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OSIP Program Manual

WG.8 Allocation and Deeming

Effective 1/1/12

This worker guide is intended to help workers calculate adjusted income for OSIPM when an individual is applying and income from a member of the financial group must be deemed during the eligibility process. It will also help workers calculate resources for applying children with ineligible parents. 

461-160-0551

• Income
  • Definitions
  • Overview of Deeming
  • Examples of Deeming When an Adult Applies
  • Examples of Deeming When a Child Applies
• Resources

Definitions

SSI Standard – also called the Federal Basic Rate, is the full SSI benefit for a single individual. It is $698 for an individual and $1048 for a couple in 2012.

Allocation – An allocation is deducted from an ineligible parent’s income for each child not applying for OSIPM who lives in the household. The amount of the allocation is the difference between the couple SSI standard and the individual SSI standard. In 2012, the allocation is $350.

Child - a natural or adopted child of an individual or a natural or adopted child of either member of a married couple.

Ineligible Person – A person who is not receiving benefits under the SSI or TANF programs.

Parental Living Allowance – is the SSI/OSIPM standard for two if both parents are in the HH ($1048) or for one if only one parent is in the HH ($698 or $700.70 if blind).

The following procedures come from the SSA POMS Manual SI01320.400 and SI01320.500

A. OVERVIEW of DEEMING

Adult Applying

1. The applicant must first be financially eligible as an individual. Compare the applicant's adjusted income (after deductions-see 461-160-0551 (b)-(f)) to the one-person OSIPM income standard. If the adjusted income of the applicant is less than the one person standard, the applicant is financially eligible.

2. If the applicant is financially eligible as an individual, income is allocated from an ineligible spouse of the client to each ineligible child of the couple.

3. An allocation is given to each ineligible child from the ineligible spouse's income. The ineligible child’s income is subtracted from the maximum $350 allocation to determine the actual amount.

4. Allocate from unearned income first and then, if necessary from earned income.

5. If the remaining income of the ineligible spouse is over $350, add their remaining income to the applicant's income, do the normal income deductions and compare to the two-person non-SSI OSIPM income standard. The adjusted income must be less than the OSIPM income standard.

Child Applying

1. Income from ineligible parents is considered and an allocation to each ineligible child is done first. The ineligible child’s other income is subtracted from the maximum $350 possible to determine the actual amount.
   
   
2. Allocate from unearned income first and then, if necessary from earned income.
   
   
3. Take the normal income deductions from the remaining parental income.
   
   
4. Deduct the SSI/OSIPM income standard for one or two (Parental living allowance), depending on the number of parents in the HH.
   
   
5. The income left is deemed proportionately to each applying child.
   
   
6. If deeming to multiple children, the deemed income is split evenly among the applying children. 
   
   
7. The deemed income is then added to each applying child’s other countable income, deductions taken and compared to the OSIPM non-SSI income standard for one person.

B. EXAMPLES OF DEEMING WHEN AN ADULT APPLIES

Follow the procedure below to deem parental income.

Example 1:

Mary Smith is applying for OSIPM.  She has $600 in SSD and is not in need of services.  Her husband works and earns $1500 per month.  They have 3 children who have no income of their own.

$772.50 is less than the 2 person OSIPM standard ($1048)so Mary is eligible.

Example 2:

Susan Jones has $900 in SSD and is not in need of services. Her husband works and earns $800/mo. They have 2 ineligible children.

Compare Susan’s adjusted income $880 ($900 - $20) to the OSIPM individual income standard ($698). Her adjusted income is over the standard so she is ineligible for OSIPM. There is no need to look at allocating income from the ineligible spouse to the ineligible children since Susan is not eligible as an individual.

Example 3:

Luisa Lopez has no income, is married and has 3 children.  Each child has $150 in income per month.  Her husband has $700 in SSB and earns $900.

$497.50 is less than the 2 person income standard for a couple for OSIPM ($1048) so Luisa is eligible.

C. EXAMPLES OF DEEMING WHEN A CHILD APPLIES

Example 1 (Parents Have Only Earned Income):

Bill Sanders is a child applying for OSIPM. He lives with both of his parents and a brother and sister, neither of whom is applying for OSIPM. Bill’s father earns $4,867.00 per month. This is the family’s only income.

So Bill will deem income of $993. Less the $20 deduction, his adjusted income is $973 and he is not eligible for OSIPM.

Example 2 (Parents Have Only Unearned Income):

Nancy Weaver is a child applying for OSIPM. She lives with her mother, father, and a 10 year old brother who is not applying for OSIPM. Her father receives a pension of $1000 per month and her mother receives a pension of $466 per month. Nancy's brother receives $100 per month in unearned income.

Nancy ’s income is $148. Less the $20 deduction, the adjusted income is $128 and she is eligible for OSIPM.

Example 3: Multiple Children Applying

• Note:  when multiple children apply the deemed income is divided evenly between them.  If the deemed income puts one of the children over income, only deem that amount to them that equals the one person SSI amount.  Any excess is split between the other children applying.

James and Janet Johnson are children applying for OSIPM. James receives $400 per month of unearned income. They live with their mother who receives $1,442 in unemployment compensation.

$362 is deemed to each child. James' income is $400 + $362 for a total of $762. Less the $20 deduction= $742. This is greater than the FBR and he is not eligible for OSIPM. James' income exceeds the FBR by $64 ($762 - $698), so this amount ($64) is added to the income that is deemed to Janet.

Janet has no income of her own and has deemed income of $362 + $64 for a total of $426. Less the $20 deduction = $406 and she is eligible for OSIPM.

Resource Deeming from an Ineligible Parent To An Applying Child.

Overview. Evaluate ineligible parents’ resources and see how much over the resource limit (if any) they are. The amount of resources over the limit is deemed to the applying children. If more than one child is applying, divide the resources equally among the applying children. The deemed resources are added to the child’s individual resources and compared with the individual resource limit for OSIP(M). There is no deeming to ineligible children.

Example 1
John and Mary Smith, neither of who are eligible for SSI have a total of $4,000 in countable resources.  Their son, Sam, is applying for OSIPM and has $500 in a savings account.

$4,000 ineligible parents countable resources
$3,000 couple OSIPM Resource Limit
$1,000 in resources to be deemed to Sam

$1,000 in deemed resources
+   500 from savings
$1,500 in total resources

Sam is under the resource limit since the OSIPM resource limit is $2,000 for an individual.

Example 2
Bill and Jane Jones, who are both ineligible, have 3 children: Alpha, Beta and Zoey.  Alpha and Beta are applying for OSIPM while Zoey is ineligible. The parents have savings and cash totaling $7,000 and Zoey has a saving’s account worth $1,000. Alpha and Beta both have saving’s accounts worth $350 each. Since Zoey is an ineligible child (not parent), her saving’s account isn’t considered.

$7,000 ineligible parents countable resources
$3,000 couple OSIPM Resource Limit
$4,000 in resources to be deemed to Alpha and Beta

For each child we have:
$2,000 deemed from the parents ($4,000/2)
+   350 from the saving’s account
$2,350

So both children are over resources and not eligible for OSIPM.

Example 3
Fred and Frieda Jones, who are both ineligible, have three children: Huey, Louie and Dewey. Huey and Louie are applying for OSIPM while Dewey is ineligible. The parents have savings and cash totaling $6,000. Louie and Dewey have saving’s accounts worth $1,000 each. Huey has a saving’s account worth $350. Since Dewey is an ineligible child (not parent), his saving’s account isn’t considered.

$6,000 ineligible parents countable resources
$3,000 couple OSIPM Resource Limit
$3,000 in resources to be deemed to Huey and Louie

For Huey we have:
$1,500 deemed from the parents ($3,000/2)
+  350 from their saving’s account
$1,850 - So, at the moment, he looks to be eligible.

For Louie, we have:
$1,500 deemed from the parents ($3,000/2)
+1,000 from their saving’s account
$2,500 – so he is not eligible

Now, here is the problem for Huey. Since Louie is an ineligible child, no resources can be deemed to him, so all of the resources have to be deemed to Huey.

So now for Huey we have:
$3,000 deemed from the parents
+  350 from his saving’s account
$3,350 – so he is not eligible either.  Doesn’t seem logical or fair, but that’s the way the policy is applied by the SSA.

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