TN 6 (08-07)

GN 04030.040 Reopening Deduction Determinations to Reduce or Eliminate Overpayment

Policy

This policy is an administrative rule which eliminates the need for seeking recovery by refund and applies to cases where the determination may not be reopened because more than 4 years have passed since the initial determination (e.g. we received new and material evidence after 4 years).

• If there is an outstanding overpayment at the time of the beneficiary’s termination of entitlement and deductions have been improperly imposed (i.e., too many deductions imposed), these deduction determinations can be reopened to the extent necessary in order to reduce or eliminate the existing overpayment.

NOTE: When non-work months are used to recover an overpayment, they are no longer creditable towards an ARF or DRC's. This may have the effect of lowering subsequent rates, and should be considered when computing the final amount of the overpayment.

EXAMPLE

In 02/2000, the NH’s benefits were terminated and an outstanding overpayment of $1200 was listed on his record due to work deductions from prior years. In 06/2006, we received information that his work in 1999 included special wage payments (SWP) that were paid for prior years of work. Since this new information regarding his SWP will reduce the amount of his existing overpayment, we may reopen and revise the amount of his existing overpayment on his terminated record even though the new evidence was presented after 4 years.