Glossary S-words (AAM)

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Similar legal device — any instrument, device or arrangement which may not be called a trust under state law, but which exhibits the general characteristics of a trust as defined here such as escrow accounts, investment accounts, pension funds, and other similar instruments managed by an individual or entity with fiduciary responsibilities.

Simplified Employee Pension — an employer-created Individual Retirement Account or Individual Retirement Annuity that meets the following requirements:

• all employees must be age 21 and have performed service for the employer during 3 of the last 5 years, receiving a minimum salary in those 3 years;

• contributions may not discriminate in favor of employees who are highly compensated;

• employee withdrawals must be permitted; and

• employer contributions are determined under a definite written allocation formula.

Simplified Retirement Account — an Individual Retirement Annuity or either a Traditional or Roth Individual Retirement Account established by an employer for both an employer and employee to make contributions under a qualified salary arrangement. A qualified salary arrangement must:

• set a maximum percentage of compensation that an employee may contribute;

• require that the employer make a matching contribution to the employee’s volunteer contribution that does not exceed a maximum percentage of compensation for the year;

• set vesting requirements; and

• require that an employee only be eligible when they have received a minimum level of salary in the past two years and expect to earn the same level of salary in the current year.

Social security number — the unique and unchanging nine-digit number used by the Social Security Administration throughout the individual’s life.

Special Needs Trust- also known as a Trust for Disabled Individuals, a trust containing the assets of an individual under age 65 who is disabled and which is established for the benefit of such individual by the individual, a parent, grandparent, legal guardian of the individual, or a court if the State will receive all amounts remaining in the trust upon the death of such individual up to an amount equal to the total medical assistance paid on behalf of the individual.

Standard of need (SON) — the amount of income necessary for recipients to have a reasonable level of living. The Director of the Division establishes the SON for each category of financial assistance and categorically needy medical assistance.