605-7 PERMANENT FUND DIVIDEND SPECIAL PROCESSING
The Permanent Fund Dividend (PFD) is issued annually to all eligible Alaskans. Each year, the Department of Revenue issues the dividends to individuals by direct deposit or check.
Alaska PFD Hold Harmless statutes require that equivalent cash replacement payments be made to households whose Food Stamp benefits are denied, reduced, or stopped due to the PFD money being counted as income or resources. These cash payments are issued by DPA through the PFD Hold Harmless Program.
PFD Hold Harmless benefits are provided to any person who loses Food Stamp or SSI benefits because they receive or keep PFD money. A separate application is not required for the PFD Hold Harmless Program.
The Food Stamp Program counts the PFD as unearned income in the month received and retained PFD money as a countable resource in subsequent months.
Waivers to federal Food Stamp Program regulations were granted to Alaska relating to the treatment of the Permanent Fund Dividend. These waivers apply to households that become ineligible for Food Stamp benefits due to receipt or retention of PFD money, and to categorically eligible households whose allotment is reduced to zero due to receipt of PFD money. The waivers provide that:
Click the following links to see examples:
PFD Household when OCS Releases Funds
605-7 A. Verification of PFD Income
Receipt of PFD income or resources must be verified using the PFD website or interface. If the information indicates the household member has received or will receive a PFD, the PFD income will count in the month received or anticipated as income in the month it is expected to be received. When the PFD has not yet been received, the caseworker will obtain information from the household and/or the PFD website at www.pfd.state.ak.us to determine which month the PFD is expected to be received.
If the information indicates an unresolved matter will delay the issuance of the PFD , the PFD income will not be anticipated because the issuance date is uncertain.
PFD Website
Division of Public Assistance staff is allowed to obtain verification of PFD income through the PFD website www.pfd.state.ak.us. The website is available to interested parties who have legal authority to verify the status of an individual’s dividend. Use of the website is restricted to verifying PFD income. It should not be used to verify or confirm other information. To get PFD information from the website, follow these instructions:
At the PFD home page, under “Application Help” click “Check Application Status”
Read the warning. By clicking YES, you are acknowledging that you have the legal authority to view the record you are looking up. Your activity while in “Check PFD Status” will be logged.
Select the dividend payment year you want to verify.
You must provide the social security number, first name, last name and date of birth, and driver's license number for the PFD applicant. The information must be entered exactly as it was received by PFD.
Click “Status of Applicant”
Staff is able to access the individual’s PFD information for current and prior years unless the individual applied for the PFD on-line through myAlaska. Individuals who applied on-line can obtain the PFD verification by accessing the website themselves.
PFD Interface
The Permanent Fund Dividend (PFD) Interface via the INME menu on EIS shows the status of an individual’s PFD application. This interface must be checked for all new applications and recertification’s to determine if the household will receive PFD's during any month for which the caseworker is determining eligibility.
For instructions on how to use the PFD interface click the following link:
Click the following links for examples:
New Household Member with PFD Funds
Permanent Fund Dividend money is considered in the eligibility determinations and allotment calculations for:
Applicant households that receive or expect to receive PFDs;
Applicant households that have retained PFD money;
Participating households submitting recertification applications that expect to receive PFDs;
Participating households that report receiving or keeping PFD money during the certification period.
Participating households that report receiving or keeping PFD money during an interview or on an application for other benefits and the application is approved.
Participating households that have an application approved for other benefits and PFD receipt is found on an interface.
605-7 C. Food Stamp Eligibility and PFD Income
Food stamp households are issued PFD Hold Harmless benefits when receipt of the PFD causes the household to:
Receive a reduced Food Stamp allotment; or
Be ineligible for Food Stamp benefits.
Anticipating PFD Income
An individual is reasonably expected to receive a PFD when:
The PFD interface shows that a person is eligible for a PFD.
The client states that they or someone in their household expects to receive a PFD and the client provides documentation verifying that the individual’s PFD application was approved. This documentation could be a copy of the PFD web page showing the individual’s application is approved or other documentation from the PFD Division.
Reductions in PFD
Some individuals may report receiving less than a full PFD or no PFD at all because of voluntary or involuntary reductions. Treat reports of reduced PFDs as follows:
Garnisheed / Assigned PFD
Permanent Fund laws allow for legal garnishment of up to 100 percent of a PFD check by government agencies. State law also allows an individual to voluntarily assign up to 100 percent of his or her dividend to a government agency. The total amount of the PFD, before deduction of the garnisheed/assigned funds, is income to the individual in whose name the PFD is issued.
Note: Child Support Deduction
Past due child support is often paid via a PFD garnishment. This payment
is allowed as a child support deduction for the month the PFD is
garnished, usually October. The payment is not prorated since it represents
prior month obligations and not future payments.
Child
Support Income -
Individuals often receive child support payments from the garnisheed PFD belonging
to the non-custodial parent. If the individual receives only this payment
and no other child support income during the month, this payment is considered
a non-recurring lump sum and is disregarded as income but counted as a
resource in the month received. If the individual receives this payment
in addition to other payments representing arrearage or current monthly
obligations, this payment is considered income in the month received.
This “garnisheed PFD
” payment is often larger than the other payments received and can be
disregarded as non-representative when calculating an average monthly
income amount.
Child
Support Deduction –
Individuals often pay their child support arrearage via a garnisheed PFD . This
payment is allowed as a child support deduction for the month the PFD is
garnisheed, usually October. The payment is not prorated forward, since
the payment represents prior month obligations and not future payments.
Information regarding garnisheed PFDs
may be found on the PFD website.
University of Alaska College Savings Plan
An individual may assign one-half of their PFD to the “529” college savings plan offered by the University of Alaska.
The total amount of the PFD, before the deduction to this college savings plan is income to the individual in whose name the PFD is issued.
The funds in this college savings plan are exempt resources.
Cash refunds received from this college savings plan are considered non-recurring lump sum payments and are countable resources for Food Stamp purposes. The cash refunds are not eligible for PFD Hold Harmless coverage.
pFD received for a non-household member
PFD money received for non-household members is not eligible for hold harmless coverage. The income and retained resources are counted or disregarded as follows:
PFD Money Causes A Reduced Food Stamp Benefit
If the PFD income causes the household to be eligible for a reduced food stamp benefit, two types of benefits are issued:
Food Stamp Benefits: Counting the PFD money as income, issue the food stamp benefit the household is eligible to receive for that month.
PFD Hold Harmless Benefits: Determine the amount of food stamps the household would have been eligible for had it not received the PFD. Issue a PFD hold harmless payment for the difference between the food stamps issued and what would have been issued had it not received the PFD.
PFD Money Causes Food Stamp Ineligibility
Food stamp households are issued PFD hold harmless benefits to replace lost Food Stamps when PFD income causes the household to be ineligible for Food Stamps.
Income ineligibility must be caused by PFD income. If a household has other income, and that other income alone results in Food Stamp ineligibility, the household is not eligible for Food Stamps or PFD hold harmless benefits.
605-7 D. issuing Income Hold Harmless on EIS
PFD income is entered on the UNIN screen using the PF income code.
Click on the following links to view this process:
Authorization of Food Stamp Denial or Suspension
Only retained PFD money is counted in determining if an individual or household should receive hold harmless benefits because of PFD resources. “Retained PFD money” includes:
Resources purchased with PFD funds do not receive PFD hold harmless protection. Similarly, do not apply PFD hold harmless provisions to proceeds from the sale or conversion of a resource purchased with PFD funds. Resource ineligibility must be caused by retention of PFD money.
The caseworker must look at the household’s resources to determine if retained PFD money causes the household to be over resources, and so continue to be eligible for PFD hold harmless, or whether the household is under the resource limit, and so eligible for food stamps.
Accept the household’s statement about how much PFD money it expects to retain.
Click on the following link for the process:
Retained PFD Resource on the LIAS Screen
Click on the following link for an example:
PFD as a Certificate of Deposit
PFD Money Commingled With Other Funds
PFD funds must be identifiable to be excluded as a resource. This does not require that excluded funds be kept separate from countable funds. For the Food Stamp Program, PFD money that is commingled with other money remains identifiable for only six months. See Food Stamp manual section 602-2A (4).
If excluded funds are maintained in an account with countable funds, any amounts withdrawn are presumed to be from the countable portion of the funds.
Commingled resources make it difficult for both the client and the caseworker to identify which resources are counted or excluded. The caseworker may recommend, but not require, that the client keep excluded resources separate from countable resources.
Click on the following link for an example:
PFDs Belonging to Children in Custody
Permanent Fund Dividends held in trust by the State for children in the legal custody of the Office of Children’s Services (OCS) are not available to meet the needs of the child for whom they are held, nor are they available to any family with whom the child lives. The interest that accrues on the balance held in trust is similarly unavailable.
Such funds become available only when OCS actually releases the funds to the child or to the child's parent or legal guardian. Treat the release of trust funds as a conversion from an unavailable to an available resource.
The interest posted to the trust account in the same month that the trust is released is available income in the month it is posted. Interest amounts posted for months before the month the trust is released count as a resource and not as income.
The caseworker will request verification of released PFD trust funds by sending an email to DPAPolicy@alaska.gov. Verification requests will include the case name, case number, mother's name if different from case name, and the child's name, birth date, and social security number. A Policy and Program Development Team staff person will contact the Office of Children Services (OCS) to obtain the information.
The portion of the released funds that represents PFD money is considered PFD funds and is subject to PFD hold harmless coverage if it causes the household to exceed the resource limit. Released funds originating from any other source are not eligible for hold harmless coverage.
An individual whose PFDs are held in trust by OCS and released to the individual may receive up to four months of hold harmless benefits regardless of the end of the state fiscal year.
Click on the following link for an example:
When processing initial applications and recertification’s on or after September 1 and before authorizing Food Stamp benefits for October and subsequent months, caseworkers will query the household and check the PFD Interface (via the EIS INME menu) to determine if any household member expects to receive a PFD.
If the household has received or expects to receive PFD income, the caseworker will count the PFD money as income for the month of receipt or expected month of receipt, reduce the Food Stamp benefits or deny or suspend the Food Stamp benefits for that month, and issue PFD Hold Harmless benefits. Caseworkers will query the household regarding the possibility of any retained PFD money and complete a resource determination. If the household expects to retain PFD money that causes the household to exceed the resource limit, the caseworker will suspend or deny the Food Stamp benefits and issue PFD Hold Harmless benefits. The household's resource eligibility must be redetermined before taking the case out of suspension and issuing Food Stamp benefits.
If the household does not expect to receive a PFD, the caseworker will determine the household’s eligibility for Food Stamp benefits, not PFD Hold Harmless.
If the agency finds via the interface a family received a PFD when working an application, this information must be acted on. When the PFD interface shows the person’s PFD application status is “Eligible” but the person says they will not receive the PFD, the caseworker must give the person an opportunity to resolve this inconsistent information. Caseworkers must verify the information before excluding the PFD income.
Note
for Initial Applications:
If the household is ineligible for Food Stamp benefits for both the application
month and the following month, a new application and interview is required
before Food Stamp benefits can be issued following the issuance of PFD
Hold Harmless benefits.
Click on the following link for an example:
Expedited Service
If a household is eligible for expedited benefits under Food Stamp Program policy, it is eligible for expedited processing of PFD Hold Harmless benefits. Households whose applications would have been worked within expedite time frames if they had not received PFD should still be worked within those time frames. Verification that can be waived under expedite rules can also be waived for PFD Hold Harmless. However, there are some differences when issuing the advance issuance payment for the 2nd month.
Click on the links below to view processes:
The "A" (Advanced) Issuance Code
Expedited Processing of PFD Hold Harmless Benefits
Expedited Service in the Second Month with Example
Applicant Households: PFD Receipt Expected During the Application Month
The first month of the Food Stamp certification period is the first month the household is eligible for Food Stamp benefits. When the household is ineligible for Food Stamp benefits for the month of application because of the PFD but eligible the next month, the first month of the certification period is the month the Food Stamp benefits begin, not the month the PFD Hold Harmless benefit was issued.
When an applicant household received or is expected to receive a PFD during the month of application, process the first two months as follows:
Application Month: Determine food stamp eligibility counting the PFD as income.
If eligible for a reduced food stamp benefit, approve this month and authorize the food stamp benefit.
If ineligible, deny this month.
Click on the following link for an example:
PFD Spent in Application Month
If
PFD money is not expected
to cause the household to exceed the income or
resource limit, determine food stamp eligibility
for this month.
Applicant Households: PFD Receipt Expected During the Month Following Application
When an applicant household is expected to receive a PFD in the month following the month of application, process the first two months as follows:
Application Month: Determine food stamp eligibility for this month.
If eligible, approve this month and authorize the food stamp benefit.
If ineligible, deny this month.
In either situation, determine food stamp eligibility for the following month.
Month Following Month of Application: Determine food stamp eligibility counting the PFD as income.
If eligible for a reduced food stamp benefit, approve this month and authorize the food stamp benefit.
If ineligible but the household is eligible for the application month, suspend the food stamp case for this month.
If
ineligible for food stamps for both this month
and the application month, deny the application.
A new application and interview is required
before food stamps can be issued following the
issuance of PFD hold harmless benefits.
Applicant Households: PFD Money Retained
When an applicant household has retained PFD money on the date of the interview that causes the household to exceed the resource limit, deny the food stamp application. The total value of all resources on the date of the interview is used to determine the household’s eligibility. See MS 602-2A(3).
Since food stamps were denied, a new application and interview is required before food stamps can be issued following the issuance of PFD hold harmless benefits.
Click the following link for the process:
Retained PFD Resource on the LIAS Screen
Applicant Households: Setting the Food Stamp Certification Period
The food stamp certification period begins the first eligible food stamp month.
When the household is eligible for food stamps for the month of application, even for only a reduced food stamp benefit, the first month of the food stamp certification period is the application month, i.e., the first month.
When the household is ineligible for food stamps for the month of application due to PFD income, but eligible for food stamps the following month, the first month of the food stamp certification period is the month following the month of application, i.e., the second month.
Click the following link for an example:
When the household is not eligible for food stamps because retained PFD money on the date of the interview causes the household to exceed the resource limit, the food stamp application is denied. The application is used to determine eligibility for PFD Hold Harmless benefits.
When the household is not eligible for food stamps for the application month and the following month due to PFD income or retained PFD money, the food stamp application is denied. The application is used to determine eligibility for PFD Hold Harmless benefits.
Refer to MS 605-7C for policy on establishing certification periods at recertification.
605-7 G. PFD At Recertification
Eligibility for Food Stamps and PFD Hold Harmless benefits cannot extend beyond the end of the certification period if the household does not complete the Food Stamp recertification process. The caseworker must ensure that all eligibility criteria are met, as PFD Hold Harmless benefits cannot continue unless PFD income or retained PFD money is the only cause for ineligibility. Follow the recertification process at MS 604-2 during the PFD Hold Harmless suspension period.
The Food Stamp Recertification (X004) notice is sent automatically by EIS to households whose certification period ends during the PFD Hold Harmless suspension.
Households submitting recertification applications are required to report if they expect to receive PFD's in the first month of the new certification period. These households are also required to report their resources, including retained PFD money.
When the household is eligible for PFD Hold Harmless benefits for the first month of the new certification period, Food Stamp benefits are suspended, not denied, and the certification period is established beginning this month. The caseworker must determine the household’s resource eligibility for the subsequent month. If the household continues to be ineligible for Food Stamp benefits because of PFD income or retained PFD money, PFD Hold Harmless benefits continue to be issued for up to a total of four months and must be within the same State of Alaska fiscal year.
Click on the following links for examples:
Recertification During PFD Month
Ineligible First Two Months of Recertification for Different Reasons
605-7 H. PFD for Ongoing Cases
Ongoing Case Processing: PFD Income
If PFD income causes the household to be eligible for a reduced Food Stamp allotment, issue the reduced Food Stamp benefit and determine eligibility for PFD Hold Harmless.
If the household reports they have received the PFD in a prior month or in the current month, it will not be counted in determining the household’s eligibility or benefits for subsequent months since it is not a continuing source of income.
If the household reports receipt of a PFD either on an application for benefits, or independently, the information must be acted on.
Click on the following link for an example:
Ongoing Case Processing: PFD Resources
When the household reports PFD income or a change in resources such as retained PFD money or a new resource purchased with PFD money, the caseworker must determine the household’s resource eligibility. Accept the household’s statement how much PFD money it expects to retain
If retained PFD money causes the household to exceed the resource limit, suspend the food stamp case with timely notice of adverse action and determine whether any of the retained money is exempt for food stamps because the household member who owns it receives:
Alaska Temporary Assistance (including extended case management and supportive services);
Native Family Assistance;
Adult Public Assistance; or
If the retained PFD money cannot be excluded, but it does not cause the household to exceed the resource limit, the household is eligible for food stamp benefits.
If the household expects to continue to exceed the resource limit as a result of retained PFD money after receiving four months of PFD hold harmless benefits, the household is ineligible for both food stamps and PFD hold harmless benefits. Close the food stamp and PFD hold harmless case effective the end of the month the fourth PFD hold harmless benefit is issued. Send timely notice of adverse action. These households may submit a new application for food stamps at any time.
Note:
If the information provided
by the household does not allow the caseworker to determine the household’s
countable resources and what portion of the resources are retained PFD money,
the household must be asked for additional information. Direct contact
with the household is the most efficient way to get the additional information.
By speaking to a household member, the caseworker can gather the details
needed to make the resource eligibility determination.
If the household reports receipt of a PFD either on an application for benefits, or independently, the information must be acted on.
If the agency finds via the interface a family received a PFD when working an application for other benefits, this information must be acted on only if the application is approved. This is because the household does not have to report the change unless the PFD causes the household’s income to go over the gross income limit. If the application is approved, adjust the Food Stamp benefit. If the application is denied, do not adjust the Food Stamp benefit since the change was not reported by the household.
Retained PFD resources are entered on the LIAS screen only, using the PF and PX resource codes.
Click on the following link for process:
Retained PFD Resource on the LIAS Screen
When a household with an ongoing case reports a new member moved into their household during PFD season, the PFD interface should be checked for the new member only. No adjustment is made to the amount of Food Stamp benefits that were originally issued to the household. To determine the amount of the adjustment needed for the new member, a manual budget must be used to determine if the total benefit should increase or decrease. When completing the manual budget, do not include PFD income for the new member. Determine the difference between the amount of Food Stamp benefits that were originally issued and what the manual budget shows should have been issued. Manual budget worksheets can be found in eForms. If the overall Food Stamp benefit decreases, benefits would not be adjusted unless the agency is within adverse action time frames. If there is no adverse action time, the new member is added to the household the 1st of the month following adverse action.
Click on the following link for an example:
Adding a New Household Member During PFD - Decrease in FS Benefits
If the overall Food Stamp benefit increases, the difference should be issued in a PFD Hold Harmless payment. The payment is issued by adding a GA case on the APMA and then issuing the payment on the GABS screen.
Click on the following link for an example:
Adding a New Household Member During PFD - Increase in FS Benefits
If adding a new member to the case would decrease the amount of the PFD Hold Harmless benefit, no action is taken in the first month. The new member should be added to the case beginning the 1st day of the month following adverse action.
Click on the following link for an example:
Adding a New Household Member During PFD - Decrease in PFD HH Benefits
If adding a new member to the case increases the amount of the PFD Hold Harmless benefit, the difference should be issued as PFD Hold Harmless.
Click on the following link for an example:
Adding a New Household Member During PFD - Increase in PFD HH Benefits
605-7 I. PFD Reporting Requirements
Semi-Annual Reporting Households
Households assigned to semi-annual reporting are required to report receipt of the PFD only when it causes their gross monthly income to exceed the income limit. They must report this by the tenth of the month following receipt of the PFD .
If the household reports they expect to receive a PFD , the PFD income is counted for the month of receipt only if the caseworker can give timely notice of adverse action. The caseworker will ask the household if they expect to retain PFD money that will cause them to exceed the Food Stamp resource limit.
If the household reports they received the PFD , the caseworker will ask the household if they expect to retain PFD money that will cause them to exceed the Food Stamp resource limit.
If a household reports a change in resources such as retained PFD money or buying a new resource with the PFD , the caseworker will determine if the household’s resources exceed the Food Stamp resource limit.
The caseworker must look at the household’s resources to determine if the retained PFD money causes the household to be over resources. If retained PFD money causes the household to exceed the resource limit, the household will be issued PFD Hold Harmless benefits.
The household must be under the resource limit before returning to the Food Stamp Program.
Status Reporting Households
Households assigned to status reporting are required to report receipt of the PFD within ten days of receipt.
If the household reports they expect to receive a PFD , the PFD income is counted for the month of receipt only if the caseworker can give timely notice of adverse action. The caseworker will ask the household if they expect to retain PFD money that will cause them to exceed the Food Stamp resource limit.
If the household reports they received the PFD , the caseworker will ask the household if they expect to retain PFD money that will cause them to exceed the Food Stamp resource limit.
If a household reports a change in resources such as retained PFD money or buying a new resource with the PFD , the caseworker will determine if the household’s resources exceed the Food Stamp resource limit.
The caseworker must look at the household’s resources to determine if the retained PFD money causes the household to be over resources. If retained PFD money causes the household to exceed the resource limit, the household will be issued PFD Hold Harmless benefits. This should occur infrequently since most status reporting households are categorically eligible.
605-7 J. Resuming Food Stamp Benefits Following Issuance Of PFD Hold Harmless
When PFD income or retained PFD money no longer causes the household to be ineligible for Food Stamps, the PFD Hold Harmless case is closed.
Households reporting they expect to spend their PFD money and will be under the resource limit are returned to the Food Stamp Program. A new application is not required, except for application situations described in MS 605-7B.
Because of the interrelationship of the PFD Hold Harmless Program and the Food Stamp Program, incorrect payment situations can occur:
An incorrect amount of Hold Harmless or Food Stamp benefits are issued.
Benefits are issued from the wrong program.
When a household is issued PFD Hold Harmless benefits instead of Food Stamp benefits, or Food Stamp benefits instead of Hold Harmless benefits, document the underpayment and the overpayment in the case record.
Do not issue an underpayment or establish an overpayment.
Complete a GEN 95 and send it to the Benefit Issuance and Recovery Unit.
Benefits are issued from both programs, in the wrong amounts.
The Benefit Issuance & Recovery Unit
P.O. Box 110640
Juneau, AK 99811-0640
605-7 L. notice and hearing requirements
Timely and adequate notice policies apply to all actions related to the PFD Hold Harmless Program. Ending the Hold Harmless period and resuming regular Food Stamp benefits requires only adequate notice.
Timely notice of adverse action (NOAA) is only required when we decrease the Food Stamp benefit during the certification period or close the Food Stamp case prior to the end of the certification period.
Refer to Addendum 10 for a complete list of PFD Hold Harmless EIS notices.
Households that receive Hold Harmless benefits have the same Fair Hearing rights that they would have under the Food Stamp or SSI programs.
Note:
The SSI
Program is not administered by the State of Alaska. However, state law
provides replacement of SSI
benefits an individual loses because of receiving or keeping PFD money.
See APA MS 433-3.
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