SI SEA00830.510 Alaska Permanent Fund Dividends (AKDV) (RTN 01, 12–2012)

A. Background

The Alaska Permanent Fund Dividend (PFD) is an annual payment to residents of the state of Alaska. The state of Alaska funds the payment with interest on oil revenue earned by the state. Individuals are eligible to receive the payment if they reside in the state of Alaska for the entire year prior to applying for the PFD. For example, an individual is eligible to receive the PFD payment in 2012 if they lived in Alaska for all of 2011. The state of Alaska also pays the PFD to residents who temporarily reside outside the state because of work, military service, or to receive medical treatment. A parent, guardian, or state authorized representative may apply for a minor or someone unable to apply on his or her own behalf.

Most individuals who qualify for the PFD payment receive their check in October. The dividend amount varies from year to year based on the amount in the dividend fund and the number of individuals who apply. The state of Alaska may attach up to 50 percent of the payment due to a lien or garnishment. The state of Alaska may take one hundred percent of the payment to satisfy court ordered child support or a decision by the child support enforcement agency.

B. SSA Treatment of PFD Payments

The full amount of the PFD payment counts as income to the SSI recipient or deemor in the month received, even though the payment might be reduced by a lien or garnishment. Each year, the Anchorage District offices post the PFD income to the IDIV screen for each recipient or deemor with “AKDV” posted in the ID field.

Any PFD funds retained by a recipient or deemor in months subsequent to the month the individual receives the PFD payment count as a resource.

C. PFD Payments Paid to Children in the Care of the Office of Children’s Services (OCS)

The Alaska Department of Revenue directs PFD payments made to minor children in the custody of the Office of Children’s Services (OCS) to a trust account. OCS holds the funds in the trust account until the child attains age 18 or until the child is released from OCS custody. SSA does not count the PFD payments as income to the child in the month received or as a resource in the months following the month of receipt. When the child reaches age 18 or is no longer in the custody of OCS, OCS releases the funds to the recipient. The funds count as income in the month OCS releases them from the trust. If the recipient retains the funds in months following the release from the trust, the funds count as a resource to the recipient.

In order to document receipt of the PFD funds, the Anchorage District offices will post the PDF income to the IDIV screen for the child recipient. Because the income is not countable until the trust funds are released to the child upon their release from foster care or attainment of age 18, the funds will be shown as excluded from income counting.

NOTE: If an individual was released from OCS custody but alleges that they did not receive the PFD funds from the PFD trust, refer the individual to the Alaska Department of Health and Social Services (DHSS), Office of Children’s Services, so that OCS can process the funds for release. Inform the individual that she or he must notify SSA when they receive the funds from the trust.

D. Agreement between SSA and Alaska

Under an agreement between SSA and the state of Alaska, the state will repay an individual’s overpayment resulting from the receipt or retention of the PFD payment for a period of up to four months.

  1. Overpayments Due to Receipt of the PFD Payment

    Under SSA’s agreement with DHSS, an overpayment is due to receipt of the PFD payment if the overpayment causes the recipient to be ineligible for payment in the month the PFD payment is received (N01). An overpayment is also due to receipt of the PFD payment if receipt of the PFD causes changes in the Transitional Computation Cycle (TCC) solely because of the interruption of payment due to receipt of the PFD payment.

  2. Overpayments Due to Retention of the PFD Payment

    Under SSA’s agreement with DHSS overpayment is due to retention of the PFD payment if:

    1. The recipient or a member of the recipient’s household whose resources are deemed to the recipient, retains the dividend, or a portion of the dividend; and

    2. The value of the recipient’s countable resources exceeds the applicable SSI resource limit; and

    3. The value of countable resources remaining after the full amount of the dividend is subtracted is less than the applicable SSI resource limit (SI SEA00830.510F in this section).

E. Processing Reports of PFD Payments

DHSS sends SSA a listing of SSI recipients who received the payment to the Anchorage District Office in the first quarter of each calendar year. DHSS creates the list by cross-matching the PFD Division’s list of recipients with the State Data Exchange (SDX) system to identify SSI recipients who also received the PFD in the prior calendar year.

The Anchorage District reviews each case on the list, posts the PFD income to the IDIV screen, updates the SSID, and inputs the overpayment amount to the AKDV application website.

After the Anchorage District posts the PFD income to the records of all SSI eligible individuals on the DHSS listing, the Seattle Regional Office sends a bill to the state of Alaska for the total overpayment amount for all of the overpaid SSI recipients. The Seattle Center for Automation runs an automated process that posts a remittance to each individual’s record. The remittance posted on each record equals the individual’s overpayment.

If an SSI applicant received the PFD payment prior to the completion of their final allowance, and the applicant is ineligible in the month of application and/or any subsequent months due to receipt and/or retention of the PFD payment, refer him or her to the local DHSS office to apply for general assistance. If the applicant is ineligible in their protective filing month due to receipt or retention of the PFD, explain to the applicant that she or he could choose a later filing date in order to establish SSI eligibility (see SI 00601.009).

To verify receipt of the PFD payment, for general questions about the payment, or if an individual no longer living in the state of Alaska reports receipt of the PFD, contact ||SEA CPS SPST.

F. The “Hold Harmless” Provision

SSA’s agreement with the state of Alaska says that the state of Alaska will repay SSA for an individual’s overpayment resulting solely from the receipt or retention of the AKDV payment for a period of up to four months. The period of four months includes the month of receipt of the AKDV payment.

Example: Ms. James received the PFD payment in October 2009. The PFD amount for 2009 was $1,305.00. Ms. James is ineligible due to income for the month of October 2009 (PSY N01). A review of Ms. James bank statements shows that she retained the PFD payment in her bank account until March 2010. Because of the PFD payment, her total resources exceeded the countable resource limit for an SSI eligible individual of $2,000.00 from November 2009 through March 2010 (PSY N04), when Ms. James spent down her resources. Ms. James SSI record will show the total overpayment amount for October 2009 through March 2010 in the OPSQ segment of the SSID.

Based on the “hold harmless” provision, the state of Alaska will repay SSA for overpayments caused solely by receipt or retention of the PFD payment for a period of up to four months. Therefore, when we send the billing to the state of Alaska, we include the amount of Ms. James’ overpayment for October 2009, the month of receipt of the PFD payment, as well as the months of November 2009, December 2009, and January 2010, for a total of four months. Ms. James is responsible for repayment of the overpayment for February and March 2010. The amount for the “hold harmless” months will be posted as a remittance in the OPRR segment of Ms. James’ SSID after the total bill is calculated and sent to the state of Alaska.

G. The “Hold Harmless” Provision and the Transitional Computation Cycle (TCC)

The “hold harmless” provision applies to overpayments caused by changes to the TCC under the following circumstances:

  • If the individual has earned or unearned income in the month immediately following the receipt of the PFD payment and/or income other than the PFD in the month of receipt of the PFD; and

  • The income received in the month immediately following receipt of the PFD is higher than the income received in the month used as the budget month prior to the posting of the PFD payment to the record; and

  • The change in the budget month due to the month of ineligibility (N01) due to receipt of the PFD payment creates an overpayment; then

  • The overpayment for up to two months immediately following receipt of the PFD is included in the amount billed to the state of Alaska under the “hold harmless” provision.

    The “hold harmless” provision does not apply if the income in the month immediately following receipt of the PFD payment causes ineligibility due to excess income.

    Example: Mr. Jones receives SSI and reports his wages to SSA every month. He reports that he received $600.00 in wages per month in September and October 2010. In November 2010, he received $800.00 in wages. Under the rules of retrospective monthly accounting (RMA), using 2 budget months, Mr. Jones receives $416.50 in SSI per month in November 2010 and December 2010 based on his wages for September and October.

    See the chart below:

     

    Pay Status

    Budget Month

    Income (Wages)

    SSI Payment Amount Due

    Sept-10

    C01

    2

    $600.00

    $416.50

    Oct-10

    C01

    2

    $600.00

    $416.50

    Nov-10

    C01

    2

    $800.00

    $416.50

    Dec-10

    C01

    2

    $600.00

    $416.50

    Jan-11

    C01

    2

    $600.00

    $316.50

In February 2011, SSA posts the PFD payment to October 2010, which makes Mr. Jones ineligible due to excess income (N01) for October. Receipt of the PFD causes a transitional computation cycle (TCC). Mr. Jones’ payments for November and December 2010 are recomputed using the income from November 2010 to calculate the benefit. Because Mr. Jones received $800.00 in wages in November 2010, the system computes an overpayment of $100.00 per month in November 2010 and December 2010. See the chart below:

 

Pay Status

Budget Month

Income (Wages)

SSI Payment Amount Due

Sept-10

C01

2

$600.00

$416.50

Oct-10

N01

N/A

PFD Received

$0.00

Nov-10

C01

0

$800.00

$316.50

Dec-10

C01

1

$600.00

$316.50

Jan-11

C01

2

$600.00

$316.50

Because the overpayment is caused solely by the change in the computation cycle resulting from receipt of the PFD payment, the overpayments for November 2010 and December 2010 fall under the “hold harmless” provision and should be included in the amount billed to the state of Alaska.

H. PFD Income and Resource Issues Outside of the PFD Processing Period

In order to avoid billing SSI recipients for overpayments due to receipt or retention of the PFD that the state of Alaska will repay, the Anchorage district offices post all of the PFD income to the records during the PFD processing period (usually from January through June of each year). Each office in the Anchorage District maintains an office ledger in an Excel file to record any reports of receipt of the PFD received outside of the processing period. After receiving the PFD recipient list from the state of Alaska, the offices compare the individuals in the ledger with the list from the state to ensure that they calculate the correct overpayment amount for individuals who reported receiving the PFD throughout the year. Use normal income counting procedures to account for the PFD payments (SI 00800.000).

The PFD also counts as a resource if the individual retains the payment in months following the month of receipt. The state of Alaska will repay overpayments caused by receipt or retention of the PFD payment for a period of up to four months. In order to identify overpayments caused by retention of the PFD, use normal resource development and counting procedures (SI 01100.000).

To avoid billing the SSI recipient for the overpayment caused by retention of the PFD when an individual’s resources exceed the applicable resource limit by an amount less than the PFD payment for the year in the three months following the month of receipt, the Anchorage district offices post an exclusion to the liquid resources in the amount of the PFD payment. The employee developing the resource will add the recipient’s name, SSN, and dates of overpayment to the office’s ledger. During the PFD processing period, the Anchorage district office employees will remove the exclusion from the record so that the system will compute the overpayment, which they will include in the billing to the state of Alaska.

If, during the course of income and resource development, an office outside of the state of Alaska receives a report that an individual was ineligible due to receipt or retention of the PFD payment, contact the Seattle SSI Programs and Systems Team at ||SEA CPS SPST


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0500830510SEA
SI SEA00830.510 - Alaska Permanent Fund Dividends (AKDV) (RTN 01, 12-2012) - 12/10/2012
Batch run: 12/10/2012
Rev:12/10/2012