TN 19 (12-08)
GN 02408.905 When International Direct Deposit (IDD) Reclamation is not Appropriate
A. Policy for determining when a reclamation would not be appropriate
IDD reclamation action is not appropriate when one of the following is true.
A representative payee is involved. Payments made to a representative payee, after the beneficiary’s death, are treated as a legally defined overpayment to the representative payee.
A joint owner of the beneficiary's bank account is a spouse entitled on the same record. Payments deposited into a joint account after the beneficiary dies are treated as an overpayment to the joint account owner, if the surviving account holder is entitled on the same record as the deceased, for the month of death.
The payment made after death was a Treasury-issued check payment, not direct deposit. The Department of the Treasury (DT) recovers check payments to beneficiaries outside the U.S., from the presenting bank in the U.S.
B. Process when payments went to a representative payee
The Office of International Operations (OIO, PC 8) follows overpayment procedures to collect the money from the representative payee. The representative payee receives a “due process” notice.
C. Process when a spouse on the same record had direct deposit to the same account
OIO follows overpayment procedures to collect the money from the joint account holder who was a spouse entitled on the same SSA record for the month before the month of death. This can be a technical entitlement. OIO sends a “due process” notice to the survivor.