Iowa Administrative Code › Agency 871 - Workforce Development Department › Chapter 25 - Benefit Payment Control › Rule 871-25.8 - Recovery of Benefit Overpayments When Benefits Are Erroneously Received

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Good faith overpayment.
If an individual has acted
			 in good faith in claiming benefits for any week and it is later
			 determined that the individual was not entitled to receive the
			 benefits, the department shall recover the overpayment of benefits
			 either by having a sum equal to the overpayment deducted from any
			 future benefits payable to the individual or by having the individual
			 pay to the department a sum equal to the overpayment. The department
			 shall issue the overpayment decision to the claimant's last-known
			 address or through the claimant's preferred contact method. Once the
			 overpayment amount has been established, an overpayment schedule
			 shall be set up to leave a proper audit trail even if the claimant
			 pays to the department a sum equal to the overpayment.
a. The department shall mail a
			 first statement of overpayment to the claimant's last-known address.
			 This statement will request full repayment in the form of a
			 negotiable check, money order, credit card payment, or bank draft
			 payable to the Department of Workforce Development.
b. 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.
c. Rescinded IAB 10/15/03,
			 effective 11/19/03.
d. If
			 an individual has acted in good faith and is without fault in
			 claiming federal unemployment compensation under any of the following
			 programs:
(1) Unemployment
			 Compensation Federal Employees (UCFE)
(2) Unemployment Compensation
			 Ex-service members (UCX)
(3) Trade Readjustment Allowances
			 (TRA)
(4) Disaster
			 Unemployment Assistance (DUA) and it is subsequently determined that
			 the individual is not entitled to the benefits, the department shall
			 have the right to recover the benefits in accordance with the
			 procedure outlined in subrule 25.8(1). Any federal unemployment
			 compensation overpayments recovered shall be credited to the
			 appropriate account of the United States. Three years after the
			 instance of the federal unemployment compensation overpayment, if the
			 department concludes that continued collection efforts would result
			 in diminishing returns, then the unrecovered amount will be removed
			 from the department accounting records. An administrative record will
			 be maintained for possible collection through offset or other
			 appropriate method. If no collection action has taken place during
			 the three years after the department has removed the overpayment from
			 its accounting records, then the overpayment will be disposed of.
Any overpayment of Trade Readjustment Allowances or
				Trade Adjustment Assistance or Disaster Unemployment Assistance will
				be offset at the rate of 50 percent of the benefit amount otherwise
				payable to the individual for unemployment insurance, extended
				benefits or any other federal unemployment compensation
				program.