TN 16 (04-90)
GN 02210.015 Priority of adjustment - overpayment
1. Adjustment of overpaid person's benefits
First, attempt recovery from an overpaid individual. Seek refund from only the overpaid individual, and if a benefit is payable to that individual, propose adjustment of the benefit.
Adjust a benefit payable on anyearnings record to the overpaid person.
2. Adjustment of benefits on the record
If a benefit is not payable to an overpaid person in his/her own right, adjust benefits on the overpayment record as follows:
Any monthly benefit the overpaid person receives as a representative payee on the overpayment record; then
Any monthly benefit payable to another person living in the same household as the overpaid person at the time of the overpayment; then
Any monthly benefit payable to another person living in a separate household from the overpaid person at the time of the overpayment.
Note:See GN 02205.007 if there is joint and several liability for repayment.
Do not consider adjustment of another person's benefit if withholding of the overpaid person's benefit is available or recovery has been waived from the overpaid person.
Exception:If adjustment from the overpaid person is precluded because of bankruptcy, consider adjustment of another person's benefit if the other person is jointly liable for repayment.
3. Adverse claimant involved
Where an adverse claimant establishes entitlement (GN 01010.100 - GN 01010.140), unless the adverse claimant contributed to the overpayment by collusion or collaboration with the overpaid person, adjustment against the adverse claimant is not appropriate; recovery from the adverse claimant is limited to that in GN 02205.007.
4. Representative payee involved
Where a representative payee who received benefits as a parent for a child is overpaid because of no-child-in-care, adjustment against the child that was not with the parent is not appropriate.
If a misuse determination is made and SSA does not establish good acquittance (GN 00604.045), the misuse benefits are paid to the beneficiary. In such case, the benefits misused by the representative payee is then considered an overpayment to the representative payee.Adjustment against the beneficiary whose funds were misused is not appropriate.
See GN 02201.003 when retroactive increases due some family units are withheld to recover or reduce an overpaid beneficiary's overpayment in retroactive termination, suspense or entitlement situations.