Methods of CA Overpayment Collection - Recoupment of CA Overpayment
The Office of Accounts Receivable and Collections
OARC Collections Unit implements recoupment procedures, when either of the following occur:
●An agency decision was made to recoup the benefits
●The household elected recoupment from current benefits
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Recoupment may be made against CA benefits of a household that includes an adult participant who once belonged to an overpaid household. Recoupment can be made from any number of adult participants at the same time.
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Overpayments are not recouped from the following CA benefits:
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●Child only case when the PI is coded OU on SEPA and the KF, KS, or LP Referral Source Code is displayed in the REFERRAL SRC field on RESE.
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AZTECS calculates the recoupment amount excluding the following and their income:
●Benefit Capped Child (BC on SEPA)
●Unwed Minor Parent (UM on SEPA)
The recoupment amount is 10% or greater, when agreed to by the household, of the calculated monthly benefit amount.
When the monthly benefit amount is reduced to below $10, that benefit amount is recouped.
When the monthly benefit is reduced to zero, the household is still eligible, and the CA case remains active.
For TPEP cases, one half of the total recoupment amount is recouped from each semi-monthly benefit. When the amount is uneven, it is rounded up to the next dollar. The greater amount is deducted from the second semi-monthly TPEP benefit.
The recoupment is completed in AZTECS. Recoupments are made on both of the following:
●The daily issuance
●The monthly issuance