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BAM 725 12 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

FEDERAL TREASURY OFFSET PROGRAM FAP Only Federal salaries, benefits and tax refunds may be offset to repay any collectible FAP overissuance when the claim is delinquent. Federal payments eligible for offset include: • Federal income tax returns. • Federal salary pay, including military pay. • Federal retirement benefits, including military retirement pay. • Federal contractor or vendor payments. • RSDI benefits. • Railroad Retirement benefits. • Black Lung (part B) benefits. • Other federal payments, including certain loans. Once an overissuance is selected for this process, the case will be identified on Benefit Recovery System. Refer clients to the Reconciliation and Recoupment Section (RRS) in central office to request a review of the collection action. The reconciliation and recoupment section’s phone number is 1-800-419-3328. ATTORNEY GENERAL INITIATIVE FIP, SDA and FAP Delinquent claims for inactive programs are eligible for referral to the Department of Attorney General (AG), Revenue and Collections Division. Referrals are issued through WDU. The AG will pursue collections on such claims through voluntary repayments, civil lawsuits, probation violations and seizure/garnishment on civil and criminal restitution orders.

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Page 12

Official source

BAM 725 12 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

FEDERAL TREASURY OFFSET PROGRAM FAP Only Federal salaries, benefits and tax refunds may be offset to repay any collectible FAP overissuance when the claim is delinquent. Federal payments eligible for offset include: • Federal income tax returns. • Federal salary pay, including military pay. • Federal retirement benefits, including military retirement pay. • Federal contractor or vendor payments. • RSDI benefits. • Railroad Retirement benefits. • Black Lung (part B) benefits. • Other federal payments, including certain loans. Once an overissuance is selected for this process, the case will be identified on Benefit Recovery System. Refer clients to the Reconciliation and Recoupment Section (RRS) in central office to request a review of the collection action. The reconciliation and recoupment section’s phone number is 1-800-419-3328. ATTORNEY GENERAL INITIATIVE FIP, SDA and FAP Delinquent claims for inactive programs are eligible for referral to the Department of Attorney General (AG), Revenue and Collections Division. Referrals are issued through WDU. The AG will pursue collections on such claims through voluntary repayments, civil lawsuits, probation violations and seizure/garnishment on civil and criminal restitution orders.