01 Supplemental Payments and Restored Benefits Supplemental Payments and Restored Benefits Policy Legal Authorities Underpayments occur when it is discovered that a budgetary unit is entitled to supplemental payments or restored benefits. Policy A budgetary unit may be eligible for underpayments when the budgetary unit's case meets any of the following: ● Denied in error ● Closed in error ● Received less than the correct benefit amount for any of the following: A prior month The current month when benefits have already been received Case corrections, Quality Control (QC) reviews, and other methods may indicate when an active or inactive budgetary unit is entitled to any of the following: ● Supplemental Payments The budgetary unit is issued benefits for the current or future month and is eligible for an additional amount of benefits. ● Restored NA Benefits When a budgetary unit is not issued the correct amount of benefits in any past months. Supplemental Payments Supplemental payments are issued when it is discovered that a budgetary unit is entitled to an additional amount of benefits, over what was issued, for the current calendar month or any future months. Supplemental benefits are issued, in addition to the current month's issuance, in all of the following situations: ● A reported change ● A case read correction ● An appeal remand ● When more NA or CA benefits are recouped by the Office of Accounts Receivable and Collections (OARC) than was owed in an overpayment. Restored Benefits Restored NA benefits are issued when it is discovered that the budgetary unit is entitled to additional benefits for any month before the current calendar month. The budgetary unit is not required to take any action. This includes extreme delays in processing for 12 months or longer. NA benefits are restored for no more than 12 months before any of the following occurs: ● The date FAA receives a request for restoration of benefits from a budgetary unit. ● The date FAA notifies or discovers that a loss of benefits occurred. ● The date a budgetary unit requests an appeal because it disagrees with an adverse action that resulted in a loss of benefits. ● The date of notification that an Intentional Program Violation (IPV) disqualification is reversed. ● The date the budgetary unit receives a favorable decision through the appeal process, a judicial action, or other court action. ● The date FAA discovers an application is processed untimely. Restored CA benefits are issued when it is discovered that the budgetary unit is entitled to additional benefits for any month before the current calendar month. The budgetary unit is not required to take any action. NOTE There is no time limit to the number of months CA restored benefits can be issued to a budgetary unit. Verification and sufficient documentation must support the reason for restoring the benefits. FAA Caused Underpayment Underpayments are considered to have occurred due to an FAA error in any of the following situations: ● FAA failed to allow the budgetary unit the required time to verify an expense and benefits were reduced as a result. ● FAA failed to act within the proper time frame on a reported change that would have increased the budgetary unit's benefit amount. ● FAA failed to update information during a mass change event that would have increased the budgetary unit’s benefit amount. ● FAA incorrectly stopped or denied benefits. ● FAA incorrectly calculated the benefits. ● A disqualification period for an IPV was reversed by a court of law. (See IPV ) ● An appeal decision in favor of the participant requires supplemental payments or restored NA benefits. Legal Authorities 7 CFR 274.6(a) 7 CFR 274.6(a)(2) 7CFR 274.6(a)(3)(2) 7 CFR 274.6(a)(6)(ii) 7 CFR 274.6(a)(7)(i) 7 CFR 274.6(b) AAC R6-12-803 Prior Policy last revised 01/29/2024 This site works best with JavaScript enabled