TN 123 (02-19)

GN 02402.230 Death of an International Direct Deposit (IDD) Beneficiary

A. Acting on death information quickly

The death of a beneficiary abroad requires special handling to avoid sending erroneous payments after death. Because of systems limitations, death termination is not automatically applied to the record of a beneficiary residing abroad if there is any other beneficiary on the record that has not been terminated. This is true for the wage earner, as well as for any auxiliaries or survivors.

Therefore, if there is another non-terminated beneficiary on the record, the record of a foreign resident beneficiary is not automatically terminated for death because:

  • a payment returned for reason of death (whether issued by check or direct deposit), or

  • a death input through post-entitlement system (POS) screens other than manual adjustment credit and award processes (MADCAP).

Payments continue but these actions cause an alert to the Office of Earnings and International Operations (OEIO).

OEIO must make a MADCAP input to terminate the record and stop the payments.

Example 1

Juan Beneficiario who lives in Spain dies. Even though the Federal Benefit Unit (FBU) makes a death input, payments will continue to be issued to him, and his widow will continue to receive payments only as a “B,” until OEIO

  • makes a MADCAP input to terminate his record for death,

  • convert the “B” to “D,” and

  • pay the lump sum death benefit (LSDP).

Example 2

Otto Beneficiary and his wife Anna, living in Germany, are receiving benefits on his account. Anna dies, and the FBU makes a death input. However, even though no LSDP is payable and her death will not change his benefit amount, her benefits continue until OEIO makes a MADCAP death input.

B. Process death information

The key to successfully process death information is close coordination between OEIO, the Federal Reserve Bank of Kansas City (FRBKC), the Federal Benefit Units (FBU) and border offices. When death information is received by one of these entities, it needs to be shared with others to prevent erroneous payments after death and to aid in recovery of payments released before the death report is successfully processed to the Master Beneficiary Record (MBR).

1. Reported death from an Outside Source

When OEIO learns of the death of an IDD beneficiary from a source other than FRBKC or one of nine FBU's (France, Germany, Ireland, Italy, Norway, Portugal, Spain, Sweden, or United Kingdom), take the following actions:

  • Obtain the date of death if it was not included in the report. Ask FRBKC to assist in obtaining the date of death from the deceased beneficiary's Financial Institution (FI).

  • Apply a death termination to the record through MADCAP.

  • Code the death information to ITS.gov.

  • Notify the FBU if the beneficiary had IDD to a FI as listed in this section.

  • Request a FRBKC intercept if the beneficiary had IDD to a FI in a country not listed and applied death input to the record after the cutoff.

2. Report of death from an FBU

When OEIO learns of the death of an IDD beneficiary from an FBU in France, Germany, Ireland, Italy, Norway, Portugal, Spain, Sweden, or United Kingdom, take the following actions:

  • Assume the FBU will take care of any intercepts and reclamations that are needed.

  • Reclaim incorrect payments that went out after death, see GN 02408.900 to GN 02408.950.

3. Report of death from FRBKC

When FRBKC informs OEIO of the death of a beneficiary who did not live in one of the nine countries as listed, take the following actions:

  • Apply a death termination to the record through MADCAP;

  • Examine the record to determine if a reclamation is needed;

  • Reclaim any incorrect payments that went out after death.

4. FBU learns of the death of an IDD beneficiary

When the FBU learns of the death of an IDD beneficiary, take the following actions

  • Send a death input;

  • Intercept any payment(s) that might go out after death. This will prevent any further payments from reaching the FI;

  • Reclaim any incorrect payments that went out after death, see GN 02408.900 to GN 02408.950.

5. FO/TSC learns of the death of an IDD beneficiary

When an FO/TSC learns of the death of an IDD beneficiary, take the following actions

  • Ask for the date of death;

  • Transmit a death input;

  • Send a Modernized Data Worksheet (MDW) to OEIO to notify FRBKC of the death of a beneficiary receiving benefits to a routing number that begins with 51, 61, 62, 70, or 71;

  • Assume the input will terminate the record if the deceased beneficiary is the only on record who has not been terminated.

  • Ask OEIO to input MADCAP to terminate the record for reason of death, see GN 02402.230A.

C. OEIO receives death report of IDD beneficiary

When you receive a report of the death of a beneficiary receiving IDD payments, follow these steps:

  1. 1. 

    Has the record already been terminated for death?

    • If yes, go to step 2.

    • If no, input a death termination.

  2. 2. 

    Do you know the date of death?

    • If yes, make any necessary corrections to the record to pay survivors correctly. Input the death to ITS.gov to intercept any payments after death to the deceased beneficiary.

    • If no, go to step 3.

  3. 3. 

    To reclaim any incorrect payments that went out after death, see GN 02408.900 to GN 02408.950.

D. FO/TSC receives report of IDD death

When you receive a report of the death and the routing number for direct deposit begins with 5, 6, or 7, to indicate the beneficiary was receiving IDD benefits, follow these steps.

  1. 1. 

    Ask for the date of death.

  2. 2. 

    Input the date of death.

  3. 3. 

    Determine whether the input automatically terminates the record.

    • If the deceased beneficiary was the only beneficiary on the record who had not been terminated, assume that the input will terminate the record.

    • If there is at least one other beneficiary on the record who has not been terminated, send a MDW to OEIO to make MADCAP input.

  4. 4. 

    Ask OEIO to code the death to ITS.gov.

E. FBU receives report of IDD death

When you receive a report of the death of a beneficiary receiving IDD payments, follow these steps.

  1. 1. 

    Ask for the date of death.

  2. 2. 

    Send a death input, or send a death notification to OEIO if your FBU cannot send direct inputs.

  3. 3. 

    Code the death on ITS.gov.

  4. 4. 

    Does the routing number through which the deceased individual's payments were being sent begin with 51, 61, 62, 70, or 71?

    • If yes, code the death on ITS.gov.

    • If no, go to step 5.

  5. 5. 

    Is your FBU in the country where the FI is located?

    • If yes, code the death to ITS.gov, and also send a reclamation request to the FI for any payments already paid after death and not returned.

    • If no, notify the appropriate FBU of the death.

  6. 6. 

    Follow GN 02408.900 to GN 02408.950 to reclaim any incorrect payments that went out after death.

F. References

  • GN 02408.900 Recovery of Title II International Direct Deposit (IDD) Payments Incorrectly Issued After Death of Beneficiary

  • GN 02408.901 Who processes an International Direct Deposit (IDD) Reclamation

  • GN 02408.905 When International Direct Deposit (IDD) Reclamation is not Appropriate

  • GN 02408.910 Starting the International Direct Deposit (IDD) Reclamation Process in the Office of Earnings and International Operations (OEIO)

  • GN 02408.912 Process When the U.S. Embassy in Tokyo Processes a Reclamation

  • GN 02408.915 Process when the Office of Earnings and International Operations (OEIO) is Responsible Reclamations

  • GN 02408.920 International Direct Deposit (IDD) Payment Reclamation Forms and the International Treasury Services Application (ITS.gov)

  • GN 02408.925 International Direct Deposit (IDD) Reclamation Process at the Kansas City Financial Center (KFC)

  • GN 02408.930 International Direct Deposit (IDD) Reclamation Process for a Federal Benefits Unit (FBU)

  • GN 02408.935 International Direct Deposit (IDD) Reclamation Process for a Foreign Bank

  • GN 02408.940 Refund to SSA While International Direct Deposit (IDD) Reclamation Is Pending at a Foreign Bank

  • GN 02408.945 Partial Recovery or No Recovery of International Direct Deposit (IDD) Payments


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202402230
GN 02402.230 - Death of an International Direct Deposit (IDD) Beneficiary - 02/13/2019
Batch run: 02/13/2019
Rev:02/13/2019