TN 8 (02-17)

GN 05002.042 Issuing a Corrected Benefit Statement as a Matter of Equity

A. Policy for issuing amended benefit statements

Even if the statement is correct, SSA will issue an amended benefit statement as a matter of equity and at the beneficiary’s request in the following situations.

1. Beneficiary unable to return payment in that year

SSA erroneously paid a beneficiary and the beneficiary is unable, for certain reasons, to return the incorrect payments to SSA in that year and the beneficiary:

  • did nothing to cause the erroneous payment; and

  • received the payment too late in December to return it to SSA, or he or she did not learn until the next year that payment had been made (payment sent to the bank and notice received the next calendar year); and

  • promptly returned the payment(s) to SSA. Consider repayment prompt if made in January. Consider repayment(s) made in February or March prompt only after the facts show an earlier repayment was not possible. Repayments after March 31 should not be considered prompt.

2. SSA refused to accept repayment

SSA erroneously paid a beneficiary and refused to accept repayment of a potential overpayment; and the beneficiary:

  • believed he or she would be overpaid during the taxable year;

  • attempted to repay benefits during that year, but SSA refused to accept it (e.g., the beneficiary was told to await the receipt of the overpayment notice); and

  • repaid SSA in the current year.

3. PSC action in COM 12 — beneficiary has prior month accrual amount (PMA) check in December

The PSC processed an action in COM 12 (the current operating month) and the beneficiary received the PMA check in December.

  • PMA payment posts to PHUS with an ETD (effective tax date) equal to COM. The PMA check processed in COM 12 will have an ETD of December of the tax year. The problem is when the PMA check includes payments that have PRIOR YEARS involved. The PRORATION YEARS are posted on the PHUS, also. However, the prior year PHUS EVENTS have an Effective Tax Date (ETD) of January instead of December. Therefore, the PMA check will be on this year's tax statement but the prior year breakdown will be reflected on the next tax year's SSA-1099.

    EXAMPLE: P/E action is taken in COM 12/2005. A PMA Check is issued for $2500.00 that includes $1200.00 for the year 2004 and $300.00 for the year 2003.

    PHUS will show:

    • TRANS RPD 12/15/05 COM 12/05 SSC- MCS

    • EVENT- 042 PMA CHECK AMT- $2500.00 ETD 12/05

    • EVENT- 035 PRIOR YR1 AMT- $1200.00 ETD 01/06

    • EVENT- 036 PRIOR YR2 AMT- $ 300.00 ETD 01/06

    Since the actual check was received in December, the beneficiary may request a corrected SSA-1099 to show that amount in box 3 of the SSA-1099 for the year of actual payment.

    If beneficiary makes this request, the technician can correct the current and prior tax years via an SSA-1257 (PHUS Data Change) and complete the “TSY” block so the system will send the beneficiary a corrected SSA-1099.

4. Evidence and Proofs

Accept the allegation of the beneficiary in the absence of positive evidence refuting the allegation.

5. SSA-1099-SM, Social Security Benefit Statement

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GN 05002.042 - Issuing a Corrected Benefit Statement as a Matter of Equity - 02/02/2017
Batch run: 02/02/2017