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.)

C. Procedure

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.

To Link to this section - Use this URL:
GN 02402.045 - Direct Deposit and Assignment of Benefits - 01/08/2008
Batch run: 01/27/2009