Are both Pension Compensation and Disability Compensation benefits treated as unearned income for SSI purposes?

Both Pension Compensation and Disability Compensation benefits are indeed treated as unearned income for Supplemental Security Income (SSI) purposes. Unearned income consists of income that is not earned through work, and both types of compensation fall into this category.

Pension Compensation typically comes from retirement benefits after a person has ceased work, while Disability Compensation often relates to payments made due to impairments or disabilities that prevent working. In the context of SSI, which aims to support individuals with limited income and resources, treating these compensations as unearned income means they impact the calculation of an individual’s eligibility and payment amount.

Understanding the classification of these benefits is essential for managing SSI applications and benefit determinations, as it helps individuals comprehend how their financial situation may influence their eligibility and the level of assistance they can receive.