Program Operations Manual System (POMS)
TN 14 (03-97)
GN 02280.030 SSA-3560, Instructions Regarding Overpayments of Social Security Benefits
A. WHAT TO DO TO COLLECT THE OVERPAYMENT
Inform the beneficiary (or representative) of the obligation to refund the overpayment to the Social Security Administration (SSA).
Ask for refund of the overpayment, using the following steps.
Step 1- Ask that the overpayment be repaid in one lump sum.
Step 2- If the person is financially unable to refund the overpayment in one lump sum, ask him to refund as much as possible now and to pay the rest of the overpayment within 30 to 90 days.
Step 3- If refund cannot be made by one of the above steps, arrange for repayment in regular monthly installments that will repay the full amount in the shortest time possible. The debtor should complete the form SSA-632–BK (enclosed). Return one copy of the completed form to the Social Security Administration, give one copy to the debtor and keep the “DO” copy for your records.
In addition, have the debtor complete Section II of form SSA-632–BK (enclosed) when:
All amounts on the SSA-632–BK should be shown in local currency. Tell the beneficiary to submit within 30 days evidence to verify all income and liquid assets. Also tell him to submit evidence to verify rent or mortgage, utilities, insurance, disproportionately large expenses, and expenses which are above normal for the area.
B. HOW THE BENEFICIARY CAN MAKE REFUND
Use the direct SSA Trust Fund crediting procedure through the Post's Class B cashier for refunds made in local currency, U.S. dollars or bank draft to the Post OR
If allowed by your country's currency regulations, the beneficiary can make refund by check or money order made out in U.S. dollars or an equal amount in local currency.
The beneficiary should make the check or money order payable to “Social Security Administration, Claim Number.”
The check or money order should be sent to the address checked below.
SSA cannot accept checks of less than $4.00 drawn on Canadian banks or less than $10.00 drawn on other foreign banks.
If the refund is in local currency, we will use the exchange rate in effect at the time we receive his refund.
The check or money order cannot be accepted if it shows any restrictive clause such as “paid in full”
If the person refuses to refund the overpayment or to complete Part 11 of form SSA-632–BK please send us a statement explaining the refusal, and your suggestion for further actions to recover the overpayment.
C. IF THE BENEFICIARY PROTESTS THE OVERPAYMENT
If the beneficiary thinks he should not have to pay back the overpayment, then develop for waiver.
SSA can waive the recovery of the overpayment if:
the overpayment wasn't the person's fault in any way, AND
the person couldn't meet his necessary living expenses if we recovered the overpayment, or recovery would be unfair for some other reason.
If the above conditions seem to apply, have the person complete form SSA-632–BK(enclosed). All amounts on the SSA-632–BK should be shown in local currency, and expenses and income must be verified as explained under Step 3 of “What to Do to Collect the Overpayment.”
If the person disagrees with the overpayment decision (rather than saying he can't repay the overpayment), obtain a signed statement from the person requesting a reconsideration and explaining why he thinks the overpayment is not correct. Also, have the person submit any additional information about the overpayment.
D. WHERE TO RETURN FORMS AND COMMENTS
Return all forms and comments to: