Opinion ID: 466412
Heading Depth: 1
Heading Rank: 1

Heading: the distinct theories allowing reduction of disability benefits

Text: 3 An overview of the regulatory scheme is necessary in order to assess Mack and Ware's situation properly. Under Title XVI of the Social Security Act, every aged, blind, or disabled individual is eligible to receive Supplemental Security Income calculated on the basis of income and resources. 42 U.S.C. Sec. 1381a (1982). If the beneficiary is receiving unearned income, including support and maintenance furnished in cash or in kind, benefits are reduced through the use of various formulae. If the beneficiary is living in the household of another who provides the beneficiary with both food and shelter, benefits are reduced by one-third. 20 C.F.R. 416.1130(c) & .1131-.1133 (1984). If the beneficiary does not meet this test, either because the regulations deem her to live in her own household or because she is not receiving both food and shelter from another person, then the presumed value rule requires reduction of benefits only to the extent of support and maintenance actually received. 20 C.F.R. Sec. 416.1130(c) & .1140-.1145. 4 Before approving any reduction in benefits, therefore, the reviewing tribunal must examine the agency's conclusions in two separate inquiries. First, the agency must determine the support and maintenance, if any, that the beneficiary is receiving. Second, the agency must apply the appropriate formulae and perform the proper calculations to determine how much this support and maintenance reduces the monthly benefit payment.