SS Debit Cards Now Count as Assets

As of March 1, 2013, all Social Security benefits will be paid via direct deposit or via Debit Express debit cards.  Social Security previously announced that, on that date, anyone who hadn’t signed up for direct deposit would automatically receive their next month’s benefit via debit card.  However, several periodicals now report that people receiving paper checks will continue to receive them for a little while, along with a letter offering assistance in making the “electronic bank deposit vs debit card” choice.

On February 27, HUD Policy changed how debit cards should be handled.  In the past, they were treated like checking accounts, but now, they are to be treated like savings accounts.  This is a huge relief to site managers, since it was impossible to obtain 6 months of debit card statements.  The SS income will still count as income.  Bank accounts, as always, will count as assets.  The debit card is also an asset, and its value is its current balance.  There is no interest earned on the debit cards.

Tenants who receive their SS/SSD/SSI benefit on a Direct Express Debit Card must provide an account balance no older than 120 days prior to the certification date.  Be sure to add this requirement to your 120-90-60 day recert reminder notices.  They can get this balance from an ATM at no charge, or through the online account service, or through a paper statement.  The verification document must identify the account and the name of the account holder.