Disabled Adult Child Benefits in New Hampshire: DAC, SSI, and the Fairness Act

What DAC Benefits Are

Disabled Adult Child benefits — also called Childhood Disability Benefits (CDB) — are Social Security payments based on a parent's work record. They're available to adults whose disability began before age 22 and whose parent is retired and collecting Social Security, disabled and receiving SSDI, or deceased.

The payment amount depends on the parent's benefit:

• 50% of the parent's monthly benefit if the parent is retired or disabled
• 75% of the parent's monthly benefit if the parent is deceased

For many families, DAC payments are significantly larger than the SSI federal benefit rate of $994 per month. A parent with an average-to-high earnings record could generate DAC payments of $1,200 to $1,800 or more per month for their disabled adult child.

Three Eligibility Requirements

1. The individual must be at least 18 years old
2. The disability must have begun before age 22 — the medical evidence needs to document onset before that birthday, though the diagnosis itself can come later
3. At least one parent must be receiving Social Security retirement or disability benefits, or be deceased with sufficient work credits

The disability standard is the same adult SGA test used for SSDI: the individual must be unable to perform Substantial Gainful Activity. If they're already receiving SSI based on disability, the medical evidence is typically sufficient for DAC as well.

The SSI Offset: When DAC Replaces SSI

DAC benefits count as unearned income for SSI purposes. Because DAC payments are usually larger than the SSI benefit, receiving a DAC payment often pushes the individual over the SSI income limit, ending their SSI cash payments.

The math works like this: SSI reduces dollar-for-dollar after the first $20 general income exclusion. If the DAC payment is $1,200 per month, countable unearned income is $1,180 ($1,200 minus $20). Since the 2026 FBR is $994, the SSI payment drops to zero — the DAC income alone exceeds the maximum SSI benefit.

This isn't necessarily bad. The individual is receiving more total income from DAC than they would from SSI. But the loss of SSI status can threaten Medicaid coverage, which is where the next protection comes in.

Section 1634(c): The Medicaid Shield

Federal law under 42 U.S.C. § 1383c(c) protects individuals who lose SSI solely because of a DAC benefit. Under this statute, the state Medicaid agency must treat the individual as if they were still receiving SSI for Medicaid purposes.

The key word is "solely." If the individual lost SSI for any other reason — excess resources, a change in living arrangement, or a failed medical review — Section 1634(c) doesn't apply.

In New Hampshire, this protection is especially important because the state is a 209(b) jurisdiction. SSI loss doesn't just end automatic Medicaid in NH — there was never automatic Medicaid to begin with. Families need to proactively contact the local DHHS District Office with the SSI cessation notice and the DAC award letter to request transfer to the "Protected DAC" Medicaid category.

NH DHHS caseworkers aren't always familiar with Section 1634(c) rules. Families who receive a Medicaid termination notice after starting DAC benefits should immediately request a fair hearing and cite the federal protection. A Community Work Incentives Coordinator at Granite State Independent Living (GSIL) can help navigate this.

The Social Security Fairness Act: WEP and GPO Are Repealed

Before January 2025, families with a public-sector parent could face a painful reduction. If the parent worked in a position covered by the New Hampshire Retirement System (public school teachers, police officers, municipal workers), the Windfall Elimination Provision and Government Pension Offset were still in force and could affect Social Security benefit calculations.

The Social Security Fairness Act, signed January 5, 2025, completely repealed both WEP and GPO for all benefits payable after December 2023. The SSA cannot reduce Title II benefits based on a non-covered public pension.

For New Hampshire families, this is significant. The state's public employee retirement system covers a large workforce — teachers, firefighters, state employees. Parents whose benefits were previously affected by WEP or GPO should verify SSA's adjustment and any retroactive payment; families should ask SSA to review the disabled adult child's DAC eligibility using the corrected record.

SSA's implementation is complete, but previously-offset beneficiaries should verify their adjustment and any retroactive payment back to January 2024. Families who never applied for DAC benefits because they believed the WEP/GPO rules made them unavailable should file a new claim — those earlier assumptions no longer apply.

Planning the DAC Transition

The timing of a parent's retirement directly affects when DAC benefits begin. Families should plan this transition in coordination with the young adult's overall benefits picture:

• Before the parent retires, confirm that the young adult's disability records document onset before age 22
• File the DAC application at the SSA office when the parent files for retirement
• Contact DHHS immediately after the DAC award to establish Protected DAC Medicaid status
• Consult a benefits counselor at GSIL to model the SSI-to-DAC income shift and ensure no benefit is accidentally disrupted

The New Hampshire SSI at 18 & Adult Disability Benefits Guide includes a Benefits Coordination Worksheet that models the SSI-to-DAC transition across multiple scenarios, including the Medicaid pathway decision when SSI ends.

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