Supplemental Payments and Underissuances (U/I)

Regulation [63-802.1]

The EW must automatically restore supplemental payments when there is:

  • An U/I resulting from an administrative error, such as, but not limited to:
    • An erroneous denial.
    • An erroneous termination.
    • A delayed allotment issuance.
    • An allotment underissuance.
  • A legal action as a result of:
    • A State Hearing decision, or
    • A court decision.
  • A regulation which states supplemental payments must be restored.
  • Any other agency determination of supplemental payments.

12-Month Time Limit [63-802.12, 63-802.14]

Supplemental payments shall not be issued more than 12 months prior to:

  • The date the EW receives a request for restoration, either orally or in writing, from the household.
  • The date the County is notified or otherwise discovers in the normal course of business that a loss to a household has occurred.
  • The date judicial (court) action was initiated.
  • The date of the notification to the EW that an IPV decision decided by the court has been reversed by the court.
  • The date that a State Hearing was initiated, UNLESS:
    • A request for restoration from the household occurred at an earlier date than that of the State Hearing, or
    • The EW discovers that supplemental payments should have been restored at an earlier date than that of the State Hearing.

      • Exception: In both of these instances, supplemental payments shall be issued from whichever date is earlier. This may be more than 12 months prior to the initiation of the State Hearing.

  • The date of the disqualification NOA (DFA 377.7A) if:
    • The decision of an IPV is reversed by judicial (court) action, AND
    • The decision to disqualify the individual was the result of an administrative disqualification hearing, AND
    • The individual PARTICIPATED in the hearing.

      • Exception: If specified elsewhere in the regulations, supplemental payments may be issued for a period that is more than 12 months prior to the date of discovery. This may occur due to court orders (such as Jones v. Yeutter).

Calculation [63-802.5]

The amount of supplemental payments which must be issued is the difference between the smaller allotment which was received and the allotment which should have been received. The loss must be calculated for those months in which:

  1. The household participated and received an incorrect allotment, or
  2. The household should have participated but did not, due to:
    1. An erroneous denial.
      1. Applicants -- begin with the month of application.
      2. Reapplication -- begin with the month following the expiration of the certification period.
    2. An eligible household's application was delayed beyond the required application time frames.
    3. An erroneous discontinuance.

The EW must determine if the household (or household member) was actually eligible for the months of the alleged supplemental payments. If a household cannot provide the verification needed to make an eligibility determination within 15 days, the household must be considered ineligible.

Method of Restoration [63-802]

All supplemental payments must be restored to a household, whether the household is currently receiving CalFresh or not, providing no outstanding IHE or IPV overissuance claim remains unpaid. Unpaid claims include those belonging to ANY adult household member who is responsible for an overissuance which occurred in any household.

The CWD is permanently enjoined under the “Lopez v. Glickman” court order from offsetting an AE O/I against any amount of supplemental payment which have not yet been restored to the household.

Note: Even if the household has signed a voluntary repayment plan on an AE O/I, the supplemental payments may NOT be used to offset this AE O/I.

Follow these steps to restore supplemental payments to the household

  1. The lost benefit amount is computed by revising the information in CalSAWS.
  2. Determine the outstanding balances on any IHE or IPV overissuance claims in all affected households, whether unpaid, suspended or terminated.

    1. Note: The Lopez v Glickman Court Order prohibits the offsetting of an AE overissuance claim against an underissuance (Supplemental Payments).

  3. Subtract the lost benefit amount from the IHE and/or IPV overissuance outstanding claim amount.
    1. Make all necessary computer entries.
    2. Send a NOA advising the household of ALL offset activities, balance remaining on overissuance claim(s), and availability of any remaining supplemental payments.
    3. Supplemental payments owed from an INITIAL month CANNOT be used to offset an IPV OR IHE overissuance claim. However, the supplemental payments owed for the following months shall be used to reduce any unpaid, suspended, or terminated IPV or IHE claim.
      1. ExampleExample

        A household is entitled to supplemental payments of $50 monthly for January through June. January was the first month of benefits. The household also has a $100 IHE overissuance. This $100 IHE overissuance may be subtracted from the supplemental payments owed for February to June, but may not be subtracted from the $50 supplemental payments owed for January, the initial month.

  4. Issue any remaining supplemental payments to the household.
  5. Make computer entries.
  6. If requested by the household, issue supplemental payments in monthly installments.
  7. If the household moves to another county or state, or is ineligible in this county:
    1. Issue supplemental payments in a lump sum prior to the move, if possible.
    2. Use the proper NOA for ineligible cases, whether in this county or elsewhere.
  8. If the household has changed membership:
    1. Issue the supplemental payments to the household containing the majority of the individuals who were household members at the time the loss occurred.
    2. If the household with the majority of members at the time of the loss occurred cannot be located, restore the supplemental payments to the household containing the HEAD of the household at the time the loss occurred.
  9. Ensure that the Benefit Recovery subsystem has the following correct information:
    1. Date and amount of underissuance
    2. Cause
    3. Amount of supplemental payments, if any, used to balance an overissuance
    4. Date supplemental payments are issued.

Related Topics

Supplemental Payments and Claims Definitions