 |
|
(Revised 3/03 ML #2830)
Nonrecurring Lump Sum Payments
All nonrecurring lump sum payments are considered an asset beginning the second month following the month of receipt. For that month, the remaining lump sum amount is included with all other non-exempt assets in determining eligibility, it is not counted as income. For example, if the non-recurring lump sum payment is received in May, the amount of the lump sum payment remaining as of June 1 is added to the other assets held by the family and reported on the June 5 monthly report when determining eligibility for July. If the total amount of the assets is in excess of the program limits, the family must be notified that their case will be closed as of June 30 unless they furnish proof that the assets have been spent down to program levels by June 30.
Nonrecurring lump sum payments are limited to only those payments that can reasonably be expected not to occur again. Examples of nonrecurring lump sum payments include, but are not limited to, lump sum payments from Social Security, Railroad Retirement, Veterans benefits, Workers Compensation, Unemployment Compensation, insurance settlements, inheritances, contests, gambling winnings, severance pay (represents a nonrecurring compensation outside of regular earnings), income tax refund, employee's withdrawal of a retirement fund taken in a lump sum payment, Supplemental Security Income (SSI) back payment, and bonus payments on mineral leases.
Any period of ineligibility previously calculated in TECS as a result of a receipt of a lump sum shall continue if the household applies for TANF.
Proceeds from the sale of an asset continue to be an asset subject to the appropriate asset level.
