NOTE: If the deceased beneficiary lives outside the U.S. but has a domestic account and
not IDD, technicians must follow the procedure outlined in GN 02408.410.B.
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 Death Information processing System (DIPS) 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 Garcia 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). IMPORTANT: If she is receiving benefits through
IDD then its.gov will need to be updated to reflect the conversion from BIC B to BIC
Otto Miller 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.