Effective September 30, 2024, the Social Security Administration has eliminated food from the calculations of In-Kind Support and Maintenance (ISM) for Supplemental Security Income (SSI) beneficiaries.
In order for adults aged 65+ to become eligible to receive SSI benefits, they must meet numerous requirements, including having resources of less than $2,000 and income below specified dollar amounts. This pertains to those who are not eligible to receive Social Security Retirement or Disability benefits because they have not met the required number of quarters of coverage or those who are disabled or blind. The maximum SSI benefit for an individual in 2024 is $934 per month. Certain types of income reduce the monthly SSI benefit dollar-for-dollar, such as interest income or gifts received from third parties. Earned income also reduces SSI benefits, but at the rate of about fifty cents to the dollar earned.
Prior to September 30, 2024, the ISM rules provided that payments made by third parties, including trustees of special needs trusts to purchase food or shelter for the SSI beneficiary, reduced the SSI benefit by up to one-third of the monthly benefit amount, or by roughly $314.33 per month. So, if a third party purchased $500 per month worth of food and cigarettes for the SSI beneficiary, such purchases would be considered a form of In-Kind Support and Maintenance to the beneficiary and result in a one-third reduction in the monthly SSI benefit for the individual.
Starting October 1, 2024, only the provision of shelter (i.e., room, rent, mortgage payments, real estate property taxes, heating fuel, gas, electricity, water, sewerage, and garbage collection services) will trigger the one-third reduction in SSI benefits under the ISM Rule. See 89 Federal Register 21199, dated March 27, 2024.
According to the Social Security Administration, this change simplifies its rules, making them easier to administer and follow, and improves the equitable treatment of food assistance within the SSI program.
The change comes as welcome news to SSI beneficiaries, their families, and advocates. SSI beneficiaries should immediately contact their local Social Security office if they believe that their benefits are being reduced due to their receipt of In-Kind Support and Maintenance in the form of food.
The Trusts, Estates, and Elder Law attorneys at ThompsonMcMullan can assist you or your loved ones in navigating these changes and ensuring your benefits are maintained. Contact us today to talk further.
