TN 6 (12-93)

NL 00601.040 Postentitlement Notices

A. Policy

1. When required

Postentitlement notices are used:

  • When an action is taken that affects a beneficiary's benefits or status.

  • For a postentitlement action that results from an initial determination as defined in GN 03101.040 - GN 03101.070.

  • To inform a beneficiary of certain actions that are not initial determinations such as temporary work deductions (see
    GN 03101.080).

2. Types of notices

Postentitlement notices are:

  • Computer-generated notices produced through MADCAP, AJS-3, or other systems.

  • Exhibit letters typed on SSA-L2000-C2.

  • Form notices

  • Dictated letters

B. Procedure

Complete postentitlement notices as follows:

1. Required content and preferred sequence

Include the following in the notice:

  1. Date (see NL 00601.010B.1.)

  2. Claim Number (see NL 00601.010B.2.)

  3. Name and Address of Beneficiary or Representative Payee (see NL 00601.010B.3.)

  4. Opening statement

    This is a short introductory statement. Below are examples of opening statements:

    • We are giving new information about Social Security benefits; or

    • We are stopping benefits (suspension); or

    • The beneficiary is no longer qualified (termination); or

    • We have overpaid the beneficiary by a certain amount.

  5. Reason for action

    • SSA initiated event, e.g., COLA;

    • SSA detected event, e.g., enforcement;

    • First party report, e.g., work report;

    • Third party report, e.g., neighbor reports marriage of young widow.

    State clearly the nature of the report or event, including significant dates (e.g., date of marriage); and significant money amounts (e.g., reported earnings amount). Provide enough detail for the beneficiary to decide if he/ she agrees with the accuracy of the report or event.

  6. Effect on Entitlement or Receipt of Benefits

    • Change in payment status

      Inform the beneficiary of his/her payment status, e.g., benefits resumed, benefits stopped, and the month and year the change is effective.

    • Change in monthly benefit payable (MBP).

      Anytime the MBP is increased or decreased show the effective date and the reason for the change. The check paragraph in the notice shows the new monthly benefit payable.

      Each rate change that is a result of the action currently being taken must be explained. It is not necessary, however, to include historical rate changes; i.e., changes which occurred in the case previously which were explained at the time such as COLA's or ARF's. However, when explaining an overpayment, you must provide all historical information (including MBA's, if appropriate) necessary to fully explain the overpayment amount. (See GN 02201.009.)

      NOTE: Show the MBA in a dual entitlement case when explaining an AERO “increase” that results in a payment decrease.

  7. Payment Information

    • See NL 00601.010B.5 and NL 00601.010B.6 for examples of payment information.

      NOTE: In postentitlement notices where there is a change in benefits the payment information comes after the benefit information

    • One-Time Payment Adjustment

      An action can cause the next check to be different from the ongoing MBP, or may result in a one-check-only or prior month accrual. Include an explanation of the adjustment in the retroactive benefits, and any difference between the ongoing MBP and a check resulting from an action.

  8. Overpayment or Underpayment

    • If an action results in an overpayment, the notice must state the total amount of the overpayment and explain, in detail, the cause of the overpayment. (See GN 02201.009 for required content.)

    • If an action affects the amount or recovery of a prior overpayment, the notice must explain the change and indicate that the explanation for the cause of the overpayment was contained in a prior notice. (See GN 02210.065.)

    • If an action results in an underpayment, the notice must state the cause of the underpayment, the amount, and its disposition.

  9. Change in factor of entitlement, e.g., date of birth.

    Even if the change does not affect current benefits, the beneficiary must be notified of the change since it may affect future benefits.

  10. Reporting responsibilities such as:

    • Need to report change in work and earnings if work deductions imposed based on estimate.

    • Need to report total earnings for year when benefits terminated during th