Recoupments 400-19-130-25

(Revised 6/1/10 ML #3218)

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IM 5129

 

(N.D.A.C. 75-02-01.2-71(6))

 

The TANF Eligibility Worker must promptly take all reasonable and practical steps to recoup all overpayments. "Promptly" means that action to recoup shall be initiated in the month following the month in which the overpayment is authorized, provided an adequate notice has been provided. No distinction is made between willful and unwillful withholding of, or failure to report information that affects eligibility or the amount of the TANF benefit.

Note: If the household has an existing overpayment, benefits from the initial TANF grant and each subsequent month’s grant will be reduced until the overpayment is fully recovered.

 

Any overpayment, whether resulting from an error made by the household, administrative error, fraud, or from assistance granted pending a fair hearing decision subsequently made in favor of the county social service office, is subject to recovery regardless of when the overpayment occurred.

Note: Only overpayments occurring under North Dakota programs (AFDC or TANF) can be recouped. Requests from other states for recoupment cannot be honored.

 

Overpayments recouped from households which include a responsible member.

Overpayments are recouped from the TANF benefit and Special Items of Need (excluding Transition Assistance). Overpayments will not be recouped from JOBS Transportation Supportive Services or Diversion.  

 

Methods of recovering overpayments from participants are:

  1. Automatic recoupment from the TANF grant; or
  2. Voluntary repayment agreement – an overpayment repayment agreement is a payment plan the client and the county agency agree to as a method of repaying an overpayment; or
  3. Criminal restitution.

The amount recouped is based on a either a monthly amount or percentage of the Total TANF Standard of Need (which includes the $45 OH Allowance and Special Items of Need). Regardless of the method chosen, the amount recouped cannot be less than:

 

Administrative or Client Non-Fraud

Recovery of all administrative or client non-fraud overpayments is accomplished by reducing the TANF benefit in an amount equal to 10% percent Total TANF Standard of Need (which includes the $45 OH allowance and Special Items of Need) for the appropriate household size. A recipient may repay the amount of overpayment at a rate greater than the 10% standard as long as the decision to do so is voluntary.

 

Fraud

Recovery of all overpayments resulting from fraud is accomplished by reducing the TANF benefit in an amount equal to 20% of the Total TANF Standard of Need (which includes the $45 OH allowance and Special Items of Need) for the appropriate household size. A recipient may repay the amount of overpayment at a rate greater than the 20% standard as long as the decision to do so is voluntary.

 

Individuals responsible for repayment are all caretakers age 18 or older as well as a minor parent under age 18 who were members of the household at the time the overpayment occurred. Overpayments follow the responsible member to a new case if the member was part of the overpaid benefit received in another case at the time the overpayment occurred. All responsible individuals remain equally responsible for the overpayment.

 

A complete record of the overpayment, the plan for recovery, recoveries made, and any outstanding balance will be included in the automated computer system case file.

 

A regular or supplemental benefit payment, defined as a payment issued in the month for the month, cannot totally offset an overpayment.  A regular or supplemental benefit payment may be reduced only by the percentage of recoupment (usually 10% or 20%, but may differ pursuant to court order) or a set dollar amount as specified by court order.  However, an underpayment, defined as a payment for a benefit month issued at any time after the benefit month, can totally offset an overpayment.