Memo MC # 5

MEMORANDUM

DATE: December 20, 2002

TO: Adult Public Assistance Manual Holders

FROM: Ellie Fitzjarrald, Chief

Policy and Program Development Team

SUBJECT: Adult Public Assistance Manual Change #5

Effective January 1, 2003, a 1.4% Cost of Living Allowance ( COLA ) increase will be granted to recipients of Social Security and SSI . This COLA increase also affects the APA program. Beginning with the benefit month of January 2003, this manual change implements new APA need and maximum payment standards, increases the income limit for substantial gainful activity, and raises the earned income exclusion of a blind or disabled student child.

This manual change also eliminates the prohibition against DPA employees acting as payees, and clarifies policy pertaining to SSI alien status requirements and property agreements. It also makes other minor technical corrections.

Implementation Dates: The 2003 COLA increases are effective January 1, 2003. All other changes are effective upon receipt of this manual change.

The explanation of the manual changes and the affected manual sections are described below. If you have any questions, please contact any member of the Policy and Program Development Team at 465-3347 or e-mail us at dpapolicy@health.state.ak.us.

Old Policy New Policy Section 421-10 , SSI Alien Status Requirements Describes the alien status requirements of the SSI program. Clarifies that aliens who meet APA alien status requirements may still qualify for APA even if they do not meet the more restrictive alien status requirements of the SSI program. Section 425-1 , Definition of Blindness/Disability Defines substantial gainful activity ( SGA ) as an individual’s own average monthly earned income of $780. Raises the SGA amount to $780 per month. Section 431-2I , Promissory Notes, Loans, and property Agreements Describes how promissory notes, loans, and property agreements are treated in determining APA eligibility. Clarifies that the resource value of a promissory note, loan, or property agreement is its fair market value when the fair market value is less than the outstanding principal balance. Section 442-2D , Earned Income Exclusion of a Blind or Disabled Student Child Provides for an earned income exclusion against the earnings of a blind or disabled student child of up to $1,320 per month, but not more than $5,340 per calendar year. Raises the earned income exclusion to $1,340 per month, and $5,410 per calendar year. Section 451-3, APA Need Standards Provides APA need standards for 2002. Updates the APA Need Standards for 2003. Section 452-7B , Payment to a Third Party Describes the policies for providing APA payments to a payee. Eliminates the prohibition against DPA employees acting as a payee. Section 453, Maximum Payment Standards Gives APA and SSI maximum payment standards for 2002. Updates the APA and SSI maximum payment standards for 2003.

Manual Change Filing Instructions

Remove Old Pages Insert New Pages D-7 through D-8 D-7 through D-8 H-1 through H-2 H-1 through H-2 K-9 through K-10 K-9 through K-10 P-3 through P-4 P-3 through P-4 S-1 through S-2 S-1 through S-2 T-17 through T-18 T-17 through T-18 U-1 through U-2 U-1 through U-2