457.2 Types of Lump Sum Payments

Lump sum payments include, but are not limited to, the following types of one-time-only payments:        55 Pa. Code § 181.31

NOTE:  This does not include insurance payments for medical expenses that were paid by the individual. See the exclusions in Chapter 450.

NOTE:  Some of the money from a personal injury award or settlement may go directly to the Department of Public Welfare (DPW). The CAO must count only the amount that goes directly to the individual.

NOTE:  The CAO must not include retroactive Supplemental Security Income (SSI) or Social Security benefits for nine months after the individual receives them. If any money is left after nine months, the CAO must count it as a resource.        55 Pa. Code § 181.121(17)    20 CFR  § 416.1233    

NOTE:  Self-employment income is treated as earned income, not as a lump sum.

The CAO will not count, for 18 months, money received because of an event that was declared a major disaster by the president under the Disaster Relief Act of 1974 or another federal law. However, all of the following conditions must be met:    

The income exclusion must begin on the date the money is received and end on the last day of the 18th full month.

The CAO will:

If any money is left from the disaster relief in the 19th month, the CAO will count it as unearned income. If any money is left in the 20th month, the CAO will count it as a resource.

Cash from the sale or transfer of a resource, whether counted or excluded,  is not a lump sum. The CAO must treat the cash as a resource.  

  55 Pa. Code § 178.1(i)  

     

 

 

Updated April 12, 2013,  Replacing March 12, 2012