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