# SSR 78-5: SSR 78-5: TREATMENT UNDER THE SUPPLEMENTAL SECURITY INCOME (SSI) PROGRAM OF REISSUED TITLE II BENEFITS WHEN PAYEES ARE CHANGED

> Federal · Rulings · In force

URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_5

## Section

- **Citation:** SSR 78-5
- **Heading:** SSR 78-5: TREATMENT UNDER THE SUPPLEMENTAL SECURITY INCOME (SSI) PROGRAM OF REISSUED TITLE II BENEFITS WHEN PAYEES ARE CHANGED
- **Jurisdiction:** Federal
- **Kind:** Rulings
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Social Security Rulings / SSI / Income / SSR 78-5

## Text

(PPD-11)

SSR 78-5

PURPOSE: To revise current policy concerning the treatment of
conserved title II funds when such funds are returned to the Social
Security Administration (SSA) for reissuance to a payee for, or directly
to a individual (or couple) eligible for SSI payments.

CITATIONS (AUTHORITY): Section 205(j), 1612 and 1613 of the Social
Security Act, as amended; Regulations No. 4, Section 404.1610, Regulations
No. 16, Sections 416.601, 416.680, 416.1105, 416.1180, and 416.1201.

PERTINENT HISTORY: Previously conserved title II funds, which were
returned to SSA when the payee changed, had been counted as unearned
income (in the quarter of reissuance) when reissued to the new payee or
directly to the SSI beneficiary. However, this policy of counting the
reissued conserved funds as income resulted occasionally in the same funds
being counted as income on two different occasions, and the persons
eligibility for SSI payments was affected when there actually was no
change in the amount of income. This policy was based on the definition of
income as found in section 416.1102(a) of the regulations. Income is
defined as the receipt by an individual (or couple) of any property or
service which can be applied directly or by sale or conversion to meeting
his needs for food, clothing, or shelter. Conserved funds directly
transferred from the previous payee to a new payee are presently treated
and will continue to be treated as a resource for title XVI purposes.
02(a) of the regulations. Income is
defined as the receipt by an individual (or couple) of any property or
service which can be applied directly or by sale or conversion to meeting
his needs for food, clothing, or shelter. Conserved funds directly
transferred from the previous payee to a new payee are presently treated
and will continue to be treated as a resource for title XVI purposes.

POLICY DIRECTIVE STATEMENT: This revision of policy applies only
to those conserved title II funds that have been returned to SSA for
reissuance to a new payee or to an eligible individual (or couple). Those
conserved title II funds returned to SSA for reissuance will continue to
count as a resource to the individual (or couple) under title XVI of the
Social Security Act. Such funds will not be counted as income when
reissued to a new payee or directly to the eligible individual (or couple)
provided such conserved funds were previously considered as income or a
resource in determining eligibility for, or the amount of the eligible
person's payment under title XVI. For the conserved title II funds to
continue their status as a resource upon reissuance to a new payee, or to
the individual (or couple), the funds must have been previously considered
under the title XVI provisions as either income or as resources in
determining the beneficiary's eligibility for, or the amount of, payment
under the SSI program.
igible
person's payment under title XVI. For the conserved title II funds to
continue their status as a resource upon reissuance to a new payee, or to
the individual (or couple), the funds must have been previously considered
under the title XVI provisions as either income or as resources in
determining the beneficiary's eligibility for, or the amount of, payment
under the SSI program.

In some situations, checks issued to a new payee or directly to the
eligible individual (or couple) may include title II funds which were not
previously used in determination of eligibility and computations under
title XVI. This could have occurred where retroactive disability benefits
were never previously issued (and thus never counted as income or
resources) pending an initial or reconsideration determination that a
disability exists. In determining payment amounts, funds not previously
counted must be included as unearned income in the quarter of issuance
when they are issued for the first time for or to the eligible
person(s).

DOCUMENTATION: SSA records that previously issued title II funds
being reissued do not include funds which were not previously "counted" as
income or resources in determination and payment computations under title
XVI.

FURTHER INFORMATION: In those cases where title II payments are
suspended pending development of a new payee, title XVI payments are
continued to the individual (or couple) if at all practicable. In the
computation of title XVI payments during the period of suspension, the
amount of the suspended title II checks will not be counted as (unearned)
income.

## Nearby sections

- [SSR 75-33 SSR 75-33: Rescinded 1981](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_75_33.md)
- [SSR 76-18 SSR 76-18: SECTIONS 1611(a)(1) and 1612(a) and (b) (42 U.S.C. 1382(a)(1), and 1382a(a)and (b)) -- SUPPLEMENTAL SECURITY INCOME -- UNEARNED INCOME -- SERVICE ALLOTMENTS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_76_18.md)
- [SSR 77-21 SSR 77-21: Rescinded 1977](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_77_21.md)
- [SSR 77-30 SSR 77-30: Rescinded 1980](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_77_30.md)
- [SSR 78-4 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](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_4.md)
- [SSR 78-5 SSR 78-5: TREATMENT UNDER THE SUPPLEMENTAL SECURITY INCOME (SSI) PROGRAM OF REISSUED TITLE II BENEFITS WHEN PAYEES ARE CHANGED](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_5.md)
- [SSR 78-13 SSR 78-13: Rescinded 1986](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_13.md)
- [SSR 78-17 SSR 78-17: EXCLUSION OF HOUSING ASSISTANCE PAYMENTS FROM INCOME AND RESOURCES FOR SUPPLEMENTAL SECURITY INCOME PURPOSES](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_17.md)
- [SSR 78-18 SSR 78-18: Rescinded 1981](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_18.md)
- [SSR 78-23 SSR 78-23: Rescinded 1981](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_23.md)
- [SSR 78-26 SSR 78-26: Superseded 1992](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_26.md)
- [SSR 78-33 SSR 78-33: SUPPLEMENTAL SECURITY INCOME COUNTING OF SUPPORT AND MAINTENANCE PROVIDED IN CERTAIN PRIVATE NONPROFIT INSTITUTIONS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_33.md)
- [SSR 79-7 SSR 79-7: TITLE XVI: ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME (SSI) PAYMENTS FOR ONE MEMBER OF A COUPLE PREVIOUSLY DECLARED INELIGIBLE DUE TO EXCESS INCOME](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_79_7.md)
- [SSR 79-10 SSR 79-10: TITLE XVI: EXCLUSION FROM INCOME OF ASSISTANCE BASED ON NEED FURNISHED BY ANY STATE OR POLITICAL SUBDIVISION](https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_79_10.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_78_5. Check the current official text before relying on it. Not legal advice.