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Increases made necessary by an increase in the monthly rate must be made retroactive to the effective date of the rate increase. The supplements must be issued at the point the determination is made. Do not wait until the impacted months are reconciled. Example: The AG rate increases effective January 1. Case action is taken on February 5. The increase must be effective January 1. A supplement is required for January and February and is initiated on February 5. Termination/Decrease In the Grant If a decrease in the amount of the grant or termination of assistance is required, the reduced payment or nonpayment of assistance must be effective as soon as administratively possible, the first of the month following the end of the 10-day notice period, but no later than the second month following the month in which the change is reported. Example: A change is reported on July 26. Action must be taken by the August MMIS cutoff date (approximately August 16) to make the decrease effective September 1. Advance Notice The individual must be given 10 days advance notice of a proposed decrease or termination of his grant. Unreduced payments issued during the advance notice period are not over payments. Example: On July 10th the individual reported that his income increased effective July 1st. On July 23rd the EW computes the new grant amount and prepares a “Notice for Action (for AG)”. The advance notice period is 10 days, July 24th through August 2nd. The notice will state the reduced grant will be effective September 1st. The EW can take action to reduce September’s grant on August 3rd. The August grant is not an overpayment. Exception to the 10-day advance notice requirement The individual requests the case be closed.