TN 8 (05-95)

GN 05010.230 Adjustment Against Current Benefits

A. POLICY

An overpayment is recovered from the benefits which are payable to the overpaid beneficiary or another beneficiary entitled on the same account.

The difference is adjusted administratively if the MBC for the month(s) of adjustment is greater than the sum of the:

  • amount withheld to recover the overpayment,

  • amount actually paid for that month(s),and

  • tax amount which would be withheld to produce the payment (e.g., a benefit of $20.00 and a tax of $5.10 produce a payment of $14.90).

NOTE: When benefits are withheld from another beneficiary entitled on the same account to recover an overpayment, these amounts are shown on the record of the individual from whom the overpayment is withheld.

B. EXAMPLE

A, a nonresident alien, is entitled to a RIB of $500.00 effective 11/95 ($372.50 after withholding $127.50 tax). His benefit is increased to $520.00 effective 12/95 ($387.40 after withholding $132.60 tax). In 5/96, it is determined he was not entitled to a benefit for 11/95. He is asked to repay the $372.50 he actually received for that month. In 7/96, action is taken to withhold the $372.50 from the $387.40 which would be paid to him for 7/95.

Amount Payable $387.40
Withheld to Recover Overpayment  -372.50
Paid to A for 7/96 14.90

Administrative Adjustment for 7/96

Withheld to Recover Overpayment $372.50
Payment to A 14.90
Tax Based on Payment to A  +5.10
  392.50
MBC $520.00
   -392.50
Administrative Adjustment 127.50

For accounting purposes, $500.00 ($372.50 withheld plus $127.50 administrative adjustment) is shown on the annual statement as the amount withheld to recover the overpayment.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0205010230
GN 05010.230 - Adjustment Against Current Benefits - 05/19/1995
Batch run: 01/27/2009
Rev:05/19/1995