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PROPOSED CHANGES FOR PEOPLE RECEIVING SUPPLEMENTAL SECURITY INCOME (SSI)

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Some months ago, the Bush Administration has offered three (3) changes in the Social Security Administration’s SSI program to make compliance easier than it currently is. 

Generally speaking receipts of food, clothing and shelter by a person receiving SSI results in a loss of benefits to the SSI recipient.  Because clothing is delivered sporadically and because of its little value, the SSA wondered whether it still makes sense to spend the time and effort and cause SSI recipients to need to do likewise to prove the value of clothing.  Thus for good reason, the proposal will mean that future receipts of clothing by an SSI recipient will not reduce the monthly payment to be received. 

Another issue tackled by the Administration has to do with the $2,000 limit for household goods and personal effects.  Yet, household goods and personal effects are not counted at all if related to a physical impairment.  To be brief, the proposal is to eliminate the $2,000 limit.  On the other hand collector items (like artwork and certain jewelry held for investment) would still be subject to the $2,000 limit. 

Finally under current rules an automobile is excluded irrespective of value if used by an SSI recipient or family for employment, medical treatment, is modified to accommodate an handicapped person or is used to carry out essential needs.  If it does not meet these tests the auto’s value is limited to $4,500.  The Administration proposed to eliminate the requirements for use or need so that an auto of any value used to any purpose would be exempt.  Recreational vehicles however would not come within that category and would be treated as an unnecessary luxury.

 

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