To correct an overpayment, the local department shall: Determine the correct benefit amount promptly and take action to correct the continuing payment as needed; and Calculate the total amount of the overpayment retroactive to the time of the error. The local department may waive establishment of an overpayment if the: Overpayment is $125 or less; and Case is closed. Administrative Hearings. The recipient may request an administrative hearing to challenge the proposed action to reduce, suspend, or terminate benefits. If a hearing decision upholds the proposed reduction, suspension, or termination, the overpayment includes any overpayments made pending the decision. A former recipient of benefits may request an administrative hearing to challenge the local department's decision: That an overpayment occurred; Of the amount or cause of the overpayment; or Of the proposed method to repay the overpayment. Collection of an Overpayment. Termination of benefits does not relieve the recipient of the obligation to reimburse the local department for any overpayment. The local department shall: Request repayment of the overpayment debt; and Refer the debt to the Central Collection Unit of the Department of Budget and Management, if appropriate. If benefits are subsequently reinstated, the local department shall begin recoupment of the amount of the overpayment in accordance with this chapter. A current or former recipient shall reimburse the local department for any overpayment and the local department shall accept and credit the payment.