A lump sum is a nonrecurring earned or unearned cash payment. It is considered income in the month of receipt. Any funds remaining from the lump sum payment after the month following the month when it is received is considered a resource. Lump sum payments must be reported by the tenth day of the month after the month the payment is received. 55 Pa. Code § 183.25
In the month of receipt, the CAO will combine a lump sum payment (minus certain deductions) with the budget group’s other income to determine the effect on the monthly assistance payment. After the month of receipt, combine any remaining funds with the budget group’s other resources to determine continuing eligibility. 55 Pa. Code § 183.105(4)
The CAO will count lump sum income received by:
A member of the budget group;
A legally responsible relative (LRR) living with the budget group; 55 Pa. Code § 183.35
A parent of a TANF minor parent living with the budget group; 55 Pa. Code § 183.35
A stepparent living with the budget group; 55 Pa. Code § 183.35
The sponsor of an alien (see Chapter 122, Citizen/Noncitizen). 55 Pa. Code § 183.36
Exception: If the LRR, stepparent, or parent of a TANF minor parent or sponsor receives TANF in a separate budget or receives SBP or SS, the CAO will not deem the lump sum to the relative or sponsored alien. If the person who receives the lump sum receives TANF, apply the lump sum policy to the budget group that includes that person.
The budget group must verify the amount of the lump sum and the amount of any allowable deductions. The CAO will help the client get verification. Do not deny assistance if a person does not have verification as long as the budget group has cooperated. Record verification in the case record. 55 Pa. Code § 183.5
Reviewed July 30, 2013