Kansas Department of Health & Environment

Kansas Family Medical Assistance

Manual (KFMAM)

Eligibility Policy - 2/22/2020

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5440 Lump Sums - Payments are exempt as income in the month received. A lump sum payment is defined as a nonrecurring one-time payment that, if received regularly, would be non-exempt. Classification as a lump sum is dependent on its unpredictability either in amount or time of receipt that prohibits consideration as intermittent income. Lump sum payments may be from (but not limited to) the following sources:

5440.01 - Other payments, such as retroactive cash assistance, unemployment compensation, Social Security, SSI, or railroad retirement benefits.

NOTE: Under PRWORA provisions, all retroactive SSI benefits in an amount that equals or exceeds 12 times the federal benefit rate paid to an eligible SSI individual generally must be paid in installments.

Such retroactive benefits will be paid in not more than 3 installments and the installment payments will be made at 6-month intervals. Since these installments replace what would have been paid as a single lump sum payment, these installment payments for retroactive SSI benefits are exempt as income.

NOTE: Regarding SSI Lump Sums: If SSA requires that the SSI lump sum be placed in a separate account, the entire amount of the lump sum shall be exempt, including any portion of the lump sum that is for the current income month.

5440.02 - Refunds of security deposits on rental properties or utilities.

5440.03 - Bonus or severance pay paid in a lump sum after employment has been terminated.

5440.04 - VA pension benefit adjustments paid in a lump sum.

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