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Determining an Overpayment's Start Date

BOTH When determining the amount of the overpayment, the SSR must determine the first month benefits would have been adjusted had the change been reported timely and the agency acted on that information timely. Effective October 1, 2005, a recipient has until the 10th day of the month following the month of the change to report a change affecting benefits. Prior to October 1, 2005, recipients on standard reporting were required to report a change within 10 days of the change. The SSR has 10 days to take action on the reported change. A notice of adverse action must be sent at least 15 days prior to the effective date of a case action that reduces or terminates benefits. Example 2 Ms. Wonder and her child receive TANF. Ms. Wonder finds a job and receives her first paycheck on June 8. Ms. Wonder does not tell her caseworker until August 5 about the new earnings. Ms. Wonder needed to report her wages by July 10. If she had done so, her case worker had until July 20 to process her change in benefits. Since a15-day d notice of adverse action is required, the first month benefits could have been changed was September. Despite Ms. Wonder's late report, the SSR can still issue timely notice for a September change, the first month that benefits could be changed. Therefore, there is no overpayment. Example 2 Mr. Porter receives Food Stamps. Mr. Porter starts work in March and receives his first paycheck on March 27. Mr. Porter waits until his recertification appointment on July 19 to report his employment, and his wages are used to determine his benefits for the new certification period that begins August 1. Mr. Porter was expected to report his earnings by April 10. Had he done so, his case worker had until April 20 to process his income change. Since a 15-day notice of adverse action is required, the first month benefits could be changed is June. There is no over-issuance for March, April, and May. A Food Stamp claim should be established for June and July. Example 3 Ms. Schwarte receives TANF and Food Stamps. Ms. Schwarte is approved for Maryland unemployment benefits and receives her first check on May 15. She reports her new income at her TANF review on July 19. Since her case worker cannot give a 15-day timely notice for August, she adjusts her TANF and Food Stamp benefits for September. Ms. Schwarte had until June 10 to report her unemployment benefits. Her case worker had 10 days—until June 20—to process the change and send a 15-day notice of change for August. There are no overpayments or over- issuances for May through July. A TANF and Food Stamp overpayment should be established for August.

RECOVERY 6.4 TANF Methods of recovery vary depending on whether the overpaid person is currently receiving benefits. Recovery methods for overpayments from persons currently receiving benefits include: • recoupment, • voluntary repayment, • expunged benefits, • civil recovery, • criminal restitution, and • offset of an overpayment with an underpayment.