TN 2 (11-88)
GN 02301.085 Special Considerations When a Barred Country is Involved - Underpayment Processing
A. Operating Policy
Make no payment to an otherwise eligible individual living in a country to which payment is prohibited because of Treasury Regulations (RS 02650.001). This is true regardless of the category in which such individual falls.
B. Operating Procedure
Treat as an inquiry an initial writing from an eligible individual in a barred country; i.e., send a letter to the individual without a reconsideration paragraph explaining the underpayment provisions and that even if eligible, the individual cannot receive payment in the barred country.
a. Payment Possible
- Treat an initial writing as a claim when the individual appears to be eligible for payment and expresses interest in leaving the barred country to receive payment. Request the usual claims information and documentation and if payment is appropriate, arrange for delivery of the check outside the barred country.
b. Payment Not Possible
- When an eligible individual in a barred country who requests an underpayment insists upon a formal determination, request the necessary claims information and provide formal notice (including the reconsideration paragraph). This formal notice will usually consist of the amount payable to the individual with the provision that Treasury regulations prohibit payment to him/her in the barred country.
3. ELIGIBLE BARRED COUNTRY RESIDENT
a. One Eligible Individual -
If an eligible individual(s) in one of the three highest orders of priority (GN 02301.030.A.1.a.,b. or c.) reside(s) in a barred country, take no action on the underpayment other than to post it to the MBR and list the case. Make payment only if the eligible individual leaves the barred country or otherwise requests payment and arranges to receive it outside the barred country.
b. More Than One Eligible Individual -
If there are several eligible individuals in one of the three highest orders of priority, some of whom reside in a barred country and some of whom do not, make payment only to those who live outside the barred country. Take no action with respect to payment of the portion(s) due the individual(s) in the barred country, other than to post it to the MBR and list the case. Pay these shares only if the individuals concerned leave the barred country, or otherwise request payment and make arrangements to receive it outside of the barred country.
4. REQUEST FROM INDIVIDUAL NOT IN ONE OF THE THREE HIGHEST ORDERS OF PRIORITY
If a request is made for an underpayment from an individual not in one of the highest orders of priority and the individual is not a resident of a barred country, undertake the underpayment development. Do not contact those individuals in the barred country unless it is essential to the adjudication of the other claims.
5. ALIEN BENEFICIARY DIES IN A BARRED COUNTRY
After June 30, 1968, unpaid benefits due an alien (but not a U.S. Citizen or national-see RS 02650.001) who died while residing in a country to which payment is prohibited by Treasury regulations, may be paid (in an amount usually limited to the last 12 months benefits payable) only to a person entitled to a monthly benefit for the month of death on the same account as the deceased.
a. Ineligible Individual
- Handle as an inquiry an initial writing about the underpayment from an ineligible individual, i.e., one not entitled to benefits for the month of death. Send a letter to the individual explaining why no payment can be made.
b. Eligible Individual
- If an eligible individual, i.e., one who was entitled to benefits for the month of death, resides in a barred country, take no action other than to post the underpayment to the MBR and list the case, unless he/she specifically requests the underpayment, or leaves the barred country. If he/she does write, explain that although eligible, he/ she cannot receive payment in the barred country.
Following are examples which illustrate the application of the nonsolicitation policy.
Margaret Campbell filed for D benefits in April 1988. She was entitled to benefits, but died in July 1988 before receiving any payments. The file indicates D resided with her son in Scotland but no one has requested the underpayment. Take no action other than to post the underpayment to the MBR and list the case.
William Burton, HA, died in England. The executor of his estate files for the underpayment and subsequent development reveals HA is survived by a father who lives in Jamaica.
Deny the executor's request for the underpayment, and take no further action other than to post the underpayment to the MBR.
Joseph Marconi, A, died in Italy in April 1987. His son, Marco, requests the $350 underpayment and states that A was survivied only by himself and two other sons, all residing in Italy. Marco submits birth certificates for all three children as proof of relationship. Pay the underpayment without futher development, one-third to each son.
Nancy Trumbell, D, died in Spain. Her daughter, Maria, requests the underpayment of $790 and indicates D was survived by herself and a son who lives in Morocco. She submits her own birth certificate and gives a complete address for the son. Send a letter to the son informing him of the underpayment and requesting evidence of relationship. If no reply is received within 60 days, pay one-half of the underpayment to the daughter and post the unpaid portion to the MBR. (If the underpayment had been $750 or less, payment would have been made to both Maria and the son, one-half to each, without requesting proof of relationship from the son.)
Willhelm Schmidt, A, died in Venezuela. A son, Hans, inquires about the $250 underpayment. Hans reveal that A was survived by himself, a daughter, Lisl, and another son, Harald. Hans and Lisl live in West Germany. Harold lives in East Germany. Pay one-third of the underpayment to each Hans and Lisl. Take no other action other than to post the remaining one-third of the underpayment to the MBR and list the case.
Same facts as above except that Harald inquires about the underpayment. Inform him that no payment can be sent to him in East Germany. Take no other action except to post the remaining underpayment to the MBR and list the case.