TN 50 (10-23)

GN 02250.020 Incorrect Benefit Rates — Waiver of Overpayment Recovery

A. Policy

Usually a person cannot be charged with knowledge of how benefit rates are computed. However, when the error results in a payment or payments clearly out of line with what could have reasonably been expected, without fault can be established only if there is clear and convincing evidence.

B. Examples

1. Without Fault

Theresa Burnett, the applicant, alleged 02/15/55 as their date of birth on their application for retirement benefits. We subsequently notified Theresa that we established 2/15/ 57 as their correct date of birth. However, the 02/15/55 date of birth was used in computing their benefit rate. Because Theresa could not be expected to know how one's own benefit rate was computed, Theresa is without fault for the overpayment.

2. At Fault

Mike Lowery, the recipient, has not worked since starting to receive benefits in June, 2012. Mike received an AERO recomputation effective January, 2015 increasing the recipients MBA by $25. Mike did not question the change in the monthly check or the statement in the AERO notice regarding additional earnings. Since Mike accepted payment of an amount a recipient should have known was incorrect, Mike is at fault for accepting the incorrect payment.

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GN 02250.020 - Incorrect Benefit Rates — Waiver of Overpayment Recovery - 10/18/2023
Batch run: 10/18/2023