Lump Sum Payments

Exempt

Exempt lump sum payments include:

  • Retroactive benefit payments from Title II (RSDI) and Title XVI (SSI/SSP) are not included in the property reserve for a period of nine (9) months following the month in which the payment is received. This applies to Pickle, Disabled Adult Child(ren), Disabled Widow(er)s, Medically Needy/Medically Indigent Programs and other programs following Medically Needy Property rules. Any interest received from these exempt funds is considered unearned income when determining the share of cost.

    • Exception: For MN/MI programs only, retroactive Title XVI payments are exempt without a time limit and are not considered income or property.

  • Federal payments to Indians and Alaska Natives are exempt when the total nonexempt personal property plus the payment does not exceed $2,000 for each individual.
  • King v McMahon payments—These payments, which are made by the SDSS to clients who have not received their decision within a timely manner (60 days) after completing a State Hearing, are exempt in the month of receipt. Beginning the month following the month of receipt, any portion retained is counted in the property reserve.
  • Ball v Swoap payments—These payments are made by DHCS to recipients who have not received their state hearing decision in a timely manner (90 days). The payments are exempt as both income and property.
  • Retroactive Court-ordered reimbursements.
  • Retroactive Corrective Payments are exempt as property in the month of receipt and in the month following the month of receipt. Any amount remaining thereafter is included in the property reserve.
    • ExampleExampleA retroactive CAPI Payment is issued in August. The lump sum retroactive corrective payment is exempt as property in August and September. Any amount remaining in October is included in the property reserve.   

Nonexempt

Lump Sum Payments from the following are included in the property reserve effective the month of receipt:

  • Annuities
  • Veteran's Payments
  • Pensions
  • Railroad Retirement
  • Unemployment Benefits
  • Non-SSA Disability payments
  • Non-SSA Retirement payments.

Note: Any other source of income received in a lump sum payment is NOT considered property.

Verification

  • Copy of check
  • Statement from source.

Related Topics

Property Limits