New SSI Rule: How September 30th Will Bring Major Changes to Your Benefits?
The Social Security Administration (SSA) is about to implement a significant change that will affect millions of Americans who rely on Supplemental Security Income (SSI). Starting September 30th, a new rule will change how certain benefits, such as food assistance, are considered when calculating eligibility for SSI.
This move is part of an ongoing effort to make the benefits system more inclusive and responsive to the needs of disabled and elderly citizens. Around 70 million people receive Social Security benefits each year, with some qualifying for SSI if they meet certain conditions, such as having a disability or being an elderly citizen with low income.
One of the most critical eligibility criteria for SSI is that a person must earn no more than $1,971 per month. However, the upcoming rule shift will have a direct impact on how income is calculated and, in particular, how food assistance is treated under the system.
What’s Changing with the SSI Benefits Rule?
According to a report by Newsweek, the new rule means that food assistance will no longer be counted as income when determining SSI eligibility. Programs like the Supplemental Nutrition Assistance Program (SNAP) will no longer negatively affect the amount of SSI benefits a person can receive.
Alex Beene, a financial literacy lecturer at the University of Tennessee at Martin, explained that this shift could result in more people qualifying for SSI and increase the amount of benefits for some current recipients.
Previously, food assistance was classified as “unearned income,” which could reduce a person’s SSI benefits. By removing this factor, the new rule ensures that more funds go directly to those who need them without penalizing them for receiving help with basic necessities like food.
Potential Impacts on SSI Recipients
This rule change could make a substantial difference for many Americans. The average SSI recipient currently receives about $943 per month. However, with the new rules eliminating food assistance from the equation, that amount could potentially increase for many people.
This comes at a critical time, as the national inflation rate stands at 2.9% as of July, and the cost of living adjustment (COLA) for Social Security payments rose by 3.2% this year.
Though experts are warning that next year’s COLA might not be as generous—ranging between 2.75% and 3.25%, according to the American Association of Retired Persons (AARP)—the change to the way SSI eligibility is calculated could still result in meaningful financial relief for beneficiaries.
However, as Jonathan Price, National Retirement Practice Leader at the consulting firm Segal told Newsweek, how well the COLA keeps up with a retiree’s actual expenses can vary depending on their unique circumstances.
Factors such as personal spending habits, medical expenses, and additional sources of income all influence how far Social Security benefits go in maintaining a retiree’s purchasing power year after year.
Upcoming SSI Payment Dates and Schedules
One thing that remains unchanged is the Social Security Administration’s payment schedule, which operates on a consistent cycle throughout the year. SSI beneficiaries typically receive payments on the first of the month. However, those who have been receiving benefits since before May 1997 have a slightly different payment schedule, receiving their benefits on the third of each month.
Here are the confirmed SSI payment dates for the remainder of the year:
- September 1st
- October 1st
- November 1st
- December 1st
Beneficiaries should keep track of these dates to avoid confusion or mistakes, especially as the new rule changes go into effect.
Who Will Be Affected by The New SSI Rule?
The new rule will primarily benefit those who receive both SSI and food assistance. Under the old system, the amount of food assistance you receive could reduce your monthly SSI payment. For example, under the current regulations, food and housing benefits are considered “unearned income,” which can lower the amount of benefits you’re eligible for. But after September 30th, that will no longer be the case.
The maximum SSI payment for individuals currently stands at $943, with couples receiving up to $1,415. In addition, those who meet the “essential person” (EP) criteria—people who provide necessary care to SSI recipients—can receive an additional $472 per month. The rule change could potentially increase these amounts for some recipients by removing food assistance from the calculation.
Read More: How to Get Above-Average Social Security Checks in September?
What Should SSI Beneficiaries Expect?
As September 30th approaches, SSI beneficiaries need to be aware of these changes to ensure they’re receiving the full amount of benefits they’re entitled to. Those who currently receive both food assistance and SSI should expect to see an increase in their monthly SSI payments, as food benefits will no longer be counted against them.
For seniors and people with disabilities, this rule change offers a glimmer of hope in a system that many feel has long been unfairly balanced against those who need it most. The SSA’s decision to eliminate food assistance as a factor in SSI eligibility represents a step toward more equitable treatment of disabled and elderly Americans.
While it’s important not to expect massive increases in benefits, the shift could still have a noticeable impact on household budgets for those affected by the change. With inflation continuing to eat into Social Security and SSI payments, any increase—however small—can make a big difference.
Conclusion
The upcoming changes to the SSI benefits process mark a significant shift in how the Social Security Administration calculates eligibility. By removing food assistance from the equation, more people may qualify for benefits, and current recipients may see an increase in their monthly payments.
As the cost of living continues to rise, these changes offer much-needed relief for millions of Americans who rely on SSI to cover their basic needs.