TN 1 (06-88)

GN 01061.025 How to Instruct BAs to Pay Underpayments

A. Introduction

This section describes the final authorizers instructions to BAs to pay the UP when not completing an award form.

B. Procedure

This table shows the steps to determine remarks to write on Forms SSA-559 or SSA-3601.

StepAction

1

Determine who receives the UP.

IF you pay the UP to

THEN

  • person(s) entitled to benefits on that SSN or

  • person(s) previously awarded the LSDP being paid the UP in the same capacity

identify the person(s) by BIC.

Example: Pay AU to C1

AN ESTATE

indicate the:

  • name of estate administrator

  • designation (as shown in court order)

  • address and

  • basis of payment

person(s) not entitled nor previously awarded the LSDP

indicate the:

  • name

  • address and

  • basis of payment

2

Determine the basis of payment of the UP

IF basis of payment is

THEN show as the check legend

surviving spouse

“ON ACCT OF (name of deceased) DECD”

  • relative no longer entitled to SSA benefits, or

  • court does not appoint legal representative, or

  • relative never entitled

“ON ACCT OF (name of deceased) DECD”

  • attorney payee or

  • court designated payee

“EST OF (name of deceased) DECD”

C. Examples

These examples present situations for instructing BAs on SSA-559 or SSA-3601 to pay the UP when you do not complete an award.

Example

Instruction

RIB beneficiary, John C. Bol, dies, surviving spouse, Tina J. Bol receives the UP. She is not yet eligible for survivors benefits. LSDP was paid.

Pay AU to Tina J. Bol ON ACCT OF John C. Bol DECD (Tina's address)

Elaine D. Lake, widow, dies. Her daughter, May L. Pyn, receives the UP. May once was entitled to childs' benefits on that SSN. Court didnot appoint legal representative of estate.

Pay DU to May L. Pyn ON ACCT OF Elaine D. Lake DECD (May's address)

Court appointed Paul M. Tre executor of estate of Alan E. Cao, disability beneficiary.

Pay HAU to Paul M. Tre EXEC EST OF Alan E. Cao DECD (Paul's address)


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0201061025
GN 01061.025 - How to Instruct BAs to Pay Underpayments - 01/13/2015