M E M O R A N D U M

IM-145  08/01/01  SSA COST-OF-LIVING ADJUSTMENT


SUBJECT:
SSA COST-OF-LIVING ADJUSTMENT
 
DISCUSSION:
Due to an error in calculating the Consumer Price Index, the Social Security Administration (SSA) and other federal agencies underpaid benefits.  On July 1, 2001, SSA began issuing lump sum payments to cover underpayments in Retirement, Survivors, and Disability Benefits, and Supplemental Security Income (SSI) for the period of January 2000 to July 2001.  Beginning August 1, 2001, SSA will issue corrected payment amounts.  The SSI maximum for a single person will increase to $531 per month.  There is no change in the SSI maximum for a couple. 

FOOD STAMP PROGRAM

There will not be a mass adjustment for food stamps.  However, beginning August 1, 2001, staff must verify and budget the new SSA/SSI income amounts for certifications and recertifications. 

Active Food Stamp Households

Households other than earned income households are required to report when their income changes by more than $25.  If an "other" reporting household reports the change in SSA/SSI income, verify and budget the new income amount.  Verify and budget the new SSA/SSI income amount at the next certification/recertification.

Earned income households are not required to report unless their total gross income exceeds 130% of poverty.  If the change in income reported by the household and results in total gross income of less than 130% of poverty for the household, take no action if the change would cause benefits to decrease.  Changes reported by SDX/BENDEX are considered verified upon receipt. Verify and budget the new SSA/SSI income amount at the next certification/recertification.

One-Time Lump Sum Payment for Food Stamps

Consider the one-time lump sum payment from SSA/SSI as a resource when received but do not consider the lump sum payment as income to the food stamp household. 

INCOME MAINTENANCE PROGRAMS

There will be no mass adjustment for active IM cases.  However, if the change in income is reported or is found during an interim action, budget the new income and take appropriate action.  Begin using the new SSI maximum on all August 2001, Medical Assistance (MA) applications and adjustments.

Do not consider the lump sum payment as an available resource to the claimant or the claimant's household.
 
NECESSARY ACTION:
  • Discuss this memorandum with all appropriate staff. 
  • Beginning August 1, 2001, budget the increased SSA/SSI income for food stamp certifications and recertifications.
  • Beginning August 1, 2001, begin using the new SSI maximum for MA applications.
  • Complete budget adjustments for food stamps according to appropriate policy. 
  • Complete budget adjustments for IM cases as changes are reported.  No claims on these cases are necessary. 
HJK
Distribution #6
[ Memorandum Table of Contents ]
IM-144
IM-146