TN 5 (04-90)
RS 01301.100 One-Half Support — Contributions from NH's Welfare Payments
DHHS Assistance Payments Administration sets rules governing Federal financial participation in expenditures by State agencies of the old-age assistance form of money payments under title I of the SS Act. Such assistance is paid without any restrictions upon its use by the recipient. Upon receipt, the assistance becomes part of the recipient's funds and may be used for any purpose as his/her own money.
B. DEFINITION - RECIPIENT
The individual who qualifies for an award of assistance.
1. DHHS Assistance
Treat such assistance as the recipient's income in the same manner as wages or other income. Where the NH is the recipient of such assistance consider any part thereof used by the NH or by a legal representative to support another person as the NH's contributions for that other person's support.
When a person is merely acting as “payee” on behalf of the individual who qualified for the award, consider the payments funds of the qualified individual.
2. State Agency Payments
A similar rule to 1. applies to payments by State agencies in conformity with the requirements of the other assistance titles of the SS Act.
However, where the payment is made by a State or local welfare agency but does not involve any of the assistance titles of the SS Act, RS 01301.100C.1. is applicable only if, under the State or local law governing such payment, there is no restriction as to how the payment may be used.
If there is a restriction, the payment may not be considered the recipient's own funds unless it was based on his/her individual needs (i.e., intended for his/her own support). If the support of other individuals (including the claimant) was considered, the recipient is, in effect, acting as a payee on their behalf and any amounts used for the support of such individuals cannot be considered as a contribution by the recipient.
When determining whether funds from the NH's welfare payments can be considered a contribution to the claimant, obtain the following information from the appropriate welfare agency:
The name of the person who qualified for the assistance payment;
The amount of the monthly payment;
The dates of payment; and
The type or nature of the payment involved (e.g., Old-Age Assistance, Aid to the Permanently and Totally Disabled, general assistance).
If payment is related to one of the public assistance titles of the SS Act, no further development is required.
If payment is not related to a public assistance title of the SS Act, secure and include in the file information from the agency as to:
Whether or not the appropriate State law states that such payment was an unrestricted payment; and
Were the needs of persons (including the claimant) other than the recipient considered in making the payment?