Technical Overpayments

[EAS 44-350.151]

Definition

It must be determined that a technical overpayment has occurred when the aid paid to a client is due to ALL FOUR OF THE FOLLOWING CONDITIONS:

The client failed to meet a condition of eligibility (e.g., cooperating with the District Attorney (DA), applying for UIB, applying for SSNs, etc.).
The amount of aid paid would have been the same had the eligibility condition been met.
The client's failure was because the Social Services Benefits Specialist (SSBS)'s error in not advising the client what was required or a State Agency (e.g., EDD) failed to notify the SSBS that the client had failed to meet a condition of eligibility.
The error is discovered, an overpayment is being calculated, or the technical overpayment is being recouped on or after January 1, 1985.

SSBS Error

For purposes of this section, “SSBS error” is the SSBS's failure to inform a client that they must perform an act which constitutes a condition of eligibility.

State Agency Error

For purposes of this section, “state agency error” is the state agency's failure to promptly notify the SSBS that the client does not, or no longer, meets a condition of eligibility.

Client Error

For purposes of this section, “client error” shall occur only when the applicant or recipient:

Was notified, either verbally or in writing, of the need to perform the act which constitutes a condition of eligibility, and
Did not perform the act in question after notification, within a reasonable period of time under the circumstances.

Note: Client error shall be considered to occur only if the case record specifically documents that the client was notified either verbally or in writing of the eligibility act required and the client failed to meet the requirement within a reasonable period of time.

Example Example A client and her three children have been receiving CalWORKs for two years. Her new SSBS discovers in May that the client reported on the February SAR 7 received on March 10 that the 17-year-old child left the home on February 25th. No action was taken on the information. The payment for April and May would have been a different amount if the SSBS had acted on the information that the child had left the home. Therefore, the overpayments for April and May are determined to be administrative overpayments and must be recouped.

Example Example The U-parent left the home in April 2006. The SSBS removed him from the AU at the end of April (Submit Month), but failed to have the mother complete the CW 2.1 N&A and the CW 2.1Q and make a referral to DCSS until August 2006. Therefore, absent parent deprivation was not established until August 2006. The months of May, June, and July are technical overpayments. The whole case was ineligible during this period since deprivation was not established. The grant would have been the same amount as already paid to the client if the SSBS had informed the client and completed the CW 2.1 N&A and CW 2.1Q and the DCSS referral in a timely manner. The error was made by the SSBS, not the client.

Delayed Sanction

When a sanction period is delayed due to Welfare-to-Work (WTW) communication procedures or CalWORKs Notice of Action (NOA) requirements, the interim period is NOT considered an overpayment. In addition, if the WTW registrant files a timely appeals request, and the sanction period is delayed pending the State Hearing, the aid paid pending is not considered an overpayment.

Treatment of Technical Overpayments

Technical overpayments shall not be considered overpayments in the State of California.

Any technical overpayment which was discovered on or after January 1, 1985, cannot be considered an overpayment.
Recoupment of any technical overpayments, regardless of when they occurred or were discovered, stopped effective January 1, 1985.

Example Example A technical overpayment occurred in a case between July and October 1984 because the U-father had not applied for UIB. The SSBS began to recoup the overpayment in December 1984. Beginning January 1, 1985, further recoupment is prohibited.