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Families and Children Manual Policy Manual Number: 010.020 Section: Financial Eligibility Chapter: Countable and Excluded Income

September 1, 2026 Division of Tenncare 9 g. Unemployment Insurance Count the full value of unemployment compensation benefits as available unearned income in the month of receipt. Unemployment compensation includes any amount received under an unemployment compensation law of the United States or a state. If verification is required, verify the amount of unemployment benefits received with one of the following:

i. Documentary evidence from the Tennessee Department of Labor and Workforce Development; ii. Access through data matches available through the Department of Labor – Unearned Income data source; or iii. Documentary evidence from the state of issuance showing unemployment benefits are from another state. h. Retirement Payments an individual receives from a retirement account may be countable depending on the type of account, how much was contributed to the account, and whether the amount contributed was already taxed. For treatment of certain types of retirement accounts, see sections 3.n.vii and 3.m. in this policy. i. Pension A pension is generally a series of definitely determinable payments made to an individual after retiring from active employment. Pension payments are made regularly and are based on such factors as years of service and prior compensation. Pension payments are generally made to an individual after retiring from active employment. Pension income may be countable depending on the type of pension account, how much was contributed to the pension account, and whether the amount contributed was already taxed. The amount of distributions received from a pension account should be provided on the application, even if the individual is not retired. j. Annuities An annuity is a type of trust with periodic payments that are generated by a bank or insurance company from funds deposited by the individual either in a lump sum or installments to establish a source of income for a future period. Annuity income is subject to the same treatment as pension income for the MAGI categories. The amount of distributions received from an annuity account should be provided on the application, even if the individual is not retired.