461-145-0380 Pension and Retirement Plans (1) Pension and retirement plans include the following: (a) Benefits employees receive only when they retire. These benefits can be disbursed in lump-sum or monthly payments. (b) Benefits that employees are allowed to withdraw when they leave a job before retirement. (c) The following retirement plans authorized by section 401 of the Internal Revenue Code of 1986: (A) Traditional Defined-Benefit Plan. (B) Cash Balance Plan. (C) Employee Stock Ownership Plan. (D) Keogh Plan. (E) Money Purchase Pension Plan. (F) Profit-Sharing Plan. (G) Simple 401(k). (H) 401(k). (d) Retirement plans authorized by section 403 of the Internal Revenue Code of 1986 at subsections (a) or (b). (e) The following retirement plans and annuities authorized by section 408 of the Internal Revenue Code of 1986 at subsections (a), (b), (c), (k), (p), or (q), or at section 408A: (A) Individual Retirement Annuity. (B) Individual Retirement Account (IRA). (C) Deemed Individual Retirement Account or Annuity under a qualified employer plan. (D) Accounts established by employers and certain associations of employees. (E) Simplified Employee Pension (SEP). (F) Simple Individual Retirement Account (Simple-IRA). (G) Roth IRA. (f) The following retirement plans offered by governments, nonprofit organizations, or unions: (A) 457(b) Plan. (B) 501(c)(18) Plan. (C) Federal Thrift Savings Plan under 5 USC 8439. (g) In all programs except the Oregon Supplemental Income Program (OSIP), Oregon Supplemental Income Program Medical (OSIPM), and Qualified Medicare Beneficiaries (QMB) programs, an annuity purchased by an individual with funds from a plan authorized under subsection (c), (d), or (f) of this section. (2) An annuitized retirement plan described in subsection (1)(e) of this rule, purchased by the spouse (see OAR 461-001-0000), is not considered a retirement plan and is treated in accordance with OAR 461-145-0020 and OAR 461-145-0022. (3) Except as provided in subsection (c) of this section, benefits an individual receives from pension and retirement plans are treated as follows: (a) Monthly payments are counted as unearned income. (b) All payments not covered by subsection (a) of this section are counted as periodic income (see OAR 461-001-0000 and 461-140-0110) or lump-sum income (see OAR 461-001-0000 and 461-140-0120). (c) In the OSIP, OSIPM, and Qualified Medicare Beneficiaries-Disabled Worker (QMB-DW) programs, if the equity value (see OAR 461-001-0000) of the pension or retirement plan is counted as a resource under section (4) of this rule, any payments received are considered the conversion of a resource and are not counted as income. (4) In the OSIP, OSIPM, and QMB-DW programs: (a) Except for an annuity purchased with funds from a retirement plan described in subsection (1)(e) of this rule: (A) The equity value 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: (i) Provides payments commencing on the earliest possible date; and (ii) Completes payments over 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. (B) The equity value of all pension and retirement plans not covered by paragraph (A) of this subsection that allows an individual to withdraw funds, minus any penalty for withdrawal, is counted as a resource. (b) The equity value of an annuitized 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)(d). Otherwise, the equity value of an annuitized retirement plan that allows an individual to withdraw funds, minus any penalty for withdrawal, is counted as a resource. (c) For an individual in a standard living arrangement (see OAR 461-001-0000), the equity value of pension and retirement plans owned by a non-applying spouse or parent (see OAR 461-001-0000) is excluded as a resource. Dividends and interest earned on pension funds owned by a non-applying spouse or parent are excluded as income. (5) In the Qualified Medicare Beneficiaries-Basic (QMB-BAS), Qualified Medicare Beneficiaries-Specified Low-Income Medicare Beneficiary (QMB-SMB), and QMB-SMF programs, dividends and interest earned on pension funds owned by a non-applying spouse are excluded as income. (6) In the Refugee Assistance (REF), Refugee Assistance Medical (REFM), Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) programs, the value of retirement accounts identified in sections 401(a), 401(k), 403(a), 403(b), 408, 408(k), 408(p), 408A, 457(b), 501(c)(18), or 529A of the Internal Revenue Code are excluded as resources. The value of retirement accounts designated as a Federal Thrift Savings Plan account, IRA, myRA, Roth IRA, SEP, Simple IRA, and any other retirement plan designated as tax-exempt under a successor or similar provision of the Internal Revenue Code of 1986 are excluded resources. (7) In all programs except the OSIP, OSIPM, QMB, REF, REFM, SNAP, and TANF programs, the equity value of a pension and retirement plan that allows an individual to withdraw funds before retirement, minus any penalty for early withdrawal, is counted as a resource. Statutory/Other Authority: ORS 329A.500, 409.050, 411.060, 411.070, 411.404, 411.816, 412.014, 412.049, 413.085, 414.685 & 412.007 Statutes/Other Implemented: ORS 329A.500, 409.010, 411.060, 411.070, 411.404, 411.816, 412.014, 412.049 & 412.007 History: SSP 55-2024, amend filed 09/30/2024, effective 10/01/2024 SSP 22-2023, amend filed 06/26/2023, effective 07/01/2023 SSP 4-2023, minor correction filed 01/04/2023, effective 01/04/2023 SSP 14-2019, amend filed 06/11/2019, effective 07/01/2019 SSP 22-2018, amend filed 06/05/2018, effective 07/01/2018 SSP 23-2017, f. 9-11-17, cert. ef. 10-1-17 SSP 24-2016, f. 6-29-16, cert. ef. 7-1-16 SSP 35-2015, f. 12-23-15, cert. ef. 1-1-16 SSP 15-2014, f. & cert. ef. 7-1-14 SSP 38-2013, f. 12-31-13, cert. ef. 1-1-14 SSP 30-2013(Temp), f. & cert. ef. 10-1-13 thru 3-30-14 Reverted to SSP 13-2009, f. & cert. ef. 7-1-09 Suspended by SSP 26-2009(Temp), f. & cert. ef. 9-1-09 thru 1-25-10 SSP 21-2009(Temp), f. & cert. ef. 7-29-09 thru 1-25-10 SSP 13-2009, f. & cert. ef. 7-1-09 SSP 26-2008, f. 12-31-08, cert. ef. 1-1-09 SSP 23-2008, f. & cert. ef. 10-1-08 SSP 10-2007, f. & cert. ef. 10-1-07 SSP 4-2007, f. 3-30-07, cert. ef. 4-1-07 SSP 14-2006, f. 9-29-06, cert. ef. 10-1-06 SSP 4-2005, f. & cert. ef. 4-1-05 AFS 21-1995, f. 9-20-95, cert. ef. 10-1-95 AFS 13-1991, f. & cert. ef. 7-1-91 AFS 80-1989, f. 12-21-89, cert. ef. 2-1-90