324 A.2d 273 | Conn. Super. Ct. | 1973
The plaintiff, in August of 1971, while receiving state aid under the aid to families with dependent children program (AFDC), was notified that her AFDC award would be terminated effective September 30, 1971, owing to excessive family assets. She requested a fair hearing pursuant to § 17-2a of the General Statutes. She and her authorized representative were fully heard. She has here appealed the decision of the Circuit Court sustaining the action of the fair hearing officer.
Evidence was presented at the hearing that during a review of the plaintiff's eligibility for benefits it was discovered that her family assets exceeded the program limit of $250. An agency worker had determined that a life insurance policy owned by the plaintiff had a cash value of $404 and that the plaintiff had reduced the cash value to $180.48 by prepaying premiums for 1971, 1972 and 1973, all without notice to the welfare department; also that one of the plaintiff's children had a savings account of $100 which had been expended to purchase school clothing for the child and graduation expenses, also without notice to the department.
The plaintiff testified that her daughter had accumulated the $100 over a three-year period by baby sitting and that the child had saved the money *517 to purchase needed clothing when she entered high school. The plaintiff contended that the $100 ought not to be included in a determination of family assets.
The fair hearing officer cited the department policy as contained in index 204 of volume 1, chapter II, of the Connecticut State Welfare Manual, under the title "Eligibility Requirements for Aid to Families with Dependent Children": "C. Members of the assistance group may not: (1) own a combined total of more than $250 in personal property including cash value in life insurance. (2) sell or otherwise dispose of any real or personal property while in receipt of assistance without the knowledge and consent of the Department." The fair hearing officer also cited the following policy contained in index 386(1) of volume 1, chapter III, of the manual: "1. Reimbursement. Reimbursement is the recovery of all or part of the assistance granted to a recipient, when the cash value of personal property resources available to the recipient exceeds the applicable personal property exemption for the category of assistance received."
The fair hearing officer found that the agency worker acted correctly in reflecting the savings of the plaintiff's daughter as a family asset and that the $100, when added to the $404 cash surrender value of the life policy, represented total family assets of $504. Since there was also a sum of $2 in Christmas clubs, it was determined that the plaintiff's family assets exceeded the permissible limit by a total of $256. The officer further ruled that since it had been determined that it would be in the best interests of the welfare department that the life policy be kept active and since the plaintiff had reimbursed the department to the extent of $58 and additionally had agreed to pay summer camp expenses in the amount of $198 for four of her children *518 as soon as she recovered the amount of the prepaid premiums from the insurance company, the plaintiff's AFDC benefits should not be suspended.
Section 17-2b (b) of the General Statutes provides in part: "The court, upon such appeal [from a decision of the fair hearing officer], shall determine whether the commissioner has acted illegally or so arbitrarily and unreasonably as to abuse his discretion, and said court [Circuit Court], in accordance with such determination, ... may modify or revise the decision appealed from." Since this is an appeal from the Circuit Court, which considered the administrative decision, we are likewise bound by the standard of whether the commissioner acted illegally or so arbitrarily as to abuse his discretion. Adamczyk v. Shapiro, 4 Conn. Cir. Ct. 338, 339.
Other federal and state laws pertinent to the resolution of the plaintiff's first claim, that the child's accumulated earnings of $100 ought not to be included in determining the total family assets, appear in the footnote.1 *519
The defendant has argued that index 204(C)(1), supra, allows the welfare commissioner to consider a child's accumulated earnings as part of a family's total assets. He states that current income is not taken into account but that federal public welfare regulations provide that "[r]eserves accumulated from earnings are given no different treatment than reserves accumulated from any other sources."
To distinguish earned income and accumulated income as used in the federal and state provisions is to do violence to the entire federal system of public welfare. A disregarding of the child's accumulated earnings instills the incentive to work, whereas reimbursement of this accumulated earned income to the welfare commissioner perpetuates a disincentive to work. Furthermore, the court feels that the disregard provision as to a child's income in
It is further claimed that the fair hearing officer acted arbitrarily in denying a retroactive application of the life insurance's cash value to future premiums.
The Connecticut State Welfare Manual, volume 1, chapter II, index 204(C)(1), states that the agency must include a life insurance's cash value as part of the total family assets. Under index 386(1) of chapter III, if this cash value causes the recipient's total family assets to exceed the $250 limit, the recipient must reimburse the commissioner this amount.
The commissioner has an interest in maintaining the integrity of the system of welfare. This function is carried out by periodic investigations into the amount of assets held by welfare recipients to *521 ensure that only those in need are receiving public support. Failure to report assets, including the cash surrender value of an insurance policy, is not to be condoned. While it is true that the welfare department has permitted the plaintiff to maintain the insurance policy, finding that course in the department's best interest, this does not excuse the plaintiff's failure to make full disclosure.
We find that the fair hearing officer did not act illegally, arbitrarily or in abuse of his discretion in upholding the plan of the agency worker to bring the family assets of the plaintiff within the allowable limit, and we affirm the action of the Circuit Court in so ruling.
There is error in part, the judgment is set aside and the case is remanded with direction to render judgment sustaining the appeal with regard to the bank account and referring the case to the defendant commissioner for action consistent with this opinion.
In this opinion CIANO and SPONZO, JS., concurred.