PM 23-05-01-a: Recoupment

WAG 23-05-01-a

Recoupment is the monthly deduction of a part of the overpayment from the client's cash benefit. The monthly recoupment amount cannot reduce the case's total income to less than 90% of the correct monthly Payment Level or AABD standard for the case. For TANF cases, the monthly recoupment amount is limited to a maximum of $75 per month. Do not recoup cash overpayments before 10/01/81.

Cash overpayments may only be recouped from the same type of cash program as the original overpayment. For example, a TANF overpayment can only be recouped from an active TANF case.

Cash cases that received an AFDC overpayment, and have not yet repaid the money, will have the overpayment recouped from the TANF payment.

Cash overpayments are recouped against an adult who was a member of the original overpaid unit, preferably the caretaker relative. If recoupment cannot be made against the caretaker relative, other adults may be:

  • the spouse of the caretaker relative,
  • an essential person in the case, or
  • a minor caretaker relative.

All TANF recoupments, except for duplicate check recoupments, are initiated centrally. Recoupments for all AABD cases text deleted and for duplicate checks, are started by the Family Community Resource Center. See WAG 22-02-01-b for procedures for recoupment of duplicate checks.