BASIC (01-02)

A. Policy -- General

SVB equals 75 percent of the SSI Federal Benefit Rate (FBR) reduced by the amount of other benefit income for the month as explained in VB 00701.001. Other benefit income is defined in VB 00102.001B.3.

An individual's SVB payment for a month may need to be adjusted if the amount of the other benefit income changes for that month. If the adjustment adversely affects the SVB payment (i.e., reduces or eliminates payment), the individual must be notified in advance of the adverse action and provided appeal rights along with the opportunity to have benefits continued at the current payment level under the Goldberg/Kelly provisions.

B. Policy — Other Benefit Income Issued in Foreign Currency

Generally, other benefit amounts issued in foreign currency are converted to U.S. dollars using the exchange rate in effect on the first day of the month in which the notice is prepared advising the claimant that he or she meets all SVB qualification requirements. The value of the other benefit amount is not refigured on a monthly (or other routinely scheduled) basis to account for fluctuations in currency exchange rates and, as explained in VB 00205.125C, a different exchange rate can be used only when a post-qualification change in other benefit amount occurs. In these situations, the exchange rate to use is the one in effect on the earlier of the following dates:

• the first day of the month in which the change in other benefit amount was first paid; or

• the first day of the month in which input is made to process the change in other benefit amount (i.e., prospective change).

C. Examples

1. Change In Other Benefit Income Adversely Affects SVB

Manuel Suez, a Philippine resident, filed for SVB on November 2, 2000. He met all SVB qualification requirements and was awarded SVB beginning November 2000. Mr. Suez' SVB is reduced due to his receipt of a monthly PVAO pension of 4,000 pesos. This converts to $78.52 U.S. dollars using the exchange rate in effect on November 1, 2000-the month in which the notice is prepared advising Mr. Suez that he meets all SVB qualification requirements-reducing monthly SVB to $306.23. The cost-of-living adjustment in the FBR effective January 2001 increases Mr. Suez' monthly SVB payment to $319.73—75 percent of the January 2001 FBR reduced by $78.52 other benefit income. (NOTE: The exchange rate used in November 2000 remains the exchange rate of record since there was no change in Mr. Suez' other benefit income.)

On July 2, 2001, Mr. Suez reported that his PVAO had increased to 4,500 pesos effective May 2001. Mr. Suez' new PVAO is equivalent to $87.71 in U.S. dollars. (The pesos-to-U.S. dollar exchange rate on May 1, 2001 is used—the first day of the month in which the change in PVAO is first paid.) Beginning May 2001, Mr. Suez's monthly SVB is $310.54—75 percent of the May 2001 FBR ($531) reduced by $87.71 other benefit income.

2. Change In Other Benefit Income Does Not Adversely Affect SVB (Prospective Report)

A qualification notice was prepared and sent to Mr. Ramon on September 6, 2000. Mr. Ramon's Philippine residency began December 15, 2000 entitling him to SVB payments of $301.41 beginning January 2001. (Mr. Ramon's SVB is reduced by $96.84 U.S. dollars—his monthly PVAO of 4,000 converted to U.S. dollars using the exchange rate in effect on September 1, 2000, the month Mr. Ramon's qualification notice was prepared.) On July 15, 2001, Mr. Ramon reports that his monthly PVAO will increase to 5,000 Philippine pesos effective September 2001. The prospective change in other benefit income is input via MISSICS on July 20, 2001, in which case the exchange rate in effect on July 1, 2001 is used and monthly PVAO converts to $93.67 U.S. dollars. This will result in an increased monthly SVB of $304.58 beginning September 2001 (75 percent of the September 2001 FBR reduced by $93.67 other benefit income).