SSR 80-18: Rescinded 1982

SSR 80-18

PURPOSE:

To clarify supplemental security income (SSI) policy with respect to (1)

Veterans Administration (VA) payments made to SSI eligibles where VA

augments the payments because the recipient has dependents, and (2) VA

payments made to fiduciaries.

CITATIONS (AUTHORITY):

Section 1612(a)(2)(B) of the Social Security Act; Regulations No. 16,

sections 416.1102(a), 416.1120, and 416.1130(d), 38 U.S.C. Veterans

Benefits.

PERTINENT HISTORY:

(1) The current Social Security Administration (SSA) policy provides that

the total amount of VA disability compensation or pension benefits

received by an eligible individual is unearned income to that individual

(and is a resource if held to the next quarter). The income or resource is

used in determining eligibility and amount of benefits under the SSI

program. This policy applies to the designated beneficiary (person to whom

the check is actually made payable and thus who may negotiate the check)

even when the amount of the check has been augmented because of the

beneficiary's dependents. Under VA law a veteran or a widow may receive an

increased amount if there is a dependent.

There have been challenges in the courts on SSA's policy of counting the

additional (augmented) payments to the VA beneficiary as income to him or

her when they are paid to the designated beneficiary. However, the Veteran

Administration's legal counsel interprets VA law to mean (in summary) that

additional amounts of benefits which are payable by reason the designated

beneficiary's having dependents do not vest entitlement in such

dependents. Thus, under the VA law as interpreted by that agency, only the

designated beneficiary has the right to the augmented portion of the VA

compensation or pension payment. Moreover, the beneficiary may use the

payment as he or she chooses. The dependent has no (vested) right to any

portion of the augmented payment. Therefore, a change of policy on the

part of SSA would be inconsistent with the law.

nder the VA law as interpreted by that agency, only the

designated beneficiary has the right to the augmented portion of the VA

compensation or pension payment. Moreover, the beneficiary may use the

payment as he or she chooses. The dependent has no (vested) right to any

portion of the augmented payment. Therefore, a change of policy on the

part of SSA would be inconsistent with the law.

(2) Benefits which are paid to an individual as a fiduciary (a party who

receives and manages the benefits for another) are not available for the

fiduciary's own use and, therefore, are not counted as unearned income of

the fiduciary in the quarter of receipt or as a resource thereafter for

the purpose of determining the fiduciary's eligibility for or amount of

SSI benefits.

There are situations where a person may be receiving VA benefits as a

beneficiary and also as a fiduciary for another person(s). For example, A

World War II disabled veteran in receipt of his own VA compensation may

also be in receipt of VA benefits in a separate check as a fiduciary on

behalf of his incompetent Vietnam veteran son; a widow in receipt of her

own VA pension may also be in receipt of VA benefits in a separate check

as a fiduciary on behalf of her grandchild; or that the child of a

deceased veteran may be in receipt of dependents' educational assistance,

and also in receipt of dependents' educational assistance, and also in

receipt of dependents' indemnity compensation as a fiduciary on behalf of

his or her brother or sister.

POLICY STATEMENT:

(1) VA payments, including those augmented portions which are payable

because of dependents, are income to the designated beneficiary for the

purposes of determining eligibility and payment amount under the SSI

program.

ependents' educational assistance, and also in

receipt of dependents' indemnity compensation as a fiduciary on behalf of

his or her brother or sister.

POLICY STATEMENT:

(1) VA payments, including those augmented portions which are payable

because of dependents, are income to the designated beneficiary for the

purposes of determining eligibility and payment amount under the SSI

program.

(2) Payments made by the VA to an individual in his or her capacity as

fiduciary for another are not income or resources to the fiduciary for the

purposes of determining eligibility and payment amount under the SSI

program. For SSI purposes, such VA payments are income or resources of the

individual for whom the VA payments are made.

DOCUMENTATION:

Appointment of a fiduciary and the amounts being paid must be documented.

When a person is receiving payment as a fiduciary the check legend will

show the name of the fiduciary followed by a phrase which indicates the

fiduciary's relationship. The most common phrases are "wife of," "guardian

of," and "custodian of the child(ren) of." Other documentation may include

a VA award letter which shows the same name and phraseology cited above or

a copy of VA Form 27-4703, Fiduciary Agreement. The Veterans

Administration issues separate checks for any benefits to which a payee is

eligible in his or her own right.

CROSS-REFERENCES:

Claims Manual section 12304.A-12304.B; E12343.B.4.b.