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A. Assistance based on need is assistance which is:

1. Provided under a program which uses income as a factor of eligibility; and

2. Funded wholly by a state, a political subdivision of a state or a combination of such jurisdictions.

B. Assistance based on need is excluded from income.

1. If a program uses income to determine payment amount, but not eligibility, it is not ABON, e.g., some crime victim compensation programs.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Part 104 Chapter 7: Sources and Treatment of Unearned Income

Rule 7.1: Annuities, Pensions, Retirement and Disability Payments.

A. These types of income are defined as follows:

1. An annuity is a sum paid yearly or at other specific times in return for the payment of a fixed sum. Annuities may be purchased by an individual or by an employer.

2. Pensions and retirement benefits are payments to a worker following retirement from employment. These payments may be paid directly by a former employer, by a trust fund, an insurance company or other entity.

3. Disability benefits are payments made because of injury or disability.

B. These types of income are treated as follows:

1. Annuities, pensions, retirement benefits and disability benefits are counted as unearned income.

a) An exception is certain accident disability benefits paid within the first 6 months after the month an employee last worked are treated as earned income.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 7.2: Title II, Retirement, Survivors and Disability Insurance (RSDI) Payments.

A. This type of income is defined as follows:

1. Retirement, Survivors and Disability Insurance are monthly Social Security benefits which are counted as unearned income.