BASIC (04-90)

A. Policy

We use SSI definitions of earned and unearned income when applying State income disregards.

EXCEPTION: For residents of Pennsylvania and California, regional instructions provide the definition of income to use when applying State plan income disregards.

B. Description of state plans

1. 1972 Federal Statutory Disregards

Federal statutes required States to disregard from income the following payments before applying State plan disregards:

• Loans and grants, such as scholarships, obtained and used under conditions that preclude their use for current living costs.

• Home produce of a recipient that is consumed by the recipient's household.

• The value of the bonus coupon allotment under the Food Stamp Act of 1964 as amended.

• The value of U.S. Department of Agriculture donated foods (surplus commodities).

• Assistance received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

• Any grant or loan to any undergraduate student which is made or insured under any program administered by the Secretary of the Department of Education under the Higher Education Act.

• All earnings of a child under 14 years of age.

• Training incentive payments and expense allowances made to any person under the Manpower Development and Training Act of 1962 as amended.

• Income resulting from the implementation of Section 23 of the Housing Act (Brooke Amendment).

• Per capita judgment payments made by the Gros Ventre and Blackfeet tribal governments in Montana to tribal members.

• Benefits received under title VII of the Older Americans Act, which is the Nutrition Program for the Elderly.

2. Common 1972 State Plan Disregards

a. Pass-Alongs of RSDI Increases

Some State plans excluded from income one or two title II benefit increases, by disregarding a fixed amount of title II income, up to $8 total, or else the actual amounts of two increases if less. See regional POMS instructions for specific State plan provisions.

b. “Any Income” Disregards

Most State plans provided a disregard of any income, up to $7.50 per month. This disregard applied first to unearned income.

If there was no unearned income, it applied to gross earned income before the application of any other earned income disregards.

See regional POMS instructions for specific State plan provisions.

c. Earned Income Disregard

All State plans provided blind recipients a disregard of the first $85 per month of earned income plus one-half of the remainder. This disregard was applied before work expense disregards. See regional POMS instructions for specific State plan provisions.

C. Procedure

1. Determining BCI

Determine BCI by applying, first, the Federal disregards in B.1. above and, next, the appropriate State plan blind income disregards explained in regional POMS instructions.

2. Recipient Disputes BCI Computations

a. Field Office Actions

The recipient may dispute a field office's interpretation of the State plan's provisions either before or after an SSI benefit determination is made.

Refer any such dispute immediately by memorandum to the Regional Commissioner, Programs. Attach copies of all pertinent documents. Caution the recipient about the delay. Diary the case for 30 days, and follow up, if necessary, by telephone or mail.

If the recipient has questioned an initial determination, process as a request for reconsideration.

If the initial determination is still pending, defer input of the change in BCI pending resolution of the dispute.

b. Regional Office Actions

The regional office (RO) will resolve the dispute using its complete State plan description for October 1972. If necessary, the RO will contact the State social services agency for clarification of the October 1972 provisions.