Title II Retirement, Survivor’s, Disability Insurance (RSDI)

Title II is an entitlement program financed with Social Security taxes paid by workers, employers, and self employed persons. RSDI stands for Retirement, Survivors, and Disability Insurance and is an acronym for the three of the types of benefits that SSA pays. These are earned benefits and the rates are determined by the wage earner’s work history are not affected by any other income, including federal funds such as AFDC-FC or SSI.

Foster children are entitled to benefits when they have a parent who is receiving RSDI or a parent is deceased that has earned enough income (determined by SSA) to allow payment of survivor’s benefits. Eligible beneficiaries are the wage earner’s biological children, adopted children, or dependent step-children.

Once a child qualifies for RSDI benefits, eligibility continues until 18 or until 19 years if still in high school. When the child is approaching 18, SSA will send a notice three months before the youth turns 18 years advising the benefits discontinuance date. If the youth is still in high school on or after their 18th birthday, the SWC must provide a certified statement of attendance from the youth’s school providing an expected graduation date. Benefits may be continued if the youth is disabled as long as the disability was determined before the age of 22.

Disabled Adult Child (DAC)

SSA will pay benefits to adults based on the parent’s RSDI eligibility. The disability must have been documented before the youth turned 22. When the youth in receipt of RSDI benefits approaching 18 years old with a disability, an application for DAC must be completed. This includes NMDs.

SSA considers this a “child’s” benefit because it is paid based on a parent’s SSA earnings record. The NMD may have received RSDI benefits prior to 18 but it is not a requirement for DAC benefits. When an NMD is eligible for DAC benefits, the benefits will continue as long as they remain disabled (there is no age limit). A person receiving DAC benefits may also receive SSI when the DAC benefits are less than the SSI rate.

 

Note: Youth are eligible for DAC benefits at 18 years or older even when they are not dependents of the court.

Rates

RSDI benefits rates are determined based on the earnings of the disabled, retired or deceased parent(s). The rates are calculated by SSA.

Income and Resource Limits

There is no income limit determined by SSA for children placed into FC to receive RSDI benefits, however, the resource limit for a child placed in FC is $10,000. If the child’s RSDI benefits exceeds the FC rate, there is no eligibility for the AFDC-FC funding, however, a county only funded case may be established (Income in Excess of the Placement). If the child has resources in excess of $10,000 (normally the result of retroactive RSDI benefits) a blocked account must be established (Maintenance of Benefits).

It must be noted that when a child or youth is eligible for both SSA and SSI benefits, the resource limit is based on the SSI limits of $2,000. The SWC is responsible for reviewing the accounts to ensure the resources does not exceed the limits and establishing blocked accounts.

RSDI Applications

When it is discovered by the SW/PO or FC EW that one of the following occurs, the SW/PO or FC EW must notify the SWC to apply for benefits or complete an application to become the ARP:

  • A court dependent child or youth is receiving RSDI benefits not payable to SCCSSA,
  • The parent/s are currently receiving RSDI benefits, or
  • One or both parents are deceased and the child is not receiving benefits on behalf of the deceased parent.

SSA applications are submitted on-line at the www.ssa.gov after the SWC receives and reviews the completed documents submitted by the SW/PO. Hard copies of the application and the supporting documents are sent to SSA.

Related Topics

Social Security Administration Benefits