A change in the budget group’s actual, deemed, or estimated income may result in:
An increase in the payment;
A decrease in the payment;
Suspension of the payment;
Ineligibility.
See Chapter 157, Lump Sum, for information on how to treat increases in income due to a person receiving a lump sum.
An increase in the budget group’s actual, deemed or estimated income may result in ineligibility or a decrease in the payment. 55 Pa. Code § 183.101
The CAO will estimate calendar month income and complete a prospective determination of need for the month of change and for any following month if income in the month of change does not reflect a full month of anticipated income.
The CAO will not count new or increased income until it is actually received and available to the person.
Exception: The CAO must count expected income at application, SAR review or redetermination. See Chapter 167, Prospective Budgeting.
If the budget group is still eligible after the net test, the CAO will:
1. Count the income for the remainder of the SAR or eligibility period.
2. Provide an Advance Notice unless one of the exceptions in Chapter 177, Notices applies.
If the increased income is recurring and results in ineligibility, the CAO will: 55 Pa. Code § 183.105(1)
1. Discontinue the assistance payment for the first payment day that can be met after proper notice.
NOTE: Do not close earlier than the first month of ineligibility
2. Provide an Advance Notice unless an exception in Chapter 177, Notices applies.
3. Do not complete an overpayment referral for any assistance received if the increased income was reported timely.
Example: Mr. Allen receives TANF for himself and one child. On June 18 he reports that he started a job and received his first weekly pay of $250 on that date. The CAO completes the net test for June and July based on this expected income:
June = $500
July = $1,000
The CAO determines that Mr. Allen is prospectively eligible for June. However, his net July income after allowable deductions is above the income eligibility limit for a 2-person household. Mr. Allen expects that his earnings will be at least $1,000 for August. The CAO discontinues the monthly assistance payment effective July 13 and authorizes twelve months of extended medical coverage in the PC category. Because Mr. Allen reported his new income within 10 calendar days of his first pay, there has been no overpayment.
A termination or decrease in the budget group’s actual, deemed, or estimated income may result in an increase in the amount of the monthly assistance payment.
When there is a decrease in deemed or actual income because a person left the common residence, the CAO will remove the person and his income effective the first payment that can be met with proper notice. 55 Pa. Code § 183.104
Example: Mr. and Mrs. Werner receive TANF for themselves and children. Mr. Werner receives a VA pension. On August 6, Mrs. Werner reports that her husband left her and the children. The CAO removes Mr. Werner and his income from the budget effective the second check in August.
When the CAO learns of a termination or decrease in a budget group’s income, it will:
1. Determine whose income stopped or decreased and verify the date and amount that the income ends or decreases.
NOTE: The CAO will count actual/anticipated terminated income up until the date of the final pay. See Chapter 167, Prospective Budgeting.
2. If the terminated or decreased income is earned income of a budget group member, determine if good cause exists. See Chapter 160, Deductions.
If good cause exists, remove or decrease the income effective the first payment date that can be met with proper notice.
If good cause does not exist, review for appropriate sanction.
3. If the terminated or decreased income is a budget group member’s unearned income, remove or decrease the income effective the first payment date that can be met with proper notice.
4. If the terminated or decreased income is income deemed from a sponsor or is income from an LRR, stepparent or parent of a TANF or GA minor parent who remains in the home, remove or decrease the income effective the first payment date that can be met with proper notice.
5. If the terminated income is deemed income from an LRR, stepparent or parent of a TANF or GA minor parent who has left the home, remove the adjustment effective the first payment day that can be met with proper notice.
If the CAO discovers that a budget group did not report a required change in income, calculate eligibility back to the date the change would have been made if the information had been reported timely.
Example: In January, the CAO discovers that Mr. Lucas began work back in October. Mr. Lucas did not report this job start. The CAO will review the record for a possible overpayment back to the date of the first pay in October. Mr. Lucas was required to report the job start within ten days of the first pay.
Reissued February 7, 2013, replacing January 31, 2012