Determine eligibility based on the reported change within 5 workdays. Use any verifications the client has to determine the actual amount of earnings received. Accept the client's statement for any other amounts expected to be received.
When a client reports a change that causes an increase in cash benefits, increase benefits for the fiscal month following the fiscal month the change was reported. If cutoff has passed for the fiscal month following the fiscal month the change was reported, issue a CUP. Issue the payment as a correction of an underpayment (Item 80 Mercury code 255 CUP).
Do not consider Mercury payments in determining overpayments. Do not refer the amount of a Mercury payment as an overpayment even if it should not have been issued or was issued in too large an amount.
When a Mercury payment returns money to a client that was originally recouped in a payment month, complete Change of Overpayment Information (Form 2404C) to correct the amount of overpayment that still needs to be collected.
Example 1: Ms. A has 3 children. Her TANF Payment Level is $474. She had $200 of earned income deducted from her TANF benefits beginning in April. On May 25th, she calls her caseworker and reports that she has been laid off and her last paycheck will be June 6th for approximately $100. The client does not know if she will ever be called back to work.
The Family Community Resource Center does the following:
- Since cutoff for June has passed, the worker deletes the earnings effective for the July regular roll month. The worker leaves Item 36 coded with an R.
- Since the request was made in fiscal May, determine eligibility for a CUP for June. Since the client will receive $100 of earnings in June, the worker determines that for June, only $25 (i.e., 1/4 of $100) should be deducted from the client's June benefits.
The client originally had $200 deducted from the June assistance benefits. Issue a CUP in the amount of $175 to the client ($200 - $25 = $175).
Example 2: Ms. A was anticipated to receive $1,596 gross earned income. After allowing the 3/4 deduction, $399 was actually deducted from a $474 Payment Level. The remaining $75 each month was recouped. The case was placed in zero grant for April due to the recoupment. The family receives SNAP benefits also.
At the end of April the client reports that she has been laid off. It is anticipated that she will only receive $400 gross for the month of May and zero from then on.
Cutoff for May has passed. The Family Community Resource Center computes eligibility for a CUP for May since that is the fiscal month following the month of the reported change. Since the client will only receive $400 gross, only $100 is budgetable after the 3/4 deduction. The client is issued a CUP for $374 for May (i.e., $474 - $100 = $374).
Since the $75 originally recouped from the May payment month is actually being provided to the client, the Family Community Resource Center completes Form 2404C correcting the overpayment balance.
For the payment month of June, the earned income is deleted. Since the client receives food stamps, do not delete Item 36 code R until the next REDE.
Example 3: Ms. X sends in her Redetermination Application on March 5th that is used to determine eligibility for April. The family is prospectively eligible and $100 of earned income per month is budgeted.
On April 10th the client reports that her child has gone to live with child's father as of April 9th. The worker cancels the case effective May due to no eligible child in the home.
Example 4: Ms. Z receives TANF for herself and her child. She sends in her Redetermination Application on April 5th that is used to determine eligibility for May. The family is prospectively eligible and $200 of earnings is budgeted per month.
On May 10th, Ms. Z calls her worker and reports she has gone from part-time to full-time and received a large increase in pay. Her earnings now cause the case to be ineligible. The worker cancels the case effective June with a medical extension. The first month of the medical extension period is June.