Dear Colleague,
The purpose of this email is to explain what happens when an adult child with an intellectual and developmental disability (IDD), who receives SSI, starts to receive Social Security Disability Insurance (SSDI), calculated on the work record of their mother or father.
Some families and staff are familiar with the term "Section 1634 DAC", and this email will provide information on the DAC process for individuals with IDD. The DAC acronym stands for Disabled Adult Child. Section 1634 is part of the Social Security Act, and it provides a specific definition of a DAC, which is stated in the DAC flyer.The NJ Department of Human Services developed and disseminated the DAC flyer, and it has been updated a couple of times, most recently in 2021.
The DAC process pertains to individuals with IDD who are age 18 and older and receive Supplemental Security Income (SSI) and Medicaid. The Section 1634 DAC process is initiated by the following events for individuals with IDD who have been receiving SSI:
- A parent starts to collect Social Security retirement benefits, or
- A parent becomes disabled and receives Social Security Disability Insurance (SSDI), or
- A parent passes away.
After any of the aforementioned events, and when the Social Security approval process has been completed, the son/daughter with IDD will usually start to receive a substantial amount of SSDI, calculated on the parent's work record. At that time, in most cases, SSI will end and Medicaid will be scheduled to end in four months. The DAC flyer explains the Request for Information (RFI) application process, which is the way to apply for New Jersey FamilyCare/Medicaid for the adult child with IDD. When a parent submits the RFI application promptly, the previous Medicaid should continue without any interruption. The County Board of Social Services (BOSS) will disregard the amount of the SSDI income because of the Section 1634 DAC process. Please note that the individual with IDD cannot have more than $2,000 in resources when applying for NJ FamilyCare/Medicaid as a DAC.
The Arc of New Jersey hopes that this email and the DAC flyer will be widely read and shared, including among the following individuals:
- parents of adult children with IDD for whom this information is applicable;
- staff at the County Boards of Social Services (BOSS);
- employees of the NJ Division of Developmental Disabilities (DDD) and support coordinators who provide assistance for people receiving DDD services;
- advocacy organizations that provide assistance to individuals with IDD; and
- care managers at Medicaid managed care organizations who provide assistance to members who have IDD.
