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), or

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  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 Operations (OEIO).

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

Example 1

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 D.

Example 2

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.

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).

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.

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.

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.

• •

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

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

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

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

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

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

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

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

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

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

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

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