RetrospectiveMonthlyAccounting-TheVCU.docVIP

Retrospective Monthly Accounting February 2012 Introduction Effective April 1982, SSA calculates SSI payments for a given month on the known circumstances from an earlier closed month. This process of using income data from an earlier month to calculate the benefits due in a current month is known as “Retrospective Monthly Accounting” or RMA. RMA has two distinct components: the eligibility test which is based on the individual’s or couple’s income, resources and other factors in the month for which the payment calculation is made; and, The payment computation, which is generally based on the income in the second month before the month for which payment is being computed. In other words, eligibility is determined for the current month and applies in that current month, However, the amount of SSI due to an eligible individual or couple is usually based on the income (earned or unearned) received two months earlier. Of course, SSI payment calculations also depend upon other factors such as whether in-kind support and maintenance is received, any overpayments that are being recovered, and whether deeming applies. Budget Month and Eligibility Month Whenever SSI benefits are calculated, SSA first checks to see if the person is eligible and due a payment. In most circumstances, SSA looks at the month the payment will be received as the eligibility month, and the month two months prior to the eligibility month as the budget month. If the SSI recipient isn’t eligible in a given eligibility month, even if they were in the budget month, they are not due a payment. Example: Billie did not have any income in January through May. On June 5, Billie won $900.00 in the lottery. Even though Billie had no income in June’s budget month of April, she is ineligible for SSI payments in June because of her excess unearned income. Transitional Computation Cycle There are certain circumstances in which RMA is not applied because it isn’t possible to use the month occurrin