SSR 78-4: SECTIONS 1611(a) and 1612(a) and (b) (42 U.S.C. 1382(a) and 1382a(a) and (b)) SUPPLEMENTAL SECURITY INCOME -- UNEARNED INCOME -- INCOME BASED ON NEED -- VETERAN'S PENSION

20 CFR 416.1130(d), 416.1145(b)(9), and 416.1165

SSR 78-4

The claimant, a disabled individual, meets all factors of eligibility for

Supplemental Security Income. In addition, claimant also receives a

non-service connected disability pension from the Veterans' Administration

(VA) which is based on meeting certain medical criteria and income

limitations. The issue is whether the amount of VA pension constitutes

income subject to the exclusion provided under section 1612(b)(2)(A) of

the Social Security Act and implementing Regulations No. 16, section

416.1165.

Section 1611(a)(1) of the Social Security Act provides that:

Section 1612 of the Social Security Act provides:

* * * * * * *

Section 1612(b) provides:

* * * * * * *

Section 416.1165 of Regulations No. 16 provides:

Claimant's eligibility for Veterans Administration pension was based on

meeting not only medical criteria but also certain annual income

limitations. Accordingly, the VA pension under section 1612(2)(B) of the

Social Security Act is not subject to the exclusion provided under section

1612(b)(2)(A) and section 416.1165 of Regulations No. 16. These provisions

are applicable only to earned or unearned income other than income based

on need. Since claimant's income was considered in determining his

eligibility for the pension it is based on need.