DPSS ePolicy

To convert existing policy to new writing style only – No concept changes

1. Participants may voluntarily sign up for Direct Deposit to have their cash benefits directly deposited in their choice of a bank or credit union account. All monthly benefits are deposited into the designated account by the first of each month. Supplemental benefits and supportive services (transportation and ancillary/work-related) benefits are also deposited into the designated account after they are authorized. The participant will be mailed an approval for Direct Deposit, with information of when Direct Deposit will be available. 
   
2. A participant cannot receive part of the benefits in cash and have part of it in Direct Deposit. The entire amount of the benefits must be in Direct Deposit. 
   
3. Any amount left over from a prior month will remain in the account. If the amount in the bank is under the allowable limit $1,500 the participant can continue to qualify for aid. 
   
4. Each district office has a Direct Deposit Liaison who will handle any inquiries that need to be addressed with the Auditor-Controller (A-C) on behalf of the participant.

Senate Bill 962 mandated that those counties offering Direct Deposit to employees extend the Direct Deposit to participants receiving public assistance. With Direct Deposit, General Relief (GR) participants can choose to have their cash benefits directly deposited into their account at a financial institution of their choice. Direct Deposit does not apply to CalFresh benefits.

Direct Deposit

With Direct Deposit, participants can choose to have their cash benefits directly deposited into their accounts each month at a financial institution of their choice.

Direct Deposit must be offered by eligibility staff to GR participants at Intake, Annual Agreement, and upon request for information about Direct Deposit. The PA 1675-2, Direct Deposit Overview, is reviewed with each applicant/participant at Intake and at any point of contact thereafter.

The participant must have a bank/credit union account

A participant who does not have an existing bank/credit union account must select a bank/credit union and open an account. Once the account is open, the participant can sign up for Direct Deposit.

The participant must be the payee on the case

1. To qualify for Direct Deposit, the participant must be the payee on the case, have an open bank/credit union account, and be named as the sole/joint owner of the account.
2. The participant must understand that if there is another name on the account, that person can also use the funds in the account. This means that an account holder, other than the participant, can also access the benefits. Any funds withdrawn cannot be replaced.

Note: If a married couple is aided on the GR case, and the spouse who is not the payee tries to set up Direct Deposit, Direct Deposit cannot be set up. The name listed on the bank/credit union account must be the same as the payee name on the case, including middle initials. If it is different, the A-C will not set up the Direct Deposit.

The participant must comply with the Direct Deposit Program requirements

1. The PA 1675, Direct Deposit Authorization Sign-Up Form, is provided to the participant upon the participant’s request only when the case is authorized, not when it is in pending or denied status.
2. The participant follows the instructions printed on the reverse side of the PA 1675.
3. The participant completes Section 1 of the PA 1675.
4. The General Assistance/General Relief Detail page is stapled to the PA 1675.
   • The A-C will compare the name on the printout to the name on the account. If the computer system displays Michelle A. Smith, the bank/credit union account must display Michelle A. Smith as well.
     
     Note: If the bank/credit union account displays Michelle Smith rather than Michelle A. Smith, the A-C will deny the Direct Deposit request. The participant would need to resolve the discrepancy first before submitting the PA 1675, Direct Deposit Authorization form, to the A-C.
      
5. The participant understands the importance of ensuring that the CalSAWS screen print remains stapled to the PA 1675.
6. The PA 1918, Verification of Benefits, is signed and attached to the PA 1675.
7. The participant must attach a voided check if he/she is using a checking account.
8. The financial institution must complete Section II of the PA 1675 if the participant is designating a bank savings account or a credit union account.
9. The participant mails the PA 1675, PA 1918, screen print of General Assistance/General Relief Detail page, etc. in the postage-paid return envelope pre-addressed to the A-C for processing.
   
   Note: The mailing address for all Direct Deposit Sign-up and Cancellation forms is noted on the back side of the PA 1675 form.
   
   
10. The participant is aware that it may take up to 20 business days to process the Direct Deposit request. (The 20-day timeframe begins when the PA 1675 is received by the A-C).

Reasons the A-C will reject a Direct Deposit request

1. The case has been denied or is in pending status;
2. The name on the bank/credit union account does not exactly match the payee name on the case;
3. The voided check is not attached or Section 2 of the PA 1675 is not completed;
4. The General Assistance/General Relief Detail page is not attached to the PA 1675;
5. The PA 1675 is not signed; or
6. The PA 1918, Verification of Benefits, is not signed or attached to the PA 1675.

The participant requests to cancel Direct Deposit

1. Verify the issuance method.
2. Give the PA 1675-3, Direct Deposit Cancellation form with a system screen print of the General Assistance/General Relief Detail page with Case Payee and a business-reply envelope (pre-addressed to the A-C) to the participant.
3. Instruct the participant to complete the form and return it in the pre-addressed envelope provided, alerting the participant not to detach the CalSAWS screen print.

Note: The A-C compares the name on the account with the name on the computer printouts; the names must match.

The availability of benefits deposited in the participant’s account

1. Monthly automatic benefits are deposited by the first day of each month.
2. Supplemental benefits are deposited two days after they are authorized.

Benefits that are deposited into an overdrawn account

1. When benefits are deposited into an overdrawn account, the bank/credit union will deduct the amount owed by the participant from his/her account. The County will not be responsible for replacing any benefits to the participant. In this situation, it is the responsibility of the participant to maintain sufficient funds in his/her account.
2. In addition, Los Angeles County will not be responsible for any garnishments deducted from benefits deposited into the designated account authorized by the participant. This means that benefits deposited and later seized or garnished (e.g., by the Internal Revenue Service [IRS], etc.) cannot be replaced.

Bank Account activity available to the County

The bank account activity cannot be monitored or accessed by the Eligibility Worker (EW). The participant must only provide and attach the current bank account balance to the QR7-LA, General Relief Quarterly Report.

Address and Social Security Number (SSN) Discrepancies

The A-C will return all requests for Direct Deposit with address and/or SSN discrepancies directly to the participant for resolution. These discrepancies may include:

1. An address on a voided check is different from the case record. The participant will be required to have the bank complete Section II of the PA 1675. In addition, the participant will be responsible for contacting the EW to correct the address on the case.
2. The SSN listed on the PA 1675 is different from the case record. The participant will be required to contact the EW to either provide a SSN or to provide the correct SSN. Acceptable verification will be either the Social Security card or a letter from the Social Security Administration to verify that the SSN used by the participant is the number assigned. The request for Direct Deposit will not be accepted until the matter is resolved.