Section 7 AAC 40.480 - Repayment of overpayments(a) The division may pursue repayment under this section from a current or former recipient of assistance under this chapter who received an overpayment.(b) For purposes of this section, an applicant who received interim assistance under 7 AAC 40.375 but was denied SSI eligibility by the Social Security Administration solely on the basis that the applicant was not disabled or blind or that the applicant's income exceeds SSI income standards is not considered to have received assistance to which the applicant was not entitled.(c) If an overpayment occurred solely as the result of an administrative error or oversight by the division, the division may request repayment.(d) If an overpayment occurred because the recipient, or representative acting on the recipient's behalf, failed to comply with the requirements of AS 47.25.430-47.25.615 and this chapter, the division may require repayment.(e) To request or require repayment under (c) or (d) of this section, the division shall send an overpayment notice to the current or former recipient responsible for repaying the overpayment. However, if the recipient has a representative acting on the recipient's behalf, the division shall send the notice to the representative. The overpayment notice must (1) identify the overpayment amount;(2) give the reason for the overpayment; and(3) specify whether repayment is being requested or required; if repayment is required, the division shall specify what further actions will be taken by the division if repayment is not made.(f) A current recipient may choose to repay the entire amount of an overpayment in (2) monthly installment payments; if a current recipient chooses to repay by installment payments, the division shall withhold from the recipient's future assistance payments an amount equal to 10 percent of the recipient's monthly assistance amount or $10, whichever is more; to calculate the amount withheld, the division shall multiply the monthly assistance payment before withholding by 10 percent and round that amount to the nearest dollar; if the monthly assistance payment before withholding is less than $10, the entire assistance payment shall be withheld.(g) Within 30 days of the date printed on the overpayment notice, a current recipient who is required to repay an overpayment under (d) of this section shall repay the entire amount of the overpayment to the division. If the repayment is not timely made, the division shall reduce the recipient's future assistance payments by using the formula set out in (f) of this section.(h) The division may suspend withholding under (f) or (g) of this section for up to three months upon receipt of evidence that the loss of assistance to a current recipient would result in extreme economic hardship to the recipient.(i) A former recipient may choose to repay the entire amount of an overpayment (2) in monthly installment payments of no less than 10 percent, or quarterly installment payments of no less than 30 percent, of the monthly assistance payment received by the individual for the last month for which assistance was received; or(3) through a valid legal assignment to the division of the individual's permanent fund dividend.(j) A former recipient may choose a combination of payment options in (i) of this section as long as the total annual repayment amount will be at least equal to the total annual repayment amount that would be paid if only the option in (i)(2) of this section was selected. A former recipient who selects the repayment option in (i)(3) of this section is required to execute a new valid assignment of each year's permanent fund dividend until the overpayment is recovered in full.(k) If the division determines that a former recipient will suffer extreme economic hardship if the former recipient is required to repay the amount required under (i)(2) of this section, the division may (1) allow the former recipient to repay less than the amount required under (i)(2) of this section; or(2) temporarily suspend repayment for up to three months.(l) If a former recipient who is required to repay an overpayment under (d) of this section fails to repay the total annual repayment amount as determined in (j) of this section, the division may pursue other legal remedies against the income or resources of the former recipient.(m) The division may suspend efforts to collect an overpayment if collection activities are no longer cost effective. If a former recipient who has not totally repaid a prior overpayment as required under (d) of this section becomes a recipient again, the division shall reduce the recipient's assistance payments by using the formula set out in (f)(2) of this section until the entire overpayment is repaid. Withholding begins on the second month an assistance payment is made and continues each month until the entire overpayment has been recovered.(n) A current or former recipient, or a responsible person acting on the recipient's behalf, who wishes to dispute an action taken by the division under this section may request a hearing under 7 AAC 49.(o) In this section, "overpayment" (1) means the amount of assistance given under this chapter to which a recipient was not entitled;(2) includes the amount of assistance paid to a recipient under 7 AAC 49.190 pending a fair hearing, if the final decision is that the assistance must be repaid.Eff. 5/12/82, Register 82; am 10/1/93, Register 127; am 10/10/96, Register 140; am 4/4/2013, Register 206Authority:AS 47.05.010
AS 47.25.455
AS 47.25.500