621.03 Rate and Method of Recoupment (FAM)

___________________________________________________________

1.  Determine 10% of the assistance group’s payment standard, prior to any child support or work sanctions being applied.

The result is the maximum monthly amount that can be recouped from the assistance group. The amount of recoupment cannot reduce the monthly grant below $0.00.

Exceptions:

- If the TANF casehead is disqualified due to Intentional Program Violation, recoup $10 per month until the disqualification ends.

- The percentage can be slightly less than 10% in order to equalize payments for the period.

2.  * Ensure that the BV0019, Demand Letter for Overpayment, and Form 810, Notice of Rights and Responsibilities, were generated to notify the individual of the amount and circumstances of the overpayment.

3.  Request repayment in full or in part, or reduce the monthly grant.

4.  Request repayment of the outstanding overpayment when the case is closed prior to full recoupment. If the individual refuses to pay the full outstanding overpayment, suspend the recoupment until the individual becomes eligible for financial assistance again.

5.  Divide the maximum monthly recoupment amount by 2. This is the amount of the recoupment for each semimonthly payment.

6.  Ask the individual to pay any leftover portion. If they refuse, extend the repayment period.

7. Recompute the rate of recoupment anytime the individual’s payment standard changes. * Do not give an advance notice period.