M E M O R A N D U M

IM-151  11/20/02 MILITARY RE-ENLISTMENT BONUSES FOR FOOD STAMPS
FOOD STAMP MANUAL REVISION #35
SECTIONS 1110.030.00
 1115.015.35
 1115.015.65


SUBJECT:
MILITARY RE-ENLISTMENT BONUSES FOR FOOD STAMPS
FOOD STAMP MANUAL REVISION #35
SECTIONS 1110.030.00
1115.015.35
1115.015.65
DISCUSSION:
The purpose of this memorandum is to provide guidance in determining how to count military re-enlistment bonuses for the Food Stamp Program.  The re-enlistment bonus can be paid in two ways: as a one time lump sum payment; or with up to 50 percent of the re-enlistment bonus as a lump sum and the remainder paid in equal annual payments. 

It is up to the individual branch of the military service to decide which military grades/series get the bonuses and how much they get.  Staff will need to verify the amount of payment and how the payment is made.

How the re-enlistment bonus is paid determines how the bonus is counted.  Use the following guidance to determine how to count military re-enlistment bonuses for food stamp purposes:

  • If an Eligibility Unit (EU) receives a one-time lump sum re-enlistment bonus, it is exempt from income as a non-recurring lump sum payment.  The money is counted as a resource in the month it is received.  Refer to Sections 1115.015.35, Lump Sum Payments and 1115.015.65, Military Payments. 
  • If an EU receives a portion of the bonus as a lump sum with the remainder paid in equal annual installments, the entire bonus is counted as earned income because it is a recurring lump sum.  The money is averaged over the period it is intended to cover.  Refer to Section 1110.030.00.
The online Food Stamp Manual is revised to include these changes.  The hard copy Food Stamp Manual is being revised to reflect this change in policy and will be issued at a later date.
NECESSARY ACTION:
  • Discuss this memorandum with all appropriate staff.
  • Count military re-enlistment bonuses as income or resources depending on how the bonus is paid.
BJK
Distribution #6

IM-150
[ 2002 Memorandums ]
 IM-152