Oklahoma Administrative Code › Title 317 - Oklahoma Health Care Authority › Chapter 35 - Medical Assistance for Adults and Children-Eligibility › Subchapter 5 - Eligibility and Countable Income › Part 5 - COUNTABLE INCOME AND RESOURCES › Section 317:35-5-41.7 - Retirement funds

Current through Vol. 41, No. 20, July 1, 2024
The rules regarding the countable value, if any, of
					 retirement funds are found in (1) - (2) of this subsection.
(1)
Annuities.
(A) Annuities purchased prior to February 1,
				  2005. An annuity gives the right to receive fixed, periodic payments either for
				  life or a term of years. The annuity instrument itself must be examined to
				  determine the provisions and requirements of the annuity. For example, it is
				  determined whether the individual can access the principal of the annuity;
				  e.g., can it be cashed in. If so, the annuity is treated as a revocable trust
				  (OAC
				  317:35-5-41.6(a)(5)(C)(i)
				  ). If the individual cannot access the principal, the annuity is treated as an
				  irrevocable trust. In this instance, it must also be determined what part of
				  the annuity can, under any circumstances, be paid to, or for the benefit of the
				  individual. When making such a determination, the date of application is used
				  or, if later, the date of institutionalization (for an institutionalized
				  individual) or the date of creation of the annuity (for a non-institutionalized
				  individual). Also, these dates are used in determining whether the transfer of
				  asset provisions apply to a particular annuity. If the annuity provides for
				  payments to be made to the individual, those payments would be considered
				  income to the individual. Any portion of the principal of the annuity that
				  could be paid to or on behalf of the individual would be treated as a resource
				  to the individual and portions of the annuity that cannot be paid to or for the
				  benefit of the individual are treated as transfers of assets. Annuities may
				  also be a transfer of assets for less than fair market value. The worker
				  determines, in accordance with the OKDHS life expectancy tables, whether the
				  member will receive fair market value from the annuity during his/her projected
				  lifetime. Any funds used to purchase the annuity that will not be repaid to the
				  member during his/her projected lifetime, are a transfer of assets and the
				  appropriate penalty period is imposed.
(B) Annuities purchased after January 31,
				  2005.
(i) An annuity is presumed to be an
				  available resource to the individual who will receive the payments because the
				  annuity can be sold. The value of the annuity is the total of all remaining
				  payments, discounted by the Applicable Federal Rate set by the IRS for the
				  valuation of annuities for the month of application or review.
(ii) The applicant or member may rebut the
				  presumption that the annuity can be sold by showing compelling evidence to the
				  contrary, in which case the annuity is not considered available. The applicant
				  or member may also rebut the presumed annuity value by showing compelling
				  evidence that the actual value of the annuity is less than the presumed
				  value.
(C) For an
				  individual who has purchased an annuity on or after February 8, 2006, and is
				  applying for long-term care services, see OAC
				  317:35-5-41.8(c).