Certain individuals may be entitled to either the resource limits and exclusions under the State plan or the resource limits and exclusions under the SSI program (but not a combination of the two), whichever is more advantageous. In order to be eligible for the use of State plan resource limits and exclusions, a recipient must have:

1. a. 

   been eligible for and received assistance for the month of December 1973 under a State plan (approved under titles I, X, XIV, or XVI of the SSACT) in effect in October 1972; and

2. b. 

   transferred to the SSI rolls and been eligible to receive a payment for January 1974; and

3. c. 

   continued to reside in that same State (see item 2. below) since December 31, 1973; and

4. d. 

   had continuous eligibility (except for periods not in excess of 6 consecutive months) for an SSI benefit. (See SI 01220.100B.3.)

For purposes of item 1.c. above, a recipient has continued to be a resident of the same State since December 1973 unless they left the State at any time with the intention of abandoning their home there. There is a regulatory presumption that, absent evidence to the contrary:

1. a. 

   A recipient who leaves the State for 90 days or less is temporarily absent and continues to reside in the State; and

2. b. 

   A recipient who leaves the State for more than 90 days is no longer a resident there.

1. a. 

   For purposes of item 1.d. above, an “SSI benefit” is defined, effective September 1, 1987, as a Federal benefit only; it does not include any State supplement. Previously, the regulation did not define “SSI benefit” and could be interpreted to include a federally administered State supplement only.

2. b. 

   For cases which involve only State supplementary payments, begin counting consecutive months of ineligibility for an SSI benefit with the first such month occurring September, 1987, or later. However, the individual will lose eligibility for use of the State plan rules due to the revised interpretation no earlier than the month following the month of the first redetermination which occurs on or after September 1, 1987,

   EXCEPTION: “PROTECTED” CASES—Converted recipients who were considered entitled to use of the State resources rules despite being in federally administered State-supplement only status for more than 6 consecutive months prior to September 1987 are “protected.” They continue to be eligible for use of the State resources rules as long as they remain eligible for either Federal or federally administered State supplementary benefits and continue to reside in that same State.

3. c. 

   Where both members of a couple were converted from the State rolls and the special resource limitation applies to both, the State plan resource limit and exclusions for a couple (or two people) are used.

4. d. 

   When an individual/couple eligible to use the State plan limits acquires resources which result in the SSI and State limits being exceeded, they need only dispose of resources sufficient to meet the State resources limits. (See SI 01150.200 for conditional payments in this situation.)

When redetermining converted recipients, determine whether the case is protected.

1. a. 

   In a redetermination involving a converted individual or couple, when eligibility for State plan resource limits and exclusions is material, request a complete payment history (see SM 01601.175) to ascertain whether the individual or couple was, prior to September, 1987, in federally administered State-supplement-only status for a period of more than 6 consecutive months without loss of grandfathered rights (and so is protected as described in SI 01220.100B.3.). In some cases, it will be necessary to obtain offline queries (see SM 01601.310).

2. b. 

   If, after reviewing both the payment history and the offline query, you are unable to establish whether protected status applies, assume that the individual or couple had a period of federally administered State supplementary payments only for more than 6 consecutive months prior to September, 1987, and is therefore “protected.”

3. c. 

   When it is determined that an individual/couple should be given “protected” status, input RE82 to the CG field (see SM 01301.785) to identify that fact. If grandfathered rules are being applied to real property in the form of land input RE80 to the CG field. When applying grandfathered rules to real property other than land use CG code RE81 to document the determination.

1. a. 

   When an individual/couple does not have protected status, input RE 83 to the CG field (SM 01301.785) to identify that fact.

2. b. 

   For converted individuals or couples who enter State-supplement-only status and are not “protected,” diary for the anticipated fourth consecutive month of State-supplement-only payments.

3. c. 

   If State disregards are being used in the resources computation, send a manually prepared notice of planned action (see SI 01220.100C.4.) and take appropriate steps to adjust payments beginning with the seventh consecutive month of non-eligibility for Federal SSI benefits. In cases where overpayments result from this change, see SI 02220.001 for instructions.

If the nonprotected individual's resources exceed the Federal limit and State disregards can no longer be applied:

1. a. 

   Suppress the automated notice (SM 01301.675).

2. b. 

   Prepare a manual SSA-L8155 and include manual paragraph RESM08 per NL 00804.180.