TN 18 (11-08)
GN 02408.600 General Overview of EFT Reclamations
A. Process for reclamations from U.S. financial institutions (FI)
Reclamations of Title II or Title XVI direct deposit payments that were sent to accounts in U.S. FIs are mainly automated. The sequence of events usually follows this pattern:
SSA receives the death information and makes an input, or the death information from a match against records from States or other agencies is applied to the record.
The record is terminated for death (payment status T1 for Title II or T01 for Title XVI).
A Death Notification Entry (DNE) goes to the beneficiary’s/recipient’s FI with information about the death (see Death Notification Entry GN 02408.605).
An E-stop (SF-1184) goes to the Department of the Treasury (DT) to request a reclamation of EFT (direct deposit) payments made after death that were not due and have not been returned.
DT sends a Notice of Reclamation, FMS-133, to the FI to recover the requested payments.
Depending on the FIs response :
The FI returns all of the payments, if available;
The FI returns a partial payment, if available, or no payment, if funds are unavailable, AND provides the name and address of the last withdrawer of the funds in Title II cases; or
DT directs the Federal Reserve Bank to debit the FI’s account for some or all of the funds that have not been returned, if the FI does not comply with the FMS-133.
SSA attempts to recover any funds that were not reclaimed because they were withdrawn from the account by sending a notice to the address of the last withdrawer that is provided on the FMS-133. See SSA Contacts Last Withdrawers GN 02408.630.
When funds are unable to be recovered from the last withdrawer, we complete the FMS-133 and return it to Treasury.
Treasury debits the FI’s Federal Reserve account for the limited liability amount. See Financial Institution’s Liability EFT Reclamation GN 02408.625.
NOTE: The reclamation request must be sent within 120 days of the date SSA learned of the death. An FI may protest any reclamation it believes the agency initiated more than 120 days after the agency learned of the death.
B. Process for reclamations from foreign FIs
Reclamations of direct deposit payments sent through International Direct Deposit (IDD) to accounts at FIs outside the country cannot be processed automatically or through manual input of E-stops. These funds must be reclaimed through manual actions.
Information about the reclamation of payments made through IDD starts at Recovery of Title II IDD Payments Improperly Issued After Death of Beneficiary GN 02408.900.
C. Policy for EFT payments issued after death that are not due
For Title II, a payment for the month of death or later is not due and must be reclaimed. For Title XVI, a payment for any month later than the month of death is not due and must be reclaimed.
For a description of the exception of early payment delivery dates for Title II and Title XVI, see GN 02408.650E.
D. Policy when the date of death is input in the wrong month
Sometimes a date of death is input incorrectly in a different month from the month of death, causing stop-payments to be put on payments for which the beneficiary/recipient is actually entitled or causing some payments that are not due to not receive a reclamation request.
EXAMPLE: A beneficiary died in March but the date of death was input as January. The beneficiary was actually entitled to the payments issued in February and March.
To correct this problem, SSA corrects the date of death and then requests an abandon reclamation for the EFT payments issued in February and March. Use the abandon reclamation request form found at GN 02408.800.
EXAMPLE: A beneficiary died in March but the date of death was input in May. SSA corrects the date of death and inputs manual reclamation requests on the April and May payments since they were issued after death. For manual reclamation instructions, see GN 02408.620.