Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Excludes from PAAD income eligibility withdrawals from an IRA.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the "Pharmaceutical Assistance to the Aged and Disabled" program and amending P.L.1975, c.194.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1975, c.194 (C.30:4D-21) is amended to read as follows:
2. a. Any resident of this State who is either a recipient of disability insurance benefits under Title II of the federal Social Security Act (42 U.S.C. s. 401 et seq.) or 65 years of age and over and whose annual income is less than [$16,624] $26,575 if single or, if married, whose annual income combined with that of his spouse is less than [$20,383] $32,582, shall be eligible for "Pharmaceutical Assistance to the Aged and Disabled" if he is not otherwise qualified for assistance under P.L.1968, c.413 (C.30:4D-1 et seq.). Annual income shall not include:
(1) gain from the sale of a principal residence that is excluded from gross income pursuant to N.J.S.54A:6-9; and
(2) amounts withdrawn from an IRA. As used in this paragraph, "IRA" means an account defined pursuant to subsection (a) of section 408 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.408.
b. Beginning January 1, 1996 and annually thereafter, the income eligibility limits provided in subsection a. of this section shall increase by the amount of the maximum Social Security benefit cost-of-living increase for that year for single and married persons, respectively. The commissioner shall adopt the new income limits annually by regulation pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
(cf: P.L.1995, c.27, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill concerns eligibility for the "Pharmaceutical Assistance to the Aged and Disabled" (PAAD) program and allows a person to exclude from income, for the purposes of determining eligibility for the PAAD program, amounts withdrawn from an individual retirement account (IRA). Since PAAD income eligibility is used to determine eligibility for other programs, that is, the "Hearing Aid Assistance for the Aged and Disabled" program, P.L.1987, c.298 (C.30:4D-36 et seq.), the "Lifeline Credit Program", P.L.1979, c.197 (C.48:2-29.15 et seq.), the "Tenants' Lifeline Assistance Program", P.L.1981, c.210 (C.48:2-29.30 et seq.) and the "Senior Gold Prescription Discount Program," P.L.2001, c.96 (C.30:4D-43 et seq.), this bill would also affect eligibility for those programs.