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[CLAIMS: GENERAL] Revised 12-01-17 07-01-19
DEFINITION AND LEGAL BASE Volume III | Chapter 14 14000
The term improper payments is used when a TANF or a refugee individual receives assistance but was not entitled to all or part of the payment or services received. Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, (PRWORA), requires that States promptly take all reasonable and practical steps to correct and collect all improper payments made through Temporary Assistance for Needy Families and TANF related programs regardless of whether the improper payments were due to willful or non- willful withholding of information or agency error. Also, there are no provisions for waiving adjustments due to the amount or age of the improper payment. However, the Law does not require the pursuit of recovery of total overpayments of less than $35 on cases for a former recipient until such time that he reapplies and becomes eligible again. Corrective payments should be limited to assistance units who are currently eligible or who would have been currently eligible if an error had not occurred. See Chapter 7, Corrective Authorization Procedures. Recoupment can be made by reduction of benefits as well as by voluntary repayments.