Social Security

A. Purpose

The purpose of this Emergency Message (EM) is to provide interim guidance regarding Title II overpayments caused by dollar down rounding. The original instructions in GN 02250.330, Waiver for Overpayments Due to Dollar Down Rounding, were archived.

B. Background

We will automatically waive an overpayment that is solely the result of dollar down rounding based on the administrative waiver tolerance. The Title II Redesign (T2R) system will “waive” the overpayment that resulted from dollar down rounding when going through the paid versus payable process. T2R will not post the overpayment to the individual’s record. If the T2R system is processing multiple actions, it will exclude the amount that is the result of dollar down rounding and post the remaining overpayment to the individual’s record. We must process any remaining overpayment balance that did not occur due to dollar down rounding by following the normal overpayment policy and procedures in GN 02201.001 and GN 02201.009.

For more information regarding the administrative tolerances for restricting the level of effort for collection activity based on certain classes of overpayments, see GN 02201.013.

NOTE: T2R does not automatically post the dollar down rounding overpayment to the individual’s record. We must be mindful of the dollar down rounding overpayment when computing any subsequent overpayment that overlaps with the dollar down rounding overpayment.

C. Processing Instructions

1. When the system processes an overpayment with dollar down rounding

· Do nothing if the overpaid individual does not protest the overpayment.
· Accept any refund if the overpaid individual chooses to refund the overpayment and process as normal.
· Correct the overpayment action if the system automatically posts it for dollar down rounding and we need to send a manual notice by waiving the dollar down rounding overpayment using decision reason 77 on the Waiver Approval Under $2,000 (Primary) (DRWP) screen in the Debt Management System (DMS).
· Send a manual notice that only gives information about the action the system took to adjust the overpaid individual’s record.
2. How to document the determination

· Do not use form SSA-635, Waiver Determination.
· Document the waiver determination on the DMS Remarks screen.
· Use the following language: “The overpayment amount of $XX for the period of MM/YYYY through MM/YYYY was due to dollar down rounding. We waived the overpayment based on the $2,000 Administrative Waiver Tolerance.”

3. Examples of waiving dollar down overpayments

· Example 1: Elizabeth Adams is dually entitled to retirement insurance benefits (RIB) and wife's benefits. After processing Elizabeth’s 2014 annual report of earnings in June 2015, Elizabeth now has a $1,500 overpayment for 2014. They received additional delayed retirement credits (DRC), which increased their RIB benefit effective January 2015. The resulting recalculation of their spouse’s benefit and dollar down rounding of both benefits resulted in a $1.00 payment decrease for January through May 2015, which makes their total overpayment amount $1,505. However, since the $5.00 overpayment in 2015 is due to dollar down rounding, we should waive the $5.00 overpayment and document the record in case of a subsequent overpayment determination. Elizabeth is responsible for the $1,500 overpayment.
· Example 2: Alex and Diane Fraser each receive $80.00 a month in child's benefits. Their brother Charles was born January 2014 and lives in the same household. Mr. and Mrs. Fraser filed for benefits for Charles in March 2014. Charles was entitled to benefits beginning January 2014. We reduced Alex and Diane's benefits to $53.00 a month effective January 2014. Alex and Diane each received $80.00 for January and February, which caused them to be overpaid $54.00 each. Charles is due $53.00 for January and February 2014. After netting the amount due the family against the amount paid, Alex and Diane are overpaid $1 each. Waive Alex and Diane’s overpayment due to dollar down rounding and document the record in case of a subsequent overpayment determination.

· MS 01106.006 Waiver Approval Under $2,000 (Primary) (DRWP)

· MS 01106.018 Decision Reason Codes (DRRC)

· MS 01109.003 Remarks (RMKS)