461-145-0380    Effective 01/01/14
Pension and Retirement Plans

  1. Pension and retirement plans include the following:

    1. Benefits employees receive only when they retire. These benefits can be disbursed in lump-sum or monthly payments.

    2. Benefits that employees are allowed to withdraw when they leave a job before retirement.

    3. The following retirement plans if purchased by a client with funds from the plans authorized by section 401 of the Internal Revenue Code of 1986:

      1. Traditional Defined-Benefit Plan.

      2. Cash Balance Plan.

      3. Employee Stock Ownership Plan.

      4. Keogh Plan.

      5. Money Purchase Pension Plan.

      6. Profit-Sharing Plan.

      7. Simple 401(k).

      8. 401(k).

    4. Retirement plans purchased by a client with funds from plans authorized by section 403 of the Internal Revenue Code of 1986 at subsections (a) or (b).

    5. The following retirement plans and annuities if purchased by a client with funds from the plans authorized by section 408 of the Internal Revenue Code of 1986 at subsections (a), (b), (c), (k), (p), or (q), or at section 408A:

      1. Individual Retirement Annuity.

      2. Individual Retirement Account (IRA).

      3. Deemed Individual Retirement Account or Annuity under a qualified employer plan.

      4. Accounts established by employers and certain associations of employees.

      5. Simplified Employee Pension (SEP).

      6. Simple Individual Retirement Account (Simple-IRA).

      7. Roth IRA.

    6. The following retirement plans offered by governments, nonprofit organizations, or unions:

      1. 457(b) Plan.

      2. 501(c)(18) Plan.

      3. Federal Thrift Savings Plan under 5 USC 8439.

    7. In all programs except the OSIP, OSIPM, and QMB programs, an annuity purchased by a client with funds from a plan authorized under subsection (c), (d), or (f) of this section.

  2. An annuity purchased by the spouse (see OAR 461-001-0000) of a client with funds from a retirement plan described in subsection (1)(e) of this rule is not considered a retirement plan and is treated in accordance with OAR 461-145-0020 and OAR 461-145-0022.

  3. Benefits the client receives from pension and retirement plans are treated as follows:

    1. Monthly payments are counted as unearned income.

    2. All payments not covered by subsection (a) of this section are counted as periodic or lump-sum income (see OAR 461-140-0110 and 461-140-0120).

  4. In the OSIP, OSIPM, and QMB programs:

    1. Except for an annuity purchased with funds from a retirement plan described in subsection (1)(e) of this rule:

      1. The equity value (see OAR 461-001-0000) of a pension or retirement plan is excluded as a resource if the individual is eligible for monthly or periodic payments under the terms of the plan and has applied for those payments. When an individual is permitted to choose or change a payment option, the individual must select the option that --

        1. Provides payments commencing on the earliest possible date; and

        2. Completes payments within the actuarial life expectancy, as published in the Periodic Life Table of the Office of the Chief Actuary of the Social Security Administration, of the individual.

      2. The equity value of all pension and retirement plans not covered by paragraph (A) of this subsection that allow clients to withdraw funds, minus any penalty for withdrawal, is counted as a resource.

    2. The equity value of an annuity purchased with funds from a retirement plan described in subsection (1)(e) of this rule is excluded as a resource if it meets the payout requirements of OAR 461-145-0022(10)(c). Otherwise, the equity value is counted as a resource.

  5. In the SNAP program, the value of retirement accounts identified in sections 401(a), 403(a), 403(b), 408, 408(k), 408(p), 408A, 457(b), or 501(c)(18) of the Internal Revenue Code, or in a Federal Thrift Savings Plan account are excluded resources.

  6. In all programs except the OSIP, OSIPM, QMB, and SNAP programs, the equity value of a pension and retirement plan that allows a client to withdraw funds before retirement, minus any penalty for early withdrawal, is counted as a resource.

Stat. Auth.: ORS 411.060, 411.070, 411.404, 411.816, 412.014, 412.049
Stats. Implemented: ORS 411.060, 411.070, 411.404, 411.816, 412.014, 412.049

Previous Rules