Current through Register Vol. 56, No. 18, September 16, 2024
(a) Lump sum income includes, but is not limited
to, payments in the nature of a windfall such as inheritances, lottery, casino and racetrack winnings; RSDI,
Railroad Retirement, Veterans and Worker's Compensation retroactive awards; and personal injury awards.
1. Nonrecurring lump sum income will be subject to repayment of past
assistance (including emergency assistance) in accordance with the agreement to repay except as noted in
(a)1i below (see 10:90-7.8 regarding agreement to repay provisions); after the
agreement to repay is satisfied, any remaining amount of the lump sum income shall be considered in
determining the period of WFNJ ineligibility.
i. RSDI, Railroad Retirement,
Worker's Compensation, Veteran's Administration benefits, and temporary disability benefits are exempted by
law from the repayment process. However, lump sum payments from these sources are subject to the lump sum
regulations in (c) through (e) below.
2. SSI payments
shall not be subject to lump sum repayment rules for WFNJ/TANF recipients (see (a)2i below for WFNJ/GA
recipients).
i. For WFNJ/GA recipients, retroactive SSI payments are subject
to repayment in accordance with WFNJ/GA fiscal provisions at
10:90-14.5.
(b) The recipient shall notify the county or municipal agency within 10
calendar days of the receipt of a lump sum income.
(c) When a
recipient receives nonrecurring earned or unearned lump sum income, the extent it is not earmarked and used
for the purpose for which it was paid (for example, moneys for back medical bills resulting from accidents or
injury, funeral and burial costs, replacement or repair of resources, and so forth), that income shall be
used to repay assistance granted in accordance with the agreement to repay. After the agreement to repay is
satisfied, any lump sum remaining will be added together with all other countable income received that month
by the eligible assistance unit after application of the appropriate disregards in
10:90-3.8.
1. An allowance may
be made to disregard a portion of the remaining lump sum money that may be spent to purchase items that are
integral in promoting self-sufficiency, such as the purchase of a first vehicle, vehicle repairs or essential
household items.
2. Effective April 2, 1997, if assistance
payments (including emergency assistance) are repaid to a county or municipal agency, in accordance with the
agreement to repay, the months of assistance for which cash payments were repaid shall not count toward a
recipient's five year time limit on receipt of public assistance.
(d) When the total remaining lump sum income (for either a WFNJ/TANF or
WFNJ/GA case) exceeds 200 percent of the WFNJ/TANF maximum payment level for the appropriate eligible
assistance unit size as set forth in Schedule VI below, the assistance unit will be ineligible for WFNJ for
the number of full months derived by dividing this total income by the payment level applicable to the
eligible assistance unit size in Schedule VI.
1. Schedule VI shall also be
used for alien sponsor-income deeming as set forth at
N.J.A.C.
10:90-3.15.
|
WFNJ/TANF and WFNJ/GA Schedule
VI
|
|
Number in |
200% of WFNJ/TANF |
|
Eligible Unit |
Payment Levels |
|
1 |
$428 |
|
2 |
$850 |
|
3 |
$1,118 |
|
4 |
$1,288 |
|
5 |
$1,456 |
|
6 |
$1,628 |
|
7 |
$1,788 |
|
8 |
$1,922 |
|
More than 8 |
Add $132.00 each person |
(e) For purposes of determining the period of ineligibility, the WFNJ
assistance unit and any other individual (such as a stepparent) whose lump sum income caused the assistance
unit's income to exceed the allowance standard shall be included in such determination.
1. The period of ineligibility shall begin in the first month subsequent to
the month the nonrecurring income is received or, if there is insufficient time for a timely adverse action
notice, the following month.
2. In the event the nonrecurring
income is not reported timely, the period of ineligibility shall begin at the point the ineligibility would
have occurred had the county or municipal agency had knowledge of its receipt. The amount of overpayment for
the period of ineligibility must be established and recovery made.
3. The period of ineligibility applies to each individual in the eligible
assistance unit at the time of receipt of the lump sum nonrecurring income.
4. Once established, the period of ineligibility may be
recalculated/reduced only if the lump sum income used to determine such period becomes unavailable to the
eligible assistance unit for reasons beyond the control of the assistance unit members. It is the
responsibility of the former eligible assistance unit to provide all necessary information and documentation
required to make a determination to shorten the period of ineligibility. The basis for a determination to
shorten the period of ineligibility shall be thoroughly documented in the case record. Acceptable reasons
include, but are not limited to, those below:
i. Allegation of loss or theft
of part or all of the lump sum, including circumstances where a member of the former eligible assistance unit
has absconded with the funds.
(1) The former eligible assistance unit shall
thoroughly substantiate an allegation of loss or theft of income and must provide the county or municipal
agency with evidence that a police report of an incident of theft has been filed. Upon receipt of credible
evidence of loss or theft of the income the county agency shall reduce the amount of the original lump sum by
the amount of the loss or theft;
ii. The former
eligible assistance unit incurs and pays verifiable expenses due to an emergent situation, for which, had the
assistance unit been eligible, emergency assistance would have been authorized under N.J.A.C. 10:90-6. Upon
receipt of credible verification of those expenses, the county or municipal agency shall reduce the amount of
the original lump sum;
iii. The assistance unit incurs, becomes
responsible for, and pays medical expenses during the period of ineligibility; or
iv. Other circumstances, with the provision of appropriate verification, as
approved by the DFD.
