PART XV
BENEFIT OVERPAYMENTS
15.1.1 Statutory References: 8-74-109, 8-79-102, and 8-81-101 (4)(b)(c), C.R.S.
15.1.2 Purpose. The division may write off the recovery of all or part of the amount of overpaid benefits that it finds noncollectible or the recovery of which it finds to be administratively impracticable.
15.1.3 Criteria for Write-Off. In determining whether overpaid benefits are noncollectible or whether the recovery of such benefits would be administratively impracticable, the division shall consider all relevant factors including, but not limited to, the following:
.1 That the claimant has died.
.2 That the claimant is totally and permanently disabled.
.3 That the claimant has retired from the labor force, including consideration of the claimant's age, the likelihood of the claimant's reentering the labor force, the claimant's physical condition, and the claimant's financial status.
.4 That the claimant has been adjudicated bankrupt.
.5 That the division determines the costs of collection to exceed the amount of overpayment.
.6 That the overpaid amount, if not due to false representation or willful failure to disclose a material fact, has remained uncollected for more than five years.
.7 That the overpaid amount, if due to false representation or willful failure to disclose a material fact, has remained uncollected for more than seven years.
15.2.1 Statutory References: 8-79-102, 8-81-101 (4)(a)(I)(II), and 8-81-101 (4)(c), C.R.S.
15.2.2 Request for Waiver. When a determination establishing an overpayment is final, the overpaid claimant shall be notified of the overpayment and advised that a written request for waiver of recovery may be submitted to the division. Such request shall be submitted in accordance with regulation 1.3.11. Upon receipt of such request, the division shall suspend recovery of the overpayment until the waiver determination is final.
.1 If the final waiver determination denies said request, subsequent requests for waiver may be submitted upon a showing by the claimant of a significant change in financial conditions affecting his or her ability to repay the overpaid amount, such as catastrophic illness or loss of employment.
.2 A final determination that approves a waiver request shall apply only to the overpaid balance at the time the request was made, as evidenced by the postmark date, if mailed, the date received, if filed in person, the receipt date encoded on a facsimile document, or the receipt date recorded by the division’s automated systems if filed using division-approved electronic means and shall not be retroactive to any part of the overpaid amount already recovered.
15.2.3 Requests for Information by the Division. Financial and other relevant information that, in the opinion of the division, is necessary to render a waiver determination may be requested from the claimant by the division in writing. Failure by the claimant to provide the requested information, in writing, to the division within fifteen calendar days of said request shall cause the claimant’s request for waiver to be determined based on available information. Information may be submitted to the division in person, by mail, by facsimile machine, or by division-approved electronic means.
15.2.4 Criteria for Waiver. A person who is overpaid any amount of benefits is liable for the amount overpaid. The division may waive the recovery of all or any part of an overpaid amount only when:
.1 The overpayment did not result from false representation or willful failure to disclose a material fact by the claimant; and
.2 Requiring repayment would be inequitable.
15.2.5 False Representation. For purposes of part XV of the regulations, the term “false representation” means any representation made by an individual that he or she knew to be false or any representation made by an individual with an awareness that he or she did not know whether the representation was true or false.
15.2.6 Willful Failure to Disclose a Material Fact. For purposes of part XV of the regulations, the term “willful failure to disclose a material fact” means knowingly withholding material information from the division.
15.2.7 Inequitability. In determining whether requiring repayment of an overpaid amount is inequitable, the division shall consider the following factors, which are not exclusive, and any other relevant factors:
.1 The claimant's financial condition required that the overpaid benefits be spent on reasonable and necessary living expenses.
.2 The claimant's household income is below the federal poverty income guidelines.
.3 The claimant lacks the ability to repay the overpaid amount based on prior income level, current household income and assets, and future earnings potential.
.4 Requiring repayment will cause extraordinary financial hardship by depriving the claimant of the ability to provide for basic necessities that cannot be deferred, such as food, shelter, clothing, utilities, and medical costs not covered by insurance.
.5 The claimant detrimentally changed his or her position in reliance on the receipt of the overpaid benefits including, but not limited to, entering into a financial and/or contractual obligation that he or she would not have entered except for the receipt of the overpaid benefits.
.6 The claimant relinquished a valuable right in reliance on the receipt of the overpaid benefits, including the receipt of other governmental benefits for which he or she would have been entitled except for the receipt of the overpaid benefits. Although the claimant is not required to apply for other governmental benefits and be rejected from receiving them, he or she may be required to prove eligibility for such benefits by establishing his or her economic situation at the time unemployment benefits were received as well as the requirements for receiving said benefits.
.7 The claimant was at fault in causing the overpayment through his or her negligence, carelessness, or acceptance of a payment that the individual either knew, or reasonably could have been expected to know, was incorrect.