A federal pandemic benefit overpayment happens when you get PUA, FPUC, PEUC, or LWA benefits that the government determines you were not eligible for.
Between 2020 and 2021, the federal government created 4 different pandemic benefit programs and extensions. These include:
- Pandemic Unemployment Assistance (PUA)
- Federal Pandemic Unemployment Compensation (FPUC)
- Pandemic Emergency Unemployment Compensation (PEUC)
- Lost Wages Assistance (LWA)
Federal pandemic benefit programs ended on September 4, 2021, but the government is still sending determinations about overpayments.
How do I know I have an overpayment?
If the government determines you have an overpayment, they will send you:
- A Notice explaining why there is an overpayment; and
- A Notice explaining the amount of the overpayment and the type of overpayment.
- A deadline deadline and instructions to appeal if you disagree with the determination
What you should do about a federal pandemic benefit overpayment depends on what kind of overpayment it is.
For federal pandemic benefit overpayments, all overpayments are either “fraud” or “non-fraud.”
Non-Fraud Overpayments
Non-fraud overpayments usually happen when the government decides they were wrong about your eligibility for benefits.
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You do not have to pay back the overpayment with your own money.
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The government can take up to 1/3 (one third) of your future benefits until the overpayment has been reduced to $0, for up to four years from the start of the overpaid claim.
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No interest builds up on this kind of overpayment.
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This kind of overpayment does not affect your credit.
If you got benefits that you turned out not to be eligible for, a non-fraud overpayment is the best case outcome.
If you have a non-fraud PUA, FPUC, PEUC, or LWA overpayment, you can request that the overpayment be “waived” (meaning you don’t have to pay it). Even if you already paid back some of the overpayment, if you are granted a waiver, you will be refunded that money.
If you are denied an overpayment waiver, you have the right to appeal it.
If you believe you really were eligible for benefits the government says they overpaid you, you must appeal the decision that said you were ineligible for benefits. You should also appeal the overpayment decision.
You can repay the money in your UC portal. You can also mail a check made payable to “PA UC Fund” to:
Office of UC Benefits
UI Payment Services
PO Box 67503
Harrisburg, PA 17106-7503
Fraud Overpayments
Fraud overpayments happen when the government believes you intentionally lied or did not give them correct information to get benefits.
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The government can take 100% of your future unemployment benefits for up to 10 years after the end of the claim year in which the benefits were overpaid, until the overpayment has been reduced to $0.
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The government can also take your tax return starting 1 year after the overpayment.
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Interest builds up on this kind of overpayment until you pay off the original (also known as “principal”) amount.
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The government cannot garnish (take) your wages.
If the fraud overpayment was due to a mistake or a misunderstanding on your part, you should appeal and explain what happened in your Unemployment Referee Hearing.
You can repay the money in your UC portal. You can also mail a check made payable to “PA UC Fund” to:
Office of UC Benefits
UI Payment Services
PO Box 67503
Harrisburg, PA 17106-7503
No. It is still very important to file for benefits. You want to “spend” the penalty weeks so that you can get benefits in the future. And even if the government offsets your benefits for a fault overpayment, it’s good because that pays the overpayment down for you.
If you never received notices and find out now you have an overpayment, you should appeal and explain that you did not previously know about the overpayment.