Overpayments and underpayments; recoupment or correction.

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(a) If an overpayment or underpayment is made under the Family Independence Program, the department shall make every effort to correct payment. If the agency decides to terminate benefits to a client and payments are made pending an appeal of the agency's decision, these payments must be considered overpayment if the agency's decision is upheld.

(b) Overpayment means a financial assistance payment received which exceeds the amount for which the client was eligible. Underpayment means a financial assistance payment received which is less than the amount for which the client unit was eligible.

(c) The agency can recover an overpayment by:

(1) receiving a payment from the client or former client; or

(2) by reducing the amount of any future aid payable to the client. The adjustment in future aid shall not reduce the family's monthly income to less than ninety percent of the amount payable to a family of the same composition with no other income. If no payment is made for a month solely by reason of the recovery of an overpayment, that individual is still considered a recipient of assistance for that month for purposes of enrollment date.

(d) If an individual has received an overpayment and does not repay the agency and is no longer receiving aid so that future payments cannot be reduced, the agency shall make recovery by taking appropriate action under the laws of the State against the income or resources of the individual or family.

(e) Correction of underpayments of assistance must be made to current recipients and those who would be current recipients if the error causing the underpayment had not occurred. For the purposes of determining continued eligibility and amount of assistance, the retroactive corrective payments are not considered income or a resource in the month paid nor in the next following month.

HISTORY: 1978 Act No. 549; 1986 Act No. 323, Section 1, eff February 20, 1986; 1997 Act No. 133, Section 7, eff June 11, 1997.


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