Recoupments
© 1998-2006 by Neighborhood Legal Services, Inc.
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- Failure to report income
- Failure to report a change in your household composition
- Fuel voucher payments made by DSS in excess of your actual fuel allowance
- Advance payments for shelter, fuel, and/or utilities
- Benefits paid in error by DSS
- "Aid Continuing" pending a Fair Hearing which is ultimately lost

How is the recoupment amount recovered?

    Usually an overpayment is recovered when DSS automatically lowers your future PA benefits by a certain percentage per month until the entire amount owed is recovered. The recoupment rate is usually 10% of total needs.

    REMEMBER: DSS calculates the recoupment from the TOTAL NEEDS value of your PA grant, not necessarily only from the total of your monthly checks. This means that if you are on voucher for rent or fuel, these amounts will be figured into your TOTAL NEEDS. Below, we give an example:

    Kathy and her two children receive PA benefits. Kathy's grant is for the following:

            Basic Needs                                 $ 291.00
            Shelter (paid by voucher)                 205.00
            Fuel/Utility (paid by voucher)             54.00
            TOTAL NEEDS                          $ 550.00

    Kathy got a notice from DSS telling her that they paid National Fuel more than her fuel allowance for the past year and that they would be recouping this money out of her grant until the overpayment was paid back.

    Kathy compared the Department's calculations with the gas bills and found that she was overpaid. DSS will take out 10% of Kathy's total needs until the overpayment is paid back because Kathy receives Family Assistance benefits.

How much will DSS remove from Kathy's grant?

    $55.00

Is there an easy way I can figure out how much DSS could recoup from my grant?

    You can figure 10% of your benefits by moving the decimal point (".") in the total needs dollar amount over to the left by one spot.

                                        Total Needs = $550.00

                              10% of Total Needs = $55.00

Can I get the monthly "payback rate" lowered?

    Possibly. If you cannot afford to pay DSS 10% of your total benefits each month, you may be able to get this amount lowered. In order to get this amount lowered you must show your worker that paying this amount each month will cause you an EXTREME HARDSHIP. The lowest amount DSS will allow you to pay back is 5% of your total monthly needs. In Kathy's case, that would be $27.50 per month.

How do I prove that I should get a lower rate of recoupment?

    To prove that the monthly payback rate will be too hard for you or your family to pay each month, you will need to tell your DSS worker about your monthly expenses. You must be able to show your worker that if DSS takes 10% of your benefits each month, you will not be able to meet your monthly expenses.

    Monthly expenses include rent, food you must buy after your Food Stamps are used up, utility and fuel costs, basic clothing costs, and special medical needs not covered by insurance. (This is not a complete list.)

    It is your responsibility to submit evidence to support your monthly expense claims. Expenses can be verified by showing your worker copies of bills and/or receipts for the past three months.

How do I know whether an overpayment is being recouped from my grant?

    If your grant has been lowered and you have not received a Notice telling you why this has happened, take a look at your most recent PA budget to determine whether there is a recoupment in effect.

    In the lower left hand corner, below the section which lists your monthly cash grant the word "RECOUPMENT" appears. If there are numbers below this word, there is a recoupment on your account. If only zeros appear in the spaces below and this is your most recent budget, there is probably no recoupment on your grant. In either case, if there is an unexplained reduction in your grant, telephone your caseworker and ask him/her for an explanation.

Can I challenge DSS' decision that I have been overpaid or the amount of the overpayment?

    Yes. If you receive a Notice of Reduction in your public assistance grant, read it carefully to determine the reason for the reduction. If it is due to an overpayment, check the total amount. Be sure to check that the reduction is not more than 10% of your total monthly needs.

    If you think that a mistake has been made, REQUEST A FAIR HEARING IMMEDIATELY. Notify NYS Office of Temporary and Disability Assistance by telephone, fax, or mail that you want a Fair Hearing. You can write on the back of your notice the reason for requesting the hearing. If you phone, get the name of the person you speak to. If you write, send your letter by certified mail and keep a copy. The correct address is:

New York State Office of Temporary and
Disability Assistance (OTDA)
P.O. Box 1930
Albany, New York 12201-1930

Telephone No.: 1-800-342-3334 or (716) 852-4868
Fax No.: (518) 473-6735 (you will need a fair hearing request for available at this link.)

Collect any documents you may have to support the argument that the amount is incorrect.

Who can I call if I have questions about recoupment?

    Call our office at 847-0650 and ask to speak with the Public Benefits Unit.

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