Recovery of TANF Overpayments

Recovery of TANF Overpayments A. It is the responsibility of the Benefit Recovery Unit to make demands for the repayment of overpayments attributed to benefit errors within the agency. B. The agency first must seek recovery from the primary party responsible for the overpayment. States are required to pursue collection of the overpayment from the TANF payee, provided that this individual was also a recipient (i.e., a member of the overpaid assistance unit). The agency must make all reasonable efforts to locate and collect the improper payment. C. For closed TANF cases and reapplications, once the reapplication has been approved, recovery of overpayment must start on any outstanding claim balance. D. When an overpayment occurs, the agency must take all reasonable steps necessary to promptly correct the benefit amount and recover the overpayment. Methods of overpayment recovery include: 1. Recoupment from open TANF case/grant, 2. Repayment agreement, 3. Lump sum payment, or 4. Court Order DocuSign Envelope ID: 091DD500-2B73-4107-944B-46477E438DF8 E. When the agency has multiple overpayments for the same household, IPV overpayments will be priority. When there are multiple claims of the AE receivable type, recoupment will be made on the oldest claim first.