If the Social Security Administration is successful in pushing through a proposed change in how benefits are calculated, SSI recipients may soon receive larger monthly payouts.
The proposed regulation, which was published earlier this month in the Federal Register, would exclude food from the computation of in-kind support and maintenance (ISM), which is unearned income in the form of food and/or shelter.
Who Qualifies For The Proposed Rule?
The plan eliminates the requirement for SSI applicants and beneficiaries to disclose information about their food expenses for the agency to consider in its ISM calculations.
According to the SSA, SSI benefits are now cut by one-third if an individual or couple lives in another person’s home and receives food and shelter assistance from that person.
Adults and children with disabilities or blindness and resources below certain budgetary thresholds are eligible for SSI benefits. SSI benefits are also granted to adults over the age of 65 who meet the income requirements, even if they are not disabled.
In-kind support and maintenance is provided to an SSI applicant or recipient when food, housing, or both are provided, such as when someone pays for rent, mortgage, food, or utilities. For instance, if an applicant or beneficiary stays with their sibling and does not pay rent, the SSA will classify the shelter as ISM.
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Why Social Security Agency Urges To Change Rule?
If you’re looking for a unique opportunity knocking on the horizon. One is to simplify its policy in order to improve the application, adjudication, compliance, and understanding of its rules.
The other goal is to “promote equity by not disadvantaging an already vulnerable population” when they receive food aid.
According to the SSA, around 7.3 million people will be receiving SSI in January 2022. According to SSA internal data, the agency cut the payments of approximately 793,000 SSI recipients due to ISM during the same month.
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