Social Security’s proposed rule could potentially lead to larger monthly payments for Supplemental Security Income (SSI) recipients.
What Does Social Security’s Proposed Rule Mean?
The Social Security’s proposed rule, published in the Federal Register in February, aims to simplify how the Social Security Administration (SSA) calculates in-kind support and maintenance (ISM), which is unearned income in the form of food and/or shelter that can reduce SSI payments.
According to GoBanking Rates, under the current rule, SSI payments are reduced by one-third if a recipient is living in someone else’s home and receiving food and shelter support from that person. Under Social Security’s proposed rule, food would no longer be included in the calculation of ISM, which could result in larger payments for SSI recipients. The SSA hopes that this will not disadvantage a vulnerable population and will promote equity in the distribution of benefits.
Social Security’s proposed rule change would make it easier for people to apply for and understand their SSI benefits. As of January 2022, about 7.3 million individuals were receiving SSI, and the agency reduced the payments of about 793,000 SSI recipients because of ISM during the same month, according to the SSA’s internal data.
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When Will Social Security’s Proposed Rule be Implemented?
The Social Security’s proposed rule is open for public comment until April 17, 2023, and it is uncertain when it will be approved and implemented. However, no timeline has been given on when the proposed rule might be approved and put into action. The Social Security’s proposed rule is expected to provide increased financial security to impacted beneficiaries, provide consistent treatment of food support regardless of the source, reduce unduly burdensome reporting requirements, and facilitate improved food security among certain beneficiaries.
If Social Security’s proposed rule is passed, it could mean bigger monthly payments for SSI recipients, providing increased financial security and reducing unduly burdensome reporting requirements. This change could be especially significant for vulnerable populations who rely on SSI for basic needs.
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