New applicants for Social Security and Supplemental Security Income benefits must receive their payments electronically. Treasury instituted an all-electronic initiative that required check receivers to switch to an electronic form of payment. Treasury determined that beneficiaries living in a foreign country who refuse to participate in electronic payments based on hardship can file for a waiver.

While we prefer to pay beneficiaries in foreign countries electronically, Treasury may grant an exemption to the electronic payment requirement based on certain conditions. Please see Direct Deposit Policy regarding other exemptions to Treasury’s All Electronic Payment Initiative in GN 02402.001. This policy applies regardless of date of eligibility. Pay benefits by check if a beneficiary residing outside the U.S. inquiries about a waiver from the direct deposit requirement or otherwise indicates that payment by direct deposit would impose a hardship.

NOTE: Because of local automated clearinghouse (ACH) requirements, Treasury generally makes IDD payments in local currencies. Interviewers in claims-taking Federal Benefits Units (FBUs) or border offices should ask if the beneficiary has an account in either the U.S. or an IDD country. If the answer is yes, interviewers should assume that the beneficiary will receive payment by direct deposit. If the answer is no, ask them if they would like to enroll for direct deposit. If they do not wish to enroll for direct deposit, inform the beneficiary that they can file for a waiver. When developing a claim by mail from a claimant in a country with no claims-taking unit, Office Earnings and International Operations (OEIO) should inform the claimant about the availability of direct deposit in the U.S. or an IDD country.

REMINDER: There are very rare instances when title XVI recipients living outside the U.S. may receive benefits. For instances when we consider an SSI recipient living abroad eligible for payments see SI 00501.411 and SI 00501.415.

IMPORTANT: If the FBU, OEIO/DIO, or border field office receives the IDD signup form (e.g., SSA-1199) via mail, you must verify the beneficiary’s identity before adding or updating the new IDD information into our systems. For more information on how to verify the beneficiary’s identity please refer to GN 02402.025.

Beneficiaries generally receive regular monthly IDD payments on the third of the month. Treasury sends IDD Prior Monthly Accrual (PMA) payments on a daily basis. When the payment date for a regular monthly payment or a PMA payment coincides with a non-business day in the foreign country, Treasury generally deposits payments on the next business day. In some IDD countries, FIs may post direct deposit payments 1 to 3 days after the payment date, according to the local banking customs.

The payment date for a PMA payment is generally 4 workdays from the date it goes to Treasury. However, a PMA payment sent to Treasury after the close of the current operating month may contain the payment for that month. Therefore, it is illegal for a PMA check to contain a date earlier than the first day of the following month. For details about how to determine the date of an IDD PMA payment see GN 02402.225A.2.

Beneficiaries must meet the following conditions to be eligible for IDD:

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  Beneficiaries using IDD must reside outside the U.S. and have a foreign address on record.

  NOTE: When we say “outside the U.S.” we mean that beneficiaries are not residing in one of the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa.

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  Beneficiaries using IDD must keep us informed of their residence address.

NOTE: When beneficiaries return to live in the U.S., IDD will cease.

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  Accounts selected for direct deposit in foreign financial institutions (FI) must meet the requirements outlined in GN 02402.030 and GN 02402.045 through GN 02402.060.

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  The beneficiary must submit their request for IDD on the signup form developed for the country or a document containing the same information. For a list of countries that have forms available, see GN 02402.220.

Beneficiaries may reside in one foreign country and have IDD arrangements in another foreign country (e.g., a beneficiary who resides in Belgium but banks in France). The only exception is beneficiaries residing in a Treasury barred country cannot receive payments. For more details on Treasury IDD restrictions see RS 02650.001. Requests for direct deposit to a foreign FI must be on the signup form developed for that country or in a format that includes the same information found on the country's signup form. For foreign country enrollment forms, see GN 02402.220D. The FBU will code IDD account data on applications taken at claims development posts. Section 3 (below the signature block on the application) contains the account data.