us-ut/manual/dhhs/chip/415-3-when-the-entitlement-amount-differs-from-the-payment-amount/block-1

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us-ut/manual/dhhs/chip/415-3-when-the-entitlement-amount-differs-from-the-payment-amount/block-1 — Effective Date: November 1, 2021 · Axiom

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Where an unearned income source amount differs from the actual payment amount, use the following criteria to determine what unearned income is countable:

1. Civil Service benefits .

If a Civil Service recipient is divorced, the divorce decree may award a portion of the Civil Service benefits to the spouse. This is because the laws governing Civil Service benefits allow a spouse who meets certain criteria, to receive a portion of benefits under a domestic support order from the divorce court. The Civil Service office has a formula for calculating the benefit amount for the spouse. Upon receiving the order, Civil Service will determine the amount to be paid to the spouse, and begin sending a check directly to the spouse. The benefit amount for the Civil Service recipient will be decreased by that amount. Count only the amount of Civil Service benefits the individual is entitled to receive after the division has been made.

2. Other Pension or Retirement Income

a. Divided Between Divorced Spouses.

When a married couple divorces, pension or retirement funds may be divided between them under a Qualified Domestic Relations Order (QDRO). A QDRO transfers an interest in one individual's pension plan, profit-sharing plan or other retirement investment plan to another individual, usually divorcing spouses. The person who has the interest in the retirement plan is called the participant because that person is the one eligible to receive benefits from the retirement plan. The person who will receive an interest in the retirement plan through the QDRO is called the "alternate payee." An alternate payee could be someone other than a former spouse, such as a child of the participant.

b. When a pension or retirement fund is divided by a QDRO, count as unearned income only the monthly benefit amount awarded to the individual. Request a copy of the divorce decree, or QDRO document, if it is separate. Do not deduct amounts taken out of the individual's benefit amount for things like health insurance or taxes, if any.