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UPDATED: NOVEMBER 2007

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INCOME UNEARNED

RETIREMENT FUNDS

If the individual has a choice between periodic payments and a lump sum, the individual must choose the periodic payments. The individual must apply for the maximum payment amount that could be made available over the individual’s lifetime. By federal law, if the Medicaid A/R has a living spouse, the maximum income payment option that is available will usually be less than the maximum income payment option available to a single individual. This provision applies to all Medicaid A/Rs.

NOTE: An individual who has met the minimum benefit duration requirement of a New York State Partnership for Long-Term Care (NYSPLTC) policy is not required to maximize income from a retirement fund. If, however, the amount of any interest earned since the purchase of the policy, which would have been added to the value of the retirement fund, is available to be withdrawn, a qualified NYSPLTC participant is required to pursue or cooperate in the pursuit of the amount of the income payments. This requirement applies to a qualified NYSPLTC participant who is subject to chronic care budgeting. It does not apply under community budgeting. Non- applying spouses/parents are not required to apply for periodic payments or to maximize income from a retirement fund.

References: GIS

98 MA/024

When to Verify: When the A/R indicates s/he receives a pension or retirement benefit.

When the A/R has left his/her employment and is retired or disabled.

When the record indicates that the A/R received a pension or retirement benefit in the past. When the Resource File Integration (RFI) report indicates that the A/R has income.

When the A/R indicates that s/he has group health insurance.

When the A/R's bank records indicate recurring electronic deposits.

(MRG)