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West Virginia Income Maintenance Manual Chapter 24
West Virginia Income Maintenance Manual Page 60 Chapter 24 Long Term Care
Certain annuity-related transactions, which occur on or after March 1, 2009, are subject to a transfer penalty. These transactions include any action taken by the individual that changes the course of payments to be made by the annuity or the treatment of the income or principal of the annuity. These actions include, but are not limited to: • Additions of principal • Elective withdrawals • Requests to change the distribution of the annuity • Elections to annuitize the contract and other similar transactions Multiple penalties can be applied to the same annuity under certain circumstances. Multiple Penalty Example: A 60-year old woman served a six-month penalty period because the annuity did not provide equal monthly payments. She became eligible for LTC services payments, but three months later she made an elective withdrawal from the annuity. Another transfer of resources occurred and a penalty is applied. ➢ Transactions Not Subject to Penalty Annuities purchased prior to March 1, 2009 which experience routine events and automatic changes that do not require any action or decision by the individual after March 1, 2009 are not subject to a transfer penalty. Routine changes include notification of an address change, death or divorce of a remainder beneficiary and other similar circumstances. Automatic changes are based on the terms of annuity which existed prior to March 1, 2009, and which do not require a decision, election or action by the individual to take effect. Changes beyond the individual’s control, such as a change in law, a change in the policies of the issuer, or a change in the terms based on other factors, such as the issuer’s economic condition, are not considered transactions that result in imposition of a transfer penalty. Annuities and annuity-related transactions that are not subject to a penalty are still subject to applicable income and/or asset policies. 24.8.2.F Transfer to Pay for Personal Care Services 24.8.2.F.1 Non-permissible Transfer of Resources to Pay for Personal Care Services NOTE: Certain annuity-related transactions which occur on or after March 1, 2009 are subject to the policy implementation of the DRA.