Page 320

Page | 319 19241 DETERMINING AMOUNT OF AGENCY AND INADVERTENT HOUSEHOLD ERROR CLAIMS

If the household received a larger allotment than it was entitled to receive, DSS will establish a claim for benefits incorrectly paid. The claim amount equals the difference between the allotment the household received each month and the allotment the household should have received when using the correct allotments and eligibility factors in effect at that time.  If the household is categorically eligible, a claim will only be determined when it can be computed on the basis of changed household net income and/or household size or deductions. A claim will not be established if there was not a change in net income and/or household size or deductions.

If earned income is unreported or not reported timely, the earned income deduction (20%) will not be allowed in the claim calculation process on the portion of earned income that was not reported timely. It does not matter whether the individual intentionally or inadvertently did not report the earned income timely.

If earned income is reported timely, and DSS failed to act on the information, the earned income deduction is allowed in the overpayment calculation (AER).

19250 ACTION AGAINST HOUSEHOLDS WHICH FAIL TO RESPOND

When collection action has been initiated and the household fails to respond to the written demand letter within 30 days from the date the letter is mailed, the household's allotment will be reduced, if the household is participating.  If the household is not participating, ORFI will pursue other collection actions, as appropriate.

19260 CHANGE IN HOUSEHOLD COMPOSITION

ORFI will initiate collection action against any or all of the adult members of a household at the time an overpayment occurred. Therefore, if a change in household composition occurs, ORFI may pursue collection action against any household which has a member who was an adult member of the household that received the overpayment.

19300 METHODS OF COLLECTING PAYMENTS

19310 ALLOTMENT REDUCTIONS

Unless a repayment agreement has been negotiated, DSS will collect payments for all overpayments from households currently participating in the program by reducing the household's SNAP allotment, except SPV claims. When the SPV classification is changed to an IPV (signed waiver, administrative hearing, court findings, or signed consent agreement), ORFI will use allotment reductions for payments from currently participating households.

Note: When determining current benefits, these benefits cannot be reduced to offset a claim that was just discovered. Benefits can only be offset through PADJ.