TN 22 (06-16)
GN 02250.330 Waiver for Overpayments due to Dollar Down Rounding
A. Policy for waiver of overpayments due to dollar down rounding
We automatically waive an overpayment when the overpayment is solely the result of dollar down rounding. The system only waives the overpayment that resulted from dollar down rounding if an overpayment resulted from some other event and an overpayment occurred because of dollar down rounding. You must still process the remaining overpayment balance that did not occur due to dollar down rounding according to the normal overpayment procedures found in GN 02201.000 through GN 02270.000.
For more information regarding administrative tolerances for restricting the amount of collection activity on certain classes of debts, see GN 02201.013.
NOTE: The system does not automatically post the dollar down rounding overpayment to the overpaid person’s record. You must be mindful of the dollar down rounding overpayment when you compute any subsequent overpayment that overlaps with the dollar down rounding overpayment.
B. Procedure to waive overpayments due to dollar down rounding
1. Notice information
Do not send a notice to the overpaid person or attempt recovery of an overpayment that is due solely to dollar down rounding. If the system sends an automated notice, take no action unless the person protests the overpayment.
If the overpaid person chooses to refund the overpayment, accept the refund.
If you receive a protest, waive recovery and notify the person of your waiver determination.
If the system automatically posts an overpayment for dollar down rounding and you need to send a manual notice, correct the action by waiving the overpayment and send a notice that only gives information about the action the system took to adjust the overpaid person’s record.
2. Document waivers due to dollar down rounding
If there is no output showing the dollar down rounding overpayment, waive the overpayment and document the waiver determination on the Remarks screen in the Debt Management System (DMS).
Add the following language:
“The system automatically waived the overpayment amount of XX for the period of XX/XX through XX/XX due to dollar down rounding. The person had no control over the benefit computation; therefore, we are determining that the person is without fault in causing the overpayment and are waiving recovery based on the $1,000 Administrative Waiver Tolerance.”
3. Examples of waiving dollar down overpayments
Elizabeth Adams is dually entitled to retirement insurance benefits (RIB) and wife's benefits. After processing her 2014 annual report of earnings in June 2015, Mrs. Adams now has a $1,500 overpayment for 2014. She received additional delayed retirement credits (DRC), which increased her RIB benefit effective January 2015. The resulting recalculation of her wife's benefit and dollar down rounding of both benefits resulted in a $1.00 payment decrease for January through May 2015, which makes her total overpayment amount $1,505. However, since the $5.00 overpayment in 2015 is due to dollar down rounding, we should waive the $5.00 overpayment and document the record in case of a subsequent overpayment determination. Mrs. Adams is responsible for the $1,500 overpayment.
Alex and Diane Fraser each receive $80.00 a month in child's benefits. Their brother Charles was born January 2014 and lives in the same household. Mr. and Mrs. Fraser filed for benefits for Charles in March 2014. Charles was entitled to benefits beginning January 2014. We reduced Alex and Diane's benefits to $53.00 a month effective January 2014. Alex and Diane each received $80.00 for January and February, which caused them to be overpaid $54.00 each. Charles is due $53.00 for January and February 2014. After netting the amount due the family against the amount paid, Alex and Diane are overpaid $1 each. Waive Alex and Diane’s overpayment due to dollar down rounding and document the record in case of a subsequent overpayment determination.
C. Additional Reference
GN 02250.350 Waiver Under the $1,000 Administrative Tolerance