Page 281

VIRGINIA DEPARTMENT OF SOCIAL SERVICES RECIPIENT CLAIMS

10/24 VOLUME V, PART XVII, PAGE 7

• Determine the household size at the time the overpayment occurred; • Determine 200% of the Federal Poverty Level for household size; • Determine available funds by subtracting household expenses from calculated income and resources; • Multiply 10% of the available funds for repayment by 36 months. • The compromised amount is the difference between the amount to be paid and the total overpayment.

Example A claim was established for $1000 due to an agency error. The household requests a compromise stating an inability to pay the amount owed. • The difference between the monthly expenses, monthly income and 10% of the resources is $200 which is the calculated funds available for repayment. • 10% of the available funds is $20; ($20 x 36 months = $720), the amount the household is expected to repay in 36 months. • $280 is the compromised claim amount ($1000 - $720 = $280). • Enter the compromised amount as a payment using the code CR. • The household must repay $720.

The BPS must document the reason for the compromise or if the request is denied.

The BPS may use the full amount of the claim, including any amount compromised, to offset a restoration of lost benefits. The BPS may reinstate any compromised portion of the claim, if the claim becomes delinquent. The BPS must notify the claimant that the compromised amount may be restored to the claim balance if the claim becomes delinquent.

F. COLLECTION METHODS (7 CFR 273.18(f)&(g))

1. Allotment Reduction (7 CFR 273.18(g)(1))

A household may choose to have its SNAP benefits reduced to repay a claim. However, the local department of social services must implement allotment reduction against a participating household unless the household is making regular payments in an amount greater than the amount that could be recovered through allotment reduction.

Prior to reduction, the local department of social services must inform the household orally or in writing of the appropriate formula for determining the amount of SNAP benefits to be recovered each month and the effect of that formula on the household's allotment, i.e., the amount of SNAP benefits the local department of social services expects will be recovered each month.

For an AE or an IHE claim, the amount of the reduction must be limited to 10% of the allotment or $10, whichever is greater, unless the household agrees to a higher amount. For an IPV claim, the amount of the reduction must be limited to 20% or $20, whichever is greater, unless the household agrees to a higher amount. The Repayment Agreement must be used to document the household's request for a higher allotment.

TRANSMITTAL #35