N.J. Admin. Code § 10:90-7.8

Current through Register Vol. 56, No. 17, September 3, 2024
Section 10:90-7.8 - Settlement of suits and claims
(a) Pursuant to P.L. 1997, c. 38, (44:10-64) , upon liquidation of a claim or interest (other than liquidation of nonexempt real property) for which a written promise to repay (Form WFNJ-10D, Agreement to Repay) has been executed, regardless of whether or not the person(s) involved are receiving assistance at the time, the county or municipal agency shall notify the person(s) of its claim and pursue repayment of the assistance granted from the date of eligibility for that payment, with the exception of any portion of a personal injury award which a court specifically awards to a child to make the child whole as a result of an injury, or any other benefits specifically protected by law.
1. RSDI, SSI (unless subject to interim assistance agreements), Railroad Retirement, Worker's Compensation, Veteran's Administration benefits, temporary disability benefits, and term life insurance are exempted by law from the repayment process. However, lump sum payments from these sources are subject to the lump sum regulations at 10:90-3.18.
2. Nothing in these rules shall be held as preventing the county/municipal agency from moving to recover assistance granted from other sources, such as, but not limited to, payments in the nature of a windfall, such as inheritances, lottery, casino and racetrack winnings. Such funds shall be subject to the rules of this section, less any portion which has been disregarded in order to purchase items which are integral to promoting self-sufficiency. Any remaining funds shall then be subject to the lump sum income provisions at N.J.A.C. 10:90-3.
(b) Whenever the county/municipal agency ascertains that a recipient or former recipient, living or dead, of WFNJ/TANF or WFNJ/GA, or any of its predecessors, including a child who dies prior to his or her 21st birthday and leaves an estate, has real or personal property above what is necessary for his or her maintenance and the maintenance of a spouse or minor children, the agency shall move, in reliance upon established legal procedures, to recover all assistance paid. The county/municipal agency's claim shall take priority over all other unsecured claims, except for reasonable funeral expenses and terminal medical and hospital expenses.
(c) If a person refuses to repay assistance granted pending liquidation of a claim or interest, including refusal by any party acting for or on behalf of either or both parents or relative, the county/municipal agency shall take all necessary and proper action under State law to enforce the promise to repay, including the withholding of benefits from the uncooperative individual(s) for as long as the refusal to repay persists.
(d) Any partial or initial payments made to the county/municipal agency from the settlement of a claim or interest made by or on behalf of a single adult, couple without dependent children, either or both parents or caretaker relative, subsequent to notice of claim and prior to express written approval by the county/municipal agency, shall obligate that person to the county/municipal agency in the amount of the payment.
(e) The county/municipal agency may, with the consent and approval of the DFD, compromise and settle any claim for repayment of WFNJ benefits or its predecessors. At the discretion of the agency, up to $ 500.00 may be deducted from the proceeds of a claim or interest, without the consent and approval of the DFD. Primary consideration shall be given to whether or not release of additional funds will promote the goal of self-sufficiency, if this consideration is appropriate under the circumstances.

N.J. Admin. Code § 10:90-7.8

Amended by R.1998 d.42, effective 1/20/1998.
See: 29 New Jersey Register 3971(b), 30 New Jersey Register 389(a).
In (e), added language permitting agency to deduct funds from the proceeds of a claim for repayment of benefits.
Amended by R.2003 d.226, effective 6/16/2003.
See: 34 New Jersey Register 2713(a), 35 New Jersey Register 2670(a).
In (a), inserted the N.J.S.A. reference in the introductory paragraph, added a new 1, recodified former 1 as 2 and rewrote the paragraph; in (b), deleted the last sentence.