Issuing an underpayment to a beneficiary in terminated or suspense status requires
If the beneficiary in terminated or suspense status is not a minor or incompetent,
and there is no indication that the beneficiary needs a representative payee, contact
the beneficiary directly to determine a current address and bank data for direct deposit
(if available). Verify the identity of the individual per GN 00203.020A.2, before
releasing the underpayment. Issue the underpayment directly to the beneficiary. If
you are unable to contact the underpaid beneficiary, develop using undeliverable mail
guidelines per GN 02605.055. If you are still unable to obtain an address for the beneficiary, consider them
“whereabouts unknown.” Follow policy for whereabouts unknown at GN 02602.320.
If the beneficiary in terminated or suspense status requires a representative payee,
issue payment to the appropriate payee via check or direct deposit (if available)
after completing the proper development as listed in GN 02301.020C. in this section.
If the beneficiary is in suspense status for address development, representative payee
development, or whereabouts unknown, complete required development before we pay the
underpayment. If you are unable to obtain an address for the beneficiary, consider
them “whereabouts unknown.” Follow policy for whereabouts unknown at GN 02602.320.
NOTE: Effective December 15, 2009, the Social Security Act prohibits paying any retroactive
benefits, including underpayments, to beneficiaries or terminated beneficiaries while
they are prisoners, fugitive felons, or probation or parole violators (when the arrest
warrant offense code is 4901, 4902, 4999, 5011, 5012, 8101, or 8102). This prohibition
also applies to retroactive payments due to members of the Martinez court settlement
who are currently prisoners, fugitives, or probation or parole violators. For terms
of the Martinez court settlement, see GN 02613.860B.1.
SSA must hold retroactive benefits until the beneficiary contacts SSA and provides
proof that they are no longer a prisoner, fugitive felon, or a probation or parole