PM 08-02-07-a: Effect of Lump Sum (Cash)

WAG 08-02-07-a.

When an AABD cash client reports or the Family Community Resource Center becomes aware of the receipt of a lump sum payment, review ongoing eligibility. If the case remains eligible, do not budget the lump sum payment until the payment month that corresponds to the budget month that the lump sum was received. See PM 11-02-05 for budgeting unearned income.

If the lump sum payment plus other nonexempt monthly income meets the client's needs prospectively for at least one month, stop cash benefits. If the client reapplies for cash benefits, consider any remaining money as a nonexempt asset.

SSI Lump Sum

When an SSI lump sum is paid to a client who lives in the community, and the lump sum is paid directly to the client or the client's representative, review ongoing eligibility for cash benefits. If the case is ineligible for cash, SWAP the case to Medical for the next month.

When an SSI lump sum is paid for a child under age 18 who lives in the community, and the lump sum is directly deposited into a dedicated bank account, exempt the lump sum payment as income and an asset. SSA requires the SSI lump sum benefit be deposited into a dedicated account when:

  • the child being awarded the payment is under age 18 and has a representative payee; and
  • the lump sum payment for past-due benefits is greater than 6 times the monthly SSI rate.

Money in the dedicated account can only be used for specific and limited expenses of the disabled child (education, training, medical treatment, or other items related to the child's disability).