NOTE: For resource purposes, each installment is subject to regular resource rules in the
month following receipt (see SI 01130.600 for exclusion of RSDI underpayments).
EXAMPLE 1: Ray Calloway is eligible for SSI effective July 1995. In August 1995, Mr. Calloway
is approved for a monthly title II disability benefit of $400, effective January 1995.
Since Mr. Calloway was eligible because of alcoholism, his retroactive DI benefit
must be paid in installments. After applying windfall offset, the total retroactive
title II disability benefits is $1,900, of which $1,800 is due for months outside
the offset period. The $1,900 must be paid in monthly installments of $400 beginning
in September 1995.
For SSI purposes, the entire $1,800 due for months outside the offset period, is treated
as unearned income in the month the installments begin (September 1995). The $100
payable for months in the windfall offset period is non-countable income. Because
Mr. Calloway's regular, recurring title II check in September is $400, the total title
II amount for SSI purposes for that month is $2,200. In October 1995, he receives
a second installment payment of $400 in addition to his regular, recurring title II
payment. For SSI purposes, only the recurring amount of $400 is treated as title II
income in October 1995 (and later months).
EXAMPLE 2: Same facts as above. In November 1995, Mr. Calloway receives a recomputation of his
title II benefit because of his 1994 earnings. As a result of the recomputation, Mr.
Calloway is due a retroactive RSDI payment of $200 and his monthly check increases
to $420 on December 3, 1995. The retroactive amount of $200 would have ordinarily
been paid in December. However, it cannot be paid to Mr. Calloway since he is eligible
because of alcoholism and is being paid the balance of an earlier past-due amount
in installments. As a result, the $200 amount is added to the remaining balance of
the retroactive RSDI total to be paid in installments. For SSI purposes, however,
the $200 is treated as unearned income (in addition to his regular, recurring monthly
amount of $420.00) as if paid in a lump sum in the usual manner in December 1995.