PERC is a work incentive that lets you earn money without losing SSDI benefits

PERC stands for Plan to Achieve Self-Support Exclusion and Reinstatement of Coverage. It is a work incentive program run by Social Security that allows you to set aside income and resources for a specific period without those amounts counting against your SSDI benefit or your continuing may be able to access. The goal is to let you work toward a goal — like starting a business, getting training, or saving for education — without the usual income limits that would otherwise reduce or stop your benefits.

PERC works by letting you exclude certain income and resources from the calculations Social Security uses to decide if you still may have access to for SSDI. Normally, if you earn above the Substantial Gainful Activity (SGA) limit — which changes each year — Social Security will stop your benefits. PERC gives you a window of time, usually up to 60 months, to work and save without triggering that cutoff, as long as you are working toward a documented goal.

This is different from other work incentives like the Trial Work Period, which lets you test work for nine months without any benefit reduction. PERC is for people who want to work longer and build toward something specific while keeping their SSDI payments intact during that time.

Key Takeaways

  • PERC lets you set aside income and resources for up to 60 months without those amounts counting against your SSDI may be able to access or payment amount.
  • You must have a documented work goal — such as starting a business, completing education, or obtaining training — before Social Security will approve a PERC plan.
  • The income and resources you set aside must be directly related to achieving your stated goal and must be tracked in writing as part of your PERC agreement.
  • You report your PERC plan to Social Security in writing, and Social Security reviews it to confirm the goal is realistic and the timeline is reasonable.
  • If you stop working or abandon your goal before the PERC period ends, your benefits may be reduced or stopped based on your actual income at that time.

How PERC differs from other work incentives

Social Security offers several work incentives, and PERC is one of the longest-running and most flexible. The Trial Work Period (TWP) lets you work for nine months in a row without any reduction to your SSDI check, regardless of how much you earn. After the TWP ends, Social Security looks at your earnings to decide if you are still disabled. PERC does not replace the TWP — you can use both — but PERC extends the window in which you can work and earn without losing benefits.

The Extended may be able to access Period (EPE) comes after your TWP ends. During EPE, which lasts 36 months, you keep your SSDI benefits for any month your earnings fall below the SGA limit, even if you earned above it in other months. PERC is different because it lets you exclude specific income and resources entirely, rather than just checking your earnings month by month.

PERC also differs from Impairment Related Work Expenses (IRWE), which lets you deduct the cost of items or services you need because of your disability — such as medical equipment, transportation, or attendant care — from your countable income. IRWE reduces the income number Social Security sees; PERC sets aside income and resources for a goal-related purpose.

What counts as a valid PERC goal

Your PERC goal must be specific, measurable, and achievable within the timeframe you propose. Social Security will not approve a PERC plan for a vague goal like "get better at my job" or "earn more money." Instead, your goal should describe what you will do, how long it will take, and how the income or resources you are setting aside will help you reach it.

Common PERC goals include starting a business, completing a degree or certificate program, obtaining professional licensing, purchasing equipment or tools needed for self-employment, or paying for training in a specific field. The goal must be related to work or self-support — Social Security will not approve PERC for goals like buying a house, paying off debt, or saving for retirement, unless those goals are directly tied to your ability to work.

You will need to describe your goal in writing and explain how the income or resources you plan to set aside will help you achieve it. If you are working with a vocational rehabilitation counselor or a work incentive planning and information (WIPA) project, they can help you write a goal statement that Social Security will understand and approve.

How to set up a PERC plan with Social Security

Start by contacting your local Social Security office or calling 1-800-772-1213 to ask about PERC. Tell the representative that you want to set up a Plan to Achieve Self-Support and that you have a work goal in mind. Social Security will send you a form or schedule an appointment to discuss your plan in detail.

Before you meet with Social Security, write down your goal, the timeline you expect (in months or years), and the income or resources you plan to set aside. Bring documentation of your goal if you have it — such as a business plan, a letter of admission to a training program, or a contract with a client if you are planning self-employment. The more specific and documented your goal, the faster Social Security can review and approve your plan.

Social Security will review your plan to make sure the goal is realistic, the timeline is reasonable, and the income or resources you want to exclude are actually related to the goal. Once approved, you will receive a written PERC agreement that spells out the goal, the exclusion period, and what income and resources are being set aside. Keep a copy for your records and refer to it when you report your earnings to Social Security.

Income and resources that can be excluded under PERC

Under PERC, you can exclude income that you earn and set aside specifically for your work goal. For example, if your goal is to start a business and you are saving money to buy equipment, the income you earn and set aside for that equipment purchase can be excluded from Social Security's income calculation. The income must actually be set aside — meaning you do not spend it on other things — and it must be documented.

You can also exclude resources (money, property, or items you own) that are directly related to your goal. If you are saving to buy a vehicle for your business, the money in a separate savings account for that vehicle can be excluded from the resource limit. If you already own equipment or tools needed for your goal, those items may also be excluded from your resource count, depending on their value and how they relate to your plan.

The exclusion applies only to the income and resources you have actually set aside for the goal. If you earn $2,000 a month and set aside $1,000 for your business equipment fund, only that $1,000 is excluded; the other $1,000 counts as income for SSDI purposes. This is why tracking and documentation are important — Social Security will ask to see proof that the money was set aside and used for the stated goal.

What happens when your PERC period ends

Your PERC exclusion period has a time limit, usually up to 60 months (five years), though Social Security may approve a shorter or longer period depending on your goal. When the PERC period ends, Social Security will stop excluding the income and resources you set aside. At that point, your SSDI benefits will be reviewed based on your actual earnings and resources.

If you have successfully achieved your goal and are now earning enough to support yourself, your SSDI benefits may stop because you are no longer considered disabled or because your earnings are too high. If you have not yet achieved your goal but the PERC period has ended, your benefits will be calculated based on your current earnings and resources, which may result in a reduction or termination of benefits.

If you stop working or abandon your goal before the PERC period ends, you can request that Social Security end your PERC plan early. At that point, your benefits will be recalculated based on your actual income and resources at that time. This is why it is important to stay in touch with Social Security and report changes in your work status or your ability to continue working toward your goal.

Reporting requirements while on PERC

While your PERC plan is active, you must continue to report your earnings to Social Security, just as you would without PERC. You will report your gross earnings (before taxes), and Social Security will explore the PERC exclusion to the portion of income you set aside for your goal. You will also need to report any changes to your work situation, such as a change in job, a change in earnings, or a change in your goal.

Social Security may ask you to provide documentation showing that the income you set aside was actually used for your goal. Keep receipts, bank statements, and records of purchases related to your goal. If you are using the money for training or education, keep enrollment letters and tuition statements. If you are using it for equipment or tools, keep purchase receipts and invoices.

You should also report any changes to your disability status or your medical condition. PERC does not change the fact that you must still be disabled to receive SSDI. If your condition improves significantly or if you are able to work at a level that Social Security considers substantial gainful activity, your benefits may be affected regardless of your PERC plan.

When PERC may not be the right choice

PERC requires planning, documentation, and ongoing communication with Social Security. If you are not ready to commit to a specific, documented goal, or if you do not want to track and report your income and resources carefully, PERC may create more work than it is worth. In that case, the Trial Work Period or Extended may be able to access Period might be a simpler option.

PERC is also not useful if your goal is very short-term or very long-term. If you plan to achieve your goal in a few months, the Trial Work Period may be sufficient. If your goal will take more than five years and you cannot get an extension approved, PERC will not help you. Talk to a work incentive planning counselor or your local WIPA project to figure out which work incentive makes the most sense for your situation.

Frequently Asked Questions

Can I use PERC if I am already in my Trial Work Period?

Yes. You can use both PERC and the Trial Work Period at the same time. The TWP lets you work for nine months without any benefit reduction, and PERC lets you set aside income for a goal during a longer period. Many people use the TWP first to test their ability to work, then move into PERC to work toward a specific goal.

What if my goal changes while I am on PERC?

You can request to modify your PERC plan if your goal changes. Contact Social Security and explain the new goal. Social Security will review the change to make sure the new goal is still realistic and work-related. If the change is significant, Social Security may restart your PERC timeline or deny the modification, so it is best to discuss any changes as soon as you realize your goal is shifting.

Does PERC affect my Medicare or Medicaid?

PERC does not directly affect Medicare, which is based on your SSDI may be able to access. However, if your PERC plan leads to higher earnings that eventually stop your SSDI benefits, you may lose Medicare coverage. Medicaid rules vary by state, so contact your state Medicaid office or your local WIPA project to understand how PERC might affect your Medicaid coverage.

Can I get PERC if I have already been working for a while?

Yes. You do not have to be newly disabled or newly working to use PERC. If you are currently working and have a specific goal you want to work toward, you can set up a PERC plan at any time. Social Security will review your current earnings and resources as part of the approval process.

What if Social Security denies my PERC plan?

If Social Security denies your PERC request, you have the right to appeal. Ask Social Security to explain why the plan was denied — common reasons include a goal that is not specific enough, a timeline that seems unrealistic, or income and resources that do not clearly relate to the goal. You can revise your plan and resubmit it, or you can request a hearing before an administrative law judge.