TN 31 (01-08)
GN 02402.045 Direct Deposit and Assignment of Benefits
A. Policy - General
Section 207 of the Social Security Act specifically prohibits the assignment or transfer of the right to future Social Security payments.
B. Policy - Request for Direct Deposit
A request for direct deposit which assigns or transfers the right to future payments to someone other than the beneficiary, e.g., to a credit card company or an insurance company, will not be honored. Such a request constitutes an assignment of benefits.
(See GN 02410.001 for a full discussion of assignment of benefits.)
When a request for direct deposit is made which raises a question about possible assignment of benefits, take the following actions:
Get an SF-1199A, and
Verify that there is no assignment, and
Verify that the account title meets the requirements in GN 02402.050.
If there is no assignment, then approve the request.