In January 2002 all Social Security and Supplemental Security Income (SSI) participants will receive a 2.6% cost of living adjustment.  We will do a mass adjustment of food stamp cases for these increases the weekend of December 8, 2001.  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 7, 2001, with a "last ATP date" of January 2002 or later will be included in the adjustment.  The case status at the end of the day of 
December 7, 2001, is the status used in deciding which cases to adjust. 

For any food stamp case approved or cancel closed after December 7, 2001, 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 10, 2001, the food stamp system will be down until the adjustments are completed.

FSU5 Update

On Monday, December 10, 2001, 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.
 

REDUCTION NOTICE TO FOOD STAMP PARTICIPANTS In January 2002, you or someone in your food stamp household will get a raise in Social Security and/or Supplemental Security Income.  You will get less food stamp benefits beginning in January 2002.  Your food stamps will be cut by about $1 for every $3 increase in Social Security and/or Supplemental Security Income check. You have a right to a fair hearing about this cut in your food stamp benefits.  You can ask for a fair hearing if you think the Division of Family Services made a mistake when they cut your food stamps.  You can also ask that your food stamp benefits not be cut while you are waiting for your hearing.  If it is decided the Division of Family Services was right, you will have to pay back the extra food stamps you receive while waiting for your hearing.  If you want a hearing, contact your local Division of Family Services office.  Get in touch with them within 10 days of getting 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.
 

CLOSING NOTICE In January 2002, you or someone in your food stamp household will get a raise in Social Security and/or Supplemental Security Income.  This raise in your household's monthly income is too much for you to keep on getting food stamp benefits.  Your food stamp benefits will stop as of December 31, 2001. You have a right to a fair hearing about this closing.  You may request a hearing if you think the Division of Family Services made a mistake and was wrong to close your case.  You can ask that you keep on getting food stamp benefits while you wait for your fair hearing.  If it is decided the Division of Family Services did not make a mistake when they closed your case, you will have to pay back the food stamp benefits you receive while waiting for your hearing.  If you want to request a hearing, contact your local Division of Family Services office.  Get in touch with them within 10 days of getting 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.
 

SUSPENSION NOTICE  In January 2002, you or someone in your food stamp household will get a raise in Social Security and/or Supplemental Security Income benefits.  This causes your household income to be too much to receive food stamp benefits.  You are eligible for zero benefits as of  January 1, 2002. You have a right to a fair hearing about this change.  You can ask for a fair hearing if you think the Division of Family Services made a mistake.  You can ask that your food stamp benefits not be cut while you are waiting for your hearing.  If you do this and it is decided the Division of Family Services was right, you will have to pay back the food stamps you were not supposed to receive.  If you want a fair hearing, contact your local Division of Family Services office.  Get in touch with them within 10 days of getting 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, $15 will be added to the individual's SSI in Field 34 and to Unearned Income in Field 13 of FSU5.

If the food stamp household member receives both SSA and SSI, the SSA amount will be adjusted.  The SSI amount will be adjusted by the difference between the SSA increased benefit and the new SSI maximum plus $20.

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. 
 
The formula is as follows:
Add the SSA amounts together.
Subtract $20 from the total.
Subtract this amount from the SSI couple maximum of $817 for 01/02.
Divide the result by 2.

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

This listing contains cases which show an unearned income code of "4" (Railroad Retirement) and the amount of unearned income equals or is greater than the amount shown on BENDEX.
 
• Food Stamp SSA/SSI Adjustments and Closings Requiring Worker Review of SSI Cases, report number FFSSP207-02

This list contains all cases adjusted at the State Office level.  Review each SSI case.  If the SSI amount is incorrect, decide if the individual income needs to be changed on the FSU5 system to make the amount correct, or if a budget adjustment is required. If a budget adjustment is required, complete the adjustment by the end of the day, December 17, 2001.

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

This listing contains active food stamp cases with an R and N type of assistance vendor level of care.  Individuals with a vendor level of care are ineligible for food stamps and action should be taken to remove the individual from the active case or close the case.  The GR cash cases must be reviewed and manually adjusted.

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.

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 17, 2001.

• 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 17, 2001.

• Review cases from the Adjustments and Closings list to review the SSI amount and determine if action is necessary.  Take necessary action by December 17, 2001.

 
• 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 17, 2001.