TN 15 (02-95)
SSA collects penalties by deducting them from FederalSSI payments before any check adjustment for overpayment recovery.
Collect a penalty (or complete collection) from:
current Federal SSI payments (not in Federal living arrangement FLA-D), or
any Federal SSI payments that begin after a period of FLA-D, nonpay or ineligibility,
an underpayment due a survivor if the decision to collect the penalty occurred prior to the recipient's death.
Do not collect a penalty from:
a recipient by refund, or
title II benefits, or
State supplementary payments, or
Federal SSI payments subject to the FLA-D limit.
Manual Overpayments - P TAC, SM 01311.300
Penalty Input Instructions, SM 01311.305 through SM 01311.307