TN 16 (04-90)

GN 02210.007 Adjustment of benefits due other than the overpaid individual


1. When considered

When efforts to recover from the overpaid person(s) are unsuccessful.

2. From whom

Other persons receiving benefits on the same earnings record as the one on which the overpayment occurred.

Exception: Once a person is relieved of primary and/or joint liability for an overpayment as a representative payee, contingent liability no longer exists.

3. When precluded

Recovery is precluded:

  • Until the other beneficiary is notified of the overpayment; or

  • When recovery is waived from the overpaid person(s) or the other beneficiary.

4. When stopped

When the other person is no longer entitled to benefits; or

When the overpaid person re-establishes eligibility.

B. Procedure

1. Adjustment of current monthly benefits

  1. a. 

    Notify the other person of the overpayment in accordance with GN 02201.009B.

  2. b. 

    Provide the same rights with respect to the overpayment and its recovery as the overpaid person (GN 02201.011).

  3. c. 

    If an appeal and/or waiver is requested, delay adjustment action pending a decision on the request.

  4. d. 

    If adjustment is already in effect when the appeal and/or waiver request is made, repay any amounts withheld beginning with the month of protest. See GN 02210.006.2.b. for waiver requests filed within 30 days of the overpayment notice.

    Example 1:Mary Green was overpaid wife's benefits because of her divorce. Her daughter, Theresa, is her own payee receiving student benefits. She lives with her mother. Mrs. Green was notified of her overpayment in 1/ 88. Since she did not appeal, request waiver, or make refund within 30 days, Theresa was notified of the overpayment and the proposed adjustment of her benefits to recover her mother's overpayment. She did not protest the proposed recovery and her benefits were adjusted effective 5/88.

    Example 2:If, given the facts in Example 1, Theresa had requested waiver when she was notified of the proposed adjustment, adjustment would have been delayed until she had opportunity for a waiver determination and, if waiver could not be approved, a personal conference.

    Example 3:If, in Example 1, Theresa requested waiver in 7/88 but adjustment was not stopped until 9/88, the amount withheld from her 5/88 and 6/88 benefits was proper. The amount withheld from her 7/88 and 8/88 benefits will be paid to her.

2. Adjustment of underpayments

a. General rule

Withhold an underpayment due a person other than the originally overpaid person when:

  • The underpaid person was previously notified that the original overpayment was being moved to their record and of appeal and waiver rights; and

  • The underpaid person did not protest the overpayment or its recovery; or

  • A decision (including a personal conference decision) has been made to deny waiver.

b. Recovery not waived/waiver not pending

If the 30-day advance notice period has expired, withhold any subsequently determined underpayment due the other person.

Example: Following a personal conference decision denying waiver, widow's benefits due Rose Budd were reduced (partial withholding) effective 7 /88 to recover her deceased husband's 1986 work deduction overpayment. In 10 /88, a recomputation results in an increased widow's benefit effective 1/ 87. The underpayment due Mrs. Budd for 1/87-9/88 is withheld to reduce (or recover) the overpayment.

c. Recovery waived

Pay any subsequently determined underpayment.

d. Waiver pending

Pay the entire underpayment if:

  • The 30-day advance notice period has not expired; or

  • A reconsideration request is pending; or

  • A waiver decision, including a personal conference decision with respect to waiver denial, has not yet been made.

    Example 1: Kay Smith was notified that her widow's benefits would be adjusted to recover an overpayment to her daughter. She requested waiver in 5 /88 and, in 6/88, it is determined that she is due an underpayment of $300. Because a waiver decision has not yet been made, the $300 underpayment must be paid.

    EXAMPLE 2:In 10/88, when action was being taken to notify Lane Buy of a proposed adjustment of his retirement benefits to recover his wife's overpayment, it was discovered that he was due an AERO increasing his monthly benefit effective 1/87 and 1/88. Since Mr. Buy had not been notified of his wife's overpayment when the underpayment was determined, no part of the additional benefits due him for 1/87-9/88 will be withheld to recover her overpayment.

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GN 02210.007 - Adjustment of benefits due other than the overpaid individual - 10/19/2010
Batch run: 01/28/2014