TN 10 (05-94)

SI 01150.202 Conditional Benefits Overpayments

A. Policy — general

1. Amount Overpaid

  1. When a conditional benefits period ends because of termination of eligibility or any other reason listed in SI 01150.201 A.1.c., we compute the conditional benefits overpayment. That overpayment is the amount we would not have paid had the disposition occurred at the beginning of the disposition period.

  2. The total conditional benefits overpayment includes amounts still due from any prior conditional benefits period (SI 01150.201 A.4. and SI 01150.206 C.1.e.).

2. Applicability

The rules in 3. through 6. below apply only to correctly paid conditional benefits. If an individual receives more in conditional benefits than was due, such amounts are subject to normal overpayment and recovery procedures in SI 02220.001 ff.

3. Disposal At CMV

  1. Availability of Proceeds

    We consider the individual's net proceeds to be available to repay the overpayment resulting from the conditional benefits.

  2. The required refund is the lesser of the:

    • amount by which the revised value of countable resources exceeds the statutory resources limit in effect at the beginning of the payment period; or

    • amount of conditional benefits actually paid.

  3. The revised value of countable resources is the net sale proceeds plus the value of other countable resources at the beginning of the payment period.

  4. The net sale proceeds are the sale price minus any encumbrances on the property and the expenses of sale.

4. Disposal At Less Than CMV

We determine the required refund as described in 3. above except that we include the uncompensated value in arriving at the revised value of countable resources.

5. No Disposal

a. Personal Property

If the conditional benefits period ends without the sale of excess personal property, we compute the conditional benefits overpayment as in 3. above. However, we substitute the estimated CMV for the net sale proceeds.

b. Real Property

If the conditional benefits period ends without sale of excess real property, despite continuing reasonable efforts to sell, see SI 01130.140 for its continued exclusion. Refund of the conditional benefits overpayment is not due unless or until a sale occurs so long as the owner continues to make reasonable efforts to sell.

6. Establishing a Lesser CMV

Before computing an overpayment due to correctly paid conditional benefits, we remind the individual of the right to submit evidence which would help establish a lower CMV than the one originally estimated. See SI 01140.100C.3. for rebuttal procedures.

7. Burial Funds Exclusion

In determining the extent to which total countable resources exceeded the statutory limit at the beginning of the payment period (see A.1. above), we can exclude up to $1,500 of funds set aside to meet burial expenses. However, we apply this exclusion only if, prior to the payment period, the individual alleges having such funds set aside. See SI 01130.411 for development.

B. Policy — couples

1. Separation of Eligible Couple

Separation of an eligible couple before disposal of the excess nonliquid resources does not affect the conditional benefits agreement. If both are owners of the resource, both will have signed the agreement which is binding on them.

2. Death of Member of Eligible Couple

  1. We treat all conditional benefits correctly paid at the couple rate through the month of death in accordance with the overpayment rules in this section. (See SI 02201.022 regarding the surviving spouse's liability for the deceased spouse's portion of the overpayment.)

  2. If we paid conditional benefits at the couple rate after the month of death, we treat only the benefits due at the individual rate in accordance with the rules in this section. Any excess overpayment is subject to normal recovery procedures in SI 02220.001 ff.