TN 3 (09-17)
GN 02301.065 Overpayment Owed by Deceased Beneficiary Due Title II Underpayment
A. The deceased beneficiary has an outstanding overpayment
If an overpaid beneficiary is deceased, we will withhold any underpayment to recover the outstanding overpayment. We then issue any remaining underpayment to the proper recipient(s) based on the order of priority listed in GN 02301.030.
B. Instructions for recovering the overpayment
Process underpayments due deceased beneficiaries depending on the status of the overpayment protest:
If the deceased beneficiary has an unresolved overpayment protest (waiver or reconsideration resolution pending), do not release the underpayment until we resolve the protest. Resolve the protest following the instructions in GN 02250.305 and GN 02215.050C for an outstanding waiver request, or in GN 03102.325B.7. and GN 03102.200B.5. for an outstanding reconsideration request.
If the deceased beneficiary has an outstanding overpayment and there is no protest pending, withhold the amount of the overpayment from the underpayment. Pay any remaining underpayment to the proper recipient(s).
NOTE: Checks for the month of death, or later, are not an overpayment unless they were paid:
to a representative payee, or
into a joint account owned by the deceased and another beneficiary on the same record.
These payments are overpayments to the representative payee and the joint account owner, respectively. For more information, see GN 02201.001B.2.