Effective Date - January 1, 2009

1312               SNAP and POWER Underpayments/Supplements

Child Care - No requirement

SNAP - 7 CFR 273.17

POWER - ARW, Chapt. 1, Section 8

A.    Authorize an underpayment for benefits due to an assistance unit but not issued or replaced because of: 

1.    An error made by DFS such as:

a.    Delayed application;

b.    Erroneously denied application;

c.    Erroneously denied timely reapplication;

d.    Erroneously terminated or reduced benefits;

e.    SNAP benefits calculated without deductible expenses;

f.     Failed to take action on a timely reported change which increased benefits.

2.    An administrative disqualification for IPV was later reversed;

3.    Any judicial action when the decision upholds benefits were wrongfully withheld.

B.    Restore benefits for a period of not more than 12 months from the first of the following dates:

1.    The date a request for an underpayment is received; or

2.    The date the administrative hearing or judicial action was initiated when no request for an underpayment is received; but

3.    The date DFS discovers the underpayment.

C.   Restore benefits even though the assistance unit is currently ineligible but was eligible for the months of the underpayment.

D.   DO NOT issue an underpayment for each month eligibility cannot be determined or for each month the assistance unit is determined ineligible.

E.    Calculate the amount to be restored for eligible months as follows:

1.    Determine the benefit amount the assistance unit should have received;

2.    Subtract the benefit amount which was received;

3.    Deduct any overpayments against the assistance unit;

4.    Restore the balance to the assistance unit.

F.    Issue the underpayment in addition to the benefits the assistance unit is currently receiving:

1.    Issue the underpayment equal to the total amount of benefits lost; and

2.    Honor reasonable requests by the assistance unit to restore SNAP benefits in monthly installments.

G.   Notify the assistance unit of:

1.    Its entitlement;

2.    The amount of benefits to be restored;

3.    Any offsetting against overpayment claims that was done;

4.    The right to an administrative hearing when restoration is denied or the amount is disputed.

SNAP – 7 CFR 273.17

H.   DO NOT offset the overpayment with an underpayment if an underpayment occurs while processing an overpayment (using the actual income) caused by a client error; and

I.     DO NOT issue a supplement if an underpayment occurs while processing an overpayment due to a client error.

J.    Restore benefits to the assistance unit, when the underpayment occurred due to an agency error:

1.    With the majority of the members of the assistance unit as it existed when the loss occurred; or

2.    Containing the head of the assistance unit at the time the loss occurred if the assistance unit which contains the majority of members cannot be located or determined.

K.    Notify the assistance unit of the method of restoration.