FAQs: Supplemental Payment (13th Check)

It depends on what benefits you currently receive or are currently eligible to receive or in what programs you are eligible to participate.

No. The supplemental payment will not affect your eligibility for Medicare. It is possible (but not likely) that the additional payment could cause some individuals to be "high-income" individuals for Medicare premium purposes. In general, certain high-income individuals pay higher premiums for Medicare Part B (medical insurance) and Medicare prescription drug coverage premiums. The higher premiums effect less than 5% of the people with Medicare. Thus, for the majority of members and beneficiaries, this should not be an issue.

No. The supplemental payment will not affect your eligibility to receive Social Security. However, for some individuals, it is possible that the supplemental payment could require the individual to pay income tax on the Social Security benefit. The Social Security Administration estimates that about 40% of people who receive Social Security pay income tax on their benefits. If you think this may impact you, we recommend that you contact your local Social Security office or speak with your accountant, tax or financial advisor.

Medicaid provides medical benefits to low income individuals without medical insurance or adequate medical insurance. Although the Federal government establishes general guidelines for the administration of Medicaid benefits, specific eligibility requirements to receive Medicaid benefits are determined by each individual state. Thus, a person who is eligible for Medicaid in one state may not qualify in another state.

For purposes of Medicaid, the supplemental payment will be counted as "unearned income" for the month of receipt. There may be options available to "spend down" the supplemental payment before the end of the month or establish a trust and maintain Medicaid eligibility. There may be other considerations for individuals in a long term care facility. If you think this may impact your ability to qualify for Medicaid, we recommend you contact your local Medicaid office or speak with your individual financial advisor.

SSI pays benefits to aged, blind, and disabled people who have limited income and resources. SSI is administered by the federal government but may be supplemented by an individual State. For purposes of SSI, income is anything you receive during a calendar month that is used or could be used to meet your needs for food or shelter. Income is determined for each calendar month of eligibility. For purposes of SSI income, the supplemental payment is considered "unearned income." It is possible that the supplemental payment could cause you to exceed the federal benefit rate and any state supplemental rate. If you think this may impact you, please contact your local Social Security office.

No. Employees who receive a government pension from employment in positions that are not covered by Social Security may have their Social Security benefits reduced under a provision called the Windfall Elimination Provision ("WEP"). The WEP is a reduction to your Social Security retirement benefit because of the pension earned from your TRS-covered employment. However, the supplemental payment does not impact the calculation of the WEP. Therefore, the payment should not have any impact on your Social Security retirement benefits.

Potentially. Employees who receive a government pension from employment in positions that are not covered by Social Security may have their Social Security benefits reduced under a provision called the Government Pension Offset ("GPO"). The GPO is a reduction to your Social Security spouse or survivor benefits because of the pension earned from your TRS-covered employment. The GPO calculation is based on the amount of your government pension. Depending on your personal circumstances, it is possible that the supplemental payment could result in a reduction to your monthly spouse or survivor benefits from Social Security. If this impacts you, you should receive notice from your local Social Security office.