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

(Revised 06/01/15 ML3440)

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IM 5280

 

 

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 obtained or received from:

1. TPQY
2. SDX
3. BENDEX
4. SAVE information from the United States Citizenship and Immigration Services (USCIS)
5. IEVS UIB Alerts or UIB Interface

2. When a new application for TANF, TANF Diversion or TANF Pay After Performance is approved in an ongoing SNAP case, the information used to determine the grant along with the grant must be acted on for SNAP regardless of the effect on the benefit.

In an ongoing case, when changes are reported for TANF that result in a change in the TANF grant, the changes along with the change in the TANF grant must be acted on regardless of the effect on the benefit.

3. Household voluntarily requests case closure.

If another state calls or sends an e-mail that a household is applying for SNAP in their state, the case must be closed for residency allowing for adequate notice.

4. Household income exceeds the 200% gross income limit for its household size.  Case must be closed for excess income with advance notice unless reported in writing and signed by the household.

Exception:

If a TANF I & R household fails the 200% gross income test and includes an elderly or disabled household member, the household is not considered a TANF I & R household and must be tested a second time under regular SNAP rules. Regular SNAP rules require these households to pass the asset test and 100% net income tests only.

If the household fails the asset test, the case must be closed for excess assets. If the household passes the asset test but fails the net income test, the case must be closed for excess income.

5. Households actual base month income exceeds the 130% 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 anticipated income exceeds the 130% 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.

6. Households subject to the asset test that fail the asset limit.  Case must be closed for excess assets with advance notice unless reported in writing and signed by the household.

7. Household reports a change that brings an ABAWD’s hours below 20 hours weekly averaged monthly.

8. A household member who has used their ABAWD benefit months (NE or EE).

9. Determination of these disqualifications:

• IPV
• Drug felonies
• Fleeing felons
• Failure to comply with JOBS and BEST

10. The worker becomes aware of information from any source that all household members have died.Adequate notice is required.  

11. Household reports the addition of a new household member or loss of a household member.

12. A 'new' household member is an individual that has never been reported as living with the household.

    If a household reports a member with a current participation code of ‘OU’, is now eligible to participate as a member of their SNAP household, this change does not meet criteria to decrease benefits. This change would only be acted on during the review period if it resulted in an increase in benefits.

EXAMPLES:

1. An ineligible student who is now eligible to participate.
2. A household reports an individual who had been residing with them is now eating the majority of their meals as part of their household.

• If the household reports that all household members have moved out of state, the case must be closed for loss of residency allowing for adequate notice.

• If a household reports the addition of a household member who is receiving benefits in another SNAP case, the individual must be removed from the case before being added to the new case. If removing the individual results in a decrease in benefits, a 10-day advance notice is required unless the change was reported in writing and signed by the household the individual is being removed from.  This could include a written and signed statement from the individual being removed if they are a responsible adult household member.

• If a household reports a household member has entered an institution such as a long term care facility, Burdick Job Corp.

• If a household or a household member applies for the Food Distribution (Tribal Commodities) Program.

13. If a household chooses to have a one-time medical expense used for the next month, the expense must be removed for the following month regardless of the effect on the benefit.

14. When household reports a change resulting in the loss of medical expense deductions and capped shelter costs as an individual is no longer disabled.

15. When the household reports the primary individual that is not the spouse dies, the case must be closed using the other reason (OT) code.  The remaining household members must reapply in order to continue to receive benefits.

    If the primary individual moves out of the home, the remaining household members must be removed from the primary individual's case and reapply in order to continue to receive benefits.  The primary individual's case remains open unless it is determined the primary individual is ineligible.

16. When an error is made in a case and corrective action results in a future month decrease or allotment reduction due to an overpayment.

17. When the worker sends the F814 – Claims/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.

18. When the household received a closing notice and later reports a change that results in continued eligibility, the change must be acted on regardless of the effect on the benefit.

19. 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 to decrease benefits, 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.

If a household reports a change that meets the criteria to decrease benefits and other changes, the worker must use the benefit calculator to determine whether the multiple changes result in an increase or decrease in benefits.

If the multiple changes result in an increase in benefits, verification must be requested and all verified changes must be acted on.  

If the multiple changes result in a decrease in benefits, then only the change(s) that meet the criteria to decrease benefits are acted on.  The change(s) that meet the criteria to decrease benefits may then result in a decrease, increase or no change in benefit.  The worker must document other changes were not acted on as they resulted in a decrease in benefits and did not meet the criteria.

If the multiple changes result in no change in benefits, then only the change(s) that meet the criteria to decrease benefits are acted on.

Examples:

1. Mom and her two children are receiving benefits in one county.  Dad is receiving benefits in another county.  Dad reports one of the children came to live with him and would like the child added to his case.  A 10-day advance notice is required to remove the child from Mom’s case.  The child must be added to Dad’s case the month the child is removed from Mom’s case.   

2. An ongoing case received a $300 benefit for the month of October.  The household reports an increase in their income due to a new source which results in their income exceeding the 130% GIL for their household size.  The household expects this income to continue and using this income results in the household not being eligible for a benefit.  The worker sends advance notice to close the case on October 8.

   On October 25, the household reports and verifies a change in the new source income.  Based on the change, the household is eligible for a $200 benefit.  The change must be acted on for November benefits.  Advance or adequate notice is not required as receiving a benefit is an increase from the case closure.  

3. 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.

4. 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.  Adequate notice is required.

5. 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 6 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.

6. In month three of an ongoing case, 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.    

7. Application for review filed in November for December benefits.  Household consists of husband and wife who have both received their three NE month.  At review, the wife reports she is pregnant and the husband is now working 40 hours per week.  The case is certified with both eligible.  In December, household reports husband lost his job.  The worker sends notice F419 to determine if the individual is exempt for another reason.  The household responds and indicates the individual is not exempt.  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 by removing the income and changing the husband’s participation to DI. This change must be acted on without verification as it meets the criteria to reduce benefits.

   In January household reports husband found a new job and anticipates working 25 hours per week at minimum wage.  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 review. 

8. 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 change in income must be acted on as it results in an increase in benefits.

   The SFN 385 or SFN 353 must be completed at the time of review, as this is not a mandatory reportable change.  

9. 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 individual's 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 meets the criteria to decrease benefits and must be acted on for February.  The individual must also be changed to an exempt ABAWD for February.

10. Household reports on January 25th that base month income exceeded the 130% GIL 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 130% GIL and request verification if it is not expected to continue, allowing the household 10-days to respond.

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

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

2. If the household responds and 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.

3. If the household responds and 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 130% GIL for its household size, the worker must revert the case to open and determine eligibility and level of benefits for March using the newly verified income.  

4. 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 130% GIL for their household size.

   If the newly verified income results in an increase in benefits, the change must be acted on.

   If the newly verified income results in a decrease in benefits, the change must not be acted on until review.  

11. 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 new job and 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 verification is provided and using the income results in a decrease in benefits, the change in income is not acted on until review.

    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     

12. Household is certified with income over the 130% GIL and 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 the household's other income and the child support income, the household is no longer eligible for a benefit. The worker must send the F419 to determine if the increase in income is going to continue and to request verification if the income is not expected to continue.

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

2. 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 130% GIL for its household size, the worker must revert the case to open and determine eligibility and level of benefits, using the newly verified income.  

3. 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 130% GIL for their household size.

   If the newly verified income results in an increase in benefits, the change must be acted on.

   If the newly verified income results in a decrease in benefits, the change must not be acted on until review.    

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 review.

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

1. ND Child Support (FACSES)

2. New Hire Matches

3. Employer verification signed by the employer, income tax forms or a report from a self-employed household  

4. Mail returned by the Postal Service with an unknown or out-of-state address

   NOTE: If mail is returned with an out of state address, the address should be updated in TECS to ensure the household continues to receive proper notification.

5. Day care billing forms

6. Household report of a new job or increased income

7. Wage stubs, checks from UIB, Workforce Safety, Child Support, SSA/SSI

8. Reading information in a newspaper

9. Becoming aware of a client working

Examples:

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 change is acted on at review.

2. A SNAP 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. As this change will result in a decrease in benefits and does not meet the criteria, the change is not acted on until review.

3. An individual was DW at the time of application for a job quit.  In the third month of the review 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 review.

4. 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 review 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 is an eligible ABAWD until review as no change was reported.  

5. Ongoing SNAP/Medicaid case includes an eligible student. The household reports a change in income that results in an increase in benefits, as the student is no longer working an average of 20 hours per week. The change in income must be acted on as it results in an increase in benefits.  Because the student may be eligible for another reason and student status is not a mandatory reportable change, the student remains eligible until review.