Economic Recovery Starts With SSA

March 1, 2009

Author: Catherine M. Callery (Kate)| Louise M. Tarantino

Ann Biddle, Esq., Paul M. Ryther, Esq.

The American Recovery and Reinvestment Act of 2009, which President Barack Obama signed into law on February 17, 2009, provides for a one-time pay-ment of $250 to people receiving Social Security and Supplemental Security Income (SSI) benefits. 

The one-time recovery payments will go out in May 2009 and all payments should be received by the end of May.  In April, the Social Security Administration (SSA) will send a letter with additional information to each person who is eligible for the one-time payment.  The payments will be sent automatically, meaning no action is required on the part of the person receiving benefits.  The economic recovery payments will be made separately from a person’s regular monthly payments. 

All adults who receive Social Security benefits, in-cluding disabled adult children (but not minor chil-dren) are eligible for $250 payment.  In addition, all persons who receive SSI payments, including minor children, are eligible for the payment.  Anyone who receives benefits or who was eligible to receive bene-fits during any of the three months prior to enactment (November and December of 2008 and January 2009) will receive the one-time payment as long as the ad-dress of record is in one of the 50 states, the District of Columbia, Puerto Rico, Guam, U.S. Virgin Islands, American Samoa, or the Northern Mariana Islands. 

The payments will be made in the same way that regular monthly payments are made.  People with direct deposit will receive their payments electronically.  Those who receive paper checks will receive their payments in the mail.  People who receive regular payments through the Direct Express debit card will receive their one-time payments through the card. 

Payments to SSI recipients will not count as income in the month received and will be exempt from re-source counting for nine months following receipt. These benefits will, however, be subject to offset in the same manner as any other SSI or Social Security payment.  Thus, those beneficiaries who have a pend-ing overpayment or have an overpayment in another federal program will have their overpayment reduced by $250 instead of receiving a cash benefit. 

If someone receives both Social Security and SSI, only one payment of $250 will be made.  The eco-nomic recovery legislation also provides for a one-time payment to recipients of Department of Veterans Affairs (VA) and Railroad Retirement Board (RRB) benefits.  However, if someone receives Social Secu-rity or SSI benefits and also receives VA and/or RRB benefits, s/he will only receive one $250 payment.  The Social Security Administration will send this payment. 

To assist in processing the payments as efficiently as possible, please advise clients not to contact SSA unless a payment is not received by June 4, 2009.  Information is available at www.socialsecurity.gov and will be updated regularly.  To learn more about the American Recovery and Re-investment Act of 2009, visit www.recovery.gov.