GN 02230.018 Death Termination Outstanding Payments
AUDIENCE: BA, BATA, IES
Incorrect Payments—Outstanding Checks
The control of an outstanding check(s) for the month of death or any subsequent month is part of the “Death Termination” Program. If a beneficiary is terminated by this program, the amount of the outstanding check(s) is recorded on the MBR in the history field as terminated but paid. If the outstanding check(s) is returned and entered into the system, the IP is reduced by the amount of the returned check and history is corrected. However, in single-beneficiary-(no survivors)-on-the-account situations, where the date of termination (DOST) is 2 or more months prior to the current operating month, (COM) or the DOST is 1 or more months prior to COM, and the MBR contains a bank address, the case will be alerted with the remark “Prepare SF-1184.” In addition, the Death Termination Program will not create or annotate the OPA on the MBR for these cases. The above procedures should be used whenever a manual death termination is processed.
If the outstanding check(s) has not been returned within 60 days, an MBR printout will be received. The folder will be examined to ascertain if the outstanding check or an equivalent refund is in file or the amount of the outstanding payment was withheld from a lump-sum or underpayment award. If the IP has been adjusted or refund made, correct payment history and the OPA field established on the MBR, if necessary, and return the folder to files. Where the folder does not indicate the return of the outstanding check, refund, or an adjustment of the IP, the appropriate check cancellation listing should also be examined before any further recoupment action is taken.
Where the outstanding check(s) appear on these listings and no action has been processed to credit the returned check to the account, correct payment history and the OPA field on the MBR and return the folder to files. Where action has been taken to update the returned check to the MBR, no further action is necessary.
Where all information in file indicates the checks(s) is still outstanding, the case will be handled as follows:
Where a representative payee is involved, an overpayment has been made if the payee is not entitled to benefits, or adjustment against his benefits is not currently available, follow instructions in SM 00610.772, Non-Entitled Overpaid Persons, to establish an event on ROAR. Proceed with overpayment recovery in accordance with recovery procedures. In this instance, the SF-1184OP will not be prepared. This procedure is used for both EFT and direct payment.