TN 6 (09-02)
GN 00603.085 Installment Payments of Accumulated or Conserved Funds — Title II Only
The FO may determine accumulated or conserved funds of $4,000 or more should be paid in installments. (See GN 00603.070B - Payment of Large Amounts of Accumulated or Conserved Benefits - Title II Only).
When the FO determines disbursement by installment payments is in the beneficiary's best interest, make payments in even multiples of $100 in addition to the monthly benefit. The period for installment payments should not exceed 18 months. However, an exceptionally large accumulation may justify a longer period. Accumulated funds may be withheld for a reasonable period; e.g., 3 to 6 months, pending observation of the payee's handling of current monthly benefits, and then paid in a lump sum or installments depending upon the demonstrated ability of the payee to manage the additional amounts. You must set a diary to pay the funds (or develop for a new payee) at the end of the observation period.
In cases where the FO or PC is on notice that the dollar amount previously determined for the installments should be increased, document the beneficiary's needs and the payee's ability to handle the added amounts and prepare a revised recommendation. State the dollar amount to which the monthly installments should be increased or whether the accrual should be paid in a lump sum.
NOTE: Repetitive payments of $10,000 or more cannot be made by the system. A manual action is required for each month in which the installment payment (accrued benefits plus regular monthly benefits) exceeds $9,999.99.