Better Life Experiences (ABLE) Bill, which authorized states to develop savings plans specifically for individuals with disabilities. Under the leadership of Treasurer Beth Pearce, Vermont has become an early adopter, working jointly with the state of Ohio to create the VermontABLE Program. Thus far more than 200 Vermonters have signed up to save. Here’s why:
• VermontABLE accounts are tax-advantaged investment accounts that function in a similar manner to 529 accounts for students.
• Interest earned is not subject to federal or Vermont state taxes.
• Individuals can contribute annually up to $15,000 (and an additional $17,060 if the funds come from one’s wages), with contributions coming from earnings, gifts, legal settlements or any other monetary sources.
• Assets in the account do not affect eligibility for federal means-tested benefits programs like Medicaid or Social Security Income.
• Money in the account can be spent on basic living expenses, education, transportation, housing, assistive technology, legal and medical expenses, employment support and an array of other uses.
• Accessing funds is easy, either through electronic transfer or the use of a pre-loadable debit card.
To be eligible for a VermontABLE account an individual must be a Vermont resident, have a disability that occurred prior to age 26, and have a qualifying condition (it is not necessary to be currently receiving SSI or SSDI). Go to www.VermontAble.com for more information on how to set up VermontABLE account for yourself or a loved one, family member or friend.
As I consider the statistics and think about the people in my life who are part of the disability community, it is clear there is much work to be done to close the poverty gap. We must build an economy nationwide and right here in Vermont in which ALL community members can work, earn and save. VermontABLE accounts are a step in the right direction.
