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Benefit/allotment reduction is used to recover over- issuance from active AGs. 4645.10.05 ALLOTMENT REDUCTION (S)

The system will determine the maximum amount of the allotment reduction and alert the benefit recovery worker if a repayment method has not been chosen.

For non-fraud (AE, IHE, and PPV) claims, the amount of SNAP recovered each month will be 10% of the AG’s monthly allotment or $10 per month, whichever is greater.

For cases in which a fraud determination has been made, the amount will be 20% of the AG’s entitlement (which is computed by the system and is based on what the benefit would be with the disqualified individual included in the household) or $20, whichever is greater. (f20)

The system will automatically adjust the allotment reduction amount when the allotment changes.

The minimum benefit for a one or two person AG is not applicable when allotment reduction is applied. 4645.10.10 BENEFIT REDUCTION (C)

Benefit reduction may be used to recover over-issuances from current AGs. This may be a voluntary arrangement. In some situations, it is a mandatory process. The system will alert the benefit recovery worker to initiate benefit reduction. All categories of TANF may be recouped from each other.

The AG will be given at least 13 days advance notice of the benefit reduction.

If benefit reduction is made from the TANF grant, the AG must retain from a combination of the assistance payment, liquid resources, and gross income, 90% of the amount a family of the same composition with no income would receive in TANF benefits. (f22)

Prior to initiating benefit reduction procedures, the eligibility worker should ascertain whether the Child Support Bureau has already repaid all or part of the TANF grant for the month in question.

When the amount of the TANF payment for a month prior to any benefit reduction is $10 or more but benefit reduction reduces the amount of the TANF payment to under $10, a TANF benefit is to be issued for the under $10 amount.

If the recoupable amount exceeds the TANF grant, the entire grant must be recouped. If, through benefit reduction, the amount payable to the TANF AG is reduced to zero, members of the TANF AG are still considered TANF recipients. (f21)