State Supplement Program State Takeover of Administration on October 1, 2014

If you are receiving SSI payments, as of October 1st, you will notice a change. You will be receiving two separate payments although your total monthly benefit amount will not change. 

The New York State Office of Temporary and Disability Assistance advises that "effective October 1, 2014, the responsibility for administering the New York State supplement to the federal Supplemental Security Income (SSI) benefit will be transferring from the U.S. Social Security Administration (SSA) to the New York State Office of Temporary and Disability Assistance (OTDA).  In 2012, in enacting the State Fiscal Year 2012-2013 budget, the New York State Legislature enacted changes to New York Social Services Law to provide the authority for this change in administration.  SSI provides financial support to eligible aged, blind or disabled individuals to help meet their basic needs.  This change in program administration will not impact the SSI benefit amount someone receives.  The change in administration will not impact SSI recipient eligibility for SSI, Medicaid or the Supplemental Nutrition Assistance Program (SNAP, formerly known as Food Stamps).

Although SSA originally provided this service cost-free, in October 1993, SSA began charging states an administrative fee for each SSI supplement payment issued on behalf of the state.  Annual fee increases are required by federal law to be based on increases in the Consumer Price Index, and the 2014 fee has grown to $11.32 for each payment issuance.   New York State is projected to save approximately $90 million annually in administrative costs when the State begins making the payments directly.

Due to this change, starting October 1, 2014, most SSI recipients in New York State will begin receiving their monthly SSI benefits as two separate payments.  SSA will issue the federal portion and New York State will issue the state supplement portion of the benefits.  There will be no changes in the total amount of the monthly benefit, and the payments will arrive on the same day as before (on the first of each month).  The payments will be issued the same way as before (by check, by direct deposit into a bank account, or on a recipient’s Direct Express card).

OTDA is working to minimize the impact on recipients during this transition.  Letters explaining this change in SSI State Supplement administration have been sent to recipients by both OTDA and SSA. More information, including samples of the letters sent to recipients, may be found at www.otda.ny.gov/programs/ssp.  In addition, the OTDA State Supplement Program (SSP) Customer Support Center is available to assist recipients.  The toll-free number, 1-855-488-0541, operates Monday through Friday from 8:30 AM to 4:45 PM.