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Current as of January 01, 2025 | Updated by Findlaw Staff
(a) In accordance with Federal law and regulations, the department shall establish procedures for recoupment of prior overpayments.
(1) The recoupment of overpayments may be made from income, liquid resources, or assistance payments. However, in no case shall the combined income, liquid resources, or assistance payment be less than ninety percent of the amount payable to an assistance unit of the same composition with no income. Recoupment may be from: (i) the assistance unit which was overpaid, (ii) any assistance unit of which a member of the overpaid assistance unit has subsequently become a member, or (iii) any individual members of the overpaid assistance unit whether or not currently a recipient. If the Commonwealth recovers from individuals who are no longer recipients, recovery shall be made by appropriate action under State law against the income or resources of those individuals.
(2) The department shall, prior to effecting any reduction of a current grant, advise the recipient of the proposed reduction by timely and adequate notice.
(b) The department shall be permitted to recoup overpayments in accordance with the provisions of subsection (a) concurrent with a suit for restitution provided that the extent of liability for restitution shall be reduced by the amount of overpayments recouped.
(c) The department shall establish procedures for retroactive correction of underpayments caused by administrative error provided that:
(1) retroactive corrective payments shall be limited to the twelve months preceding the month in which the underpayment first becomes known to the department;
(2) retroactive payments to correct improper denial of assistance shall be made for up to twelve months prior to the month in which the error first becomes known to the department, but in no case earlier than the date of application; and
(3) for the purposes of determining continued eligibility and the amount of assistance, such retroactive corrective payments shall not be considered as income or as a resource in the month in which paid nor in the next following month.
(d) In cases which have both an underpayment and an overpayment, the department will offset one against the other in correcting the payment.
Cite this article: FindLaw.com - Pennsylvania Statutes Title 62 P.S. Poor Persons and Public Welfare § 432.16. Recoupment of prior overpayments and retroactive correction of underpayments - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-62-ps-poor-persons-and-public-welfare/pa-st-sect-62-432-16/
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