Work Without Worry Act (Introduced on June 17, 2021)
If an adult has a severe medical condition that began before age 22, they may be eligible for a Social Security benefit called the Disabled Adult Child (DAC) benefit. This benefit is part of Social Security’s family protections. Even though these individuals are adults due to their life-long disabilities, Social Security considers them to be dependent on their parents. They can become eligible at any age after 18 once their parent begins receiving Social Security benefits or dies. Their benefits are based on their parent’s Social Security contributions and earnings in the same way that benefits of a child under age 18 would be.
Adults who qualify for Social Security DAC benefits have life-long disabilities and often wish to explore their ability to work, particularly as they transition to adult life. Under current law, some of these young adults’ fear that if they try to work, and will lose future DAC benefits. If an individual’s parent is receiving Social Security benefits at the time the individual begins working, the individual will still be eligible for DAC benefits in the future, if needed. If an individual’s parent is not yet receiving Social Security benefits or working above a certain amount can make them ineligible in the future for DAC benefits once their parent retires or begins receiving Social Security.
The Work Without Worry Act aims to alleviate the concerns of young adults with disabilities regarding potential threats to their future financial stability when attempting to work. This legislation promotes financial security by guaranteeing that any previous earnings from employment, regardless of amount, will not disqualify an otherwise eligible individual from receiving a Social Security DAC benefit based on their parent's work record, provided their medical impairment began before age 22. This change is expected to positively impact the lives of nearly 6,000 individuals with disabilities over the next decade. If an individual with a severe medical condition that began before age 22 earns enough to qualify for Social Security based on their own work record, they will receive the larger benefit between their parent's work history and their own. The bill ensures equal treatment for all individuals with severe medical conditions that originated before age 22, regardless of when their parents claim Social Security benefits. The Chief Actuary of the Social Security Administration predicts that this bill will have an insignificant effect on the solvency of the Social Security Trust Funds.