(Revised 01/01/04 ML2893)
All underpayments must be used to offset outstanding claims.
Exception:
Benefits for an initial month cannot be used to offset an outstanding claim, even if the benefit for the initial month is paid retroactively. TECS will not allow offset to occur when the benefit is for an initial month.
Example:
A household is entitled to an underpayment of $100 and has an outstanding claim of $40. The $40 claim must be offset and the household then receives the remaining $60.
When benefit months are reworked resulting in both underpayments and overpayments, the overpayments must be authorized first. Underpayments are then authorized and will offset the claim.
