Types of Payments 430-05-80-70
(Revised 01/01/2022 ML 3643)
Claims can be paid using any of the following types of payments or a combination of them:
- Allotment Reduction
Allotment reduction is automatic for participating households and begins with the first allotment issued after the appropriate notification.
Exception:
Allotments cannot be reduced when the only currently eligible household members were under age 18 during any of the benefit months reworked that resulted in the claim. In this situation, contact the State SNAP Office to close/suspend the claim.
Examples:
- Initial application consisting of Mom, age 30 and her minor child. The application is approved with no income. In month three, the worker discovers Mom had earned income at the time of application. A claim is established and IPV pursued. Prior to Mom becoming disqualified (DF), allotment reduction was used to reduce the amount of the claim. When the human service zone receives the signed Findings and Order, Mom becomes disqualified. Since the only eligible household member now was under age 18 at the time the error occurred, allotment reduction must stop.
- Review consisting of Mom, age 28, and her minor child. There is an outstanding claim from two years ago that we have been collecting through allotment reduction. At review, it is determined that Mom voluntarily quit a job without good cause and is disqualified. Since the only eligible household members now was under age 18 when the error occurred, allotment reduction must stop.
Two months later, Mom reports that her minor child moved into the household. Since Mom is now exempt from the work requirements, the voluntary job quit disqualification must be ended and Mom and the child added to the case. As Mom is now eligible and was over the age of 18 at the time the error occurred, allotment reduction must begin.
- Administrative and inadvertent household error claims. The amount of SNAP benefits recovered each month is the greater of 10% of the household’s monthly allotment or $10 per month, whichever is greater.
- IPV claims. The amount of SNAP benefits recovered each month is the greater of 20% of the household’s monthly allotment or $20, whichever is greater.
- If a household requests benefit reduction at a rate higher than those listed in (a) or (b) immediately above, benefits are reduced by that amount. Supporting documentation must be in the case file.
Exception:
If collecting at the limits listed in (a) or (b) immediately above are greater than the requested benefit reduction by the household, then (a) or (b) immediately above must be used.
- Offsetting Underpayments
When a household has an outstanding balance on a claim and is entitled to an underpayment, the system will automatically apply the underpayment to the overpayment.
Exception:
Underpayments cannot be used to offset claims when the only eligible household members were under age 18 at the time the claim was completed. In this situation, contact the State SNAP Office to close/suspend the claim before authorizing the underpayments.
- Lump Sum or Installment Payments
If the household chooses an installment payment plan and their case is currently open, the payment must be equal to or greater than 10% or $10, whichever is greater.
Exception:
If the claim is due to fraud, the payment must be equal to or greater than 20% or $20, whichever is greater.
Acceptable forms of lump sum or installment payments include a check, cash, money order or EBT benefits whether it represents partial or full payment.
If a household fails to submit a negotiated payment, the claim is subject to additional collection actions.
- Treasury Offset Program (TOP)
This is informational and is a State Office procedure.
Properly established administrative error, inadvertent household error and IPV error claims can be submitted if they meet the following requirements:
- Case must be closed.
- Claims must be $25 or more. Smaller claims for an individual can be combined.
- A claim must be at least 30 days delinquent from the date of the notice of overpayment or 30 days from the last payment received date.
Exceptions:
- There is a court order.
- If part of a combined claim is under judgment.
- Double submissions of claims involving more than one adult household member are not allowed.
- Claims submitted for bankruptcy cannot be referred.
- The State Office must provide households a 60-day notice informing them that the delinquent claim will be referred for offset.
- Client Authorized EBT Benefits
A household must be allowed to pay a claim using benefits from its EBT account. If the household is currently participating in the program, allotment reduction is automatic. The worker must explain to the household that choosing repayment from its EBT account in addition to allotment reduction or an EBT benefit greater than allotment reduction is strictly voluntary.
Written authorization must be obtained from the client which specifies the amount. The Demand for Payment notice can be used. This information must be submitted to the State Office.
- Expunged EBT Benefits
Any benefits in an EBT account that has not been used within 274 days from the last date of activity on the EBT account are expunged and no longer available to the household. A notice will be sent to the household informing them of the expungement 30 days prior to benefits being expunged.
Any benefits in an EBT account will be expunged when a date of death is reported and verified for a one person HH or if all members of a SNAP HH are deceased. These benefits will be expunged immediately.
Expunged benefits are applied to any outstanding claim. This is a State Office procedure.
- Other Collection Actions
Other collection action may be used to collect claims such as collection agencies.
- Unspecified Joint Collections
When an unspecified payment is received for a combined case, each program must receive a pro-rata share of the amount collected.
- Public Service
If authorized by a court, the value of a claim may be paid by performing public service.