As a Representative Payee managing Social Security or Supplemental Security Income (SSI) benefits, any changes to benefits rules can significantly affect how you support your clients. Over the past year, the Social Security Administration (SSA) has been making numerous changes to its SSI program which are intended to simplify benefits access for SSI applicants, current recipients, and those who support them. 

Here’s a quick guide to the latest changes and what they mean for you as a Rep Payee managing daily financial needs for beneficiaries.

1. “Free Food” No Longer Counts as Unearned Income

Historically, if an SSI beneficiary received “free food” (e.g. in the form of groceries, a store gift card, or a meal at a restaurant purchased by someone other than themselves) it could count as unearned income under the SSA’s in-kind support and maintenance (ISM) rules, potentially reducing benefits. But as of September 30, 2024, this is no longer the case. 

Note: SSI beneficiaries can receive food assistance from private or public sources without it impacting their benefits eligibility. 

2. Simplified Housing Subsidy Rules for SSI Recipients

Also as of September 30, the SSA changed its rental subsidy program for SSI beneficiaries. Prior to this rule change, receiving a rental subsidy or paying below-market rent could result in a reduction in SSI benefits. The new rule will expand an exception that previously only applied in seven states but starting in September, will apply nationwide.

Note: This could make thousands of recipients newly eligible each year and may increase monthly benefits for others. 

3. Expanded Definition of “Public Assistance Household”

The definition of a “public assistance household” now includes households where not all members receive public assistance. This means a household can qualify for certain benefits even if only some members are on public assistance.

Note: This could help make more households eligible for SSI benefits and boost benefit payments for some recipients.

4. Reduced Withholding for SSI Overpayments

Previously, if an SSI overpayment occurred, the SSA could withhold a recipient’s entire benefit amount until the overpayment was recovered. This led to some people losing their homes or facing other financial hardships due to overpayment corrections. Now, only 10% (or $10, whichever is greater) of the monthly benefit is withheld for overpayments. 

Note: This new rule offers beneficiaries more stability in benefits payout, so they can still cover costs of essentials, while still resolving the overpayment.

For Rep Payees, these updates should mean fewer administrative hurdles, clearer guidelines, and more time to focus on supporting each beneficiary’s wellbeing and helping more individuals access benefits. And if you’re interested in learning some tips and strategies to help you work more effectively with the SSA, you can find those here.

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This article is not intended to provide investment, legal, tax, accounting or medical advice. Before making decisions involving investing, legal, tax, accounting or medical concerns, you should consult appropriate professionals regarding your specific situation.