TN 1 (01-05)

SI 00530.025 Deferral of Overpayment Recovery

NOTE: On April 1, 2009, SSA changed its policy of not paying fleeing felons. Follow the instructions below only for felony warrants with offense codes 4901, 4902, or 4999. Follow the Martinez settlement instructions in GN 02613.860 GN 02613.885 for all other felony warrant codes.

On May 9, 2011, SSA changed its policy and no longer suspends or denies benefits or payments based solely on a probation or parole violation warrant (i.e., warrants with offense codes 5011, 5012, 8101, 8102, or 9999 or “Blank” and an offense charge symbol of “probation or parole violation”). Follow the Clark Court Order instructions in GN 02615.100 GN 02615.190 for all probation or parole violation warrants.

We will make additional changes to this section, as necessary, in the future.

A. Background

The Congressional intent of the fugitive felon provision is to prevent Titles II/XVI funds from aiding a person's flight from justice. It is not to permanently deny beneficiaries/recipients their SSA benefits or payments.

If good cause is found using the ‘good cause' criteria found in SI 00530.015, and benefits have been suspended, SSA is required to reinstate benefits/payments. SSA is also required to repay any previously withheld payment and/or recovered overpayment. Good cause must be found if a court finds the individual not guilty, dismisses the charges, or issues any similar exonerating order. Any of these could occur months after a person has been suspended.

If a person is suspended retroactively for a period during which payments were made, the person would be overpaid, and SSA would attempt to recover the overpayment. If the person is acquitted through the court system, SSA would have to repay any recovered overpayment. Therefore, to prevent unnecessary overpayment development, SSA will defer the recovery of the overpayment in certain circumstances (i.e., until SSA learns of the disposition of the charges or outcome of a trial.)

B. Policy

Recipient Protests Suspension of Benefits During Goldberg-Kelly Period

No SSI payment may be suspended, reduced or terminated until written advance notice of the planned adverse action is given to the recipient. If the recipient files a timely appeal to protest the proposed suspension, reduction or termination, SSA must continue to pay the recipient until the appeal decision has been rendered. Regulations define a timely appeal for payment continuation purposes as an appeal filed within 10 days of receipt of the notice to suspend. (Refer to SM 01305.500 through SM 01305.510)

  1. Recipients will be suspended (N25) for a closed period of time and any overpayment recovery will be deferred if the recipient:

    • Files the appropriate request for appeal within the 10 day period; and

    • Has surrendered to or has been apprehended by law enforcement for the criminal charges cited on the warrant.

  2. The fugitive suspension period will begin with the month the warrant was issued and end with the month the beneficiary surrenders to or is apprehended by law enforcement officials.

  3. Recovery of any overpayment created by the fugitive suspension (N25) will be deferred until a court or administrative governing body (e.g., parole board, etc.) determines the disposition of the charges (i.e., whether there is a plea agreement, the recipient is found guilty or innocent of the criminal charges, or the charges are dismissed). When the disposition is known, SSA will either remove the suspension period or begin normal overpayment recovery procedures.

NOTE: The key to using a closed period of suspension and deferring the overpayment is that the recipient must no longer have an unsatisfied warrant at the time he/she timely contacts SSA with his/her request for reconsideration of the suspension of his/her SSI payments.

C. Procedure

Title XVI overpayments that result from a PSY of N25 suspension require a manual notice because these cases are excluded from the Automated Overpayment Notice System (AONS). (Refer to SM 01310.305)

The system sets a B3 diary when it detects a new overpayment with a reason of payment status N25. A manual overpayment notice will need to be issued once a determination on the disposition of the charges on the unsatisfied warrant have been made by the appropriate court system or administrative governing body. The Notice of Planned Action to suspend payment for N25 will continue to be issued unless the user suppresses the regular notice. Continue to monitor the B3 diaries that are due to an N25 suspension for resolution.

Once an individual has satisfied the felony warrant, he/she may be placed in payment status N22. These cases will not pass the N25 overpayment to RECOOP as long as the notice date is not input.

On the Notice Suppression Screen in MSSICS, the user has the option of suppressing the regular notice, the AONS notice or both the regular and the AONS notices. (Refer to MSOM BUSSR 002.018 ).


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0500530025
SI 00530.025 - Deferral of Overpayment Recovery - 06/06/2013
Batch run: 06/06/2013
Rev:06/06/2013