In order to take appropriate actions, SSA’s automated debt collection systems have
always interfaced with an master beneficiary record (MBR) or a supplemental security
record (SSR) for the debtor. In cases where the debtor did not have a MBR, debt collection
required manual control and efforts.
The purpose of the NED initiative is to create an automated system for controlling
debts (both overpayments and incorrect payments) owed by people who do not have MBR.
Therefore, SSA developed the capability within the Debt Management System (DMS) to
identify, record, collect, and otherwise resolve debts owed by NEDs.
The NED database will record overpayments and other debts in a series of releases
to be determined in the future. Ultimately, the plans are to enable SSA to record
and control debts owed by all types of NEDs. SSA intends to use all available, authorized
debt collection methods to recover the debts:
Billing and follow-up via the Recovery and Collection of Overpayments (RECOOP) system;
Benefit withholding if available;
Treasury Offset Program/External Collection Operation (TOP/ECO) process to collect
NED debts by means of tax refund offset (TRO), administrative offset, administrative
wage garnishment (AWG), Federal Salary Offset (FSO) and any collection method subsequently
added to TOP/ECO.
GN 02201.030 Collection of Title II Overpayments by Tax Refund Offset (TRO)
GN 02201.040 Collection of Title II/Title XVI Overpayments by Administrative Wage Garnishment
GN 02201.043 Collection of Title II/Title XVI Overpayments by Federal Salary Offset (FSO)
In addition, SSA plans to report all NEDs to consumer reporting agencies.