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. He was shown on the SSR in Federal LA A with no ISM.
He alleged no changes in LA or ISM since his last redetermination in July 1993. The
redetermination forms showed that he continued to reside with his mother in her home.
She was not on public assistance. He alleged contributing $150 a month to household
expenses. He did not know the average household expenses. Since he may be subject
to the VTR, he was asked to submit evidence of sharing. Five days later, he brought
in a statement from his mother showing the average household expenses for the period
May 1994 through April 1995 and confirming his alleged contribution. The statement
showed that Mr. Perry's pro rata share was now $165. He no longer met his pro rata
share and he was charged with the VTR effective with May 1995, the month the redetermination
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 he now pays 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.