S.D. Admin. R. 67:12:05:59
Nonrecurring earned or unearned lump sum income not otherwise excluded shall be added together with all other monthly income received by the assistance unit and considered available for current use after application of the disregards in §§ 67:12:05:14, 67:12:05:18, and 67:12:05:21 and in subdivisions 67:12:05:38(2) and (3). When this total exceeds the need standard for the family, each member of the assistance unit is ineligible for AFDC for the number of full months derived by dividing the total income by the need standard applicable to the family. Any amount remaining after this calculation is treated as if it is income received in the first month following the period of ineligibility and is considered available for use at that time.
Lump sum income includes insurance settlements, personal injury awards, and workers' compensation awards; retroactive payments such as OASDI and 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, shall be subtracted from the total lump sum income amount before determining the length of ineligibility.
The department shall consider changes in circumstances requiring 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. 67:12:05:59
General Authority: SDCL 28-7-2.
Law Implemented: SDCL 28-7-4.
Need and amount of assistance -- Income and resources, 45 C.F.R. § 233.20 (a)(3)(ii)(F).