BASIC (11-96)

SI 00832.003 Review of Prior Anderson Underpayment Determinations

A. Anderson Underpayment Determinations — Introduction

In its January 28, 1992 order, the U.S. District Court for the District of Montana invalidated the method used by VA and SSA to determine the class member's portion of an augmented VA protected pension. Instead, SSA must ask VA to determine in each case the portion of the VA benefit that is attributable to the class member and provide that information to SSA.

B. Anderson Underpayment Determinations — Policy

Cases SSA previously reviewed using earlier Anderson instructions must be reviewed again in compliance with the January 28, 1992 court order, if an underpayment might result.

C. Anderson Underpayment Determinations — Process

RO's will notify FO's of cases which require second reviews by sending SSIRD's for cases in the FO's service area. In each case, the FO will write to the VARO for correct VA income information. VA will recompute the correct VA income amount based on procedures developed as the result of the January 28, 1992 order and respond to the FO. SSA will then make income correction inputs, if necessary, and pay any underpayments due. FO's will also take steps to resolve any SSI overpayments that result when verified VA income exceeds the amount of posted VA income.

D. Procedure — Reviewing Cases

Use the list below to review cases processed under prior Anderson instructions.

  1. Prepare an SSA-L1103 to request VA payment information for the Anderson relief period per SI 00832.002 C.1.

  2. Compare the information VA sends you to the VA payment information presently on the SSR. Is the verified monthly amount of VA income in the relief period the same as the monthly amount shown on the SSR?

    • If yes, input a CG code of “AND2 MMYY”. Issue the form letter displayed in SI 00832.004 F. Skip to 9.

    • If no, go to 3.

  3. Is the verified monthly amount of VA income in the relief period more than the total monthly amount shown on the SSR in the entire period?

    • If yes, go to E. below.

    • If no, go to 4.

  4. Does the recipient have only one record and is that record active (i.e., payment status C01, E01, or suspense)?

    • If yes to both, input the verified amount of VA income effective with the first month of the relief period, and input a CG code of “AND2 MMYY”. Allow the system to process the underpayment. Issue the form letter displayed in SI 00832.004 D. at the time of the input, so the recipient receives it before the automated Notice of Change in Payment. Skip to 9.

      REMINDER: Do not permit the system to net the underpayment amount against the amount of a prior overpayment, per SI 00832.002 C.2.e.

    • If no to either, go to 5.

  5. Manually compute the correct Anderson underpayment amount per SI 00832.002 D. for all periods covered by terminated or denied records.

  6. Subtract the Anderson underpayment previously paid for periods covered by terminated or denied records from the result of 5 above to determine the additional underpayment now due on these records.

  7. Issue the additional underpayment computed in 6 above for all periods covered by terminated or denied records per SI 00832.002 C.2.b.

  8. Is there currently an active record?

    • If yes, input the verified amount of VA income effective with the first month of the active record. Also input a CG code of “AND2 MMYY” . Issue the form letter displayed in SI 00832.004 E. at the time of input so the recipient receives it before the automated Notice of Change in Payment. Skip to 9.

    • If no, issue the form letter displayed in SI 00832.004 E. Develop for current SSI eligibility per SI 00832.001 D.7. Go to 9.

  9. Complete a copy of the Anderson Case Report (SI 00832.004 G.). STOP.

E. Procedure — Cases with Overpayments

Deem the overpaid person without fault and deem recovery to be against equity and good conscience with respect to any overpayments caused by the January 28, 1992 Anderson court order. Do not issue a notice of overpayment. Follow the procedure in the chart below:

  1. Is there an active record (i.e., payment status C01, E01, or suspense)?

    • If yes, go to 2.

    • If no, issue the form letter displayed in SI 00832.004 F. Waive recovery of the overpayment by completing the overprinted report of contact in SI 00832.004 H. below. Skip to 8.