SI SEA00830.830 Exclusion of Alaska Native Regional and Village Corporation Distributions

A. Background

The Alaska Native Claims Settlement Act (ANCSA) Amendments of 1987 (P.L. 100-241), enacted February 3, 1988, requires the supplemental security income (SSI) program to exclude from income and resources certain distributions received by Alaska Natives and their descendants from Alaska Native Regional and Village Corporations (ANRVCs).

B. Policy principles

Effective February 3, 1988, exclude from counting as income or a resource the following items received from ANRVCs:

  • Cash (including cash dividends on stock received from a Native Corporation) to the extent that it does not, in the aggregate, exceed $2,000 per individual per year;

  • Stock (including stock issued or distributed by a Native Corporation as a dividend or distribution on stock);

  • A partnership interest;

  • Land, or an interest in land (including land or an interest in land received from an ANRVC as a dividend or distribution on stock); and

  • An interest in a settlement trust.

1. Income exclusion

Cash distributions from an ANRVC in excess of $2,000 in a calendar year are countable income in the month the annual total of excludable distributions exceed $2,000. Cash distributions received in months of SSI ineligibility DO NOT count toward the $2,000 annual total.

2. Resource exclusion

The exclusion of cash distributions from ANRVCs retained by Alaska Natives beyond the month of receipt is evaluated under two separate resource rules. These resource rules are separate from, and in addition to, the $2,000/$3,000 general resource limit.

Monthly Resource Rule: Exclude from resources up to $2,000 in ANRVC cash distributions received in the current calendar year and retained beyond the month of receipt by an Alaska Native in any month after February 1988. This amount is not limited to the first $2,000 in distributions received during a year.

Annual Resource Rule: Exclude from resources ANRVC cash distributions received in 1988 or later and retained beyond the year of receipt by an Alaska Native, up to $2,000 in retained distributions for each year.

The annual resource exclusion applies even if the individual was ineligible for SSI, or had not applied for SSI, in the year the cash distributions were retained. However, ANRVC funds must be identifiable and traceable to the year received and retained for this exclusion to apply (SI 01130.700). If more than the $2,000 maximum is carried over from one year to the next, the excess amount counts towards the general resource limit. If carry-over funds are spent down or converted to a non-cash item, the accumulated cash carry-over amount is permanently reduced by the amount converted. For example, if a recipient accumulated $9,500 in excluded ANRVC funds before 2001, and spends $7,000 to purchase an automobile in June of 2001, only $2,500 (accumulated carry-over funds) plus $2,000 (or less) received and retained in 2001 can be carried over into 2002.

3. Interest and other earnings derived from excluded funds

Interest or other earnings derived from the investment or deposit of excluded ANRVC funds are not excluded from income or resources under this provision. Other exclusions such as the $20 general exclusion or the infrequent/irregular income exclusions may apply (SI 00810.410).

4. Receipt of non-cash items

Non-cash items received from ANRVCs are totally excluded from income and resources as long as they are not sold, transferred, or converted to some other form. Effective January 1, 1992, stock in ANRVCs is transferable. The resource rules in SI 01120.105 covering stock in Alaska Regional or Village Corporations apply to these transfers.

5. Income and resource exclusions under other federal laws

Alaska Natives may be eligible for other income and resource exclusions under other federal laws. Do not confuse these exclusions with those discussed in this section. For example, Public Laws 97-458 and 98-64 require SSI to exclude other Indian funds held in trust for, or distributed to, Indians by the Secretary of the Interior. These exclusions extend to initial purchases made with these funds and any accrual in value of the purchased items. Refer to SI 00830.830 for a detailed discussion of these exclusions.

C. Operating procedures

1. Receipt of cash distributions - income

a. Cash distributions of $2,000 or less in a calendar year

If a recipient alleges, and a field office (FO) precedent confirms, that cash payments received from an ANRVC for a given calendar year have not or will not exceed $2,000, accept the allegation. Contact the corporation(s) by telephone if possible and verify that the individual is a stockholder. Do not count the alleged payments as income. Be alert to the possibility that an individual may receive payments from more than one ANRVC and combined payments may exceed $2,000 in a year.

Document the file with the individual’s signed allegation and reference to the local precedent regarding the amount of cash paid or expected to be paid (SI 00830.005A.5). Enter the amount on the INCOME screen in MSSICS. Document the RMKS field of the SSR with “ANRVCP” to alert future reviewers.

b. Cash distributions of more than $2,000 in a calendar year

If an individual alleges, and/or a FO precedent confirms, that payments received from an ANRVC exceed $2,000 per year (during months of eligibility only), contact the ANRVC(s) to verify:

  • that the individual is a stockholder in the corporation(s);

  • the date(s) payments were made; and

  • the amount of the payment(s).

Use this information and SSI payment records to determine the month the $2,000 limit on excludable distributions was reached. Additional cash distributions made in that year are counted as dividend payments (type "R" unearned income) in the month received.

Document the file with the individual’s signed allegation as to the amount and source of cash distributions and a report of contact with the ANRVC(s). Input the countable income to the SSR. As appropriate, estimate and project income per SI 00810.600. Enter the excluded part of the payment on the MSSICS Income screen. Document the RMKS field of the SSR with “ANRVCP” to alert future reviewers.

EXAMPLES

  1. Mr. John Alexi is a stockholder in two ANRVCs. During a scheduled redetermination in September 2001, he alleges receiving cash dividends of $1,900 in August 2001. Field office precedents confirm that the ANRVCs paid cash dividends of $1,000 and $900 respectively. The FO documents the file with Mr. Alexi’s signed allegation and reference to the local precedent (SI 00830.005A.5). Enter the payment amount on the MSSICS Income screen labeled "Excluded ANRV Payment". Input “ANRVCP” in the RMKS field of the SSR.

    In October, Mr. Alexi reports receipt of an additional $300 from one of the ANRVCs. This puts him over the $2,000 income exclusion for the year. Contact with the ANRVCs establishes that Mr. Alexi received cash dividends of $2,200 in 2001 ($1,900 in August, and $300 in October). This exceeds the $2,000 annual income limit by $200 in October 2001. The FO inputs $200 of unearned income (type "R" for "dividend and interest" income) for October. The FO suppresses the automated notice and sends a manual notice.

  2. While processing the Alaska permanent fund dividend (AKDV) report in February 2002, the FO learns that Mr. David Pootoogooluk received a $931.34 AKDV payment in October 2001.

    NOTE: The AKDV payment is paid once a year by the State of Alaska and varies in amount and the month paid each year.

    Review of FO records and the SSR shows that Mr. Pootoogooluk also received ANRVC distributions in 2000, but was not eligible for SSI in June due to additional income, and in November and December due to Receipt of excess countable ANRVC distributions. Prior development shows:

    Mo/Yr Received

    ANRVC Received

    Countable ANRVC

    Eligible for SSI?

    June 2000

    $200

    None

    No

    October 2000

    $2,100

    $100

    Yes

    November 2000

    $1,000

    $1,000

    No

    December 2000

    $1,000

    $1,000

    No

Posting the AKDV payment to MR. Pootoogooluk’s record makes him ineligible for SSI in October 2001. This requires recomputation of his ANRVC cash distributions for 2001 since we do not count the ANRVC distributions received in October 2001 when he was ineligible due to the AKDV payment. The $2,100 received in October does not count toward the $2,000 annual exclusion since Mr. Pootoogooluk did not benefit from an exclusion in that month. The $1,000 distributions received in both November and December are excluded (see SI SEA00830.830C.3. for treatment of retained cash distributions).

Updated development shows:

Mo/Yr Received

ANRVC Received

Countable ANRVC

Eligible for SSI?

June 2001

$200

None

No

October 2001

$2,100

None

No

November 2001

$1,000

None

Yes

December 2001

$1,000

NoneYes

2. Treatment of retained cash distributions - resources

a. Retained cash distributions of $2,000 or less - monthly determination

If an Alaska Native has received (see SI SEA00830.830C.2.a.) and alleges retaining $2,000 or less in cash distributions from ANRVCs beyond the months of receipt in the same calendar year, accept this allegation. Verify the source of the payments. Enter the amount received and label as excluded ANRVC payment on the MSSICS income screen. Document the RMKS field on the SSR with “ANRVC” to alert future reviewers.

b. Retained cash distributions of more than $2,000 - monthly determination

If the individual has received (see SI SEA00830.830C.2.b) and alleges retaining more than $2,000 in cash distributions beyond the month of receipt in the same calendar year, verify the source and amount of the payments, if not already done for income purposes. Make monthly resource determinations for each month of eligibility during the calendar year. Record the results of your investigation on the SSR by entering “NO4” for month(s) the recipient was over the resource limit as of the first moment of the month. Document the RMKS field on the SSR with “ANRVCP” to alert future reviewers.

NOTE: The resource exclusion is not limited to the first $2,000 in distributions received during a year.

EXAMPLE: Mrs. Karamov receives $2,500 in ANRVC distributions in May 2000 which she retains until she spends down to $1,000 in July 2000. For June and July, the FO excludes $2.000 of the retained ANRVC distributions and applies the remaining $500 towards the general resource limit. In September 2000, Mrs. Karamov receives $2,300 more in ANRVC cash distributions and does not spend it. For October 2000, $2,000 of the retained distributions is excluded and $300 is applied towards the general resource limit.

c. Retained cash distributions carried over from one calendar year to the next

Make a separate resource determination for ANRVC cash distributions carried over from December of one year to January of the next for each year beginning 1988. Verify the source of cash distributions using FO records or by contacting the ANRVC(s). Use MSSICS or records in the individual’s possession to verify the carryover amount(s). Document the RMKS field on the SSR with “ANRVCP“ to alert future reviewers to check FO records for the ANRVC development. Do not redevelop resources for calendar years where FO records show prior development.

NOTE: Before denying or suspending an individual for retaining excess cash distributions, consider whether the total countable resources exceed the $2,000 per individual/$3,000 per couple resource limit.

3. Receipt of non-cash items

If an Alaska Native alleges receipt of a non-cash item such as those listed in B above, accept the allegation, and exclude it from resources. Document the file with a signed statement from the individual. Record the item in MSSICS and input “ANRVCP” in RMKS field of the SSR to alert future reviewers.

4. Other federal income and resource exclusions

If an Alaska Native alleges receipt or retention of Indian funds excluded under other federal laws, refer to SI 00830.820 for development instructions. Document any retained funds in MSSICS.

D. Manual notices

Issue manual notices whenever ANRVC cash distributions affect payment or eligibility determinations. The following guidelines should be used when writing these manual notices:

  • Suppress the system-generated notice.

  • See NL 00801.010 on sending manual notices and NL 00804.100ff. for the appropriate standard notice paragraphs, and

  • Be sure to address all pertinent issues including the:

    • impact of P.L. 100-241,

    • month the ANRVC distributions become countable,

    • treatment of retained ANRVC cash distributions as resources.

NOTE: Follow the special notice procedures in NL 01001.000 if the notice will be sent to a claimant, beneficiary, or representative payee who alleges being blind or visually impaired.


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http://policy.ssa.gov/poms.nsf/lnx/0500830830SEA
SI SEA00830.830 - Exclusion of Alaska Native Regional and Village Corporation Distributions - 11/10/2011
Batch run: 11/10/2011
Rev:11/10/2011