TN 12 (08-00)

A. PROCEDURE—GENERAL RULE

Follow this procedure to compute the period of ineligibility except for the situations described in SI 01150.111B. and SI 01150.111C.

• Determine the total, cumulative uncompensated value of any resources transferred since the look-back date.

• Then, divide the uncompensated value by the full amount of the Federal benefit rate (FBR) plus the full amount of the federally administered State supplementary payment (if any) based on the individual's living arrangement.

• The resulting amount, computed to 2 decimal places and rounded down to the nearest whole number, is the number of months of the period of ineligibility.

  NOTE: If the cumulative result of the calculation is less than one month, no period of ineligibility exists.

Example: The claims representative (CR) determines that Mr. Smith, who lives in a State with no federally administered State supplement, transferred a resource for less than fair market value on 3/10/00. The transfer resulted in uncompensated value of $7,500. The CR divides $7,500 by $512 (the FBR in 2000) which equals 14.64. The CR rounds down to the nearest whole number and determines that the period of ineligibility is 14 months and would begin in 4/00.

B. PROCEDURE—ELIGIBLE COUPLES

Follow this procedure to compute the period of ineligibility only when a married couple (including holding out) files for SSI as an eligible couple, or in posteligibility cases when an eligible couple (or either member of the couple) transfers a resource:

• Determine the total, cumulative uncompensated value of any resources transferred by either member of the couple since the look-back date.

• Then, divide the uncompensated value by the full amount of the eligible couple FBR plus the full amount of the federally administered State supplementary payment (if any) based on the couple's living arrangement.

• The resulting amount, computed to 2 decimal places and rounded down to the nearest whole number, is the number of months of the period of ineligibility for both members of the couple.

C. PROCEDURE—SPOUSE FILES CLAIM DURING PERIOD OF INELIGIBILITY

Follow this procedure to recompute the period of ineligibility when an individual is ineligible due to a resource transfer and his/her spouse subsequently files for SSI.

• Do not change the period of ineligibility for the months prior to the spouse's eligibility.

• Recompute the period of ineligibility beginning with the first month the spouse would be eligible for SSI if not for the resource transfer period of ineligibility.

• Multiply the number of months of the period of ineligibility already expired times the FBR and the State supplementary payment (if any) corresponding to the individual's living arrangement in the first month of the period of ineligibility.

• Subtract this total from the original uncompensated value of the transfer to determine the remaining uncompensated value.

• Divide the remaining uncompensated value by the couple's FBR and the State supplementary payment (if any) corresponding to the couple's living arrangement in the first month of the spouse's eligibility.

• The resulting amount, computed to 2 decimal places and rounded down to the nearest whole number, is the number of months in the recomputed period of ineligibility.

  Example: Mr. Thomas, who lives in a State without a federally administered State supplement, transfers a resource on 5/12/00 and files for SSI on 5/24/00. The uncompensated value of the resource is $4,500 which results in an 8-month period of ineligibility ($4,500 divided by $512 = 8.78). Mr. Thomas' period of ineligibility starts in 6/00 and will last through 1/01. His spouse, age 67, files for SSI on 9/5/00. Mrs. Thomas is found eligible for SSI but for the period of ineligibility due to the resource transfer. The CR recomputes the period of ineligibility as follows: As of 9/00, 3 months of Mr. Thomas' period have expired (6/00-8/00). The CR multiplies 3 months times the FBR (3 times $512 = $1,536). Then, the CR subtracts $1,536 from the original uncompensated value ($4,500 minus $1536 = $2,964). Then, the CR divides the remaining uncompensated value by the couple FBR ($2,964 divided by $769 = 3.85). This results in a recomputed period of ineligibility of 3 months which runs from 9/00-11/00. In 12/00 Mr. and Mrs. Thomas will be eligible.

D. PROCEDURE—CHOOSING APPLICABLE FBR AND STATE SUPPLEMENT

For purposes of computing the ineligibility months, use the following procedure.

1. Transfer Occurs Before or During Month of Filing

• Develop completely the individual's living arrangement for the month of filing.

• Use the FBR in effect as of the month of filing ($512 for an individual and $769 for a couple in 2000). The full FBR is used even if the individual would be in FLA/B or FLA/D during the filing month.

• Use the State supplementary payment applicable to the individual's actual living arrangement as of the month of filing. If the individual is in FLA/B, use the State supplement amount (if any) that applies to that actual living arrangement.

  Example: Mr. Smith, an aged individual living in California, files for SSI on 5/15/00. He lives with his adult daughter who provides him with all of his food and shelter (FLA/B). The field office determines that he transferred a resource for less than fair market value on 3/10/00 and the uncompensated value is $11,000. The beginning date of his period of ineligibility is 4/00 (the month after the transfer). Although Mr. Smith would be in FLA/B due to the food and shelter he gets, the number of ineligibility months is computed based on the full FBR ($512) in effect for 5/00 (the month of filing) plus the California State supplement that applies to an aged individual in FLA/B ($187.66) for that same month. ($11,000 divided by $699.66 = 15.72 months which is rounded down to 15 months of ineligibility.)

  NOTE: Although Mr. Smith filed in 5/00 and he could not be eligible for SSI in 4/00, the beginning date of the period of ineligibility is always the month after the transfer. The 15 months of Mr. Smith's period of ineligibility would start in 4/00 and continue through 6/01 (SI 01150.110D.).

2. Transfer Occurs After Month of Filing

• Use the full FBR in effect in the month of the transfer even if the individual was in FLA/B or FLA/D or N02 during that month.

• Use the State supplement that applies to the actual living arrangement in the month of transfer. If the individual was in FLA/B in the month of transfer, use the State supplement amount (if any) that applies to that living arrangement.

Example: While conducting a redetermination on 8/3/00, the CR learns that Mr. Mulder gave away a non-excluded automobile worth $2,600 on 5/11/00. This transfer will result in a period of ineligibility for Mr. Mulder who is an SSI recipient living in New York State. To determine the number of months in the period of ineligibility, the CR looks at Mr. Mulder's living arrangements in 5/00—the month that he transferred the automobile. Mr. Mulder was in FLA/B in 5/00. To compute the number of months of ineligibility, the CR uses the full FBR ($512 in 2000)) plus the New York State supplement applicable to an individual in FLA/B ($23 in 2000). The CR divides the uncompensated value ($2,600) by $535 which results in 4 months of ineligibility (4.85 rounded down to 4). The period of ineligibility begins in 6/00—the month after the transfer.

NOTE: Absent evidence to the contrary, assume that the living arrangement on the SSR for the month of transfer is correct even if the individual is in nonpay status that month.

E. REFERENCES

Duration of period of ineligibility, SI 01150.110

State Supplementary Payments, SI 01415.031