TN 9 (11-02)

SI 01140.021 Verification Requirements—Conserved Funds (R8) Diary

A. Background

When the Wilkes-Barre Direct Operation Center (WBDOC) processes an annual representative payee accounting report (SSA-623 or SSA-6230), the amount of the eligible individual's conserved funds is input in the CF field in the REPY segment of the SSR. Whenever WBDOC inputs a conserved fund amount that equals or exceeds the SSI resource limit ($2,000 for an individual/$3,000 for a couple), the system will generate an R8 alert to the servicing field office and set an R8 diary.

The initial R8 alert legend will state, “RPA REPORT FOR MM/YY – CONSERVED FUNDS $99999.” The date is the end date of the accounting period. The dollar amount is the amount of conserved funds in whole dollars. After 60 days, a follow-up alert stating “RPA REPORT CONSERVED FUNDS EXCEED RESOURCE LIMIT” will be sent to the servicing field office and the R8 diary will be added to the field office diary control listing. The R8 diary has been established to reduce overpayments caused by excess resources.

B. Procedure—processing the R8 alert and diary

Follow these procedures to process the R8 alert and diary.

1. Limited development of conserved funds

  • Contact the payee as soon as possible by telephone or mail. Timely contact is important since the purpose of the R8 alert is to prevent or minimize overpayments.

  • If an active MSSICS pending file exists, review the MSSICS resource pages to determine the types and amounts of resources previously reported for the eligible individual.

  • Ask the payee about the funds reported in the CF field to determine how the conserved funds are being held.

  • Determine whether any of the conserved funds are excluded from resource counting (e.g., a burial fund, a dedicated account, a T2 or T16 underpayment subject to the 9-month exclusion, etc.).

  • Curtail development and delete the R8 diary if, after subtracting any excluded funds, the individual is below the resource limit. It is not necessary to document the reason for curtailment. However, the claims representative may wish to record the reason using the MSSICS DROC screen or the SSR Remarks field. For example, “R8 CONSERVED FUNDS DIARY DELETED—HAS EXCLUDED BURIAL FUNDS.”

  • Do full development if, after subtracting any excluded funds, the individual is at or above the resource limit.

NOTE: For more information related to the R8 diary, see SI 01140.206C.3.d.

2. Full development of conserved funds

  • Use this full development procedure whenever limited development does not apply.

  • Follow normal POMS procedures to verify the conserved funds. For bank accounts, follow SI 01140.200. For U.S. savings bonds, follow SI 01140.240.

  • If there is an active MSSICS pending file, update the appropriate resources pages to record the verified values of the conserved funds.

  • If the eligible individual's countable conserved funds exceed the SSI resource limit for any months in the review period, input N04 and delete the R8 diary.

    NOTE: If the review is being processed in MSSICS, the N04 will be computed automatically.

  • If the verified conserved funds are under the resource limit, and in the claims representative's judgement the individual's other resources would not cause ineligibility, curtail development and delete the R8 diary. If it appears that the conserved funds plus the individual's other resources could cause ineligibility, fully develop all of the beneficiary's resources.

  • Develop the resources back to the most recent redetermination or the 2-year period prescribed by administrative finality, whichever is less. (See SI 04070.010 for administrative finality.)

  • Do not input a new amount of conserved funds in the CF field unless the WBDOC has input an incorrect amount (i.e., an amount different than the amount shown on the SSA-623 or SSA-6230). After the R8 diary is cleared, the presence of funds over the resource limit in the CF field will not cause it to be reset. The R8 diary is set only at the point the WBDOC does an input in the CF field.

  • If development of the conserved funds reveals that there is unreported income or that the individual's needs are not being met, take appropriate action. It is not necessary to document the file that these conditions are not present.

NOTE: For more information related to the R8 diary, see SI 01140.206C.3.d.

3. Clearing the