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(Revised 3/03 ML #2830)
Recovery of all overpayments resulting from fraud is accomplished by reducing the TANF benefit in an amount equal to 20% of the TANF Standard of Need for the appropriate household size. A recipient may repay the amount of overpayment at a rate greater than the 20% standard as long as the decision to do so is voluntary and without duress.
If the court has ordered an amount of recovery different than the amount identified above, the amount ordered by the court will be the amount recovered. If the court orders restitution in an amount that is less than the total overpayment, the order must be respected.
Overpayments shall be recovered from the household which was overpaid, any household of which an adult member of the overpaid filing unit has subsequently become a member, or any individual adult members of the overpaid household whether or not currently a recipient.
Automated computer system case files must provide a complete record of the overpayment, the plan for recovery, recoveries made, and any outstanding balance.
A regular or supplemental benefit payment, defined as a payment issued during and for the same benefit month, cannot totally offset an overpayment. A regular or supplemental benefit payment may be reduced only by the percentage of recoupment (usually 10% or 20%, but may differ pursuant to court order) or a set dollar amount as specified by court order.
An underpayment, defined as a payment for a benefit month issued at any time after the benefit month, can totally offset an overpayment.
