Current through Register Vol. 63, No. 9, September 1, 2024
Retroactively effective July 6, 2020:
(1) For the purposes of this rule:
(a) "Actuarially sound" means
commercial annuities (see subsection (d) of this section) that
pay principal and interest out in equal monthly installments over the actuarial
life expectancy of the annuitant, with no deferral and no balloon payments. For
purposes of this definition, the actuarial life expectancy is established by
the Periodic Life Table of the Office of the Chief Actuary of the Social
Security Administration and, for transactions (including the purchase of an
annuity) occurring on or after July 1, 2008, the payout period must be within
three months of the actuarial life expectancy, measured at the time of
purchase.
(b) An annuity does not
include benefits that are set up and accrued in a regularly funded retirement
account while an individual is working, whether maintained in the original
account or used to purchase an annuity, if the Internal Revenue Service
recognizes the account as dedicated to retirement or pension purposes. (The
treatment of pension and retirement plans is covered in OAR
461-145-0380.)
(c) "Child" means a biological or adoptive
child who is:
(A) Under age 21; or
(B) Any age and meets the Social Security
Administration criteria for blindness or disability.
(d) "Commercial annuities" means contracts or
agreements (not related to employment) by which an individual receives
annuitized payments on an investment for a lifetime or specified number of
years.
(e) "All programs" does not
include the OSIPM program. See OAR
461-145-0022 for the OSIPM
program. This rule does not apply to the OSIPM program.
(2) In all programs except QMB-BAS, QMB-SMB,
and QMB-SMF, an annuity is counted as a resource if:
(a) The annuity does not make regular
payments for a lifetime or specified number of years; or
(b) The annuity does not qualify for
exclusion as a resource under subsection (4)(b)(C) of this rule.
(3) If an annuity is a
countable (see OAR
461-001-0000) resource under
this rule, the cash value is equal to the amount of money used to establish the
annuity, plus any additional payments used to fund the annuity, plus any
earnings, minus any regular payments already received, minus any early
withdrawals, and minus any surrender fees.
(4)
Commercial annuities and
payments from such annuities are counted as follows:
(a) In all programs except the QMB-DW
program, annuity payments are counted as unearned income to the
payee.
(b) In the QMB-DW program:
(A) For an annuity purchased prior to January
1, 2006, the annuity is excluded as a resource and payments are counted as
unearned income to the payee.
(B)
If an individual or the spouse of an individual purchases an
annuity on or after January 1, 2006, the annuity is counted as a resource
unless it is excluded under paragraph (C) of this subsection.
(C) An annuity described in paragraph (B) of
this subsection is excluded as a resource if the criteria in subparagraphs (i),
(ii), and (iii) of this paragraph are met, except that if an unmarried
individual is the annuitant, the requirements of subparagraph (iv) of this
paragraph must also be met and if the
spouse of an individual
is the annuitant, the requirements of subparagraph (v) of this paragraph must
also be met.
(i) The annuity is
irrevocable.
(ii) The annuity is
actuarially sound (see subsection (1)(a) of this
rule).
(iii) The annuity is issued
by a business that is licensed and approved to issue commercial
annuities by the state in which the annuity is purchased.
(iv) If an unmarried individual is the
annuitant, the annuity must specify that upon the death of the individual, the
first remainder beneficiary is either of the following:
(I) The Department, for all funds remaining
in the annuity up to the amount of medical benefits provided on behalf of the
individual.
(II) The
child (see subsection (1)(c) of this rule) of the individual,
if the Department is the next remainder beneficiary (after this
child), up to the amount of medical benefits provided on
behalf of the individual, in the event that the child does not
survive the individual.
(v) If the
spouse of an
individual is the annuitant, the annuity must specify that, upon the death of
the
spouse of the individual, the first remainder
beneficiaries are either of the following:
(I) The individual, in the event that the
individual survives the spouse; and the Department, in the
event that the individual does not survive the spouse, for all
funds remaining in the annuity up to the amount of medical benefits provided on
behalf of the individual.
(II) A
child of the spouse; and the individual in
the event that this child does not survive the
spouse.
(D) If an annuity is excluded under paragraph
(C) of this subsection, annuity payments are counted as unearned income to the
payee.
Statutory/Other Authority: ORS
409.050,
410.070,
411.060,
411.070,
411.404,
411.706,
411.816,
412.049,
413.085 &
414.685
Statutes/Other Implemented: ORS
409.010,
409.050,
410.010,
410.020,
410.070,
410.080,
411.060,
411.070,
411.141,
411.404,
411.706,
411.816,
412.049,
413.085,
414.685 &
414.839
