Lump Sum Unearned Income Payments 400-19-55-10-20

 

Nonrecurring Lump Sum Payments 400-19-55-10-20-05

(Revised 6/1/10 ML #3218)

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(N.D.A.C. 75-02-01.2-24)

 

Unearned income received on a non-recurring or irregular basis is considered nonrecurring lump sum payments. This income is not countable but, instead, is considered an asset beginning the second month following the month of receipt. For the second month following the month of receipt, the remaining lump sum amount is included with all other countable assets in determining eligibility.

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 30th.

 

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;
• Lump sum payments from Railroad Retirement;
• Lump sum payments from Veterans benefits;
• Lump sum payments from Workforce Safety and Insurance;
• Lump sum payments from Unemployment Compensation;
• Military Re-enlistment payments,
• 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.

 

For treatment of lump sum earned income, see Section 400-19-55-15-10, Earned Income - When Received