TN 2 (09-85)

GN 01704.885 Italian Overpayment Case Procedures

A. General

The basic Italian social security benefit rarely provides the minimum income required by Italian law. As a result, the basic Italian benefit is increased to this legal minimum if the beneficiary has no other income. The amount of the increase is called the integration. If Italy is paying a benefit based on a prorata fraction, the receipt of a U.S. Social Security benefit, which is considered income, could decrease or eliminate the integration. If an Italian beneficiary fails to tell INPS when U.S. benefits are awarded, an Italian overpayment occurs.

Italian law makes it difficult for INPS to recover overpayments. Therefore, INTPSC has agreed to control those cases identified by INPS as the source of potential overpayments based on entitlement to U.S. benefits at a future date.

INPS identifies potential overpayment cases by forwarding the following forms to INTPSC:

1. FORM IT/USA 7

When an individual files for old-age benefits from Italy and anticipates filing for U.S. benefits at a date more than 6 months in the future, the INPS provincial office will obtain a completed Form IT/USA 7. This form does not constitute “protective filing” for U.S. benefits; it does not protect the future rights of the individual. It merely identifies for INPS those situations which might result in overpayments when, and if, the individual receives U.S. benefits. INTPSC will never request a Form IT/USA 7 from INPS. The claimant selects one of the following dates for entitlement to RSDI benefits:

  1. At age 62; or

  2. At age 65; or

  3. At (month/year).

Use the date the claimant selects to compute the diary date (see B.1. below).

2. FORM IT/USA 9

Form IT/USA 9 is a transmittal/check sheet which is completed by INPS. It is used by INPS in lieu of our Form SSA-2960-U5-IT. It is used by INTPSC to verify the receipt of the forms which INPS listed as attachments.

For these cases, INPS should list:

  1. A photocopy of the IT/USA 1; and

  2. IT/USA 3 bis (an Italian earnings record).

B. Establishment and maintenance of overpayment controls

1. Establishment

LCs are responsible for establishing controls on these cases. For each IT/ USA 7 received from INPS, an LC prepares an Integrated Benefit Card (IBC).

An IBC is a 3” ×5” file card which displays a diary due date, the number holder's SSN and the name of the INPS beneficiary.

The first item on the card is the diary due date which is computed from the item checked under part I or part II of the IT/USA 7 as follows:

  1. If a legible and completed IT/USA 3 bis is in the folder and the applicant resides outside the United States, compute the diary due date by subtracting 4 months from the date the applicant selected to become entitled to RSDI benefits.

  2. If a complete and legible IT/USA 3 bis is in the folder and the applicant resides in the United States, compute the diary date by subtracting 3 months from the pertinent date shown on the IT/USA 7.

  3. If there is no IT/USA 3 bis or if the IT/USA 3 bis is not legible or is incomplete, compute the diary due date by subtracting 8 months from the pertinent date shown on the IT/USA 7, regardless of country of residence.

The second item is the SSN of the number holder and third item is the name of the INPS beneficiary. LCs may show additional information on the card, but the three items mentioned must be shown on top.

2. Filing

An LC, appointed by each totalization module manager, is responsible for filing all the IBCs in an IBC file. The IBCs are filed by the year and month of the due date and then in SSN order.

3. Deleting

INPS' provincial offices obtain a completed Form IT/USA 7 from every applicant who completes an IT/USA 1, restricts his/her entitlement to Italian benefits, and intends to receive U.S. SSA benefits beginning at a date more than 6 months in the future. The provincial office will forward the Form IT/USA 7 to INTPSC before it is known whether or not the individual will receive an integrated benefit. As soon as the IT/USA 7 is received in INTPSC, an IBC will be prepared and filed unless the IT/USA 7 is not complete; in that case, return to INPS for completion.

Subsequently, the INPS regional office may inform SSA whether or not the integrated benefit is being paid. If the integrated benefit is not being paid, delete the IBC.

4. Controlling

The LC will pull those cards with due dates for the current month on the first working day of that month. The cards should be photocopied and given to the lead file clerk for association with the claims folders and distribution to the appropriate LC for necessary action. (TOE 540 should be assigned to this work.)

C. Processing

1. Cases without complete legible Italian earnings information

When IBCs come due (8 months prior to election) for cases with inadequate Forms IT/USA 3 bis, request earnings informati