Pension, disability, and Social Security benefits
Clients who receive an annuity, pension, retirement, disability, or Social Security benefits receive a regular payment monthly. The payments from these income sources usually count as unearned income for Child Care Subsidy. There is an exception for disability and insurance payments. When the payments are employer-funded and paid to a person who is an active employee, these payments are earned income.
Use the gross monthly amount. This is the amount before any recoupment or Medicare premiums deductions. You may exclude the amount used to repay an overpayment unless the client is repaying the funds due to an intentional program violation.
When a child who lives in joint custody situation receives one of these benefits, determine how much of this benefit each household receives and uses. Count the amount that the household receives and uses toward Child Care eligibility. This rule conflicts the SNAP concerning counting Social Security benefits.
Remember the client must pursue potential sources of income available to the household.
You may verify Social Security benefits through the IMS BEN transaction when it is up-to-date. If it is not up-to-date, you may ask Social Security to update the information on the BEN screen through the IMS TPQYC transaction.
You may verify all of these types of income by getting a copy of the recipient's award letter or contacting the issuing organization. You can find the phone number for the client's SS office at this website.
For Social Security benefits, enter the gross amount in F85.
For pensions, annuities, and retirement benefits, select "Pension or annuities (other than RSDI or VA)" in the F99 dropdown box and code the countable amount in block F98.