S.D. Admin. R. 67:10:03:18
The first $2,000 of nonrecurring lump sum income is excluded as income. When nonrecurring income is more than $2,000, each member of the assistance unit is ineligible for assistance for the full number of months derived by dividing the amount of the nonrecurring income greater than $2,000 by the need standard for the family. If the lump sum income is the result of earned income, the department applies the earned income disregard before calculating the period of ineligibility.
Lump sum income includes gifts received as a result of a nonrecurring occasion, such as a graduation or a wedding; insurance settlements; proceeds from life insurance; personal injury awards; workers' compensation awards; retroactive payments, such as old age, survivors, and disability insurance (OASDI); child support; and windfalls, such as inheritances or lottery winnings. A windfall is a sum that is not earned, does not occur regularly, and does not represent accumulated monthly income received in a single sum.
Lump sum income earmarked and used for the purpose for which it was paid, for example, money for back medical bills resulting from an accident or injury, funeral and burial costs, replacement or repair of resources, or any portion of the lump sum designated for a specific purpose, such as attorney fees involved in obtaining the lump sum income, is subtracted from the total lump sum income amount before determining the length of ineligibility.
The department considers a change in circumstances which requires the expenditure of resources or income in connection with medical and life-threatening situations as justification for shortening the period of ineligibility.
S.D. Admin. R. 67:10:03:18
General Authority: SDCL 28-7A-3(1)(3).
Law Implemented: SDCL 28-7A-3(1)(3).