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 SNAP 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 SNAP or SSI benefits because they receive or keep PFD money. A separate application is not required for the PFD Hold Harmless Program.
SNAP counts the PFD as unearned income in the month received and retained PFD money as a countable resource in subsequent months.
Waivers to federal SNAP regulations were granted to Alaska relating to the treatment of the Permanent Fund Dividend. These waivers apply to households that become ineligible for SNAP 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:
Cases can be suspended for up to four months if PFD income or retained PFD money cause SNAP ineligibility or, for categorically eligible households, cause the SNAP benefit to decrease to zero. Though these four months do not need to be consecutive, they must be within the fiscal year (July 1 through June 30) for PFD’s issued in the fiscal year. The only exception to this is for children in custody whose PFD’s are held in trust by the Office of Children’s Services (see manual section 605-7E(2))
Categorically eligible households whose SNAP allotment decreases to zero as a result of PFD income must have their SNAP cases suspended and be issued a PFD Hold Harmless benefit.
Eligible one and two-person households who would receive the minimum SNAP benefit when counting the PFD as income will have their SNAP cases suspended and be issued a PFD Hold Harmless benefit instead of the minimum SNAP benefit and partial PFD Hold Harmless payment.
If an ongoing case is suspended because of the PFD, the household is not required to submit a new application to receive SNAP benefits when the PFD - caused suspension ends during the certification period. If retained PFD money is expected to cause resource ineligibility after four months of Hold Harmless benefits, the individual or household is ineligible for further Hold Harmless benefits.
Households have the option to have their SNAP case closed rather than suspended for PFD caused ineligibility. If they choose case closure, they must submit a new application to again receive SNAP benefits.
The Hold Harmless program is established by case, not by individual. If an individual leaves a household which has already received Hold Harmless benefits, and applies for the same program as a new household, the four months of Hold Harmless starts over.
Workers should not process EIS cases beyond the current system month when working PFD Hold Harmless cases. Workers should utilize their alerts when they know of upcoming changes needed for the case.
Example: Member Leaves Household
Two members move out of a SNAP household that has one month of PFD Hold Harmless coverage left. They apply for SNAP on their own. Upon application approval, they are eligible for a new four-month Hold Harmless period.
Example: PFD Household for OCS Release of Funds
Cindy was released from OCS custody when she turned 18 and moved in with her grandmother on May 10. Cindy’s PFDs for the last 4 years were deposited on May 15, in Cindy’s bank account. Cindy applies for SNAP for herself and her grandmother on June 1. The agency verifies all resources including Cindy’s bank account and determines the household is over resource for SNAP but eligible for Hold Harmless benefits. The money that was released from OCS becomes an available resource to Cindy the month it is deposited into Cindy’s bank account. The case workers sees that Cindy’s grandmother was on her own case prior to Cindy’s application and had received 4 months Hold Harmless for October 2010 - January 2011 due to PFD resources. Since Hold Harmless follows the case and not the individual and Cindy and her grandmother are considered a new household, they are eligible for another 4 months Hold Harmless benefits on Cindy’s case. Cindy states she is saving the money to pay for college. It will be spent down as of the end of August. Hold Harmless benefits are issued for 3 months, June – August.
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.
1. 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.
2. PFD Interface
The PFD Interface via IEVS. 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.
Application Status Types
The PFD application status is located in the APP STATUS field on the INTERFACE INQUIRY screen.
Eligible
Undetermined
Denied
Denied – Administrative
Invalidated
Invalid – Duplicate
Invalid – Bad Address
Invalid – Incorrect Type
Competing
Withdrawn – Applicant
Withdrawn – Sponsor
Withdrawn – Division
Withdrawn – Court Order
Example: Pended for Verification:
An application is filed on August 18, and the household is interviewed on August 28. The application is pended for verification. The verification is provided on September 5. On September 8, the caseworker determines eligibility for August, September, and October. The caseworker checks IEVS and finds that all household members are eligible PFD applicants. The caseworker anticipates the PFD as income for October.
Example: New Household Member with PFD Funds:
On September 8, the household reports a new household member moved in. The caseworker checks the PFD Interface on the new member and finds the individual's PFD application status is “Eligible”. The caseworker counts the PFD income belonging to the new household member when determining SNAP eligibility and benefit amount for October.
Example: Backlogged Application:
On September 8, the caseworker is working a backlog application received in July. The caseworker checks IEVS before authorizing benefits for October counts the PFD income belonging to the new household member when determining SNAP eligibility and benefit amount for October.
Example: Mass Change Job:
On September 19, the caseworker is working on a case that was rejected by the October Mass Change job. The caseworker passes through the SNAP Allotment Determination (FSAD) screen to authorize October SNAP benefits that were deauthorized by the mass change job. The caseworker does not check the PFD Interface.
Permanent Fund Dividend money is considered in the eligibility determinations and allotment calculations for:
605-7 C. SNAP Eligibility and PFD Income
SNAP households are issued PFD Hold Harmless benefits when receipt of the PFD causes the household to:
1. Anticipating PFD Income
An individual is reasonably expected to receive a PFD when:
2. 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:
a. 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.
b. 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 SNAP purposes. The cash refunds are not eligible for PFD Hold Harmless coverage.
3. 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:
4. PFD Money Causes A Reduced SNAP Benefit
If the PFD income causes the household to be eligible for a reduced SNAP benefit, two types of benefits are issued.
a. SNAP Benefits: Counting the PFD money as income, issue the SNAP benefit
the household is eligible to receive for that month.
b. PFD Hold Harmless Benefits: Determine the amount of SNAP the household would have been eligible for had it not received the PFD. Issue a PFD hold harmless payment for the difference between the SNAP issued and what would have been issued had it not received the PFD.
5. PFD Money Causes SNAP Ineligibility
SNAP households are issued PFD hold harmless benefits to replace lost SNAP benefits when PFD income causes the household to be ineligible for SNAP.
Income ineligibility must be caused by PFD income. If a household has other income, and that other income alone results in SNAP ineligibility, the household is not eligible for SNAP 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.
Entering PFD Income
1. Enter the amount of the PFD next to each household member who is expected to receive the PFD.
2. Complete all additional data entry on the appropriate screens (EAIN, DEMH, etc.)
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EIS UNIN UNEARNED INCOME 09170817:48 PROSPECTIVE CASEWORKER CASE NAME: BANKS , JOE CASE NUMBER: 00023510 MONTH: 1008 NAME REL TY SUB AMOUNT VR PEND TY SUB AMOUNT VR PEND 01 JOE B PI PF 1800.00 IN 02 MARTH B SP PF 1800.00 IN 03 JOEY B CH PF 1800.00 IN MORE INCOME: MORE CLIENTS: NEXT--> |
Authorization of SNAP Denial or Suspension
1. Go to the FSAD screen. When <ENTER> is pressed, one of two edits will appear:
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SIZE: 03 COUNTABLE: 6371.00 LIMIT: 1790.00 |
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INCOME FROM EMPLOYMENT: 1500.00 INCOME FROM EDUCATION: 0.00 |
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SELF EMPLOYMENT INCOME: 0.00 OTHER UNEARNED INCOME: 5400.00 |
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TOTAL EARNED: 1500.00 TOTAL UNEARNED: 5400.00 |
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FISHING/FARMING OFFSET: 0.00 |
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EARNED INCOME DEDUCTION: 300.00 NET INCOME AMOUNT: 6371.00 |
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STANDARD DEDUCTION: 229.00 ALLOTMENT INCOME: 1911.30 |
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MEDICAL EXPENSES: 0.00 MONTHLY ALLOTMENT: 0.00 |
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DEPENDENT CARE EXPENSES: 0.00 PRORATED ALLOTMENT: 0.00 |
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CHILD SUPPORT EXPENSES: 0.00 AFTER MAX PAY DEDUCTION:0.00 |
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SHELTER COST DEDUCTION: 0.00 PENALTY REDUCTION AMT: 0.00 |
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TOTAL DEDUCTIONS: 529.00 NEW ALLOTMENT AMOUNT: 0.00 |
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AUTH PCN: 8414 AUTH/PAID ALLOTMENTS: 0.00 |
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DENIAL/CLOSURE REASON: ALLOTMENT AMOUNT: 0.00 |
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BENEFIT TYPE: R BENEFIT ISSUANCE: S RECOUPMENTS (INFO): 0.00 |
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CERTIFICATION THROUGH: 0209 FINAL ALLOT (INFO): 0.00 DELAY REASON CODE: |
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FS SUBSISTENCE ID CARD : CAT. ELIG(Y)?: AUTH REP REQ: ID |
2. If PFD income causes the household to be ineligible for a SNAP allotment, change the R to S in the BENEFIT ISSUANCE field to suspend the SNAP benefits. For an application, enter the denial/closure reason code.
3. If the household is eligible for a reduced allotment, do not change the benefit issuance field.
4. Enter your PCN to suspend/deny the case or authorize the reduced allotment
5. Press <ENTER>. The FSHH screen will appear.
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FSHH FOOD STAMPS PFD HOLD HARMLESS PROCESSING 091708 17:53 CASEWORKER CASE NAME: BANKS , JOE MONTH: 1008 FS/HH CASE NUMBER: 00023510 FS CASE NUMBER: 00023510 HOUSEHOLD SIZE: 03 BENEFIT TYPE: R NEW ALLOTMENT AMOUNT: 218.00 BENEFIT ISSUANCE: R AUTH/PAID ALLOTMENTS: 0.00 DENIAL/CLOSURE REASON: ALLOTMENT AMOUNT : 218.00 AUTHORIZATION PCN: 8414 REDUCTION AMOUNT : 0.00 END DATE: 1108 FINAL ALLOTMENT : 218.00 * DELAY REASON CODE: HOLD HARMLESS REASON THIS MONTH: INCOME MONTHS OF FS HOLD HARMLESS USED (INCLUDING THIS MONTH): 01 IS ELIGIBLE - AUTHORIZATION REQUIRED NEXT--> |
6. Enter your PCN to authorize the PFD Hold Harmless benefit.
7. Enter the last month of PFD Hold Harmless eligibility in the END DATE field. The END DATE is the last month a household is expected to retain enough PFD money to make them resource ineligible for SNAP.
The END DATE cannot be longer than four months or the end of the current SNAP certification period.
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 SNAP benefits.
Accept the household’s statement about how much PFD money it expects to retain.
Retained PFD Resource on the LIAS Screen
| PF | Exempts retained PFD money for SNAP recipients who also receive Temporary Assistance (including extended case management and supportive services), Native Family Assistance, Adult Public Assistance (APA), or Supplemental Security Income (SSI). |
| PX |
Counts retained PFD money as a resource for SNAP.
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1. Enter the amount of retained PFD money for each household member using the appropriate PF or PX code.
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2. <NEXT> to the FSRD screen.
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3. The FSRD will display the edit CASE PASSES RESOURCE DETERMINATION TEST IF PFD'S NOT COUNTED.
Note:
If the household's countable resources, including PFD money, are between $2000 and $3000, the edit PLEASE ANSWER DISABILITY QUESTION will appear. Enter Y or N in the disability field and continue.
4. Update income and expense screens with any changes the household may have reported.
5. Go to the FSAD screen. When <ENTER> is pressed the edit FS/HH ELIGIBILITY EXISTS – AUTHORIZE FS DENIAL OR SUSPENSION appears.
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6. For an ongoing case, change the R to S in the BENEFIT ISSUANCE field to suspend the SNAP benefits. For an application, enter the denial/closure reason code.
7. Enter your PCN to suspend or deny the SNAP case.
8. Press <ENTER>. The FSHH screen will appear.
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9. Enter your PCN to authorize the Hold Harmless benefit.
10. Enter the last month of Hold Harmless eligibility in the END DATE field. The END DATE is the last month a household is expected to retain enough PFD money to make them resource ineligible for SNAP.
The END DATE can never be longer than four months or the end of the current SNAP certification period.
Note:
The edit FS/HH CASE IS OPEN, BUT CERTIFICATION PERIOD IS ENDED will appear when the Hold Harmless END DATE is earlier than the benefit month being authorized.
If the Hold Harmless benefit for the previous month has not been issued, go to the FSHH screen for that month and update the END DATE field. If the benefit has been issued, revert the GA case to closed via the REPC screen and process the case through the FSAD for the current month. The edit PF9 TO CONTINUE GA CLOSURE; OR ENTER PCN TO AUTHORIZE BENEFIT will appear. Take the appropriate action.
Example: PFD as a Resource PFD as a Certificate of Deposit:
Cindy’s dad applies for SNAP for the 2 of them and verifies Cindy has a CD with an $8,000.00 balance. Cindy’s dad says part of the divorce settlement was that Cindy’s PFD must be deposited into a CD each year that requires both parents signature to withdraw any money. The account is in her mother’s name. The case worker verifies both parents refuse to sign to release any money until Cindy is 18. The case worker determines the funds are available and are considered a resource to the household. The divorce settlement does not make the funds inaccessible to either parent. The fact that the account is only in her mother’s name may make it appear she is the only one with access, however accessing the funds would only require both parents to sign a withdrawal slip. Choosing to not access funds until your child turns 18 does not make them an inaccessible resource. The CD is countable.
1. 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 SNAP, PFD money that is commingled with other money remains identifiable for only six months. See SNAP 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.
Example: Commingled PFD
An individual has a savings account containing $500 in retained PFD funds. The individual receives a $400 tax refund that is deposited into the account. The account balance is $900. The $500 in retained PFD funds continues to be identifiable. The individual then withdraws $700. The entire remaining balance of $200 is identified as retained PFD funds. A later deposit of $500 is made with countable funds. The balance is now $700 but $200 of this continues to be identified as PFD funds.
2. 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 hss.dpa.policy@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.
Example: PFD's for Children in Custody
A child is released from OCS custody in May 2011. In the same month OCS releases the child’s PFDs for 2009 and 2010 to the household. These PFD funds are eligible for up to four months of Hold Harmless during the 12 consecutive months from May 2011 through April 2012. This Hold Harmless is separate from any Hold Harmless the household may receive for dividends issued in October 2011.
When processing initial applications and recertification’s on or after September 1 and before authorizing SNAP 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 SNAP benefits or deny or suspend the SNAP 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 SNAP benefits and issue PFD Hold Harmless benefits. The household's resource eligibility must be redetermined before taking the case out of suspension and issuing SNAP benefits.
If the household does not expect to receive a PFD, the caseworker will determine the household’s eligibility for SNAP 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 SNAP benefits for both the application month and the following month, a new application and interview is required before SNAP benefits can be issued following the issuance of PFD Hold Harmless benefits.
Example: TA/SNAP/MAGI Combination Case
Mom, Dad, and 2 children apply for TA/SNAP/MAGI in October. Mom and 1 child received their PFDs in October. Dad reports his and the other child’s PFDs have been held up. He’s not sure when they’ll receive theirs. The agency determines that the 2 PFDs received in October put the household over income for October SNAP benefits. The household reports during the interview they plan to keep the 2 PFDs until Christmas. Since the money caused the household to exceed the income limit, deny SNAP benefits for this month and determine eligibility for PFD HH benefits. The household is ineligible for SNAP for the application month because of income and the following month because of resources. A new application and interview is required before SNAP benefits can be issued following the issuance of PFD Hold Harmless benefits for October, November and December. The household has used 3 months of PFD HH.
The Household re-applies for SNAP January 1st and are approved. They report on February 8th that Dad and the other child received their PFDs on February 5th. They plan to hold on to them until April. The family is resource ineligible for both March and April due to retained PFD. Because they used 3 months of PFD HH earlier in the year, they will only receive PFD HH for March. They receive no benefits for April and are informed they may be eligible again in May.
Expedited Service
If a household is eligible for expedited benefits under SNAP 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.
Example: Code Expedite Cases
The “R” (Regular) BENEFIT ISSUANCE code should be used for processing the second month of expedited PFD Hold Harmless benefits if the CASH regular run for that month has not yet occurred. The “I’ BENEFIT ISSUANCE code should be used for processing the second month of expedited PFD Hold Harmless benefits if the CASH regular run for that benefit month has already occurred. Check the Systems Operations Production Calendar for scheduled run dates.
Example: The “A” (Advanced) Issuance Code
The “A” (advanced) issuance code is not used with PFD Hold Harmless benefits. This code is only used to issue the second month of SNAP benefits in advance when a household applies for SNAP benefits after the 15th, meets the expedited service criteria, and is eligible for SNAP benefits for both the first and second month. A household that is not eligible for SNAP benefits in the first or second month because of PFD income or retained PFD money does not meet these requirements.
If a household is eligible for expedited benefits under SNAP 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.
Expedited Processing of PFD Hold Harmless Benefits
If a household is eligible for expedited benefits under SNAP policy, it is eligible for expedited processing of PFD Hold Harmless benefits. This includes waiving verification that would have been waived if the application was eligible for expedited FS as well as interviewing and issuing benefits quickly. The “A” issuance code is not available when issuing PFD HH through the GA program. The “R” (Regular) BENEFIT ISSUANCE code should be used for processing the second month of expedited PFD Hold Harmless benefits if the CASH Regular run for that month has not yet occurred. The “I” BENEFIT ISSUANCE code should be used for processing the second month of expedited PFD Hold Harmless benefits if the CASH regular run for that benefit month has already occurred. Check the Systems Operations Production Calendar for scheduled run dates.
Expedited Service in the Second Month
Households may be ineligible for SNAP benefits for the month of application because of PFD income, yet the household may be eligible for expedited service for the following month. These households must receive their SNAP benefits by the seventh calendar day following the date the application is received in the DPA office or the first day of the following month, whichever is later.
Example:
A couple comes into the office on October 13. Their only income is two Permanent Fund Dividends. The Internal Revenue Service garnisheed both PFDs for back taxes they owed. The PFD income causes them to exceed the income limit for October, but they are eligible for SNAP benefits effective November 1. This household meets the expedited service criteria and must receive their SNAP benefits by November 1. PFD Hold Harmless benefits are issued for October.
1. Applicant Households: PFD Receipt Expected During the Application Month
The first month of the SNAP certification period is the first month the household is eligible for SNAP benefits. When the household is ineligible for SNAP 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 SNAP 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:
a. Application Month: Determine SNAP eligibility counting the PFD as income.
If eligible for a reduced SNAP benefit, approve this month and authorize the SNAP benefit.
If ineligible, deny this month.
Example: PFD Spent in Application Month
An applicant household applies for SNAP benefits in October. He got his PFD directly deposited in his bank account but all the money is now spent. He is determined ineligible for SNAP benefits in October due to PFD income, but will be eligible for SNAP benefits beginning November. PFD Hold Harmless benefits are issued for October. SNAP benefits are approved effective November. The SNAP case is certified for six months, November through April.
b. Month Following Month of Application: Determine SNAP eligibility for the second month counting any additional PFD money the household expects to receive as income and any PFD money the household expects to retain as a resource.
2. 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:
a. Application Month: Determine SNAP eligibility for this month.
b. Month Following Month of Application: Determine SNAP eligibility counting the PFD as income.
3. 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 SNAP 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 SNAP benefits were denied, a new application and interview is required before SNAP can be issued following the issuance of PFD hold harmless benefits.
Retained PFD Resource on the LIAS Screen
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PF |
Exempts retained PFD money for SNAP recipients who also receive Temporary Assistance (including extended case management and supportive services), Native Family Assistance, Adult Public Assistance (APA), or Supplemental Security Income (SSI). |
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PX |
Counts retained PFD money as a resource for SNAP.
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a. Enter the amount of retained PFD money for each household member using the appropriate PF or PX code.
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EIS LIAS LIQUID ASSETS 101708 17:54 CASEWORKER CASE NAME: BANKS , JOE CASE NUMBER: 00023510 MONTH: 1108 NAME REL TY VALUE VR PEND TY VALUE VR PEND 01 JOE B PI PX 1800.00 CS 02 MARTH B SP PX 1800.00 CS 03 JOEY B CH PX 1800.00 CS
MORE ASSETS: MORE CLIENTS: NEXT--> |
b. <NEXT> to the FSRD screen.
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EIS FSRD FS RESOURCE DETERMINATION 101708 13:16 CASEWORKER CASE NAME: BANKS , JOE CASE NUMBER: 00023510 MONTH: 1108 UNIT TYPE: REG UNIT SIZE: 03 VEHICLES: VALUE OWED EXEMPT NON-EXEMPT DODGE 4000.00 0.00 4000.00 0.00
HOUSEHOLD ASSETS: EXEMPT NON-EXEMPT NON-EXEMPT W/O PFDS FINANCIAL ACCTS 0.00 0.00 0.00 LIQUID ASSETS 0.00 5400.00 0.00 OTHER ASSETS 0.00 0.0 0.00 TOTAL NON-EXEMPT RESOURCES: 5400.00 0.00 RESOURCE LIMIT USED $ 2000 CASE PASSES RESOURCE DETERMINATION TEST IF PFDS NOT COUNTED NEXT--> |
c. The FSRD will display the edit CASE PASSES RESOURCE DETERMINATION TEST IF PFD'S NOT COUNTED.
Note:
If the household's countable resources, including PFD money, are between $2000 and $3000, the edit PLEASE ANSWER DISABILITY QUESTION will appear. Enter Y or N in the disability field and continue.
d. Update income and expense screens with any changes the household may have reported.
e. Go to the FSAD screen. When <ENTER> is pressed the edit FS/HH ELIGIBILITY EXISTS – AUTHORIZE FS DENIAL OR SUSPENSION appears.
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CF062-I FS/HH ELIGIBILITY EXISTS - AUTHORIZE FS DENIAL OR SUSPENSION EIS FSAD FS ALLOTMENT DETERMINATION 101708 13:1 PAYMENT MONTH BASED ON: 1108 PROSPECTIVE CASE NAME: BANKS , JOE CASE NUMBER: 00023510 MONTH: 1108 HH TYPE : REG HH SIZE: 03 COUNTABLE: 971.00 LIMIT: 1790.00
INCOME FROM EMPLOYMENT : 1500.00 INCOME FROM EDUCATION: 0.00 SELF EMPLOYMENT INCOME : 0.00 OTHER UNEARNED INCOME: 0.00 TOTAL EARNED : 1500.00 TOTAL UNEARNED : 0.00 FISHING/FARMING OFFSET : 0.00 EARNED INCOME DEDUCTION: 300.00 NET INCOME AMOUNT : 971.00 STANDARD DEDUCTION : 229.00 ALLOTMENT INCOME : 291.30 MEDICAL EXPENSES : 0.00 MONTHLY ALLOTMENT : 218.00 DEPENDENT CARE EXPENSES: 0.00 PRORATED ALLOTMENT : 218.00 CHILD SUPPORT EXPENSES : 0.00 AFTER MAX PAY DEDUCTION: 218.00 SHELTER COST DEDUCTION : 14.50 PENALTY REDUCTION AMT : 0.00 TOTAL DEDUCTIONS : 543.50 NEW ALLOTMENT AMOUNT : 218.00 AUTH PCN: 8414 AUTH/PAID ALLOTMENTS : 0.00 DENIAL/CLOSURE REASON : ALLOTMENT AMOUNT : 218.00 BENEFIT TYPE: R BENEFIT ISSUANCE : S RECOUPMENTS (INFO) : 0.00 CERTIFICATION THROUGH: 0209 FINAL ALLOT (INFO): 0.00 REASON CODE: ID CARD REQ : N SUBSIST HUNT/FISH: N CAT. ELIG(Y)?: AUTH REP REQ: N CT026-I NOT ELIGIBLE--SEE FSED (ELIG DETERMINATION) NEXT--> |
f. For an ongoing case, change the R to S in the BENEFIT ISSUANCE field to suspend the SNAP benefits. For an application, enter the denial/closure reason code.
g. Enter your PCN to suspend or deny the SNAP case.
h. Press <ENTER>. The FSHH screen will appear.
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FSHH FOOD STAMPS PFD HOLD HARMLESS PROCESSING 101708 13:24 CASE NAME: BANKS , JOE MONTH: 1108 FS/HH CASE NUMBER: 00023510 FS CASE NUMBER: 00023510 HOUSEHOLD SIZE: 03 BENEFIT TYPE: R NEW ALLOTMENT AMOUNT: 218.00 BENEFIT ISSUANCE: R AUTH/PAID ALLOTMENTS: 0.00 DENIAL/CLOSURE REASON: ALLOTMENT AMOUNT : 218.00 AUTHORIZATION PCN: 8414 REDUCTION AMOUNT : 0.00 END DATE: 1108 FINAL ALLOTMENT : 218.00 DELAY REASON CODE: HOLD HARMLESS REASON THIS MONTH: RESOURCES MONTHS OF FS HOLD HARMLESS USED (INCLUDING THIS MONTH): 02 IS ELIGIBLE - AUTHORIZATION REQUIRED NEXT--> |
i. Enter your PCN to authorize the Hold Harmless benefit.
j. Enter the last month of Hold Harmless eligibility in the END DATE field. The END DATE is the last month a household is expected to retain enough PFD money to make them resource ineligible for SNAP.
The END DATE can never be longer than four months or the end of the current SNAP certification period.
Note:
The edit FS/HH CASE IS OPEN, BUT CERTIFICATION PERIOD IS ENDED will appear when the Hold Harmless END DATE is earlier than the benefit month being authorized. If the Hold Harmless benefit for the previous month has not been issued, go to the FSHH screen for that month and update the END DATE field. If the benefit has been issued, revert the GA case to closed via the REPC screen and process the case through the FSAD for the current month. The edit PF9 TO CONTINUE GA CLOSURE; OR ENTER PCN TO AUTHORIZE BENEFIT will appear. Take the appropriate action.
4. Applicant Households: Setting the SNAP Certification Period
The SNAP certification period begins the first eligible SNAP month. When the household is eligible for SNAP benefits for the month of application, even for only a reduced SNAP benefit, the first month of the SNAP certification period is the application month, i.e., the first month.
When the household is ineligible for SNAP for the month of application due to PFD income, but eligible for SNAP the following month, the first month of the SNAP certification period is the month following the month of application, i.e., the second month.
Example: PFD Garnisheed
An applicant applies for SNAP in October. He reported that his PFD Permanent Fund Dividend was garnisheed by IRS to pay back taxes. He is determined ineligible for SNAP in October due to PFD income, but will be eligible for SNAP beginning November. PFD Hold Harmless benefits are issued for October. SNAP benefits are approved effective November. The SNAP case is certified for six months, November through April.
When the household is not eligible for SNAP because retained PFD money on the date of the interview causes the household to exceed the resource limit, the SNAP application is denied. The application is used to determine eligibility for PFD Hold Harmless benefits.
When the household is not eligible for SNAP for the application month and the following month due to PFD income or retained PFD money, SNAP 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 SNAP and PFD Hold Harmless benefits cannot extend beyond the end of the certification period if the household does not complete the SNAP 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 604-3 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.
1. If PFD income causes the household to be ineligible, suspend the SNAP case and determine eligibility for PFD Hold Harmless benefits.
2. If PFD income causes the household to be eligible for a reduced SNAP allotment, issue the reduced SNAP benefit and determine eligibility for PFD Hold Harmless benefits.
3. If retained PFD money causes the household to exceed the resource limit, suspend the SNAP case and determine eligibility for PFD Hold Harmless benefits.
When the household is eligible for PFD Hold Harmless benefits for the first month of the new certification period, SNAP 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 SNAP 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.
Example: PFD Plans for Spending
Cindy is currently receiving SNAP. She applied for ATAP on 10/15. On the application she reported she received a PFD. During the interview she said she plans to spend the PFD by the end of November. The caseworker must act on this information and issue PFD Hold Harmless for November
Example: Recertification During PFD Month
A household was certified through September and submits a recertification application on September 4. They will receive PFD payments in October and plan to hold onto the money until sometime in December. The household exceeds the income limit for October and the resource limit for November and December. The caseworker approves the recertification application, sets the certification period for six months, October through March, and authorizes PFD Hold Harmless benefits for October.
Example: Ineligible First Two Months of Recertification for Different Reasons
Mrs. Sutton turns in a recertification application in August for September benefits. She reports she will have a temporary job in September. The income from her job will make her over income for September. In October, she expects to receive PFD for herself and her two children. The PFD money will be spent by the end of November. The caseworker suspends September SNAP due to temporary earnings and authorizes PFD HH for October. The household is also eligible for PFD HH for the month of November so the caseworker certifies the case through November. Because the household did not receive federal FS for the first two months of the recertification period, a new application is required before December FS can be authorized.
605-7 H. PFD for Ongoing Cases
1. Ongoing Case Processing: PFD Income
a. When the household reports they expect to receive a PFD in the following month, the PFD income is counted as income in that month. Reduce the benefit or suspend the case only when timely notice of adverse action can be given.
b. 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.
c. If the household reports receipt of a PFD either on an application for benefits, or independently, the information must be acted on.
2. 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
a. If retained PFD money causes the household to exceed the resource limit, suspend the SNAP case with timely notice of adverse action and determine whether any of the retained money is exempt for SNAP because the household member who owns it receives:
b. 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 SNAP benefits.
c. If retained PFD money cannot be excluded, and it causes the household to exceed the resource limit, suspend the SNAP case and issue PFD hold harmless benefits.
d. If the household exceeds the resource limit because of a new resource purchased with PFD money, the SNAP case will be closed, following timely notice of adverse action. The household is not eligible for SNAP or PFD hold harmless benefits.
e. 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 SNAP and PFD hold harmless benefits. Close the SNAP 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 SNAP 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.
f. If the information is not provided, close both the SNAP and PFD hold harmless cases. Eligibility for either program cannot be determined. The household is not eligible for either the PFD hold harmless or SNAP benefits.
g. If the household reports receipt of a PFD either on an application for benefits, or independently, the information must be acted on.
h. 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 SNAP benefit. If the application is denied, do not adjust the SNAP benefit since the change was not reported by the household.
Example: PFD Discovered Via Interface
Cindy is currently receiving SNAP. She applied for ATAP on 10/15. While processing her application, the caseworker checked the PFD interface and discovered that Cindy received a PFD in October. Cindy’s ATAP application is denied for failure to provide requested information. Since the application was denied, the caseworker must not act on the PFD information.
3. Issuing Resource Hold Harmless on EIS
Retained PFD resources are entered on the LIAS screen only, using the PF and PX resource codes.
Retained PFD Resource on the LIAS Screen
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PF |
Exempts retained PFD money for SNAP recipients who also receive Temporary Assistance (including extended case management and supportive services), Native Family Assistance, Adult Public Assistance (APA), or Supplemental Security Income (SSI). |
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PX |
Counts retained PFD money as a resource for SNAP.
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1. Enter the amount of retained PFD money for each household member using the appropriate PF or PX code.
2. <NEXT> to the FSRD screen.
3. The FSRD will display the edit CASE PASSES RESOURCE DETERMINATION TEST IF PFD'S NOT COUNTED.
Note:
If the household's countable resources, including PFD money, are between $2000 and $3000, the edit PLEASE ANSWER DISABILITY QUESTION will appear. Enter Y or N in the disability field and continue.
4. Update income and expense screens with any changes the household may have reported.
5. Go to the FSAD screen. When <ENTER> is pressed the edit FS/HH ELIGIBILITY EXISTS – AUTHORIZE FS DENIAL OR SUSPENSION appears.
6. For an ongoing case, change the R to S in the BENEFIT ISSUANCE field to suspend the SNAP benefits. For an application, enter the denial/closure reason code.
7. Enter your PCN to suspend or deny the SNAP case.
8. Press <ENTER>. The FSHH screen will appear.
9. Enter your PCN to authorize the Hold Harmless benefit.
10. Enter the last month of Hold Harmless eligibility in the END DATE field. The END DATE is the last month a household is expected to retain enough PFD money to make them resource
ineligible for SNAP.
The END DATE can never be longer than four months or the end of the current SNAP certification period.
Note:
The edit FS/HH CASE IS OPEN, BUT CERTIFICATION PERIOD IS ENDED will appear when the Hold Harmless END DATE is earlier than the benefit month being authorized.
If the Hold Harmless benefit for the previous month has not been issued, go to the FSHH screen for that month and update the END DATE field. If the benefit has been issued, revert the GA case to closed via the REPC screen and process the case through the FSAD for the current month. The edit PF9 TO CONTINUE GA CLOSURE; OR ENTER PCN TO AUTHORIZE BENEFIT will appear. Take the appropriate action.
4. Adding a New member to the Household During PFD Season
a. When SNAP Benefits Decrease
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 SNAP 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 SNAP 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 SNAP 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.
Example: Adding a New Household Member During PFD - Decrease in SNAP Benefits
On September 23 a household with mom and one child reports dad has returned to the household. Mom reports he is working at Wal-Mart part-time and receives $600 per month. The ET takes action to add him to the case on October 1. The original SNAP benefit amount was $433. After doing a manual budget using the household size of 3, the ET has concluded the household would be entitled to $406. Because the benefit for October decreases and we do not have adverse action, dad is added to the case beginning November 1.
b. When SNAP Benefits Increase
If the overall SNAP 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.
Example: Adding a New Household Member During PFD - Increase in SNAP Benefits
Jane has a SNAP case for herself. She lives alone and works at Gas-N-Go making $1,000 per month. On September 23 she reports her brother Gabe is moving in with her. She states he does not have a job or any other income but he does expect to receive his PFD in October. The ET works the case October 5 and confirms PFD income for Gabe. Jane originally received SNAP of $234 for October. Gabe’s PFD makes the household ineligible for SNAP for the month of October. After doing a manual budget for a household size of 2, the ET finds adding Gabe to the case October 1 increases the SNAP allotment to $433. The ET must issue the difference, $199 ($433-$234), to the household as a PFD HH benefit.
c. When PFD Hold Harmless Benefits Decrease
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.
Example: Adding a New Household Member During PFD - Decrease in PFD HH Benefits
Nicole and Randall have an open SNAP case. Randall works part-time as a custodian making $1000 per month. Their recertification was worked on September 5th and they were issued PFD HH benefits of $366 for October. On September 29, Nicole reports Randall’s cousin has moved in with them. He makes $1100 per month working at McDonalds. His PFD is being garnished for child support. After completing a manual budget, the ET finds October PFD HH for the household will decrease to $219. No action is taken for October. The ET issues SNAP benefits of $219 for the month of November.
d. When PFD Hold Harmless Benefits Increase
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.
Example: Adding a New Household Member During PFD - Increase in PFD HH Benefits
Jo submitted a recertification in August for September benefits. It was worked on September 5. Since EIS was in the benefit month of October by then, benefits for October were worked as well. Jo stated she did expect to receive her PFD and planned to buy some new clothes and oil. The money would be gone within a week. PFD HH of $239 is issued for October.
On September 30, she calls to report her boyfriend has moved in with her and requests he be added to her case. He is working part-time as a personal trainer making $1000 per month and will receive his PFD in October. The PFD will be spent on past due bills by the end of October. On October 5 the ET takes action to add him to the case beginning October 1. After completing a manual budget, the ET finds the household is entitled to PFD HH of $336 once her boyfriend is added to the case. An additional $97 ($336-$239) in PFD HH benefits is issued to the household.
605-7 I. PFD Reporting Requirements
Households 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 SNAP 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 SNAP 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 SNAP 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 SNAP.
605-7 J. Resuming SNAP Benefits Following Issuance Of PFD Hold Harmless
When PFD income or retained PFD money no longer causes the household to be ineligible for SNAP, 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 SNAP. 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 SNAP, incorrect payment situations can occur:
1. An incorrect amount of Hold Harmless or SNAP benefits are issued.
a. When a household received only Hold Harmless or only SNAP benefits for a month and it is later determined that an underpayment has occurred, issue a supplemental payment.
b. When a household received only Hold Harmless or only SNAP benefits for a month and it is later determined that an overpayment has occurred, document the overpayment in the case record, complete a claim determination form (GEN 95), and forward it to the Benefit Issuance and Recovery Unit.
2. Benefits are issued from the wrong program.
When a household is issued PFD Hold Harmless benefits instead of SNAP benefits, or SNAP benefits instead of Hold Harmless benefits, document the underpayment and the overpayment in the case record.
3. Benefits are issued from both programs, in the wrong amounts.
a. When a PFD Hold Harmless benefit and a SNAP benefit are issued for the same benefit month, there may be incorrect payments for both programs in that month.
b. If the total amount of the benefits paid is correct but the PFD Hold Harmless was overpaid or underpaid and SNAP benefits were overpaid or underpaid, document this in the case record.
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 SNAP benefits requires only adequate notice.
Timely notice of adverse action (NOAA) is only required when we decrease the SNAP benefit during the certification period or close the SNAP 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 SNAP 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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