In January 2001 all Social Security and Supplemental Security Income (SSI) participants will receive a 3.5% cost of living adjustment.  We will do a mass adjustment of food stamp cases for these increases the weekend of December 9, 2000.  Adjustments will be made to the food stamp cases in which there is a member who is receiving SSA and/or SSI by matching to the BENDEX files.

Cut-off Dates

Any active case or application approved as of December 8, 2000, with a "last ATP date" of January 2001 or later will be included in the adjustment.  The case status at the end of the day of December 8, 2000, is the status used in deciding which cases to adjust. 

For any food stamp case approved or cancel closed after December 8, 2000, the worker must compute the net adjusted income using the new SSA and/or SSI amounts.  These cases will NOT be included in the mass adjustment.

There will not be a freeze period on FSU5 transactions.  If the adjustments are not completed by the morning of December 11, 2000, the food stamp system will be down until the adjustments are completed.

FSU5 Update

On Monday, December 11, 2000, FCAS, FPAY, and FSU5 will show the updated case data for the mass adjustments.  The updated information will include:

• the new amount of SSA from the BENDEX file,
• the change(s) in the amount of IM grant if applicable,
• the new unearned income total (including the SSI increase),
• the revised net adjusted income, and
• the new benefit amount for January.

Notices

BENDEX printouts will be mailed to the counties on any food stamp case with an adjustment.  The counties may use the amount of SSA shown on the BENDEX printouts for verification purposes.  BENDEX printouts will also be mailed on food stamp cases which are not being adjusted. 

All food stamp households whose benefits are being reduced will receive a notice.  A copy of the notice is shown below.

NOTICE TO FOOD STAMP PARTICIPANTS

Effective January 2001, your household will receive an increase in Social Security and/or Supplemental Security Income.  Your food stamp benefits will be reduced in January. Your benefits will be reduced by about $1 for every $3 increase you receive in Social Security/Supplemental 
Security Income.

You have a right to a fair hearing about this reduction in your food stamp benefits.  If you feel the reduction is wrong or that the Division of Family Services misapplied federal laws or regulations, you can ask that your benefits not be reduced until the hearing is held.  However, if the hearing is not in your favor, you will have to repay the overpayment you received.  To request a hearing, contact your local Division of Family Services office within 10 days of receipt of this notice.

Food stamp cases whose income exceeds the appropriate income maximum due to the increased SSA and/or SSI will receive a closing notice.  A copy of the notice is shown below.

FOOD STAMP CLOSING NOTICE

Effective January 2001, your household will receive an increase in Social Security and/or Supplemental Security Income benefits which causes your income to exceed the maximum for food stamp eligibility.  Your food stamp case will be closed effective December 31, 2000.

You have a right to a fair hearing regarding this closing.  If you feel the Division of Family Services has misapplied federal laws or regulations regarding this closing, you may ask that your benefits be continued while the fair hearing is pending.  If your benefits are continued and the hearing is not in your favor, you will have to repay any benefits overpaid to you while the hearing was pending.  If you wish to request a hearing, please contact your local Division of Family Services office within 10 days of receipt of this notice.

Categorically eligible households who are eligible for zero benefits as a result of SSA and/or SSI adjustment will receive a Notice of Suspension.  A copy of the notice is shown below.

NOTICE OF SUSPENSION 

Effective January 2001, your household will receive an increase in Social  Security and/or Supplemental Security Income benefits which causes your  income to exceed the maximum income level to receive food stamp benefits.  You are eligible for zero benefits effective January 1, 2001.

You have a right to a fair hearing regarding this adjustment.  If you feel the new allotment is incorrect or the Division of Family Services has misapplied federal laws or regulations regarding this adjustment, you may  ask that your benefits be continued while the fair hearing is pending.  If  your benefits are continued and the hearing is not in your favor, you will have to repay any benefits overpaid to you while the hearing was pending.  If you wish to request a hearing, please contact your local Division of Family Services office within 10 days of receipt of this notice. 

SSA and/or SSI Mass Adjustment By State Office

To adjust the case, we will use the new amount of SSA shown on the BENDEX file.  The new amount of SSA will be entered in Field 33 of FSU5 for the individual, and Field 13, Unearned Income, will be updated to include the new amount.

To adjust for the SSI increase, $18 will be added to the individual's SSI in Field 34 and to Unearned Income in Field 13 of FSU5.

If the food stamp member receives both SSA and SSI, the SSA amount will be adjusted then the SSI amount will be adjusted by the difference between the SSA increased benefit and the SSI maximum.

SSI couples meeting the following criteria will have their SSI adjusted using the same calculation procedure as the Social Security Administration.

• The SSA claim number is the same number; one person has an "A" after the number, the other has a "B" after the number, and;

• The couple's previous SSA/SSI agrees with the formula calculation. 

Add the SSA amounts together.
Subtract $20 from the total.
Subtract this amount from the SSI couple maximum of $796 for 01/01.
Divide the result by 2.

Changes in the Temporary Assistance grant, resulting from these adjustments, will be included in the food stamp adjustments.  If the Temporary Assistance case is closed, the Temporary Assistance grant will be removed from the food stamp budget and Field 12 of FSU5.

County Manual Adjustments

Manually adjust cases not in active status at the time of the adjustments.

Review cases on the following listings to determine whether the worker needs to take action.

• Unearned Income was Greater than BENDEX Amount - Food Stamp Cases Requiring Worker Adjustment, report number FFSSP208-01

• Food Stamp SSA/SSI Adjustments and Closings Requiring Worker Review of SSI Cases, report number FFSSP207-02

• FS SSA SSI Adjustments - Cases Requiring Caseworker Review, report number FFSSP203-02

To manually adjust the SSA amount in the food stamp case, obtain the new SSA amount from the BENDEX printout or from one of the two listings that shows the BENDEX amount.  The new SSA amount can also be computed by multiplying the original SSA amount by 103.5% and rounding down to the nearest dollar.

If no SSA amount is available from any of the above sources, workers must verify the new amount of SSA with the Social Security office through the regular verification procedures.

To manually adjust the SSI amount, the worker must add the amount of increase from the chart below to the verified SSI amount.
 

	NEW AMOUNT OF SSI	AMOUNT INCREASE
Individual in own household	$530.00	$18.00
Couple in own household	$796.00	$27.00
Individual in household of another	$353.34	$12.00
Couple in household of another	$530.66	$17.99
Essential person/own home	$266.00	$ 9.00

A Notice of Adverse Action (IM-80) is not required for these manual adjustments if the adjustment is made by the end of the day of December 15, 2000.

• Review this memorandum with all staff.

• Review cases from the Unearned Income was Greater than BENDEX Amount report to determine if action is necessary.  Take necessary action by December 15, 2000.

 
• Review cases from the Adjustments and Closings list to review the SSI amount and determine if action is necessary.  Take necessary action by December 15, 2000.

 
• Review cases from FS SSA SSI adjustments list, close cases with a vendor level of care and adjust GR cash cases.  Take necessary action by December 15, 2000.