Count railroad retirement annuities as SSI unearned income

changelog.d/ssi-railroad-retirement-income.fixed.md

@@ -0,0 +1 @@
+Count railroad retirement annuities as unearned income for Supplemental Security Income and the Colorado Old Age Pension.

policyengine_us/parameters/gov/ssa/ssi/income/sources/unearned.yaml

@@ -4,6 +4,11 @@ values:
     # (a) Annuities, pensions, and other periodic payments.
     - pension_income
     - social_security
+    # NOTE: Household net income, SNAP, HUD annual income and other program
+    # income lists count social_security and ssi but not railroad_benefits, so
+    # an SSI recipient's railroad annuity drops out of them.
+    # https://github.com/PolicyEngine/policyengine-us/issues/10551
+    - railroad_benefits
     - disability_benefits
     - veterans_benefits
     - survivor_benefits
@@ -30,3 +35,7 @@ metadata:
   reference:
     - title: United States Code of Federal Regulations, Title 20, Subsection 416.1121
       href: https://www.law.cornell.edu/cfr/text/20/416.1121
+    - title: 42 U.S.C. 1382a(a)(2)(B)
+      href: https://www.law.cornell.edu/uscode/text/42/1382a#a_2_B
+    - title: SSA POMS SI 00830.225 Railroad Retirement Payments
+      href: https://secure.ssa.gov/poms.nsf/lnx/0500830225

policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/income/sources/disability.yaml

@@ -4,6 +4,11 @@ values:
     - social_security_disability
     - disability_benefits
     - workers_compensation
+    # NOTE: railroad_benefits is not listed. The exemption covers Railroad
+    # Retirement disability annuities until they convert to age annuities at
+    # full retirement age, but the input does not separate disability annuities
+    # from age, spouse or survivor annuities, so every railroad payment counts.
+    # https://github.com/PolicyEngine/policyengine-us/issues/10540
 
 metadata:
   unit: list

policyengine_us/parameters/gov/states/co/ssa/oap/income/sources/unearned.yaml

@@ -9,6 +9,7 @@ values:
   2020-03-01:
     - pension_income
     - social_security
+    - railroad_benefits
     - disability_benefits
     - veterans_benefits
     - survivor_benefits

policyengine_us/tests/policy/baseline/gov/ssa/ssi/income/ssi_unearned_income.yaml

@@ -26,3 +26,11 @@
     retirement_distributions: 1_000
   output:
     ssi_unearned_income: 1_000
+
+- name: SSI unearned income counts railroad retirement annuities.
+  period: 2026
+  input:
+    railroad_benefits: 10_800
+  output:
+    # 42 U.S.C. 1382a(a)(2)(B) lists "railroad retirement annuities and pensions".
+    ssi_unearned_income: 10_800

policyengine_us/tests/policy/baseline/gov/ssa/ssi/ssi.yaml

@@ -1,5 +1,6 @@
 # Unit tests for SSI variable (final benefit calculation)
-# These tests only use the direct inputs to the ssi variable
+# The first tests only use the direct inputs to the ssi variable; the railroad
+# retirement cases at the end run the full income calculation.
 
 # Note: The 'abolish_ssi' parameter test would need a reform, which is not
 # supported in the current test framework for YAML tests. This would need to be
@@ -25,3 +26,33 @@
     uncapped_ssi: -100
   output:
     ssi: 0
+
+- name: A railroad retirement annuity reduces an aged divorced spouse's SSI.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    age: 70
+    # 900 a month, near the RRB's September 2025 average divorced spouse
+    # annuity of 893.35 (Quarterly Benefit Statistics, Table 1).
+    railroad_benefits: 10_800
+  output:
+    # (900 - 20 general exclusion) x 12 = 10,560.
+    ssi_countable_income: 10_560
+    # 2026 federal benefit rate of 994 x 12 = 11,928; 11,928 - 10,560 = 1,368.
+    uncapped_ssi: 1_368
+    ssi: 1_368
+
+- name: The average railroad retirement employee annuity leaves an aged retiree no SSI.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    age: 70
+    # RRB News Release 25-8: the average regular employee annuity is 3,636 a
+    # month in January 2026; 3,636 x 12 = 43,632.
+    railroad_benefits: 43_632
+  output:
+    # (3,636 - 20 general exclusion) x 12 = 43,392.
+    ssi_countable_income: 43_392
+    # 11,928 - 43,392 = -31,464.
+    uncapped_ssi: -31_464
+    ssi: 0

policyengine_us/tests/policy/baseline/gov/states/co/ssa/oap/co_oap.yaml

@@ -552,3 +552,23 @@
   output:
     co_oap_own_countable_income: 8_760.12
     co_oap: 3_612
+
+- name: Case 36, a Railroad Retirement annuity counts as unearned income.
+  # 3.520.785(B)(5) counts Railroad Retirement Board payments. 900/month, near
+  # the RRB's September 2025 average divorced spouse annuity of 893.35, less the
+  # $20 disregard is 880; SSI pays 994 - 880 = 114; 1,032 - 114 - 880 = 38,
+  # raised to 189.
+  period: 2026
+  input:
+    people:
+      person:
+        age: 70
+        railroad_benefits: 10_800
+    households:
+      household:
+        members: [person]
+        state_code: CO
+  output:
+    ssi: 1_368
+    co_oap_countable_income: 10_560
+    co_oap: 2_268

policyengine_us/tests/policy/baseline/gov/states/nh/doe/fap/nh_fap_countable_income.yaml

@@ -790,7 +790,7 @@
 # Manual p17 deducts Medicare premiums withheld from Social Security. Social
 # Security of 12,000 is 1,000 a month, or 980 after the $20 exclusion, within the
 # Medicare Savings Program limit (135% of the 2027 one-person guideline, about
-# 1,838 a month), so MSP pays the premium and nothing is withheld or deducted.
+# 1,848 a month), so MSP pays the premium and nothing is withheld or deducted.
 - name: "Case 27, no Part B deduction applies when the Medicare Savings Program pays the premium."
   period: 2027
   absolute_error_margin: 0.01
@@ -816,7 +816,8 @@
     nh_fap_countable_income: 12_000
 
 # Manual pp15,17 deduct the Medicare premium withheld from railroad retirement.
-# railroad_benefits is not an SSI unearned source in the model, so MSP status
+# Railroad retirement counts as SSI unearned income for MSP, and 1,500 - 20 =
+# 1,480 a month is within the MSP limit (about 1,848 a month), so MSP status
 # turns on assets: 20,000 exceeds the 9,950 MSP resource limit and the enrollee
 # pays the 2027 premium of 202.90 * 12 = 2,434.80. 18,000 - 2,434.80 = 15,565.20.
 - name: "Case 28, the Part B premium withheld from railroad retirement is deducted."
@@ -845,7 +846,7 @@
     nh_fap_countable_income: 15_565.2
 
 # Manual pp14-17 allow support paid and the withheld Medicare premium separately.
-# Social Security of 2,000 a month is above the MSP limit (about 1,838 a month),
+# Social Security of 2,000 a month is above the MSP limit (about 1,848 a month),
 # so the premium is 2,434.80: 24,000 - 2,000 - 2,434.80 = 19,565.20.
 - name: "Case 29, support paid and the Part B premium are both deducted."
   period: 2027
@@ -900,7 +901,7 @@
 
 # Manual p17 and plan item 1.9 count Social Security net of the Medicare deduction.
 # An enrollee aged 70 needs no reported amount: 1,980 a month after the $20
-# exclusion is above the MSP limit (about 1,838), so the premium is
+# exclusion is above the MSP limit (about 1,848), so the premium is
 # 202.90 * 12 = 2,434.80 and 24,000 - 2,434.80 = 21,565.20.
 - name: "Case 31, a Medicare enrollee's Part B premium is deducted from Social Security."
   period: 2027

policyengine_us/variables/gov/ssa/ssi/eligibility/income/ssi_unearned_income.py

@@ -4,7 +4,7 @@
 class ssi_unearned_income(Variable):
     value_type = float
     entity = Person
-    label = "SSI earned income"
+    label = "SSI unearned income"
     unit = USD
     definition_period = YEAR
 

policyengine_us/variables/household/income/person/retirement/railroad_benefits.py

@@ -4,6 +4,14 @@
 class railroad_benefits(Variable):
     value_type = float
     entity = Person
-    label = "Recieves any railroad benefits"
+    label = "Railroad Retirement Board benefits"
+    unit = USD
     definition_period = YEAR
+    documentation = (
+        "Gross annual benefits paid by the Railroad Retirement Board, such as "
+        "retirement, disability, spouse and survivor annuities, before Medicare "
+        "premiums or other amounts are withheld. Railroad Unemployment Insurance "
+        "Act benefits are reported elsewhere: unemployment benefits in "
+        "unemployment_compensation and sickness benefits in disability_benefits."
+    )
     default_value = 0