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Title 8 . Labor and Workforce Development
Chapter 85 . State Employment Training Program
Section 220. Recovery of overpayments

8 AAC 85.220. Recovery of overpayments

(a) A determination of overpayment liability issued under AS 23.20.390 will include a statement of the right to request a waiver of repayment of the overpayment. An individual may request a waiver within 30 days after the date on which the determination of liability becomes final. The director may extend this period if the request is delayed by circumstances beyond the individual's control.

(b) The director shall waive repayment of an overpayment of benefits to an individual under AS 23.20.390 if

(1) the individual has died or received the benefits in good faith;

(2) repayment would be against equity and good conscience; and

(3) the request for a waiver meets the requirements of this section.

(c) Benefits have been received in good faith if the overpayment was received without fault by the individual, and the individual did not have the capacity to recognize that he or she was incorrectly overpaid. Benefits have not been received in good faith if the individual

(1) negligently reports or fails to report information, which results in the overpayment; or

(2) knew or should have known that the individual was not lawfully entitled to receive the benefits.

(d) Repayment of an overpayment is against equity and good conscience if

(1) repayment in 12 consecutive monthly installments would cause great hardship to the individual, considering the current and potential income and other financial resources available to the individual and the individual's family;

(2) the overpayment resulted from a decision of the department or a court overturning a determination of eligibility made at any level of appeal, and the individual did not withhold or conceal pertinent information on any claim for benefits or in any investigation or proceeding;

(3) the individual received the overpaid benefits by relying on clearly incorrect advice, given to the individual by the division or an employment security agency of another state, which the individual could not recognize as incorrect; or

(4) the overpayment cannot be waived under (1) - (3) of this subsection, but the department determines that recovery would be injurious to the individual after consideration of the standards in (1) - (3) of this subsection, and any extraordinary circumstances.

(e) A waiver of repayment of the overpayment will not be granted if the overpayment is the result of a false statement or misrepresentation of a material fact, or failure to report a material fact.

(f) The director may waive a portion of an overpayment if recovery of the full amount would be against equity and good conscience under (d) of this section.

(g) The director shall not waive an overpayment if waiving the overpayment would cause the individual to receive more than the individual's maximum weekly benefit amount or maximum entitlement of benefits.

(h) To recover an overpayment established under AS 23.20.390 , the director may

(1) accept payment, in full, or as part of a repayment schedule under an agreement by the individual and the department, by cash, check, or money order;

(2) deduct the full weekly benefit amount for each week that benefits are payable to an individual until the overpayment is recovered; or

(3) upon request of the individual, deduct at a rate of 50 percent of the full weekly benefit amount if

(A) the individual received the overpaid benefits in good faith as described in (c) of this section;

(B) sufficient benefits are available to the individual when the overpayment liability is established to allow recovery of the overpayment at a rate of 50 percent of the full weekly benefit amount; and

(C) the amount of the overpayment is greater than two times the full weekly benefit amount.

(i) The director may waive the uncollected portion of a penalty imposed under AS 23.20.390 (f) if the individual repays the outstanding balance of all overpaid benefits on all benefit claims within 120 days after the penalty determination becomes final. Waiver of a penalty imposed under AS 23.20.390 (f) does not waive liability under AS 23.20.390 (a) or any other provision of AS 23.20 for benefits improperly paid.

(j) If the director is unable under (h) of this section to recover an overpayment owed by an individual, the director may pursue recovery of the overpayment through a

(1) claim against the individual's permanent fund dividend under 8 AAC 85.225; and

(2) civil action against the individual.

(k) For the purposes of this section,

(1) "family" includes all persons living in a single residence who are related to each other by blood, marriage, or adoption, including stepchildren and stepparents; however, it does not include an individual aged 18 or older who receives less than 50 percent of support from the family and who is not the principal earner or the spouse of the principal earner of the family;

(2) "financial resources" includes assets, such as stocks, bonds, interest in mutual funds, cash, and credit union or savings accounts; "financial resources" does not include an individual's home or furnishings, automobiles needed for transportation, clothing, or tools of the trade;

(3) "great hardship" means in individual's inability to obtain minimal necessities of food, medical care, and shelter for the individual or the individual's family for at least 30 days within a period of 90 days after the date of the waiver request;

(4) "full weekly benefit amount" means

(A) the weekly benefit amount as set out in AS 23.20.350 (d); plus

(B) the allowance for dependents, if the individual receives one under AS 23.20.350 (f); less

(C) amounts deductible under AS 23.20.360 , 23.20.362, and 8 AAC 85.140;

(5) "income" includes income from all sources, including benefits under AS 23.20.

History: Eff. 10/25/68, Register 27; am 8/20/70, Register 35; am 1/13/72, Register 40; am 10/29/76, Register 60; am 12/5/79, Register 72; am 11/7/80, Register 76; am 3/24/85, Register 93; am 4/28/95, Register 134; am 10/12/97, Register 144; am 3/3/2001, Register 157; am 3/4/2006, Register 177

Authority: AS 23.20.045

AS 23.20.390

AS 43.23.072


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Last modified 7/05/2006