Changes Resulting in a Decrease in Benefits 430-05-67-15-10

(Revised 08/01/07 ML3095)

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A worker must not act on changes that will result in a decrease in benefits, unless the change meets the following criteria:

1. The information is:

1. not questionable, and
2. provided by the primary source of the information, and
3. complete, no further information is needed

Information that is provided by the primary source is defined as a change that is reported directly from or received directly from the source of the information or a document signed by the source of the information.

Examples:

• TPQY, SDX, Bendex and UIB Interfaces
• IEVS UIB Alerts
• Income tax returns for self-employment households
• A household member who has exhausted ABAWD benefit months (NE or EE months)
• SAVE information from the United States Citizenship and Immigration Services (USCIS)
• The determination of an intentional program violation (IPV)
• Failure to comply with BEST requirements (Burleigh and Cass Counties only)
• UIB Interface
• Mail returned by the Postal Service with no forwarding address, an out of state address, stamped temporarily away, general delivery that was returned because it was not picked up, stamped box rent was not paid or stamped individual is not authorized to receive mail at this address
• Verification from an employer’s fax machine
• Verification from a contract afency that does payroll for a business
• Day care billing form signed by the provider
• Wage verification signed by the employer (this does not include a paycheck signed by the employer)
• Fax from an agency (i.e. housing or BIA)
• A report from a social or foster care worker
• Lease agreement signed by the landlord
• Award letter signed by the agency

2. Household voluntarily requests case closure.
3. Household reports actual base month income that exceeds the gross income limit for its household size, the household expects this income to continue and based on this income is not eligible for a benefit.

If the household reports they anticipate their income to exceed the gross income limit, the household expects this income to continue and based on this income is not eligible for a benefit, the case must be closed based on client statement.

4. Household reports a change that brings an ABAWD’s hours below 20 hours weekly averaged monthly.
5. The worker becomes aware of information that all household members have died.  Adequate notice is required.  
6. Household reports the addition or loss of a household member.
7. When an error is made in a case and corrective action results in a future month decrease or allotment reduction due to an overpayment.
8. When the worker sends the F814 – Required Verification to obtain verification needed to complete a claim, the F401 must be sent to close the case if the household fails to respond.
9. When a household refuses to cooperate with Quality Control.  Quality Control will notify the worker.  The worker must terminate the household’s eligibility.  A 10-day advance notice is required.  

If the reported change meets the criteria it must be acted on within 10 days from the date the change was reported and a 10-day advance notice must be sent. If the change is reported in writing and signed by the household, a 10-day advance notice is not required. Adequate notice is required.

Examples:

1. An ongoing case reports that a household member left the home on October 4.  The individual must be removed from the case when determining eligibility and level of benefits for November.  If the change results in a decrease in benefits, a 10-day advance notice is required. If the change is reported in writing and signed by the household, a 10-day advance notice is not required. Adequate notice is required.
2. The worker is notified on October 10 that an individual in an ongoing case is disqualified for an intentional program violation.  The participation code for the disqualified individual must be changed to “DF” and the IPV disqualification is imposed for November.  Notice F818 – IPV-Food Stamp Overissuance or F823 - IPV/Court Conviction – No FS Overissuance must be sent to the household.  Adequate notice is required.
3. Household consisting of a husband and wife initially apply on November 3.  The husband is employed 35 hours a week.  The wife is not working and is eligible to receive three non-exempt (NE) ABAWD months.  The household is certified for 12 months.  The first NE month for the wife is December.  In the third month (February), the wife’s participation code must be changed to DI when working March benefits.  A 10 day advance notice is required.
4. A notice is returned to the county office with no forwarding address for an ongoing case on November 14.  The worker must send an adequate notice to close the case November 30.
5. A household reports a new source of income.  Since this change will result in a decrease in benefits and the household did not report that their income exceeds 130% of poverty, the change is not acted on.  The worker must document the change does not meet the criteria to reduce benefits.  
6. An individual was DW at the time of application for a job quit.  In the second month of the certification period, the individual reports a new job and provides their first paycheck.  Changing the individual to IN and adding their income results in a decrease in benefits.  The individual’s participation is not changed and the income is not added until the six month report or recertification, whichever occurs first.
7. Ongoing simplified reporting case.  In month three the worker discovers they failed to convert income at the time of application.  A claim is completed using the corrected converted amount of income.  Allotment reduction is used to recoup the claim resulting in a decrease in benefits.  
8. Household provides wage stubs that include an ongoing decrease in income and verification signed by housing of their new rent amount.  Since the verification signed by housing is primary source verification, the change in income and the change in rent must both be acted on regardless of the affect on the benefit.
9. Client provides a signed child care billing form. This change must be acted on to increase or decrease benefits as it is primary source verification.  The daycare provider is receiving benefits in another case.  The child care billing form is also primary source for the daycare provider.   
10. Recertification filed in November for December benefits.  Household consists of husband and wife who have both received their three NE month.  At recert, the wife reports she is pregnant and the husband is now working 40 hours per week.  The case is certified with both eligible as a simplified reporting household.  In December, household reports husband lost his job.  Since the household is required to report if an ABAWDS hours decrease below 20 hours per week and the change meets the criteria to decrease benefits, the change must be acted on without verification by removing the income and changing the husband’s participation to DI.

In January household reports husband found a new job and anticipates working 25 hours per week at $6.50 per hour.  Based on this information, the change will result in an increase in benefits.  The worker sends the F419 requesting verification of the new job and hours.  If the household provides the verification, the change must be acted on to increase benefits.  

 

If after verification is received, the change would result in a decrease in benefits, the change is not acted on (husband remains DI with no income) until six month report, unless the verification is from a primary source.

11. Application is approved for a 45 year old dad not working and his 17 year old son who is a full time student with earned income.  In month three of the certification period the 17 year old will turn 18.  No change is made to the case as adding the income will result in a decrease in benefits.  The dad remains an eligible ABAWD until six month report or recert as no change was reported.  
12. Single individual with a 10-year-old is exempt from the work requirements at the time of application as they are working full time.  Individual reports they lost their job.  Worker sends F419 for verification of the terminated income.  Household provides statement from employer that verifies the terminated income but does not substantiate a voluntary job quit.  

The SFN 385 must be completed at the time of recertification, as this is not a mandatory reportable change.  

13. Single individual applies in December and reports they plan on applying for unemployment benefits.  Individual was entitled to expedited benefits and approved without postponed verifications for the benefit months of December and January.  January is the individuals first NE month.  In January when working February benefits, the worker received an IEVS UIB alert indicating the individual received two unemployment checks in December.  IEVS UIB is primary source verification and must be acted on to decrease benefits for February.  The individual must also be changed to an exempt ABAWD for February.
14. Household reports on January 25th that base month income exceeded the gross income limit for its household size in December and the worker determines the household is not eligible for a benefit. The worker must send the F419 to determine if the income will continue to exceed the gross income limit, allowing the household 10-days to respond.

February benefits are authorized with the same income used for January.

 

If the household does not respond to the F419, the case must be closed for excess income the end of February.

 

If the household expects the income to continue, the worker must close the case with an advance notice the end of February, unless the change was reported in writing and signed by the household.

 

If the household does not know if this income will continue, the worker must close the case with an advance notice the end of February, unless the change was reported in writing and signed by the household.  

 

If the household verifies by the last working day of February that gross income is below the GIL for its household size, the worker must revert the case to open and determine eligibility and level of benefits for February.

 

If the household responds and states they do not expect the income to continue, the household must provide verification other then client statement that their income will not continue to exceed the gross income limit for their household size.  The newly verified income is used to determine eligibility and level of benefits for March.  Advance notice is required unless the change is reported in writing and signed by the household.  

15. ABAWD receiving their NE months reports they started a job and are working at least 20 hours per week averaged monthly.  The worker must send the F419 for verification of the hours the individual is working.  If the verification indicates the individual is now an eligible ABAWD working 20 hours per week averaged monthly, the individual’s ABAWD status must be changed to exempt (HR on the ABRE screen) for the following month.  

If the income is provided and using the income results in a decrease in benefits, the income must not be used unless the verification is from a primary source.  

 

If the household does not respond to the F419, the individual is eligible for up to 3 months (NE or EE).  Once the NE or EE months have been used, the individual’s participation code must be changed to “DI”.  A 10-day advance notice is required unless the change was reported and signed by the household.  

16. Household is certified with income of GIL as they are eligible for a benefit.  The household is not required to report any changes in income.  The worker received a child support alert and uses base month child support to determine the effect on the benefit.  Based on this change, the household is not longer eligible for a benefit.  The worker must send the F419 to determine if the increase in income is going to continue.  

If the household does not respond to the F419, the case must be closed for excess income.

 

If the household responds and expects the income to continue or does not know if the income will continue, the worker must close the case with an advance notice, unless the change was reported in writing and signed by the household.  

 

If the household verifies by the last working day of February that gross income is below the GIL for its household size, the worker must revert the case to open and determine eligibility and level of benefits.

 

If the household responds and states they do not expect the income to continue, the household must provide verification other then client statement that their income will not continue to exceed the gross income limit for their household size.  The newly verified income is used to determine eligibility and level of benefits.  Advance notice is required unless the change is reported in writing and signed by the household.  

 

If the reported change does not meet the criteria to decrease benefits, the worker must not ask for verification or follow-up on the change.  The worker must document why additional information is needed.  The change is acted on at the six month report or recertification, whichever occurs first.

 

Information/changes that do not meet the criteria include, but are not limited to:

1. FACSES
2. New Hire Matches
3. Mail returned by the Postal Service with an in state forwarding address
4. Household report of a new job or increase income
5. Wage stubs, checks from UIB, Workforce Safety, Child Support, SSA/SSI
6. Reading information in a newspaper
7. Becoming aware of a client working (other then from employer)

Examples:

1. A prisoner listing received from a local jail is information reported directly from the source.  However, it does not contain enough information to determine how long the individual will be incarcerated and the affect on the food stamp case.  This information is not acted on to decrease benefits, as further information/verification is needed.  The change is acted on at the six month report or recertification, whichever occurs first.

If the release date is part of the information provided and the individual will be incarcerated for one full calendar month, the individual must be removed as the information was provided by the primary source (local jail).  A 10 day advance notice is required.  

1. Worker receives an alert that child support was received in the base month for an ongoing case.  Using base month child support would result in a decrease in benefits.  The alert is not acted on, as the information was not provided by the primary source (obligor).  The change is acted on at the six month report or recertification, whichever occurs first.
2. A Food Stamp only household reports and verifies a new source of income.  This income along with all other countable income does not exceed 130% of poverty for the household size. The information is not acted as it was provided by the household.  The change is acted on at the six month report or recertification, whichever occurs first.