9.4. Overpayment Recoveries

POLICY

Authority OW Act: Sec. 19, 20, 21, 22, 28(6) and 32 & OW Directives: Dir. 9.3 

Where a participant has received financial assistance which he/she was not entitled to receive, an overpayment will be established and the recovery of the overpayment will be done fairly and effectively. 

There are four types of overpayments: 

• failure to report income or changes in circumstances that affect the amount of the participant’s assistance;
• a deliberate attempt to misrepresent the facts (fraud);
• overpayments incurred as a result of administrative error;
• interim assistance if the appellant loses his/her appeal. 

In general, all overpayments, including administrative errors are collectable.
 

PROCEDURE

Example “A” 

Overpayment letter from Case Manager upon case termination, (within 30 days). 

1. Participant calls for information only regarding the overpayment - Case Manager informs. 

2. Participant calls wanting to make repayment in full or in part. 

In full: Intake clerk or Finance clerk records same in SDMT notes.

In part: Intake clerk or Finance clerk asks what the monthly amount will be (Minimum of 5% of outstanding balance). Records same in SDMT notes. 
 

Example “B” 

Overpayment letter from an ERO. - outcome of Fraud Investigation. 

1. Participant calls for information only regarding the overpayment - E.R.O. informs them. 

2. Participant calls wanting to make repayment in full or in part.

In full: E.R.O. records conversation in SDMT notes and refers client to Intake clerk for repayment. 

In part: E.R.O. asks what the monthly amount will be (Minimum of 5% outstanding balance). Records same in SDMT notes and refers to Intake clerk.

Note:  In extraordinary circumstances, less than 5% may be recommended but the monthly amount is not to be under $20 monthly. The amount must be approved by the supervisor. 
 

Cross Reference: Section 9.2 - Internal Reviews