Hugh Whaley v. Richard S. Schweiker, Secretary of Health and Human Services

The opinion of April 6, 1981, 650 F.2d 181 (9th Cir. 1981), is hereby withdrawn and the following opinion is substituted.

This case concerns the computation of benefits under the Social Security Act. The issue is whether increased pension benefits paid to a disabled veteran for the support of his minor children under the Veterans’ Act constitute income to the veteran so as to disqualify him from receiving supplemental income benefits under the Social Security Act, 42 U.S.C. § 1382a. We hold that such increased pension benefits provided to the veteran for the purpose of supporting his minor children should not serve to reduce his individual entitlement under the Social Security Act.

At the time this action was commenced, plaintiff Hugh Whaley was a 68-year-old veteran with two minor children. Whaley received a monthly veterans’ pension, based on a non-servicerconnected disability, for support of himself and the children. In addition, Whaley qualified for Supplemental Security Income (“SSI”) benefits under the Social Security Act.

In August, 1976, the Social Security Administration (“SSA”) advised Whaley that he no longer was eligible for benefits because he had income in excess…