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Title 5: Centrally Administered Programs Page 63 Iowa Department of Human Services Employees’ Manual Chapter E: Healthy and Well Kids in Iowa (hawk-i) Types of Income Revised August 20, 2010 Retirement Benefits

When the client receives an early lump-sum payment from a retirement fund, determine which portion of the payment represents the client’s contribution plus accumulated interest, and which portion represents the employer’s contribution.

Consider the employer’s portion as exempt nonrecurring lump-sum income. See Nonrecurring Lump-Sum Income for more information.

When a person under age 55 leaves public employment covered by IPERS, the employer’s contribution to the IPERS fund reverts to the employer when the employee requests an early withdrawal of the benefits. Retroactive Corrective Payments 441 IAC 86.2(2)“b”(28) Exempt retroactive corrective payments. Retroactive SSI Payments 441 IAC 86.2(2)“b”(1) and (15) Exempt as income a retroactive SSI payment whether or not the client is an SSI recipient when the lump sum is received. It is considered a nonrecurring lump sum. Social Security Income 441 IAC 86.2(2)“a”(2) Count social security benefits as unearned income when determining eligibility. When a social security recipient is enrolled in Medicare Part B, the premium is deducted from the person’s entitlement. Count the gross amount of the entitlement before a Medicare premium is withheld.

If the Department pays the Medicare premium (“buys in”) because the person is Medicaid eligible, the person receives the full social security entitlement and a refund for the months the person paid the premium while receiving Medicaid. The refund is not counted as income.