7 Colo. Code Regs. § 1101-2-13.4

Current through Register Vol. 47, No. 24, December 25, 2024

Section 7 CCR 1101-2-13.4 - INTERSTATE RECIPROCAL OVERPAYMENT RECOVERY

13.4.1Statutory References: 8-72-109(1), 8-72-110, and 8-79-102(1), C.R.S.

13.4.2Definitions. The following definitions shall apply to this section unless the context clearly requires otherwise.

.1State. Any state of the United States, the District of Columbia, Puerto Rico, and the Virgin Islands.

.2Offset. The withholding of the overpaid amount against benefits that would otherwise be payable for a compensable week of unemployment.

.3Overpayment. An improper payment of benefits from a state or federal unemployment compensation fund that has been determined recoverable under the requesting state's law.

.4Participating State. A state that has subscribed to the interstate reciprocal overpayment arrangement.

.5Paying State. The state under whose law a claim for unemployment benefits has been established on the basis of combining wages and employment covered in more than one state.

.6Recovering State. The state that has received a request for assistance from a requesting state.

.7Requesting State. The state that has issued a final determination of overpayment and is requesting another state to assist it in recovering the outstanding balance from the overpaid individual.

.8Transferring State. A state in which a combined-wage claimant had covered employment and wages in the base period of a paying state and that transfers such employment and wages to the paying state for its use in determining the benefit rights of such claimant under its law.

.9Liable State. Any state against which an individual files, through another state, a claim for benefits.

13.4.3Recovery of State or Federal Benefit Overpayments.

.1Duties of Requesting State. The requesting state shall:

.1 Send the recovering state a written request for overpayment-recovery assistance that includes certification that the overpayment is legally collectable under the requesting state's law, certification that the determination is final and that any rights to postponement of recoupment have been exhausted or have expired, a statement as to whether the state is participating in cross-program offset by agreement with the U.S. Secretary of Labor, a copy of the initial overpayment determination, and a statement of the outstanding balance;

.2 Send notice of the request to the claimant; and

.3 Send to the recovering state a new outstanding overpayment balance whenever the requesting state receives any amount of repayment from a source other than the recovering state such as by interception of tax refund.

.2Duties of Recovering State. The recovering state shall:

.1 Issue to the claimant an overpayment-recovery determination that includes the statutory authority for the offset, the name of the state requesting recoupment, the date of the original overpayment determination, the type of overpayment (fraud or nonfraud), program type, total amount to be offset, the amount to be offset weekly, and the right to request determination and appeal of the determination to recover the overpayment by offset.

.2 Offset benefits payable for each week claimed in the amount determined under state law.

.3 Provide the claimant with a notice of the amount offset.

.4 Prepare and forward, no less than once a month, payment representing the amount recovered made payable to the requesting state except as provided in regulation 13.4.4.1.2.

.5 Retain a record of the overpayment balance no later than the exhaustion of benefits, end of the benefit year, exhaustion or end of an additional or extended benefits period, or other extensions of benefits, whichever is latest.

.6 Not redetermine the original overpayment determination.

13.4.4Combined-Wage Claims.

.1Recovery of Outstanding Overpayment in Transferring State. The paying state shall:

.1 Offset any outstanding overpayment in a transferring state(s) prior to honoring a request from any other participating state.

.2 Credit the deductions against the statement of benefits paid to combined-wage claimants, Form IB-6, or forward payment to the transferring state as described in regulation 13.4.3.2.4.

.2Withdrawal of Combined-Wage Claim After Benefits Have Been Paid.

.1 Withdrawal of a combined-wage claim after benefits have been paid shall be honored only if the combined-wage claimant has repaid any benefits paid or authorizes the new liable state to offset the overpayment pursuant to regulation 13.2.8.4.

.2 The paying state shall issue an overpayment determination and forward a copy, with an overpayment-recovery request and an authorization to offset, with the initial claim to the liable state.

.3The recovering state shall:

.1 Offset the total amount of any overpayment resulting from the withdrawal of a combined-wage claim prior to the release of any payments to the claimant;

.2 Offset the total amount of any overpayment resulting from the withdrawal of a combined-wage claim prior to honoring a request from any other participating state;

.3 Provide the claimant with a notice for the amount offset; and

.4 Prepare and forward payment representing the amount recovered to the requesting state as described in regulation 13.4.3.2.4.

13.4.5Cross-Program Offset. The recovering state shall offset benefits payable under a state unemployment compensation program to recover any benefits overpaid under a federal unemployment compensation program, as described in the recovering state's agreement with the U.S. Secretary of Labor, and vice versa, in the same manner as required under regulation 13.4.3 and regulation 13.4.4 when both the recovering state and requesting state have entered into an agreement with the U.S. Secretary of Labor to implement section 303(a) of the federal Social Security Act.

7 CCR 1101-2-13.4

37 CR 13, July 10, 2014, effective 8/1/2014

39 CR 08, April 25, 2016, effective 5/15/2016

39 CR 22, November 25, 2016, effective 12/15/2016

40 CR 11, June 10, 2017, effective 7/1/2017

40 CR 23, December 10, 2017, effective 12/30/2017

41 CR 08, April 25, 2018, effective 6/3/2018

41 CR 16, August 25, 2018, effective 9/14/2018

42 CR 06, March 25, 2019, effective 4/15/2019

43 CR 08, April 25, 2020, effective 3/20/2020

43 CR 06, March 25, 2020, effective 4/14/2020

43 CR 19, October 10, 2020, effective 10/30/2020