TN 29 (03-09)
GN 00605.370 Title XVI and Concurrent Handling of Conserved Funds When a Payee Changes
A former payee is generally required to return any conserved funds to SSA for recertification to the new payee or to the beneficiary when the beneficiary becomes their own payee.
NOTE: In some rare instances, the former payee may be permitted to continue administering conserved benefits. This arrangement is allowed only when it serves the best interests of the beneficiary. For instructions on allowing the former payee to administer conserved funds, see GN 00603.130.
B. Request for return of conserved funds and recertification
If a final accounting is required, include a request for return of conserved funds to SSA for recertification to the new payee or the beneficiary, if appropriate with the request for final accounting. (See GN 00603.055) In exceptional situations, the former payee may be authorized to continue administering the conserved funds. (See GN 00603.130)
Generally, a “large amount” of conserved funds is any amount over $4,000. Instructions for administering a large amount of conserved funds are in GN 00502.186, GN 00603.070, and GN 00603.085. Procedures for handling large amounts of conserved funds may be used for smaller amounts at the discretion of the SSA technician.
C. Procedures for handling the return of conserved funds
Compare the amount reported on the final accounting form to the amount of conserved funds actually returned. Check the Debt Management System (DMS) to determine if the funds were returned. See MSOM DMS 003.023 for information on the DMS.
If the final accounting report shows there are no conserved funds, document the Make Note screen of the eRPS.
If there are conserved funds and the amount returned is consistent with the amount indicated on the final accounting form, recertify the conserved funds to the successor payee or beneficiary in accordance.
GN 00603.001 - Conservation of Benefits – Basic Policy;
NL 00703.354 - Conserved Benefits Entire Amount Paid to New Representative Payee or to the Beneficiary; and
NL 00703.356 - Conserved Benefits Monthly Installments Paid To New Representative Payee
If there are conserved funds and the amount returned is not consistent with the amount indicated on the final accounting form:
recertify the returned funds to the successor payee or beneficiary;
re-contact the former payee to obtain an explanation of the discrepancy and to request any existing balance of conserved funds; and
update the Make Note of the eRPS with documentation of the contact.
If the former payee refuses to return conserved funds and the funds amount to $3000 or more, refer the case to the RO, ARC, Programs Operations, and Systems (POS), for referral to the U.S. Attorney for possible civil suit. (See GN 02215.150)
If the former payee refuses to return conserved funds and the funds amount to less than $3000, document the Make Note screen of the eRPS of the attempts made to obtain the funds. SSA will take no further action.
If the payee refuses to return conserved funds to SSA, check the eRPS to determine if the payee serves other beneficiaries. If the payee serves other beneficiaries, a determination of their continued suitability to act as payee on other accounts may be in order.
Record conserved funds reported on the accounting form to the SSR in accordance with SM 01301.639.
For concurrent cases, record conserved funds as title XVI.
See GN 00603.001 Conservation of Benefits – Basic Policy