433-3        PERMANENT FUND DIVIDEND

Permanent Fund Dividend (PFD ) payments are not counted as either income or resources for the APAAdult Public Assistance program. However, the SSISupplemental Security Income program does consider PFDPermanent Fund Dividend payments as countable income and resources when determining eligibility and benefit amounts. The Medicaid program also considers PFDPermanent Fund Dividend payments as countable income in very limited situations, but does not count retained PFDPermanent Fund Dividend payments as a resource.

433-3 A.     HOLD HARMLESS FOR SSI APPLICANTS AND RECIPIENTS

The SSISupplemental Security Income program is not administered by the State of Alaska. However, state law provides for replacement of SSISupplemental Security Income benefits an individual loses because of receiving or keeping PFDPermanent Fund Dividend money. The policy below describes the different procedures for SSISupplemental Security Income applicants and ongoing recipients of SSISupplemental Security Income benefits.

1.  Applications

When SSASocial Security Administration opens an applicant's SSISupplemental Security Income case, the individual's PFDPermanent Fund Dividend may be counted as income or resources, resulting in ineligibility for SSI.

If SSISupplemental Security Income benefits are denied or reduced due to PFDPermanent Fund Dividend income or resources, the caseworker must request a field warrant from Systems Support to replace the lost benefits.  Provide the following information when you are requesting a warrant to replace lost SSISupplemental Security Income benefits:

• Client's name and case number;
• Benefit month(s) and amount(s) being requested; and
• An explanation that the warrant is being requested to replace SSISupplemental Security Income benefits lost because of receipt or retention of PFDPermanent Fund Dividend money during the SSISupplemental Security Income application period.

Lost benefits may exist back to the date of the SSISupplemental Security Income application, so it is important to remember the PFDPermanent Fund Dividend hold harmless period cannot exceed four months for each PFDPermanent Fund Dividend distribution year.

We may also pay these special retroactive hold harmless benefits if SSASocial Security Administration denies SSISupplemental Security Income to a child under age 18 due to the receipt of PFDPermanent Fund Dividend.

2.  Ongoing Cases

For ongoing SSISupplemental Security Income cases, SSASocial Security Administration will continue paying SSISupplemental Security Income benefits, declaring overpayments when PFDPermanent Fund Dividend income or resources cause ineligibility.

• If a PFDPermanent Fund Dividend caused SSISupplemental Security Income overpayment exists, the PFDPermanent Fund Dividend Hold Harmless Program will repay the client's overpayment to SSISupplemental Security Income.
• SSASocial Security Administration will notify the client of the SSISupplemental Security Income overpayment due to PFDPermanent Fund Dividend income, but will not require repayment since the State of Alaska has already repaid the overpayment in full.
• No action is required by the caseworker. Reconciliation is accomplished through a buy-out agreement between the state and SSASocial Security Administration. The Director's Office is responsible for transferring replacement funds to SSASocial Security Administration.