Great Barrier Reef

It’s always been a dream of mine to explore the Great Barrier Reef in the Coral Sea along Australia’s northeastern coast. This week, I am doing just that! Yesterday, I sailed off the coast of Cairns and did some diving with a crew of eight. I saw some amazing things including a giant sea turtle that floated by in what seemed like slow motion within 6 inches of my head. Back at the hotel and breathing a little easier, I received the following question:

Hi Ben,

I have a question about SSI and a change in in-kind living arrangement. One of my consumers, “Charlie,” who receives SSI, has been living in an apartment for which his parents paid the monthly rent. Because of his parents’ support, the SSA calculates his maximum SSI payment as $449.34 (instead of the FBR, $674).

Starting July 1st, Charlie will start a part-time job and also begin paying rent on his own. What is the best way to alert SSA of this change? (That is, do they need to see a copy of a rent check or a signed statement from his parents?)

Also, will the change in living status affect the maximum payment rate in the same month as the change or does RMA apply?

Thanks Ben! Happy travels! Britta

Here’s my response:

Britta,

The Social Security Administration (SSA) considers the free rent Charlie has been receiving as what is called “In Kind Support and Maintenance” (ISM) which is a type of unearned income for SSI. In his situation SSA values the ISM at one-third of the Federal Benefit Rate (FBR) plus $20 which is called the “Presumed Maximum Value” (PMV.) (See POMS SI
00835.370)

If Charlie begins paying his own rent in its entirety and otherwise pays his other household expenses, he will no longer be charged with ISM and be eligible for the entire FBR (as long as he has no countable income.)

He should contact his local SSA office (preferbly by phone initially) and talk to a Claims Representative (CR) who will go over the situation with him. Depending on the cirumstances of the case, the CR will take Charlie’s statement and possibly contact the landlord for verfication.

Under the Retrospective Monthly Accounting (RMA) system that SSA uses to determine SSI elgibility and payment, SSA includes PMV as countable income in the Budget Month so it will affect Charlie’s payment computation for two more months after the month of change. (POMS SI 02005.001E.4.a)

I hope Charlie finds success in his work and his independence.
Ben