If the new average yields a pro rata share which leads to a new ISM determination
(e.g., a change from the VTR to sharing or vice-versa or the establishment of a new
AV), the ISM change is effective with the month the redetermination is initiated,
the month the individual's request for reevaluation is received or the month the PERC
interview is conducted (see SI 00603.030).
EXAMPLE: Change in LA
On May 28, 1995, Andy Perry completed an SSA-8203 and SSA-8006 in connection with
a scheduled redetermination. Andy was shown on the SSR in Federal LA A with no ISM.
Andy alleged no changes in LA or ISM since their last redetermination in July 1993.
The redetermination forms showed that Andy continued to reside with their parent in
the parent's home. The parent was not on public assistance. Andy alleged contributing
$150 a month to household expenses. Andy did not know the average household expenses.
Since Andy may be subject to the VTR, Andy was asked to submit evidence of sharing.
Five days later, Andy brought in a statement from their parent showing the average
household expenses for the period May 1994 through April 1995 and confirming the alleged
contribution. The statement showed that Andy's pro rata share was now $165. Andy no
longer met their pro rata share and was charged with the VTR effective with May 1995,
the month the redetermination was initiated.
NOTE: In the above example, the determination to charge the VTR is not retroactive to any
month prior to the redetermination. There would also be no retroactivity if the opposite
happened; i.e., if the individual were being charged the VTR but upon redetermination
it is discovered that the pro rata share has decreased because expenses have gradually
decreased and they now pay a pro rata share and is therefore not subject to the VTR.
This is because the effective date for a change in LA or ISM which is due to gradual
changes is the month the redetermination is initiated.