Effective Dates: 06/25/2024 - Present Previous | Next

TN 84 (06-24)

GN 02210.065 Change in Entitlement or Eligibility Benefit Withholding in Effect

A. Procedure — overpaid individual

If benefit withholding is in effect when the overpaid individual's benefit ceases to be payable, send a notice explaining the change in entitlement and request full refund of the outstanding amount. For sample notice, see NL 00703.106.

Example: In 04/88, the RSI benefit due Al Jones was reduced $50 a month to recover his 1987 work deduction overpayment of $910. Based on a report of work beginning 02/89 and an earnings estimate of $40,000, payment is suspended effective 02/89. We reduced the overpayment to $410 by the 04/88 - 01/89 benefit adjustment. The work suspension notice requests refund of the $410.

If benefit withholding is in effect and it is determined that a benefit is not payable retroactively, refigure the amount which has been recovered and determine any new or additional overpayment (GN 02201.025).

Example: Since 01/88, the $200 student child's benefit due Mona Mills has been reduced to $170 to permit their $300 overpayment to be recovered at the rate of $30 monthly. In 06/88, Mona reports that they married in 04/88. The prior overpayment has been reduced to $210 (i.e., $30 withheld 1/88-3/ 88), and there is a new overpayment of $340 (i.e., $170 paid 04/88 and 05/88). The termination notice requests refund of $550, explaining the new $340 overpayment (including their right to appeal and request waiver) and why it was possible to recover only $90 of their prior overpayment.

B. Procedure — other than overpaid individual

If benefit withholding is in effect due to contingent liability and benefit ceases to be payable, do not request refund of the overpayment balance . The notice explaining the change in entitlement or eligibility will request refund only if the change is retroactive and caused that individual to be overpaid in their own right.

Example: We are reducing James Jay's $280 child's benefit by withholding 10% of their monthly benefit payment to recover an overpayment to their parent. As a result of the 12/87 - 09/88 withholding, there is only $770 still to be recovered from him. Based on a felony conviction in 05/88, we notified James that they are not due payments beginning 05/88 because we are suspending their benefits. We do not request refund of the overpayment. We transfer the remaining balance of the overpayment back to their parent's record and request refund from them for the amount still outstanding.

C. Procedure — subsequent overpayment

If a new overpayment is determined while a prior overpayment is being recovered by partial withholding, propose 10% withholding of the new overpayment and the balance of the old overpayment.

If the individual subsequently requests continuance of the prior withholding rate, grant request without development.

D. Procedure change in benefit

1. Benefit increase

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    Withhold any retroactive increase for prior months to reduce the overpayment (GN 02210.006, GN 02210.007).

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    Do not change the current benefit withholding rate.

2. Benefit decrease

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    If the overpaid individual's monthly benefit amount decreases, the 10% monthly benefit withholding will be adjusted to the new 10% withholding rate but no less than $10.

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    If the overpaid individual's monthly benefit amount is decreased to an amount that is less than $10, we will withhold their entire benefit amount to recover the overpayment.

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    If the overpaid individual's monthly benefit amount is decreased retroactively, adjust the overpayment amount as applicable.

3. Notifying the beneficiary

In the notice of the increase or decrease of a monthly benefit,explain that we will continue to withhold 10% of the monthly benefit amount or $10 per month, whichever is more to recover the overpayment.

Include in the explanation the amount of the original overpayment, the current balance, the amount being withheld, and when recovery will be completed.

If any part of an increase is withheld to adjust the overpayment,provide a clear explanation of what was withheld.

If any decrease results in an additional overpayment, see GN 02210.010A.1.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202210065
GN 02210.065 - Change in Entitlement or Eligibility Benefit Withholding in Effect - 06/25/2024
Batch run: 06/25/2024
Rev:06/25/2024