Or. Admin. Code § 414-175-0040

Current through Register Vol. 63, No. 12, December 1, 2024

Section 414-175-0040 - Prospective Eligibility and Budgeting

(1) For prospective eligibility and budgeting:

(a) The budget month and payment month are the same.

(b) The individual's anticipated income, household composition, and other relevant factors are used to determine the individual's eligibility and benefit level. The individual and Department jointly anticipate the individual's income based on the income already received and the income the individual expects to receive.

(c) Prospective budgeting is used for annualized income and prorated educational income.

(d) When prospective budgeting is used and the actual income differs from the amount determined under section (1)(b) of this rule:

(A) If the anticipated income exceeds the actual income, a individual is not entitled to a benefit supplement.

(B) If the actual income exceeds the anticipated income, there may be a individual-error overpayment under OAR 414-175-0099 and 461-195-0521.

(2) Income is budgeted so that the anticipated amount is the same for each month.

(3) Income that must be annualized is calculated under section (9) of this rule.

(4) For the initial month, income is budgeted so the anticipated amount is the same for each month, including the initial month. No supplement is issued based on incorrectly anticipated information.

(5) For an ongoing month: For a benefit group, the Department uses prospective eligibility and budgeting. The type of income is determined and calculated under sections (6) through (10) of this rule.

(6) Educational income is assigned to the months it is intended to cover, regardless of when it is received. The income is prorated over these months.

(7) Ongoing stable income in prospective budgeting and eligibility is treated so that the monthly amount is used to anticipate the income of the financial group. The amount of stable income for each month is determined as follows:

(a) If paid once per month, that amount is used.

(b) If paid twice per month or semi-monthly, that amount is converted to a monthly amount by multiplying it by two.

(c) If paid once every other week or biweekly, that amount is converted to a monthly amount by multiplying it by 2.15.

(d) If paid once per week, that amount is converted to a monthly amount by multiplying it by 4.3.

(8) Ongoing variable income is used as follows in prospective budgeting and eligibility so that the anticipated amount is the same for each month, unless otherwise stated in this rule.

(a) For income paid more than once per month, determine an average amount per pay period in accordance with sections (8)(b) to (8)(d) of this rule. The average amount is then converted to a monthly amount as follows, if paid --

(A) Twice per month, multiply by 2;

(B) Every other week, multiply by 2.15; or

(C) Once per week, multiply by 4.3.

(b) For variable earned income based on an hourly wage when the past is representative, monthly income is determined by calculating an average number of hours per pay period, then these hours are multiplied by the hourly wage and converted to a monthly amount under section (8)(a) of this rule.

(c) For variable earned income involving various rates of pay (overtime, shift differential, tips) when the past is representative, monthly income is determined by calculating the average income per pay period, then the average income is converted to a monthly amount under section (8)(a) of this rule.

(d) For variable earned or unearned income when the past is representative and income cannot be calculated under section (8)(b) or (c) of this rule, monthly income is determined by averaging the income over:

(A) A representative period of months by totaling the income for those months and dividing by the number of months used; or

(B) A representative number of pay periods and converting to a monthly amount under section (8)(a) of this rule.

(e) For variable earned and unearned income when the past is not representative of the income the financial group will receive during the eligibility period, the individual and the Department jointly determine the anticipated income.

(9) Annualizing and Prorating Contracted or Self-Employment Income

(a) Income from self-employment, including contract income while self-employed, is treated in accordance with OAR 414-175-0035 (81) unless the income meets the provisions of section (8)(b) of this rule.

(b) If past contract income is not representative of future income or when a substantial increase or decrease is expected in countable self-employment income in the next year, costs as allowed under OAR 414-175-0035 (81) and anticipated income are used to determine the countable income.

(c) Contract income that does not meet the criteria of self-employment income is treated as follows:

(A) Income received during a less than 12-month period but intended as a full year's income is annualized.

(B) Income received on an hourly or piecework basis or monthly over the term of the contract period is not annualized. It is treated as stable income under or variable income.

(d) Contract income that is not the annual income of the financial group and not paid on an hourly or piecework basis is prorated over the period the income is intended to cover.

(10) Periodic income is averaged over the applicable period.

(11) If the budgeting method changes from prospective to retrospective, the Department treats income from a terminated source that was counted prospectively as follows:

(a) If the actual amount received was less than or equal to the anticipated amount, the income is excluded.

(b) If the actual amount received was greater than the anticipated amount, the Department counts the difference between actual and anticipated amounts.

(12) When an individual is added to an ongoing filing group, income is budgeted in accordance with applicable sections of this rule to determine eligibility and benefit level.

Or. Admin. Code § 414-175-0040

ELD 11-2023, adopt filed 06/28/2023, effective 7/1/2023; DELC 144-2023, minor correction filed 12/11/2023, effective 12/11/2023; DELC 147-2023, minor correction filed 12/27/2023, effective 12/27/2023

Statutory/Other Authority: ORS 329A.500

Statutes/Other Implemented: ORS 329A.500