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+ Effective Dates: 12/04/2012 - Present + Previous | Next +
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TN 29 (07-90)

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SI 01120.210 Retirement Funds

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A. Definitions

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1. Retirement Funds

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Retirement funds are annuities or work- related plans for providing income when employment + ends (e.g., pension,disability, or retirement plans administered by an employer or + union). Other examples are funds held in an individual retirement account (IRA) and + plans for self-employed individuals, sometimes referred to as Keogh plans. Also, depending + on the requirements established by the employer, some profit sharing plans may qualify + as retirement funds.

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2. Periodic Retirement Benefits

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Periodic retirement benefits are payments made to an individual at some regular interval + (e.g., monthly) and which result from entitlement under a retirement fund.

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3. Value of a Retirement Fund

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The value of a retirement fund is the amount of money that an individual can currently + withdraw from the fund. If there is a penalty for early withdrawal, the fund's value + is the amount available to an individual after penalty deduction. However, any taxes + due are not deductible in determining the fund's value.

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B. Policy Principle

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A retirement fund owned by an eligible individual is a resource if he/she has the + option of withdrawing a lump sum even though he/she is not eligible for periodic payments. + However, if the individual is eligible for periodic payments, the fund may not be + a countable resource. See E.1. below if an individual is eligible for periodic payments.

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A previously unavailable retirement fund is not income to its recipient when the fund + becomes available. The fund is subject to resources counting rules in the month following + the month in which it first becomes available.

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C. Operating Policies

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1. Termination of Employment

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A retirement fund is not a resource if an individual must terminate employment in + order to obtain any payment.

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2. Fund Not Immediately Available

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A resources determination for the month following that in which a retirement fund + becomes available for withdrawal must include the fund's value. A delay in payment + for reasons beyond the individual's control (e.g., an organization's processing time) + does not mean that the fund is not a resource since the individual is legally able + to obtain the money. It is a nonliquid resource.

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3. Claim For Periodic Payment Denied

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If an individual receives a denial on a claim for periodic retirement payments but + can withdraw the funds in a lump sum,include the fund's lump sum value in the resources + determination for the month following that in which the individual receives the denial + notice.

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D. Development and Documentation

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1. Evidence

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If an individual has a retirement fund,determine and document whether he/she is eligible + for periodic payments per SI 00510.001 ff. If not, determine and document whether he/she can make a lump-sum withdrawal.

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2. Determination

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If the individual can withdraw any of the retirement fund, it is a resource in the + amount that is currently available.

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E. Related Policies

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1. Filing For Other Benefits

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If an individual is eligible for periodic retirement benefits, he/she must apply for + those benefits to be eligible for SSI. If he/she has a choice between periodic benefits + and a lump sum, he/she must choose the periodic benefits.

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2. Nonliquid Resource

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Absent evidence to the contrary, assume that resources in the form of retirement funds + are nonliquid (SI 01110.300 B.).

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3. Conditional Benefits

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An individual with excess nonliquid resources, such as retirement funds, may qualify + for conditional benefits while awaiting payment (SI 01150.200 ff.).

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4. Deeming Exclusion

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If an ineligible spouse, parent, or spouse of parent owns a retirement fund,we exclude + it from the deeming process (SI 01330.120 and 01330.220). See SI 00830.500 regarding the treatment of interest income.

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F. Example

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1. Situation

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Jeff Grant currently works 3 days a week for a company where he has been employed + full-time for 20 years. Under his employer's pension plan, Mr. Grant has a $4,000 + retirement fund. The CR confirms that Mr. Grant could withdraw the funds now, but + there would be a penalty for early withdrawal and he would forfeit eligibility for + an annuity when he stopped working.

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2. Analysis

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Since Mr. Grant can withdraw the retirement funds without terminating employment, + they are a resource in the amount available after penalty deduction. This is true + despite the fact Mr. Grant forfeits eligibility for periodic annuity payments in the + future. Since SSI is a current needs program, all sources of available support (unless + otherwise excluded) are considered in determining eligibility.

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To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501120210
SI 01120.210 - Retirement Funds - 12/04/2012
+Batch run: 06/24/2026
+Rev:12/04/2012
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