CLAIMS HANDBOOK - Department of Human Services

BENEFIT RECOVERY (CLAIMS) HANDBOOK
• Formula Calculation
SUCCESS will keep a portion of the household’s monthly benefit as a claim payment
based on the following formula calculation:
A) FS – 10% of benefit amount (or $10) for C, U, S claim types
20% of benefit amount (or $20) for adjudicated IPV claim types.
The 20% will be calculated from the benefit amount previous
to the disqualified person being removed from the budget.
This includes “lawbreakers” and “IPV disqualified individuals”.
B) TANF – For AE and IHE claim types, the AU retains an amount
equal to 95% of the appropriate family maximum. All over
the 95% is posted as a claim payment up to the total TANF
grant.
For IPV claim types, the AU retains an amount equal to
90% of the appropriate family maximum. All over 90% is
posted as a claim payment up to the total TANF grant.
All countable income prior to allowable deductions is
included in determining the amount.
Recalculate eligibility in SUCCESS to correct retention amount if necessary.
Calculation of the TANF claim payment:
1. Determine family maximum based on AU size.
2. Multiply family maximum by 95% (.95) to determine retention amount.
3. Compare household income to the allowed household amount. If income is
less than allowed household amount, the difference will be issued and the
remainder recouped. If the income exceeds the allowed household amount,
the entire grant will be recouped.
Example 1 – gross amount of countable income = $0
Step 1 Step 2 Step 3
$280 Fam Max $266 95% $280 Fam Max
x95% -0 -$266 Benefit Amt.
$266 $266 Benefit Amt. $ 14 Claim Payment
Example 2 – gross amount of countable income = $216
Step 1 Step 2 Step 3
$280 Fam Max $266 95% $280 Fam Max
x95% -$216 Income $ 50 Benefit Amt.
$266 $ 50 Benefit Amt. $230 Claim Payment
Example 3 – gross amount of countable income = $316
Rev December ‘10 24