TN 56 (09-08)

Citations:

Social Security Act, Section 1613(a) as amended by P.L. 110-245, § 202.

A. Introduction

On June 17, 2008, President Bush signed into law H.R. 6081, the Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) which excludes State annuities for certain veterans from resources for purposes of SSI.

B. Definition of a veteran

The term “veteran” means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable.

C. Policy – The exclusion

Effective for Supplemental Security Income (SSI) benefits payable on or after September 1, 2008, a State annuity paid by a State, to a person, and/or a person’s spouse, on the basis of the State’s determination that the person is a veteran and is blind, disabled, or aged, is excluded from resources beginning with the month following the month of receipt and every month thereafter for SSI purposes.

NOTE: A State annuity payment is not a benefit issued by the Department of Veterans Affairs, such as VA compensation or VA pension.

D. Procedure — Initial claims and posteligibility

1. Development

If a veteran, and/or a veteran’s spouse, alleges the receipt of a State veteran’s annuity as outlined in SI 01130.662C, ask the individual to submit evidence that verifies the source of the State annuity.

2. Acceptable evidence

• documents in the individual's possession (i.e. award letter from the State),

• office precedent, or

• direct contact with the State.

If evidence verifies that the annuity is paid by the State to a veteran and/or a veteran’s spouse under this provision, but not the amount or date(s) of payment, accept the individual's allegation of amount(s) and date(s) of receipt. Exclude the State veteran’s annuity payment from resources beginning with the month following the month of receipt and every month thereafter without further development.

NOTE: See SI 01130.700 for instructions on handling cases where excluded funds are commingled in an account with non-excluded funds.

3. Documentation

Document the acceptable evidence on the MSSICS DROC screen and lock it, shared EVID process, or fax the documentation (e.g., SSA-5002, award letter) into the Certified Electronic Folder (CEF), Non-Disability Repository (NDRED) or the Electronic Folder (EF), as appropriate. Once the documentation is stored and viewed for content in either an eDIB claim filing or through the NDRED by using Claims File User Interface (CFUI), the artifact need not be retained.

4. Systems Input

In MSSICS situations, if the State annuity payment is retained into the month following the month of receipt, complete the appropriate MSSICS resource page (RFIA, ROTH, RCSH, etc.). Enter the retained balance in the Verified or Alleged Value field, as appropriate, on the MSSICS resource page. Then enter the retained payment amount in the Excluded Amount field. Select “Other” as the exclusion reason and enter “State veteran’s annuity exclusion” as the reason.

In non-MSSICS situations, use an SSA-1719B to add a remark to the SSR indicating the receipt, frequency and amount of the payment and applicability of the State veteran’s annuity resource exclusion. See SM 01301.841 R1, R2, R3, R4, R5, - SSR Remarks for input instructions for the SSA-1719B Remarks fields.

Another option is to use an SSA-450SI to add "State veteran’s annuity exclusion" in the CG field, see SM 01005.525 Case Related Data.  However, a PR change, or SSA-1719B input after systems payment, to the CG field, can entirely overlay any entries previously posted on the SSR.

E. References

• SI 01110.210, Excluded Resources

• SI 01130.050, Guide to Resources Exclusions

• SI 01130.700, Identifying Excluded Funds That Have Been Commingled With Nonexcluded Funds

• SI 00830.260, State Annuities for Certain Veterans (income exclusion)