Source: https://www.federalregister.gov/documents/2004/01/06/04-60/determining-income-and-resources-under-the-supplemental-security-income-ssi-program
Timestamp: 2017-09-23 22:34:02
Document Index: 642855008

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Federal Register :: Determining Income and Resources under the Supplemental Security Income (SSI) Program
A Proposed Rule by the Social Security Administration on 01/06/2004
69 FR 554
554-558 (5 pages)
0960-AF84
https://www.federalregister.gov/d/04-60 https://www.federalregister.gov/d/04-60
We propose to revise our regulations that explain how we determine an individual's income and resources under the supplemental security income (SSI) program in order to achieve three program simplifications. First, we propose to eliminate clothing from the definition of income and from the definition of in-kind support and maintenance. As a result, we generally will not count gifts of clothing as income when we decide whether a person can receive SSI benefits or when we compute the amount of the benefits. Second, we propose to change our resource-counting rules in the SSI program by eliminating the dollar value limit for the exclusion of household goods and personal effects. As a result, we would not count household goods and personal effects as resources when we decide whether a person can receive SSI benefits. Third, we propose to change our rules for excluding an automobile in determining the resources of an SSI applicant or recipient. We propose to exclude one automobile (the “first” automobile) from resources if it is used for transportation for the individual or a member of the individual's household, without consideration of its value. These changes will simplify our rules, making them less cumbersome to administer and easier for the public to understand and follow. Our experience of nearly 30 years of processing SSI claims indicates that these simplifications would have minimal effect on the outcome of SSI eligibility determinations.
You may give us your comments by: using our Internet site facility (i.e., Social Security Online) at http://policy.ssa.gov/​pnpublic.nsf/​LawsRegs or the Federal eRulemaking Portal: http://www.regulations.gov;​ e-mail to regulations@ssa.gov; telefax to (410) 966-2830; or letter to the Commissioner of Social Security, P.O. Box 17703, Baltimore, Maryland 21235-7703. You may also deliver them to the Office of Regulations, Social Security Administration, 100 Altmeyer Building, 6401 Security Boulevard, Baltimore, Maryland 21235-6401, between 8 a.m. and 4:30 p.m. on regular business days. Comments are posted on our Internet site, or you may inspect them on regular business days by making arrangements with the contact person shown in this preamble.
The electronic file of this document is available on the date of publication in the Federal Register at http://www.gpoaccess.gov/​fr/​index.html. It is also available on the Internet site for SSA, Social Security Online, at http://policy.ssa.gov/​pnpublic.nsf/​LawsRegs.
Robert Augustine, Social Insurance Specialist, Office of Regulations, Social Security Administration, 100 Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, (410) 965-0020 or TTY (410) 966-5609. For information on eligibility or filing for benefits, call our national toll-free number, 1-800-772-1213 or TTY 1-800-325-0778, or visit our Internet site, Social Security Online, at http://www.socialsecurity.gov.
The General Accounting Office (GAO) has reported that annual costs to the Federal government for administering means-tested Federal programs are significant and that eligibility determination activities make up a substantial portion of these costs (Means-Tested Programs: Determining Financial Eligibility is Cumbersome and Can Be Simplified, GAO-02-58, November 2, 2001 available at http://www.gao.gov). In particular, the GAO cited the variations and complexity of Federal financial eligibility rules as contributing to processes that are often duplicative and cumbersome for staff workers (including state and local caseworkers) and for those who apply for assistance. In order to streamline our eligibility determination process, as well as make our financial eligibility rules more consistent with those of other means-tested Federal programs, we propose to make the following changes to our rules on determining income and resources under the SSI program. Start Printed Page 555
We propose to remove the specific reference to clothing from our broad definition of income in § 416.1102, which covers both earned and unearned income. This will permit us to disregard gifts of clothing when we apply the special rules for valuing in-kind support and maintenance. Counting gifts of clothing puts a negative face on the SSI program without advancing any substantial program goal and incurs administrative costs.
There will be one situation where we still would be required to consider clothing as income. This situation could occur when an individual receives clothing from an employer that we must count as wages under section 1612(a)(1)(A) of the Act. Wages are the same for SSI purposes as for the earnings test in the Social Security retirement program. Under the earnings test, wages may include the value of food, clothing, or shelter, or other items provided instead of cash. We refer to these items as in-kind earned income. Because we are required by the Act to count the value of these items as income, we are not proposing any changes to our current rule in § 416.1110(a). Situations where clothing constitutes wages are very uncommon.
These proposed rules would remove references to clothing throughout subpart K, which explains how we count income. We also are updating the second example in § 416.1103(g) to reflect that SSI eligibility is now based on an individual's income, resources, and other relevant circumstances in a month rather than in a calendar quarter. The change from a quarterly determination to a monthly determination, which is explained in § 416.420, was effective April 1, 1982 pursuant to section 2341 of Public Law 97-35. This example was inadvertently overlooked when conforming changes were previously made.
Section 1613(a)(2)(A) of the Act provides that in determining the resources of an individual (and eligible spouse, if any) SSA will exclude household goods and personal effects to the extent that their total value does not exceed an amount that the Commissioner decides is reasonable. In interpreting “reasonable” value of household goods and personal effects, § 416.1216(b) of our regulations provides for an exclusion of up to $2,000 of the total equity value. The amount in excess of $2,000 is counted against the resource limit, currently $2,000 for an individual and $3,000 for an individual and spouse.
Section 416.1216(a) defines household goods as including household furniture, furnishings and equipment that are commonly found in or about a house and used in connection with the operation, maintenance and occupancy of the home. Also included are furniture, furnishings and equipment used in the functions and activities of home and family life as well as those items that are for comfort and accommodation. This section specifically defines personal effects as including clothing, jewelry, items of personal care, individual educational and recreational items. In addition, § 416.1216(c) provides specific exclusions for a wedding ring, an engagement ring and equipment required because of a person's physical condition.
Household goods if they are items of personal property, found in or near a home, that are used on a regular basis, or items needed by the householder for maintenance, use and occupancy of the premises as a home; and
Personal effects if they are items of personal property that ordinarily are worn or carried by the individual, or are articles that otherwise have an intimate relation to the individual.
Thus, we would be interpreting the word “reasonable” in section 1613(a)(2)(A) of the Act in terms other than a specific dollar limit. The reasonable value would instead be based on the uses and characteristics of the item. Our current rules on household goods and personal effects Start Printed Page 556reflect our view that it is reasonable to totally exclude certain items of personal property because they are rarely of significant value or are intimately related to the individual and his or her particular needs. Accordingly, we have determined that requiring conversion of such items for subsistence needs would be unreasonable.
Currently, § 416.1216(c) provides for totally excluding a wedding ring and an engagement ring, and household goods and personal effect items required because of a person's physical condition. We propose to expand this approach generally to household goods and personal effects so that they may be totally excluded from resources because our experience in 30 years of administering the SSI program shows that these items almost never have any substantial value, particularly once they are used.
These proposed rules would amend § 416.1216 to define and identify household goods and personal effects that we will not count as resources. Included in the list of excluded personal effects are items of cultural or religious significance since these items have an intimate relationship to an individual. The list of exclusions also includes items required due to an individual's impairment. This would allow for exclusion of items required because of any impairment, not just physical impairments. For example, our experience has shown that children and adults with learning disabilities use personal computers to assist them with schoolwork and other daily activities. This change will allow us to exclude items such as personal computers from countable resources.
We also propose to amend § 416.1210(b) by referring to § 416.1216 for the definition of household goods and personal effects that we will not count as resources.
While simplifying the SSI program, our proposed changes continue to recognize that individuals applying for SSI may own items for investment purposes which may be quite valuable. Such items as gems, jewelry that is not worn or held for family significance, and collectibles would still be considered countable resources and subject to the limits in § 416.1205. Thus, the proposed exclusion for household goods and personal effects would not apply to such items that have investment value.
Section 1613(a)(2)(A) of the Act provides that, in determining the resources of an individual (and eligible spouse, if any) for SSI purposes, SSA will exclude an automobile to the extent that its value does not exceed an amount that the Commissioner of Social Security decides is reasonable. Current regulations at § 416.1218 define an “automobile” as a passenger car or other vehicle used to provide necessary transportation.
In interpreting “reasonable” value, § 416.1218(b)(1) provides that an automobile is totally excluded regardless of value if it meets any of the four following criteria:
It is necessary for the medical treatment of a specific or regular medical problem;
It is modified for a handicapped person; or
It is necessary because of certain factors to perform essential daily activities.
If no automobile can be excluded based on its use, one automobile is excluded to the extent its current market value does not exceed $4,500. See § 416.1218(b)(2). Additional automobiles are counted as nonliquid resources to the extent of their equity value. See § 416.1218(b)(3).
We propose to amend our rules to exclude one automobile from resources regardless of its value if it is used for transportation for the individual or a member of the individual's household. We are doing so because our data establish that the vast majority of “first” automobiles owned by SSI recipients are currently excluded based on one of the four transportation criteria set out in § 416.1218(b)(1). In addition, there is no indication that the automobiles which are not covered by the special circumstances represent significant resources. Based on quality assurance data for 1998, in approximately 98 percent of those SSI cases involving automobile ownership, the value of one car was completely excluded. Anecdotal data from SSA claims representatives support the 1998 quality assurance data.
We propose to revise § 416.1210(c) to exclude from resources an automobile that is used for transportation as provided in § 416.1218. We also propose to change § 416.1218(b) to exclude totally one automobile regardless of value if it is used for transportation for the individual or a member of the individual's household and to eliminate the existing four specific reasons for exclusion. We also propose to delete § 416.1218(c), which contains the definition of the current market value of an automobile.
The Act states that we will exclude an automobile of “reasonable” value. We have previously interpreted the word “reasonable” in terms of the uses and needs of disabled individuals and in terms of dollar limits. Specifically, the preamble to the final regulation which increased the exclusion of the automobile value to $4,500 on July 24, 1979 (44 FR 43265) stated that we had “concluded that that there are special circumstances which justify entirely excluding an automobile. For example, if the automobile is needed for employment or medical treatment or if it has been modified for use by a handicapped person, we will exclude it without regard to value.” Since October 22, 1985 (50 FR 42687), the regulations also provide for total exclusion of an automobile if, due to certain factors, it is necessary for transportation to perform essential daily activities. Our experience shows that virtually all SSI claimants and recipients who have automobiles need them for transportation under the circumstances listed above.
It should be noted that our proposed interpretation of “reasonable” would Start Printed Page 557not eliminate the requirement to develop the value of second or additional automobiles. Nor will the “first” automobile be excluded if it is not used for transportation. In those cases where a vehicle is inoperable, or operable but not used at all, or used only for recreation (e.g., a dune buggy), it would still be valued according to current rules. We believe it would be unreasonable to exclude from resources the value of a vehicle that is not used for transportation.
§ 416.1102
Income is anything you receive in cash or in kind that you can use to meet your needs for food and shelter. Sometimes income also includes more or less than you actually receive (see § 416.1110 and § 416.1123(b)). In-kind income is not cash, but is actually food or shelter, or something you can use to get one of these.
§ 416.1103
A community takes up a collection to buy you a specially equipped van, which is your only vehicle. The value of this gift is not income because the van does not provide you with food or shelter and will become an excluded nonliquid Start Printed Page 558resource under § 416.1218 in the month following the month of receipt.
§§ 416.1104, 416.1121, 416.1124, 416.1130, 416.1133, 416.1140, 416.1142, 416.1144, 416.1145, 416.1147, 416.1148, 416.1149, 416.1157
4. Remove the words “food, clothing, or shelter” and add, in their place, the words “food or shelter” in the following sections:
(b) Household goods and personal effects as defined in § 416.1216;
(c) An automobile, if used for transportation, as provided in § 416.1218;
§ 416.1216
Exclusion of household goods and personal effects.
(2) Such items include but are not limited to: Personal jewelry including wedding and engagement rings, personal care items, prosthetic devices, and educational or recreational items such as books or musical instruments. We also do not count as resources items of cultural or religious significance to an individual and items required because of an individual's impairment. However, we do count items that were acquired or are held for their value or as an investment because we do not consider these to be personal effects. Such items can include but are not limited to: Gems, jewelry that is not worn or held for family significance, or collectibles. Such items will be subject to the limits in § 416.1205.
§ 416.1218
Exclusion of the automobile.
(2) Other automobiles. Any other automobiles are considered to be nonliquid resources. Your equity in the other automobiles is counted as a resource. (See § 416.1201(c).)