History of Supplemental Security Income (SSI)
Before 1974, state and federal governments provided financial aid for low-income blind, disabled, and aged people. Local county welfare boards distributed these benefits. Welfare boards also distributed benefits to families with dependent children. Unfortunately, this system led to two problems.
1. Eligibility requirements and benefits were not standard. A person who was eligible for benefits in one state was not always eligible in another state.
2. The local welfare boards were overloaded. The federal government decided to replace state and federal benefits with a federal system.
In 1972, Congress passed a law that added the Supplemental Security Income program to Title XVI of the Social Security Act. The law went into effect on January 1, 1974. Social Security Administration administers the SSI program. Keep in mind, SSI is very different from Social Security benefits. United States Treasury funds SSI by using general funds.
SSI Eligibility
The purpose of SSI is to provide a minimum level of income to people who are blind, disabled, or over 65 years. Unlike other Social Security benefits, you do not have to work to be “insured” (earn the right to benefits through work). Instead, you must meet certain income and resource requirements to be eligible.
In 2015, the federal benefits level for an individual is $733 a month. Eligible couples receive $1100 a month. In order to be eligible, you cannot have “countable income” that exceeds these amounts.
The rules about countable income are very complicated. Generally, most “unearned income” (i.e. income you do not earn through work) is countable. Some “Earned income” (wages) is not countable income. In fact, in some situations SSI recipient can work on a limited basis and still receive benefits.
Some states supplement federal SSI benefits. For example, in New Jersey, people who are eligible for the federal SSI program also receive $31.25 a month from the state. Therefore, the full monthly SSI payment for an individual in New Jersey is $764.25. Eligible couples in New Jersey receive $1125.36. The supplement amount varies from state to state.
Disability
The definition of disability for SSI benefits is the same as the definition used for Social Security benefits. This is why Congress assigned the Social Security Administration to administer SSI benefits.
In order to be eligible for disability benefits, you must demonstrate that you cannot do any “substantial gainful [work] activity” that exists in the country. In addition, you must show that your condition has lasted, or might last for a continuous 12-month period. The condition does not have to be permanent. However, if you are able to hold any kind of steady job, the government will find that you are not disabled.
If your application fails, you can appeal by requesting “reconsideration.” If your claim fails again, you can ask for an in-person hearing before a United States Administrative Law Judge.
In each case, you must appeal within 60 days after you receive the decision. (It is a general assumption that people receive the decision 5 days after mailing.) Most claims that are initially denied are denied again at the reconsideration phase. The chance of succeeding is much higher at the Administrative Law Judge level. If you are rejected, you should proceed to that level of appeal. If the Administrative Law Judge denies your benefits, you can file additional appeals.
Recurring Issues
Below are some common issues that affect an individual’s eligibility for SSI:
Living arrangements: If you get free or low-cost room and/or board from someone, that may be counted as “in kind support and maintenance” and the SSA will reduce your benefits by one-third.
• Uncompensated transfers: If you give away countable resources without getting fair value in return (i.e. you give something away even though you could have sold it for money), your benefits may be suspended.
• Excess resources: If you have more than $2,000 in a bank account on the first day of the month, your benefits might be suspended or you may have to pay back part of your benefits. This can also happen if you mix your benefits with somebody else’s bank account.
The rules for SSI can be confusing and complex. An attorney can help.
