# SSR 82-31: SSR 82-31: TITLE XVI: SSI TREATMENT OF VETERANS ADMINISTRATION PAYMENTS TO SSI ELIGIBLES/FIDUCIARIES

> Federal · Rulings · In force

URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_82_31

## Section

- **Citation:** SSR 82-31
- **Heading:** SSR 82-31: TITLE XVI: SSI TREATMENT OF VETERANS ADMINISTRATION PAYMENTS TO SSI ELIGIBLES/FIDUCIARIES
- **Jurisdiction:** Federal
- **Kind:** Rulings
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Social Security Rulings / SSI / Income / SSR 82-31

## Text

(PPS-65)

(Supersedes PPS-46 (SSR 80-18))

SSR 82-31

This supersedes Program Policy Statement No. 46 (SSR No. 80-18), Title
XVI: SSI Treatment of Veterans Administration Payments to SSI
Eligibles/Fiduciaries

PURPOSE: To state 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 and 416.1121, 38
U.S.C. Veterans Benefits, Commissioner's Decision dated October 29,
1981.

PERTINENT HISTORY: 1. Social Security Administration (SSA) policy
provides that 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.
Under VA law, a veteran or widow may receive an increased amount if there
is a dependent. Before November 1981, SSA policy provided that the
additional (augmented) portion of a VA benefit when included in the VA
payment to the designated beneficiary (person to whom the check is
actually made payable and thus, who may negotiate the check) was unearned
income to that individual. There were continuing challenges in the courts
on SSA's policy of counting the additional (augmented) payments as income
to the designated beneficiary. In three such cases, the courts held (1)
that the portion of the VA benefit computed on the basis of the existence
and number of dependents could not be counted as income to the veteran as
payee of the benefits and (2) to consider it as such would obviate
Congressional intent which was to increase the basic VA benefit to cover
additional expenses incurred for the care and maintenance of dependents
uch cases, the courts held (1)
that the portion of the VA benefit computed on the basis of the existence
and number of dependents could not be counted as income to the veteran as
payee of the benefits and (2) to consider it as such would obviate
Congressional intent which was to increase the basic VA benefit to cover
additional expenses incurred for the care and maintenance of dependents. A
reevaluation of the VA benefit structure by SSA's Office of General
Counsel together with VA's legal counsel found support for excluding the
additional (augmented) portion of the VA benefit as income to the
designated beneficiary. A change in policy was approved by the
Commissioner on October 29, 1981. Effective November 1981, SSA policy
provides that the additional (augmented) portion of a VA benefit when
included in the VA payment to the designated beneficiary is not income to
that individual. The additional (augmented) portion is income to the
dependent.

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 the child of a deceased
veteran may be in receipt of dependent's indemnity compensation as a
fiduciary on behalf of his or her brother or sister.
f 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 the child of a deceased
veteran may be in receipt of dependent's indemnity compensation as a
fiduciary on behalf of his or her brother or sister.

POLICY STATEMENT: 1. VA payments, excluding 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. The augmented portion is unearned
income to the dependent.

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
purpose of determining his or her eligibility for or amount of benefits
under the SSI program. For SSI purposes, such VA payments are income or
resources of the individual for whom the VA payments are made.

EFFECTIVE DATE: The new policy in 1. is effective November 1981.
The policy in 2. has been in effect for a number of years.

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: Program Operations Manual System SI
00810.120.A-00810.120.B.

## Nearby sections

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_SSI_SSR_82_31. Check the current official text before relying on it. Not legal advice.
