TN 12 (08-19)

SI 02901.510 Estimating State Liability and Payment Methods

A. Process

1. Determining Monthly Amount

  1. a. 

    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 fee.

  2. b. 

    SSA bases the expenditures estimate on the following factors:

    • Payment data forwarded to the Treasury Department at month's end for monthly Supplemental Security Income (SSI) payments for the subsequent month;

    • Estimate of any State liability for payments to newly eligible recipients during the subsequent month;

    • 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 cycle.

  3. c. 

    SSA estimates each State's administrative fee based on prior months amount and anticipated increases in the number of payments.

2. Notifying State of Payment Due

  1. a. 

    The regional office (RO) emails the State the amount due approximately seven workdays prior to the end of each month.

  2. b. 

    If, for any reason, State fund disbursements exceed the cash deposit, SSA may notify the State to transfer additional funds before the month's end to cover the deficit.

3. State Requirements

The State is required to provide SSA with the names, titles, email addresses, mailing addresses, and telephone numbers of individuals to contact to initiate the transfer of State funds and to receive written confirmation of the monthly payment amount due. Each State should designate two or more contacts in case of illness or emergency and submit a revised listing whenever there is a change in designees. Forward the identification of designees to the Assistant Regional Commissioner of Management & Operations (ARC-MOS).

B. Policy

1. Electronic Transfer of Funds

  1. a. 

    States should arrange with their commercial bank(s) to transfer funds through the Federal Reserve System to the SSA deposit fund account. ROs must initiate the required monthly transfer of funds by telephone or by email to the State. In return, the State requests its commercial bank to transmit the required funds to the local Federal Reserve Bank or Branch by telephone or by email.

  2. b. 

    The State should advise its commercial bank to include the following information in the transfer request:

    • Amount: $ ;

    • For Deposit to Account: Social Security Administration - SSI - Account Symbol 28X6504;

    • For Account: State of ;

    • Agency Location Code - 28040001;

    • Month for which payment is made; and

    • Transfer to the Federal Reserve Bank of New York.

2. Transfer of State Funds by Check

States that transfer funds by check should forward their checks to:

Social Security Administration

Chief Financial Officer - Office of Finance

P.O. Box 17042

Baltimore, Maryland 21235-0001

3. Timing the Funds Transfer

  1. a. 

    States must deposit funds in the SSA account on the business day before payments are released to recipients.

  2. b. 

    Recipients 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 preceding month.

4. State Problems

States should direct problems or questions concerning the procedures for transfer of funds to the ARC-MOS, or designee.

C. Process — electronic transfer of funds

Following is a sequence of steps involving a transfer of funds through the Federal Reserve System:

  • 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 System (TFCS);

  • 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 computer link;

  • 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.

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SI 02901.510 - Estimating State Liability and Payment Methods - 08/29/2019
Batch run: 08/29/2019