SSA ISSUES FAVORABLE NEW REGS

SSA has issued new regulations that incorporate improvements to the Supplemental Security Income (SSI) program required by the HEART Act (Heroes Earnings Assistance and Relief Tax Act of 2008). The HEART Act changes, in a positive manner, the way SSA treats certain cash payments to members of the uniformed services and veterans and cash and in-kind payments to AmeriCorps volunteers.

These include:

State Annuities for Blind, Aged, or Disabled Veterans

Before the HEART Act, SSA counted State annuity payments as income in the

month received, and as a resource if retained into the following month. SSA

is revising sections 416.1124 (Unearned income not counted) and 416.1210

(Exclusions from resources; general) to reflect section 202 of the HEART Act

and exclude, for SSI eligibility and benefit determinations, annuity

payments that a State pays to a person (or his or her spouse) because the

State has determined that the person is: A veteran; and Blind, disabled, or aged.

Under section 202 of the HEART Act, SSA excludes these payments from income

for the month received and from resources beginning with the month after the

month received.

AmeriCorps State and National and AmeriCorps NCCC Payments

Prior to the HEART Act, SSA treated cash or in-kind payments from the

AmeriCorps State and National and AmeriCorps NCCC programs as countable

income. SSA is revising sections 416.1112 (Earned income not counted) and

416.1124 (Unearned income not counted) to reflect section 203 of the HEART

Act. For SSI eligibility and benefit determinations, SSA will exclude from

countable income any cash or in-kind payments to program participants or on

the AmeriCorps participants behalf. Such payments may include, but are not

limited to: Food and shelter, stipends, living allowance payments, clothing

allowances, educational awards, and payments in lieu of educational awards.

These welcome regulations became effective on September 7, 2010

Any questions may be directed to: rsi5@srt.com