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After determining the amount of over-issuance, Benefit Recovery must notify the AG of the over- issuance. This notice allows the AG the opportunity to indicate a method and amount of voluntary repayment. Thirty days are to be allowed for the completion and return of the form. • If a current AG fails to return the form, Benefit Recovery is to initiate recovery by benefit reduction wherever possible. • If a former AG fails to return the form, other collection methods may be pursued. 4640.15.05 REPAYMENT NEGOTIATION (C)
If the BV worker and a current AG cannot reach an agreement on a repayment schedule or the AG fails to sign a repayment agreement, the BV worker is to begin mandatory recovery procedures. Timely notice must include the reason for the mandatory benefit reduction.
The guidelines for an acceptable repayment schedule for inactive recipients are: • A minimum monthly payment of $50; or • A monthly payment of 3% of the original claim amount (that would allow for complete repayment within three years), whichever is greater.
If the BV worker is unable to negotiate a repayment agreement with an AG who is no longer a recipient, appropriate action under state law is to be taken. 4640.15.05.05
ACTION TAKEN WHEN PAYOR DEFAULTS (C)
Default occurs when an AG fails to perform as he has agreed under the repayment agreement.
Active Cases: • When an individual or a current AG defaults on the repayment agreement, the benefit recovery worker is to initiate mandatory benefit reduction. Timely notice must include the reason for initiating benefit reduction.
Inactive Cases: • When an individual or an AG who is not currently active defaults on the repayment agreement, the agency may pursue collection through State Tax Intercept. 4645.00.00 RECOVERY METHODS
Recovery of amounts of over-issuance will be made by one or more of the following methods: • Lump sum and/or installment payments; • Benefit/allotment reduction; (TANF and SNAP) • Offset of under-paid benefits (restorations); (SNAP and TANF) (f18) • Voluntary repayment of electronic benefits • Child support credit (TANF only); Interception of lottery winnings; • Federal pay and/or State tax refund interceptions; or • A combination of the above.