TN 7 (03-99)
Approximately seven workdays before the end of each month, SSA estimates the amount
of funds necessary to cover State expenditures for the next month and the administration
SSA bases the expenditures estimate on the following factors:
Data from the payment tape forwarded to the Treasury Department at month's end for
payment of monthly supplemental security income (SSI) benefits for the subsequent
Estimate of any State liability for payments to newly eligible recipients during the
Estimate of operating adjustments in the following month such as unnegotiated check
amounts scheduled for crediting;
The balance of State cash on deposit with SSA at the close of the prior month accounting
SSA estimates each State's administrative fee based on prior months experience and
anticipated increases in the number of payments.
SSA (regional office) will notify the State of the amount due by telephone each month
and follow up with a written notice approximately seven workdays prior to the end
of each month.
If, for any reason, State fund disbursements will exceed the cash deposit, SSA may
notify the State to transfer additional funds before the month's end to cover the
The State is required to provide SSA with the names of individuals (also their titles,
addresses, and telephone numbers) who should be contacted to initiate the transfer
of State funds and to whom the written confirmation of the monthly payment amount
due should be sent. Two or more individuals should be designated for contact in case
of illness or emergency and a revised listing should be submitted by the State whenever
there is a change in the designees. This identification of designees should be forwarded
to the Regional Commissioner (RC).
States should arrange with their commercial bank(s) to transfer funds through the
Federal Reserve System to the SSA deposit fund account. Arrangements should provide
for the commercial bank to initiate the transfer of funds based on either a telephone
or teletype message from the State. The State should also request its commercial bank
to transmit the transfer of funds request to the local Federal Reserve Bank or Branch
by telephone; if this method is not permitted within the Federal Reserve Region; it
should make the request by teletype.
The State should advise its commercial bank that the transfer of funds should include
the following information in the transfer request:
Amount: $ ;
For Deposit to Account: Social Security Administration - SSI - Deposit Account Symbol
For Account: State of ;
Agency Location Code - 28040001;
Month for which payment is made; and
Transfer to the Federal Reserve Bank of New York.
Those States which transfer funds by check should forward their checks to:
Social Security Administration
Chief Financial Officer - Division of Finance
P.O. Box 17042
Baltimore, Maryland 21235-0001
States must deposit funds in the SSA acount on the fifth business day after payments
are to be made to recipients.
Recipients will receive payments on the first day of each month or, when the first
day of the month falls on a Saturday, Sunday, or holiday, the last workday of the
Any State problems or questions concerning the procedures for transfer of funds should
be directed to the Assistant Regional Commissioner (ARC), Programs or designee.
Following is a sequence of steps involving a transfer of funds through the Federal
SSA advises State of amount due;
State obtains necessary clearance to release funds, then telephones or wires request
for transfer of funds to its commercial bank;
Commercial bank prepares the standard funds transfer wire message and enters this
message into the Fedwire System which integrates with the Treasury Financial Communication
Local Federal Reserve Bank or Branch charges commercial bank's account and transmits
request to the Federal Reserve Bank of New York via the TFCS system;
Federal Reserve Bank of New York charges the account of the requesting Federal Reserve
Bank, credits the account of the U.S. Treasury and advises the Department of the Treasury
in Washington, D.C. of the pertinent data relating to the transfer of funds via its
The Department of the Treasury prepares deposit ticket certifying the deposit to SSA
Deposit Fund Account and forwards the Certificate of Deposit to SSA; and
SSA credits the State for the funds transferred.