SI NY02003.106 IAR Procedures and Corrective Payments (RTS 371 - 06/2003)
Recently the number of administrative law judge (ALJ), appeals council (AC), and court
cases has increased. A number of field offices (FO) have questioned the payment of
Interim Assistance Reimbursement (IAR) to the State when an "amended decision" has
been made. Usually, the amended decision results in a "corrective payment".
A "corrective payment" is when the initial Supplemental Security Income (SSI) payment
sent to the State at the end of the interim period is later determined to be incorrect
and an additional amount must be paid on behalf of the recipient. According to a 12/05/94-court decision,
SSA is required to send "corrective payments" to the recipient rather than to the
State. In order to determine if the payment being made is a "corrective payment",
the FO must determine whether or not there was a break in entitlement, i.e., if the
case is a reopening.
HOW TO DETERMINE IF A CASE IS A REOPENING
A recipient may have more than one supplemental security record, each representing
a distinct period for which the person claimed eligibility (for which a new application
had to be submitted). The decision to pay IAR or not to pay IAR must be made for the
record being reopened. The decision must be made on a "record-by-record" basis. The
following steps should be taken prior to payment of the benefits:
Identify the record being reopened; the record for which benefits are due as a result
of a new determination. 2.) If any payment has already been made on that record to
the person or to the State, no IAR can be paid. The additional benefits due go to
the individual. 3.) If no payment has been made on that record, then look for a "GR"
(grant reimbursement) code on the record; and: a.) If there is a GR code on the prior
record, carry over the GR code to the new record. The SSI payment goes to the State
for IAR. b.) If there is no GR code on the prior record, and the individual does not
allege receipt of home relief (HR), pay the individual. c.) If there is no GR code
on the prior record, and the individual alleges receipt of HR, verify this with the
local social services district by telephone. (Since New York is an automated State
there will not be a signed agreement in the SSI file. For offices outside New York
City, contact the local welfare office. For offices in New York City contact the director
of NYCHRA. Once the HR has been established during the interim period, document the
file on a report of contact (RC) and input the GR code to the record per SM 01005.625.
The RC will be used in lieu of the SSA-8125 (Repayment of Interim Assistance Notice).