Sallis v. McMahon

Authority

On January 10, 1991, the Superior Court of Sacramento County approved the final order for the Sallis v. McMahon Court Case.

Issue

AFDC recipients must be allowed the AFDC earned income disregards against State Disability Insurance (DIB) benefits.

Date

This change was effective with AFDC payments made in April, 1991, for currently eligible recipients. The retroactive portion of the Sallis order will be processed beginning October 1, 1991.

Retroactivity

The retroactive portion of this claim is effective from June 1, 1987, through March 31, 1991.

The State Department of Social Services provided a listing to this Agency of clients who received both AFDC and DIB for the period August, 1989, through March 31, 1991.

The CROP Unit will use the following chart to determine the correct action:

IF the recipient...	THEN...
Is on the listing from SDSS and is currently receiving AFDC, or AFDC is discontinued but not closed.	The CROP Unit will call for the case and determine the client's eligibility for any corrective payments.
Is on the listing from SDSS, but the case is closed.	The CROP Unit will send a “Sallis v. McMahon Claim Form” (TEMP 1800) to the client at the last known address.
Received DIB between 6/1/87 and 7/31/89, and is not listed on the SDSS listing.	The client must contact the County to secure a TEMP 1800.

Application

The CROP Unit will process all retroactive Sallis claims.

If a client is determined to be eligible for a corrective underpayment on a closed case, the CROP EW will:

Balance any payment against outstanding overpayment balances, and
Issue any remaining benefit to the client.

On active cases instructions will be provided to the case carrying EW using the “EDP Overpayment Instructions” (SC 1580) when action below is needed:

Offset any overpayments with Sallis corrective underpayments by reducing the balance owing on the current EDP, or
Establish any overpayments by entering the appropriate BIC codes.

The EW must take the required actions within 10 working days of the receipt of the SC 1580.