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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. There is an exception for disability and insurance payments. When the payments are employer-funded and paid to person who is an active employee, these payments are earned income.

Countable 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.

SNAP Policy counts these payments toward the intended beneficiary even when the actual payment goes to a third party.

Verification

You may verify Social Security benefits through the IMS BEN transaction when it is up-to-date.

BEN <space> claim number <enter> or

PY <SPACE> SSN. Tab down to BEN line. Next to BEN, type BEN <ENTER>

Remember to drop any cents from the amount received from BEN.

If it is not up-to-date, you may ask Social Security to provide up-to-date information 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 issuing organization. You can find the phone number for the client’s SS office at this website. The client may be able to log onto the SSA website to get a copy of the award letter.

FACS Coding

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),” AND code the countable amount in FACS blocks F98.

A FACS screenshot highlighting the F98 and F99 blocks.

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