TN 50 (06-04)

A. Background

The nationwide class action lawsuit, Bondy v. Sullivan, involved Austrian social insurance payments which were based, in whole or in part, on wage credits granted under Paragraphs 500–506 of the Austrian General Social Insurance Act. These paragraphs grant credits to individuals who suffered a loss (i.e., were imprisoned, unemployed, or forced to flee Austria) during the period of March 1933 to May 1945 for political, religious, or ethnic reasons. Not all Austrian social insurance payments are based on Paragraphs 500–506.

B. Policy

1. The Resource Exclusion

Unspent Austrian social insurance payments based, in whole or in part, on wage credits granted under Paragraphs 500–506 of the Austrian General Social Insurance Act are excluded from resources.

Austrian social insurance payments not based on wage credits granted under Paragraphs 500–506 are not excluded from resources under this provision.

2. Interest on Unspent Payments

Prior to July 1, 2004, interest earned on unspent Austrian social insurance payments is counted as income. (Since the court decision did not address interest income, the normal rules on administrative finality apply.) However, interest earned on these payments may be excludable under another provision, for example, as infrequent or irregular. For SSI benefits payable on or after July 1, 2004, interest earned on unspent Austrian social insurance payments is excluded from income. (See SI 00830.500C.)

3. Reopening Prior Determinations

Because the court decision did not restrict the period of time for which these payments are not counted, there is no limit on the retroactivity for reopening prior determinations to not count these payments as resources.

C. Procedure - Initial Claims and Posteligibility

1. When to Develop

When an individual would otherwise be ineligible due to excess resources, determine if applying this exclusion would permit eligibility for regular or conditional benefits (SI 01150.200 ff.), in that order. If the exclusion would permit eligibility, develop per 2. below.

If the individual is resources-eligible even without the application of this exclusion, it is not necessary to develop under this section.

2. Development and Documentation

If an individual alleges that his or her resources include unspent Austrian social insurance payments:

1. Determine whether the payments are counted as income, per SI 00830.715.

   If the payments are counted as income, this resource exclusion does not apply. If the payments are not counted as income, go to b. and c. below.

2. Obtain the individual's statement either signed or recorded on a DROC as to the date(s) and amount(s) of any account deposits corresponding to the Austrian social insurance payments. Apply the policy in B. above and exclude the unspent payments from the determination of countable resources.

3. Enter code “AUST” in the CG field of the SSR to indicate that the individual's resources include unspent Austrian social insurance payments that are excludable under this section.

D. References

• Excluded funds commingled with nonexcluded funds, SI 01130.700

• Income exclusion, Austrian social insurance payments, SI 00830.715

• CG field input, SM 01301.785