If the file does not show that there is a surviving spouse in the first order of priority,
the BA can pay the underpayment to an eligible recipient(s) in categories 2 through
6 of the order of priority list in GN 02301.030 if:
the evidence shows there is no one in a higher class;
for children and parents, it is known how many there are in that class; and
for categories 4 through 6, the underpayment equals three months’ MBP or less.
For information on the evidence needed to receive a Title II underpayment due a deceased
beneficiary, see GN 02301.055.
NOTE: For categories 4 through 6, if the underpayment exceeds three months’ MBP, refer
the case to a CA for any necessary development and authorization of payment.
After we determine the proper recipient(s) of the underpayment, take the following
actions to pay the underpayment:
add it to the survivor award if an automatic conversion is appropriate; or
make payment through the Single Payment System (SPS) if an entitlement conversion
has been done or there is no survivor award for processing. The payee legend for SPS
should read, “(recipient's name) on account of (deceased's name), deceased.”
If the survivor was entitled to benefits in the month of death, but is not entitled
when we discover the underpayment, verify the current address and pay the underpayment
to the survivor accordingly.
Use the recipient’s SSN when using SPS to pay the underpayment to a non-beneficiary.
For more information about SPS, see SM 00834.001B.