TN 1 (02-02)

VB 00701.001 Computation of Special Veterans Benefit (SVB) Monthly Payment Amount

A. Policy

The benefit amount payable under title VIII to a qualified individual is an amount equal to 75 percent of the SSI Federal Benefit rate (FBR) for the month reduced by the amount of the qualified individual's other benefit income for the month. See VB 00205.100 VB 00205.130 for a detailed discussion of other benefit income.

For calendar year 2000, 75 percent of the SSI FBR is $384.75.*

For calendar year 2001, 75 percent of the SSI FBR is $398.25.

For calendar year 2002, 75 percent of the SSI FBR is $408.75.

For calendar year 2003, 75 percent of the SSI FBR is $414.00.

For calendar year 2004, 75 percent of the SSI FBR is $423.00.

For calendar year 2005, 75 percent of the SSI FBR is $434.25.

For calendar year 2006, 75 percent of the SSI FBR is $452.25.

For calendar year 2007, 75 percent of the SSI FBR is $467.25.

SVB payments are paid in actual dollars and cents (e.g., $184.25); they are not rounded.

*The first SVB was payable May, 2000.

B. Procedure

Subtract the total of the individual's monthly countable other benefit income (as explained in VB 00205.100) from 75 percent of the SSI FBR for that month.

Where the computation yields a monthly benefit payment that is less than $1.00, raise it to $1.00.

NOTE: The SVB is not a SSI benefit. Therefore, conditions that may affect SSI eligibility/payments, such as unearned income exclusions, earned income, resources, living arrangement, etc., do not apply to SVB.

C. Examples

1. Qualified Individual Has Other Benefit Income Consisting of Monthly Railroad Retirement Benefits (RRB)

The qualified individual, a U.S. citizen, becomes entitled to SVB in August 2000. The SVB file shows that he has been receiving RRB since 1996. He is receiving RRB of $216.00 a month in 2000. He has no other benefit income.

SVB Computation:

$384.75

-216.00

$168.75

Unreduced SVB

RRB (other benefit income)

Monthly SVB payment

2. Qualified Individual Has Other Benefit Income Consisting of Title II Benefits

Mr. Cruz, a nonresident alien, becomes entitled to SVB in August 2000. The SVB file shows that he has been receiving Title II benefits since 1996. His monthly Title II benefit before any deductions for August 2000 is $216.00. A nonresident alien withholding tax of $55.10 is withheld, and he receives a Title II monthly benefit payment of $160.90. The $55.10 nonresident alien withholding tax is considered a paid portion of the Title II benefit. Mr. Cruz has no other benefit income. Countable other benefit income for SVB computation purposes is $216.00 and is deducted from monthly SVB (75 percent of the FBR).

SVB Computation:

$384.75

-216.00

$168.75

Unreduced SVB amount

Title II benefit

Monthly SVB payment

3. Qualified Veteran Has Other Benefit Income Consisting of Title II Benefits; Receives Cost Of Living Adjustment (COLA) In January 2001

Mr. Rios, a US citizen, becomes entitled to SVB in October 2000. He has been receiving a Title II benefit since 1998. His Title II monthly benefit for October 2000 is $220.00. Mr. Rios' monthly SVB beginning October 2000 is computed as follows:

SVB Computation:

$384.75

-220.00

$164.75

Unreduced SVB amount

Title II benefit

Monthly SVB payment

A cost-of-living adjustment, (COLA) of 3.5 percent for SSI and Title II recipients became effective January 2001. The COLA increases the S