mv WAG 23-05-01-b: Figuring the Monthly Recoupment Amount

PM 23-05-01-b

TANF

  1. (System) Enters the following codes on Form 552 when central recoupment starts for the first recoupable claim in ARS:
    • Item 90-
      • Code 639, Recoupment Amount.
    • Item 91-
      • Code 743, Total Overpayment Amount, the total recoupable overpayment amount in whole dollar amounts. Cents are not entered.
      • Code 744, Total Overpayment Recouped.

        (FCRC) NOTE: Enter Income Deduction Code 638, Recoupment Lost/Stolen Warrant Non-forgery, when recouping an overpayment from duplicate checks. See WAG 22-02-01-b for recoupment of duplicate checks.

    1. (CO) Figures the monthly code 639 recoupment amount using the income information entered:
      • in ACM, or
      • on Form 552 and TANF/SNAP Eligibility, Central Notice and Grant Computation Information (Form 2943), for IPACS.
    2. Updates code 744 monthly, after each recoupment.

      Example 1: Ms. A. lives with her 3 children in Chicago. It has been verified she received UI benefits which were not reported or budgeted. She is no longer receiving UI benefits or income other than TANF. The overpayment to be recouped is $360. The Payment Level is $474.

Step 1: Anticipated Gross Earned Income For Payment Month $ 0
Step 2: Self-employment expenses (if applicable) are subtracted -$ 0
Step 3: Initial Employment Deduction -$ 0
Step 4: Adult/teen/child care disregard (up to Department maximum) if applicable is subtracted. -$ 0
Step 5: Subtotal =$ 0
Step 6: Total Anticipated Earned Income $ 0
Step 7: Anticipated Gross Unearned Income For Payment Month $ 0
Step 8: Diverted Income -$ 0
Step 9: Total Income (6 + 7 - 8) $ 0
Step 10: Cash Benefit Amount before recoupment $474.00
Step 11: Payment Level $474.00
Step 12: 90% of Payment Level (Step #11 x .90) $426.60
Step 13: Since total income (Step 9) equals $0 and the cash benefit amount before recoupment equals the Payment Level, the recoupment amount is determined by deducting 90% of the Payment Level from the Payment Level.
Recoupment Amount (Step 11 - Step 12 = $47.40 new manual material(do not drop cents)) entered as code 639 in Item 90 of Form 552. new manual material$47.40
Step 14: TANF Cash Benefit Amount After Recoupment (Step 10-Step 13) new manual material$426.60

Example 2: Case consists of Ms. T and 3 children living in Chicago. Ms. T had unreported earnings for 6 months in 2000. Ms. T receives $580 gross earnings per month. The cash benefit amount before recoupment is $329. The Payment Level is $474.

Prospective gross earnings for the payment month are $580.

Step 1: Anticipated Gross Earned Income For Payment Month $580.00
Step 2: Self-employment expenses (if applicable) are subtracted -$ 0
Step 3: Initial Employment Deduction (See WAG 25-03-02 (1) ) -$ 445.00
Step 4: Total anticipated earned income =$135.00
Step 5: Anticipated Gross Unearned Income For Payment Month $ 0
Step 6: Diverted Income -$ 0
Step 7: Total Income (4 + 5 - 6) $ 135.00
Step 8: Cash Benefit Amount before recoupment $ 329.00
Step 9: Payment Level $ 474.00
Step 10: 90% of Payment Level (Step #9 x .90) $ 426.60
Step 11: Total income (Step 7) is compared to 90% of the Payment Level (Step 10). Since Step 7 is less than 90% of the Payment Level, Step 12 is computed.
Step 12: 90% of Payment Level (Step #10 ) $ 426.60
Step 13: Less Total Income (Step #7) $ 135.00
Step 14: Adjusted Cash Benefit Amount (Step #12 - Step #13) $ 291.60
Step 15: Recoupment amount (Step #8 - Step #14 = $37.40 new manual material( do not drop cents)) new manual material$ 37.40
Step 16: TANF Cash Benefit Amount After Recoupment (Step 8-Step 15) new manual material$291.60

Example 3: Ms. C and her 3 children live in Chicago. Ms. C was employed earning $600 gross earnings per month. Ms. C had unreported income for 3 months in 2009. Ms. C's employment ended effective May. The client has no other income.

Budget for June - 10% recoupment is deducted.

Prospective gross income for the June payment month is $0.

Step 1: Anticipated Gross Earned Income For Payment Month $ 0
Step 2: Self-employment expenses (if applicable) are subtracted -$ 0
Step 3: Initial Employment Deduction (See WAG 25-03-02 (1) ) -$ 0
Step 4: Adult/teen/child care disregard (up to Department maximum) if applicable is subtracted. -$ 0
Step 5: Total Anticipated Earned Income =$ 0
Step 6: Anticipated Gross Unearned Income For Payment Month $ 0
Step 7: Diverted Income $ 0
Step 8: Total Income (5 + 6 - 7) -$ 0
Step 9: Cash Benefit Amount before recoupment $ 474.00
Step 10: Payment Level $ 474.00
Step 11: 90% of Payment Level (Step #10 x .90) $ 426.60
Step 12: Total income (Step 8) is compared to 90% of the Payment Level (Step 11). Since Step 8 is less than 90% of the Payment Level, Step 13 is computed.
Step 13: 90% of Payment Level (Step #11) $ 426.60
Step 14: Less Total Income (Step #8) - $ 0
Step 15: Adjusted Cash Benefit Amount (Step #13 - Step #14) $ 426.60
Step 16: Recoupment amount (Step #9 - Step #15 = $47.40 new manual material(do not drop cents)) new manual material$ 47.40

Example 4: TANF case consists of Ms. B and her one child living in Chicago. Ms. B also has a 17 year old son living with her whose needs she must meet. Ms. B began receiving UI benefits of $240 per month in November. The Family Community Resource Center was able to reduce the December benefit. A $240 overpayment was received in November. The Payment Level is $318. The cash benefit amount before recoupment is $78.

Step 1: Anticipated Gross Earned Income For Payment Month $ 0
Step 2: Self-employment expenses (if applicable) are subtracted -$ 0
Step 3: Initial Employment Deduction (See WAG 25-03-02 (1) ) -$ 0
Step 4: Adult/teen/child care disregard (up to Department maximum) if applicable is subtracted. -$ 0
Step 5: Subtotal =$ 0
Step 6: Total Anticipated Earned Income $ 0
Step 7: Anticipated Gross Unearned Income For Payment Month $ 240
Step 8: Diverted Income (Payment Level for 3 = $432 divided by 3 = $144) -$144.00
Step 9: Total Income (6 + 7 - 8) $ 96.00
Step 10: Cash Benefit Amount before recoupment $ 78.00
Step 11: Payment Level $ 318.00
Step 12: (Step #11 x .90) $ 286.20
Step 13: Since total income (Step 9) is less than 90% of the Payment Level (Step 12), Step 14 is computed.
Step 14: 90% of Payment Level (Step 12) $286.20
Step 15: Less Total Income (Step #9) -$96.00
Step 16: Adjusted Cash Benefit Amount (Step #14 - Step #15) $190.20
Step 17: Recoupment Amount (Step #10 - Step #16 = -112.20) $ 0.00
Step 18: TANF Cash Benefit Amount After Recoupment (Step 10-Step 17) $ 78.00

Example 5: Mr. C and his 3 children live in Chicago. Mr. C is employed earning $772 gross per month. Mr. C received unreported income for 4 months. The cash benefit amount before recoupment is $281. The Payment Level is $474.

Step 1: Anticipated Gross Earned Income For Payment Month $772.00
Step 2: Self-employment expenses (if applicable) are subtracted -$ 0
Step 3: Initial Employment Deduction (See WAG 25-03-02 (1) ) -$445.00
Step 4: Adult/teen/child care disregard (up to Department maximum) if applicable is subtracted. -$ 0
Step 5: Subtotal = $327.00
Step 6: Total Anticipated Earned Income $327.00
Step 7: Anticipated Gross Unearned Income For Payment Month $ 0
Step 8: Diverted Income -$ 0
Step 9: Total Income (6 + 7 - 8) $327.00
Step 10: Cash Benefit Amount before recoupment $281.00
Step 11: Payment Level $ 474.00
Step 12: 90% of Payment Level (Step #11 x .90) $ 426.60
Step 13: Since total income (Step 9) does not exceed 90% of the Payment Level (Step 12), Step 14 is completed.
Step 14: 90% of Payment Level (Step #12) $426.60
Step 15: Less Total Income (Step #9) -$327.00
Step 16: Adjusted Cash Benefit Amount
(Step #14 - Step #15) $ 99.60
Step 17: Recoupment Amount ((Step #10 - Step #16 = $181.40 new manual material(do not drop cents) = $181.40)), but TANF recoupments are limited to a maximum of $75.00) $ 75.00
Step 18: TANF Cash Benefit Amount After Recoupment (Step 10-Step 17) $206.00

Zero Grant Case

Case consists of 4 persons living in Chicago. Ms. L began receiving UI benefits of $430 per month in November. The Family Community Resource Center was able to reduce the December warrant. A $430 overpayment was received in November.

The Payment Level is $474. The cash benefit amount before recoupment is $44.

Step 1: Anticipated Gross Earned Income For Payment Month $ 0
Step 2: Self-employment expenses (if applicable) are subtracted -$ 0
Step 3: Initial Employment Deduction (See WAG 25-03-02 (1) ) -$ 0
Step 4: Adult/teen/child care disregard (up to Department maximum) if applicable is subtracted. -$ 0
Step 5: Subtotal =$ 0
Step 6: Total Anticipated Earned Income $ 0
Step 7: Anticipated Gross Unearned Income For Payment Month $430.00
Step 8: Diverted Income -$ 0
Step 9: Total Income (6 + 7 - 8) $430.00
Step 10: Cash Benefit Amount before recoupment $ 44.00
Step 11: Payment Level $474.00
Step 12: 90% of Payment Level (Step #11 x .90) $426.60
Step 13: Since total income (Step 9) exceeds 90% of the Payment Level (Step 12), the case is placed in zero grant status using zero grant reason code 1.
Step 14: Recoupment Amount
Entered as code 639 in Item 90 of Form 552. $ 44.00

When figuring an additional overpayment for a month when a recoupment is already being deducted:

  1. (FCRC) Add the recoupment amount to the reduced cash payment amount to get the actual amount of aid received.

Example: Ms. S is getting a $288 check ($318 Payment Level - $30 recoupment). The $30 is being centrally recouped because of a previous overpayment from 12/09 through 03/10. In 11/10, Ms. S was ineligible for a cash payment because of unreported income. The total overpayment amount is $318 ($288 cash payment + $30 recoupment from previous overpayment) for 11/10.

AABDTEXT DELETED

  1. (FCRC) Enter the following codes on Form 552 when the overpayment has been reported to the Bureau of Collections:
    • Item 90-
      • Code 639, recoupment mount. Enter the amount of the monthly recoupment. Do not drop cents.
    • Item 91-
      • Code 743, Total Amount to be Recouped. Enter the total overpayment amount to be recouped. Enter whole dollar amounts. Do not enter cents.
      • Code 744, Total Collected to Date. Enter $0.00 when beginning recoupment.
  2. (CO) Updates Code 744 monthly, after each recoupment.

Example 1: Mr. A receives AABD cash assistance. His monthly income is:

$270.00 Social Security
00 Supplemental Security Income (SSI)
91 AABD cash benefit

His AABD cash assistance standard (Total Needs) equals $502.91. Mr. A had unreported earnings for 6 months. The total overpayment was $77.

Step 1: Mr. A's level of income cannot be reduced below 90% of his cash assistance standard:
$502.91 x .90 =		 $ 452.61
Step 2: Mr. A's anticipated income (not including AABD) 490.00
Step 3: Mr. A's anticipated income is greater than 90% of his cash assistance standard. The recoupment amount is the entire AABD cash payment. The case is placed in zero grant status using zero grant reason 1. 12.91
Step 4: Code HFS 552 as follows: Item 90, Code 639, Recoupment Amount 12.91
Code 743 Item 91, Code 743, Total to be Recouped 77.00
Code 744 Item 91, Code 744, Total Collected to Date 0.00

Example 2: Ms. B receives AABD cash assistance. Her monthly income is:

$313.00 Supplemental Security Income (SSI)

75.38 AABD cash payment

Her AABD cash assistance standard (Total Needs) equals $388.38. Ms. B had unreported earnings for 3 months. The total overpayment was $200.

Step 1: Ms. B's level of income cannot be reduced below 90% of her cash assistance standard: $388.38 x .90 = $349.54
Step 2: Ms. B's anticipated income (not including AABD) - 313.00
Step 3: Ms. B's anticipated income is less than 90% of her cash assistance standard. To bring her level of income to 90%, she must continue to receive an AABD cash payment equal to the difference. 36.54
Step 4: The recoupment amount is her AABD cash payment (without recoupment) less the amount neededto bring her income to 90% of her standard: $75.38 - $36.54 = 38.84
Step 5: Code HFS 552 as follows: Item 90, Code 639, Recoupment Amount 38.84
Code 743 Item 91, Code 743, Total to be Recouped 200.00
Code 744 Item 91, Code 744, Total Collected to Date 0.00

Example 3: Ms. C receives AABD Cash. Her monthly income is:

$313.00 Supplemental Security Income (SSI)

35.88 AABD cash payment

Her AABD cash assistance standard (Total Needs) equals $348.88. Ms. C had unreported earnings for 6 months. The total overpayment was $210.

Step 1: Ms. C's level of income cannot be reduced below 90% of her cash assistance standard $348.88 x .90 = $ 313.99
Step 2: Ms. C's anticipated income (not including AABD) - 313.00
Step 3: Ms. C's anticipated income is less than 90% of her cash assistance standard. To bring her level of income to 90%, she must continue to receive an AABD cash payment equal to the difference. .99
NOTE If recoupment reduces the cash benefit payment to an amount between $.01 and $.99, adjust the monthly recoupment amount to result in new manual materialno issuance.
Step 4: The recoupment amount is the AABD cash payment (without recoupment) less the amount needed to bring her income to 90% of her standardnew manual material (adjusted to $0 due to being between $.01-$.99): $35.88 - $0.00 = $35.88 $35.88
Step 5: Code HFS 552 as follows: Item 90, Code 639, Recoupment Amount $35.88
Code 743 Item 91, Code 743, Total to be Recouped 210.00
Code 744 Item 91, Code 744, Total Collected to Date 0.00

Example 4: Ms. D receives AABD Cash. Her monthly income is:

$470.00 Supplemental Security Income (SSI)

44.00 Countable Earned Income (earned income disregard and recognized employment expenses were allowed)

10.70 AABD cash payment

Her AABD cash assistance standard (Total Needs) equals $524.70. Ms. D had unreported earnings for 3 months. The total overpayment was $154. (The earned income disregard was not allowed in the determination of the overpayment amount).

Step 1: Ms. D's level of income cannot be reduced below 90% of her cash assistance standard $524.70 x .90 = $ 472.23
Step 2: Ms. D's anticipated income (not including AABD) - 514.00
Step 3: Ms. D's anticipated income is greater than 90% of her cash assistance standard. The recoupment amount is the entire AABD cash payment The case is placed in zero grant status using zero grant reason 1. 10.70
Step 4: The recoupment amount is the AABD cash payment (without recoupment) less the amount needed to bring her income to 90% of her standard (adjusted to $1): $35.88 - $1.00 = 34.88
Step 5: Code HFS 552 as follows: Item 90, Code 639, Recoupment Amount 10.70
Code 743 Item 91, Code 743, Total to be Recouped 154.00
Code 744 Item 91, Code 744, Total Collected to Date 0.00

When figuring an additional overpayment for a month when a recoupment is already being deducted:

1.(FCRC) Add the recoupment amount to the reduced cash payment amount to get the actual amount of aid received.

Example: A client is eligible for $165 before recoupment. The FCRC has been recouping $16 per month for 04/95 through 06/95. The client's actual cash payment amount is $149 ($165 - $16). In 07/95, the FCRC discovers that the client was working in 04/95. To figure the overpayment, $165 is used as the actual cash payment amount.

If an underpayment occurs during a recoupment:

  1. (FCRC) Complete HFS 2404C, Change of Overpayment Information.
  2. (FCRC) Send HFS 2404C to Field Recovery Unit, Bureau of Collections, Springfield.
  3. (FCRC) Approve issuing the balance of the underpayment if the underpayment is more than the remaining overpayment.

Ending the Recoupment

When the full amount of an overpayment is recouped (Code 744 equals Code 743):

  1. (CO) Stops deducting the recoupment amount from the check.
  2. (CO) Shows the amount recouped and the ending balance of $0.00 on ARS.

Reapplications - TANF

ARS display screen, PF10/F10, shows recoupable cash and SNAP balances by program.

  1. (FCRC) Start case clearances.
  2. (FCRC) Use HFS 2404C to notify the Bureau of Collections for cases:
    • that were being recouped and were canceled while some money still needed to be recouped, and the case name and number is different,
    • referred for recovery of an overpayment identified after 09/30/81 and recoupment had not been started, or
    • that contain the 2nd adult member of an overpaid case.
  3. (CO) Starts recoupment.
  4. (CO) Sends the client:
    • HFS 157C telling the client of the recoupment,
    • Attachment to Computation of Grant/SNAP (Form 553GC), telling the client how the recoupment was figured, and
    • TANF/SNAP Computation - Work Pays (Form 553H).

Reapplications - AABDTEXT DELETED

ARS display screen, PF10/F10, shows recoupable cash and SNAP balances by program.

  1. (FCRC) Start recoupment of the Recoupable Cash balance from the first regular cash payment, do not recoup from the IPE. Recoup for cases:
    • that were being recouped and some money is shown on Form 552 as still needing to be recouped, or
    • referred for recovery of an overpayment identified after 09/30/81 and recoupment had not been started.

      NOTE: Do not wait for the central exception listing to start recoupment. BOC will start recoupment of SNAP balance.

  2. (CO) Sends Form 360 to the client telling them of the cash payment amount minus the recoupment, when the recoupment starts with the first regular check. 

At intake, when the client is entitled to an IMPR and it is determined recoupment will result in the case being placed in zero cash payment for the first regular roll month:

  1. (FCRC) Complete a blank Form 552 and enter:
    • Item 34 -Enter 1.
    • Item 80 -Enter code 100 and the prorated needs amount.
  2. (BOC) Sends a Recoupment Delinquency Report to Family Community Resource Centers. The report lists cases with an outstanding overpayment to be recouped that are not being recouped. The report gives the remaining overpayment amount to be recouped.
  3. (FCRC) Compare the report with cases that have been reopened to make sure the recoupment was properly entered.