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).