Iowa Administrative Code › Agency 871 - Workforce Development Department › Chapter 25 - Benefit Payment Control › Rule 871-25.7 - Determination of Overpayment by Reason of Claimant's Fault or Fraud

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Determination by reason of the claimant's
			 own fault, employer's fault, agency fault, or fraud as provided in Iowa Code
			 section
			 96.16,
			 that the claimant has received benefits to which such claimant was not entitled
			 shall be made by the investigation and recovery unit on the basis of such facts
			 as it may obtain.
(2) A notice of
			 such determination shall be promptly given to the affected claimant. Such
			 notice shall be dated and shall advise the claimant as to the benefit weeks
			 involved and shall advise the claimant as to the reason for overpayment and the
			 total amount of said overpayment. Unless the claimant, within ten days after
			 such notification was mailed to the claimant's last-known address, files with
			 the department a written request for review of, or an appeal from, such
			 determination, the determination shall be final. Timeliness shall be determined
			 by postmark within ten calendar days from the date of mailing shown on the
			 decision or be received by the department within ten calendar days from the
			 date of mailing.
(3) Upon receiving
			 a written request for review, the investigation and recovery unit, based upon
			 such facts as it has or may acquire, may affirm, modify, or reverse the prior
			 decision or refer the matter to an administrative law judge. The claimant shall
			 be promptly notified of such decision or referral. Unless the claimant files an
			 appeal within ten calendar days after the date of mailing, such decision shall
			 be final. Timeliness shall be determined by postmark within ten calendar days
			 from the date of mailing shown on the decision or be received by the department
			 within ten calendar days from the date of mailing.
(4) The claimant may directly appeal the
			 decision of the investigation and recovery unit without a request for review,
			 in which case the appeal will be referred directly to the appeals section of
			 the department.
(5) Claimants
			 affected by determinations made in accordance with this rule shall have the
			 same rights to further appeal as are provided in Iowa Code section
			 96.6.
(6) When such determination has become final
			 the benefits shall be recovered.
a. The
			 department shall always demand immediate repayment of the overpayment as its
			 first option for those claimants not in benefit claiming status at the time of
			 the initial overpayment determination. If not paid immediately, the overpayment
			 amount will be deducted from future benefits. Recovery of overpayments due to
			 misrepresentation or fraud may also include the filing of a notice of lien or
			 other civil action. Upon finalization of the determination of overpayment by
			 reason of a claimant's fault or fraud, interest shall accrue at a rate of
			 1/30th of 1 percent per day until the overpayment is paid in full.
b. The department shall mail a first
			 statement of overpayment to the claimant's last-known address. This statement
			 will request full repayment to the department.
c. If a claimant fails to respond to the
			 first statement of overpayment, a demand letter shall be sent 30 days later.
			 The demand letter notifies the claimant that full repayment must be made. If
			 the claimant cannot make full repayment, the department will consider a monthly
			 repayment agreement. Monthly amounts based on the minimum repayment agreement
			 schedule below will be printed on the demand letter. The first repayment is
			 expected ten days from the date of the demand letter and the additional
			 repayments every 30 days thereafter until the debt is paid in full. The
			 department reserves the right to accept or reject any proposed repayment
			 agreement. The following minimum repayment agreement is acceptable to the
			 department.
Amount of Original Overpayment
Minimum Monthly Payments
Number of Months Required to Liquidate the
						  Overpayment
Under $199
$25
1 to 8
$200 to $399
$50
4 to 8
$400 to $599
$75
5 to 8
$600 to $799
$90
6 to 9
$800 to $999
$ 100
8 to 10
$1000 to $1499
$ 150
6 to 10
$1500 to $1999
$200
7 to 10
$2000 to $2999
$250
8 to 12
$3000 and over
$300
10 to -
d. If
			 a claimant fails to respond to the first repayment statement, a demand letter
			 shall be sent automatically in approximately 30 days. The department may
			 proceed with any appropriate lien or civil action to collect the debt, which
			 would include, but not be limited to, a judgment in a court having jurisdiction
			 over the matter. The same type of action may be pursued by the department in
			 those cases where a claimant defaults on a repayment schedule.
e. If the department receives a cash
			 repayment to liquidate all or part of an indebtedness the department shall
			 issue a receipt and mail it to the claimant's last-known address. If the
			 department receives a repayment that is not identified by a social security
			 number, name or other means of identification, the money shall be retained
			 until such time as a positive identification can be made and proper credit
			 given to the claimant.
f. An
			 overpayment to the claimant will cause the employer to be relieved of charges
			 except when the overpayment is a result of payment of a back pay
			 award.
g. Reserved.
h. An underpayment of $5 or less will not be
			 set up and paid to an individual unless the individual requests the payment in
			 writing.
This rule is intended to implement Iowa Code sections
				96.3(3),
				96.3(7),
				96.4(3),
				96.5(1),
				96.5(3),
				96.6(1),
				96.8(5),
				96.11(1),
				96.16,
				and 96.19(38).