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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |42 Effective Month: July 2025 200A.07.05 CIVIL SERVICE AND FEDERAL EMPLOYEE RETIREMENT SYSTEM PAYMENTS The Office of Personnel Management (OPM) makes US Civil Service and Federal Employee Retirement System (FERS) payments because of disability, retirement or death. Treatment of Income US Civil Service and FERS payments are counted as unearned income to the entitled retiree or individual survivor even when additional monies for other family members are included in the payment. However, certain disability benefits paid within the first six (6) months after an employee last worked are treated as earned income. Refer to the Earned Income section for further discussion. Retired Health Benefits (RHB) Program OPM provides annuitants under the Retired Health Benefits (RHB) program free coverage under Part B of Medicare. At the employee’s option, the Part B premium may instead be paid to another health insurance plan or paid directly to the annuitant for use in purchasing health insurance coverage privately. All annuitants covered by the RHB program retired before 7/1/1960. The RHB payment is shown as a positive amount (addition) on the health benefits line of the OPM notice. RHB payments to annuitants are not income. Verification Use notices or other documents in the individual’s possession (other than a check) to verify the OPM payment. If the individual has no acceptable documents, write or telephone OPM. Provide the individual’s name and civil service annuity claim identification number (a 7-digit number with a “CSA” or “CSF” prefix). If the claim number is not available, provide the individual’s date of birth and Social Security Number. The OPM toll-free telephone number is (888) 767-6738. Send written inquiries to: Office of Personnel Management Retirement Operations Center P O Box 45 Boyers, PA 16017