Simplifying the Supplemental Security Income Program: Options for Eliminating the Counting of In-kind Support and Maintenance

Text description fo Chart 1.
Treatment of earnings under SSI

Chart 1 is a line chart that illustrates the rate at which SSI benefits are reduced according to recipient earnings.

The vertical axis is labeled "benefit reduction rate (percent)." Zero, 50, and 100 percent intervals are marked on the axis. The horizontal axis is labeled "monthly earnings (dollars)." Dollar amounts from zero to 325 are marked on the axis in 65-dollar increments.

A line showing the benefit reduction rate starts at the zero-zero coordinate and remains flat at the zero-percent level moving left to right until it reaches 65 dollars. At that point the line turns 90 degrees and moves directly upward until it reaches the 50 percent level. Then the line again turns 90 degrees and moves left to right at the 50 percent level where it remains beyond the 325-dollar mark.

Text description for Chart 2.
Treatment of ISM contributions under SSI

Chart 2 is a line chart that illustrates the rate at which SSI benefits are reduced according to in-kind support and maintenance (ISM) contributions.

The vertical axis is labeled "benefit reduction rate (percent)." Zero, 50, and 100 percent intervals are marked on the axis. The horizontal axis is labeled "monthly earnings (dollars)." Zero, 232, and 464 dollar amounts are marked on the axis.

A line showing the benefit reduction rate starts at the zero dollars-100 percent coordinate and remains flat at the 100-percent level moving left to right until it reaches 232 dollars. At that point the line turns 90 degrees and moves directly downward until it reaches the zero percent level. Then the line again turns 90 degrees and moves left to right at the zero percent level where it remains beyond the 464-dollar mark.

Text description for Chart 3.
Simplified illustration of current SSI living arrangement and ISM process

Chart 3 is a flow chart showing the following.

If home ownership or rental liability equals yes then use the presumed maximum value rule: Consider ISM from inside the household:

• Calculate household food and shelter expenses (10 items)
• Determine recipient's contribution
• Compute ISM (divide expenses by number of household members and subtract recipient's contribution

then apply the full federal benefit rate (FBR) for living arrangement A.

If home ownership or rental liability equals no then evaluate separate purchase or consumption:

• Does individual shop for own food?
• Does individual eat meals elsewhere?
• Is contribution designated specifically for food or shelter?

if yes:

• Calculate household food and shelter expenses (10 items)
• Determine recipient's contribution
• Compute ISM (divide expenses by number of household members and subtract recipient's contribution

then apply the full federal benefit rate (FBR) for living arrangement A.

If home ownership, rental liability, and separate purchase for consumption equal no then evaluate the pro rata share:

• Calculate household food and shelter expenses (10 items)
• Divide expenses by number of household members
• Compare recipient's contribution to pro rata share

if yes, use PMV rule: Consider ISM from outside the household:

• Calculate household food and shelter expenses (10 items)
• Subtract payments made by household members
• Allocate ISM to household members
• Did someone provide rent free shelter? Is the landlord a relative? If so, the case is developed as a rental subsidy.

then apply the full federal benefit rate (FBR) for living arrangement A.

If home ownership, rental liability, separate purchase or consumption, and pro rata share equal no then use the Value of the One-Third Reduction Rule: living arrangement B and apply the FBR with a one-third reduction.