Inman v. Shalala

30 F.3d 840 (7th Cir. 1994); No. 93-2305 (7th Cir. July 19, 1994) ; Clearinghouse Number: 49608

Description

Seventh Circuit Holds That Veterans Benefits Portion Earmarked for Dependent Is Income for Purposes of Calculating Dependent’s SSI Benefits

Abstract

Reversing, the Seventh Circuit has held that the augmented portion of a veteran’s benefits paid on behalf of a dependent is income for purposes of calculating the dependent’s SSI benefits. Pursuant to statute, VA pays an extra amount to veterans with dependents. Plaintiff filed this class action when HHS reduced her SSI benefits to take into account the augmented portion of her husband’s veterans’ benefits. The district court held that Social Security Ruling 82-31, which counts the augmented portion as unearned income to the dependent, was invalid because it was inconsistent with the statute and SSI regulations. The district court held that, since the dependent did not necessarily have possession of, or exercise control over, the augmented portion of the veteran’s benefits, considering the dependent to have "received" such payment was inconsistent with 42 U.S.C. § 1382a(a)(2)(B). Reversing, the Seventh Circuit held that HHS’s interpretation of the Social Security Act was reasonable and that the term "received" did not require that the dependent have actual physical possession of the money. Finding it permissible to consider the portion of a veteran’s benefits that is earmarked for dependents to be unearned income constructively received by the dependent, the court of appeals deferred to HHS’s interpretation. The court reversed and remanded with orders to the district court to enter summary judgment for HHS.

Additional Information

Attorney Information
Kenneth Falk, Legal Services Organization of Indiana, 151 N. Delaware St., Indianapolis, IN 46204, (317) 631-9410; Jamie Andree, Gill Deford.
Docket Date
1994-07-19 00:00:00+00:00

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