The Social Security Administration (SSA) is rolling out significant changes to the Supplemental Security Income (SSI) program starting in October. These changes are set to impact over 7 million low-income Americans who depend on SSI benefits to cover their living expenses.
Big Shifts in Social Security: Changes You Need to Know Now
The SSI program is a crucial financial lifeline for a diverse group of people. It supports individuals over the age of 65, as well as adults and children who are disabled or blind. To qualify for SSI benefits, an individual’s monthly income must not exceed $1,971, according to SSA’s guidelines.
Here’s a closer look at the new changes:
- Adjustment in Benefit Amounts: Currently, individual recipients receive an average of $943 per month, while couples can receive up to $1,415.
- Eligibility Criteria Update: The SSA has updated the monthly income threshold to ensure more individuals can access these essential benefits.
- Resource Limit Modifications: Changes to the resource limits will allow beneficiaries to retain more of their assets without affecting their eligibility.
- COLA increase in 2025 the maximum payment will not be the usual $943, but will be that amount plus the 2025 COLA. While the exact amount has not yet been confirmed, projections suggest a COLA increase of about 2.5%.
These updates aim to provide better support and financial stability to those who rely on SSI benefits. Stay informed and ensure you understand how these changes might impact you or your loved ones.
Remember, the SSI program continues to be a vital source of assistance for low-income Americans. By staying on top of these changes, you can make the most of the benefits available to you.
As the new rules take effect, the criteria for establishing SSI eligibility might change, potentially increasing the number of people who qualify and enhancing payments for existing recipients. To broaden the range of SSI benefits and make them more accessible to those in need, the SSA has implemented three new rules that will go into effect on September 30, 2024.
Key Changes in SSI Eligibility Criteria
One of the most significant revisions is the redefinition of the concept of a “public assistance household.”
Previously, to be eligible for SSI payments, each member of a household had to receive public assistance. Under the new requirement, it is sufficient for only one household member to be an SSI recipient, along with at least one additional household member who receives some type of public assistance that is subject to resource verification.
- Current Requirement: Every household member must receive public assistance.
- New Requirement: Only one SSI recipient is needed, plus at least one other household member receiving verified public assistance.
Promoting Fairness in Social Security Programs
According to a recent statement by Social Security Commissioner Martin O’Malley, “We are removing significant hurdles to SSI access by streamlining our laws and incorporating an extra program geared toward low-income families, such as SNAP benefits.” He further emphasized that these new changes aim to promote greater fairness across all Social Security programs.
This modification is expected to enhance payments for approximately 277,000 current SSI beneficiaries, while also making an additional 109,000 individuals newly eligible for SSI benefits.
Changes to Food Assistance Calculations ISM
The Social Security Administration (SSA) is also making a notable change in how it treats in-kind support and maintenance (ISM) in the form of food when evaluating SSI eligibility. This adjustment in the food assistance calculations is another step toward ensuring that those in need receive the support they deserve.
- Improved SSI Access: Streamlined laws to make it easier for low-income families to qualify.
- Increased Fairness: Efforts to create a more equitable Social Security system.
- Enhanced Payments: Approximately 277,000 current beneficiaries will see improved payments.
- Newly Eligible Individuals: An additional 109,000 people will now qualify for SSI benefits.
These changes mark a significant step towards better support for low-income families and a fairer, more inclusive Social Security system.
In the past, the Social Security Administration (SSA) classified any assistance with food or housing as unearned income, which would reduce an individual’s eligibility for Supplemental Security Income (SSI) benefits. This regulation has been widely criticized for being overly complex and detrimental to those in need. Fortunately, a significant change has been made: recipients can now accept food aid from friends and family members without the risk of losing their benefits.
How does the new approach to in-kind support and maintenance (ISM) change the way recipients receive food assistance?
The new approach to in-kind support and maintenance (ISM) changes the way Supplemental Security Income (SSI) recipients receive food assistance in a few key ways:
- Beginning September 30, 2024, the Social Security Administration will no longer include food in ISM calculations when determining SSI eligibility and payment amounts.
- This removes a critical barrier for SSI eligibility due to an applicant’s or recipient’s receipt of informal food assistance from friends, family, and community support networks.
- SSI applicants and recipients will have less information to report about food assistance received, reducing their reporting burden.
- Reducing month-to-month variability in payment amounts due to food ISM changes will improve payment accuracy for recipients.
- The SSA will see administrative savings because less time will be spent administering the food portion of ISM calculations.
2025 COLA Increase
Social Security Administration has announced that the initial COLA payments will be sent out ahead of schedule. This means that if you’re eligible, you can look forward to receiving your adjusted check sooner rather than later, providing a timely financial boost.
In this day, the maximum payment will not be the usual $943. Instead, it will be that amount plus the 2025 COLA. While the exact amount is yet to be confirmed, projections suggest a COLA increase of approximately 2.5%. Therefore, you should add this percentage to your regular SSI check and other Social Security payments.
