Identification Number:
GN 02402 TN 161
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Direct Deposit - Title II and Title XVI
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 024 – Checks
Subchapter 02 – Direct Deposit - Title II and Title XVI
Transmittal No. 161, 03/23/2020

Audience

PSC: BA, CA, CCRE, CS, DS, ICDS, IES, ILPDS, IPDS, ISRA, PETE, RECONR, SCPS, TSA, TST;
OCO-OEIO: BIES, BTE, CCRE, CR, CTE, FCR, PETL, RECOVR;
OCO-ODO: BTE, CCE, CR, CST, CTE, EHI, LCC, LSC, PAS, PCS, PETL, RC, RCOVTA, RECONR, RECOVR;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OPSOS

Effective Date

Upon Receipt

Background

The Office of Payment and Recovery Policy (OFPO) updated instructions for handling overpayments attributed to unauthorized redirection of payments to reflect current best practices.

Summary of Changes

GN 02402.017 Instructions for Handling Overpayments Attributed to Unauthorized Redirection of Payments

 

Subsection B: We removed "Office of Benefit Accounting and Systems Analysis (OBASA)" and "Treasury Operations Branch (TOB)".

Subsection B.3: We revised the second bullet and deleted the third bullet point.

Subsection C: We added a new NOTE to provide several alerts, reminders, and additional steps for handling Title II overpayment .

Subsection E: We added a new NOTE to provide several alerts and reminders and revised steps to provide clarity; inserted a new graph to provide better usability and comprehension.

GN 02402.017 Handling Overpayments Attributed to Unauthorized Redirection of Payments

A. Instructions for handling overpayments attributed to unauthorized redirection of payments

After alerted of an overpayment, the technician must take the following actions

  • Identify the overpayment was due to issuance of a Critical Payment System (CPS)/Immediate Payment (IP) or a Automated One Time Payment (A-OTP) because of unauthorized redirection of payment or payments;

  • Complete instructions for overpayment fraud per GN 02201.050 for Title II and SI 02201.007 for Title XVI; and

  • Follow Title II and Title XVI specific policies as detailed in this section.

B. Handling Title XVI overpayments due to unauthorized redirection of payments:

For Treasury issuing credits for reports of non-receipt, see SM 00609.610. If Treasury does not issue a credit for the report of non-receipt, you must select from the following actions:

If an IP replaced an unauthorized redirected payment, the next available payment will automatically recover the IP. In these cases, issue an A-OTP to replace that payment.

If an A-OTP resulted in an overpayment, then review these instructions:

  1. 1. 

    Do not send the overpayment notice;

  2. 2. 

    Stop overpayment collection and see instructions per SM 01311.220.

If Treasury issues a credit for a non-receipt, review these instructions:

  1. 1. 

    Review the PMTH and OPRR segment of the SSR and determines the credit amount.

  2. 2. 

    The system reduces the overpayment balance to zero, if the credit (returned payment) covers the full overpayment amount.

  3. 3. 

    If the credit (returned payment) does not fully recover the overpayment (i.e. the financial institution returned a partial payment), then reduce the overpayment by the credit amount or the partial payment remittance found in the OPRR segment field. The Central Office will post the partial payment to the OPRR with a DOC code of 534. Follow these instructions to balance the overpayment on the SSR:

    1. a. 

      For any remaining overpayment balance resulting from the A-OTP, do not send the overpayment notice.

    2. b. 

      Stop overpayment collection and see instructions per SM 01311.220.

NOTE: If the FO receives a case involving Title II, contact the Processing Center (PC) via Modernized Development Worksheet (MDW) or Request for Assistance (RQFA).

C. Handling Title II overpayments due to unauthorized redirection of payments

Review the Master Beneficiary Record (MBR) special messages (SP MSG) and the remarks field (RMKS) on the CPS output, to determine if alleged direct deposit fraud is involved. The remark on the CPS output should indicate "Alleged DD Fraud, Review Teletrace Result - Possible Delay in O/P Collection."

If the CPS involves alleged Direct Deposit fraud, take action to make the Total Amount Paid (TAP) equal to the Total Amount Recovered (TAR) on the CPS record.

If the MBR and CPS output identify the case as possible Direct Deposit fraud, take the following actions:

  1. 1. 

    If you determine the CPS input is missing the required remark identifying the involvement of fraud, add a Special Message "Alleged D/D Fraud, Review Teletrace Result-Possible Delay in O/P Collection."

  2. 2. 

    Establish an overpayment for the non-entitled debtor on the beneficiary's SSN via the "Establish Debt (SMED)" screen in the "Debt Management System (DMS)" to post the overpayment to the affected BIC with a subscript of "X" . Use the ROAR's "Debt Management System (DMS)" to post the overpayment to the affected BIC with a subscript of "X" (e.g., "AX" or "CX").

  3. 3. 

    Use a Type of Event (TOE) code of 65, with the fraud indicator of No (N) (see SM 00610.515F).

  4. 4. 

    Post the overpayment using the following: FIRST NAME: DIRECT MIDDLE NAME: DEPOSIT LAST NAME: FRAUD

  5. 5. 

    Annotate DMS remarks with the details of the overpayment.

  6. 6. 

    Post a Special Message to the MBR: "ALLEGED AUTO ENROLLMENT FRAUD-DO NOT INITIATE OVERPAYMENT RECOVERY OR CONTACT BENEFICIARY." Do not send an overpayment notice.

  7. 7. 

    On the next business day, review the ROAR record to determine if the case processed correctly.

  8. 8. 

    If the case processed correctly, establish a 90-day diary via the ROAR Diary Processing screen (DRDY) in DMS .

  9. 9. 

    If the 90-day diary matures and no additional guidance or credits is received, annotate the case with the listing code 119 and terminate collection activity for the overpayment (See subsection GN 02402.017E).

NOTE: Ensure the name input for the Non-Entitled Debtor (NED) remains as FIRST NAME: DIRECT MIDDLE NAME: DEPOSIT LAST NAME: FRAUD. Do not change the name of the debtor to reflect the alleged bank account owner shown in the Teletrace response. Do not charge the alleged bank account owner an overpayment unless instructed to do so by OAFP or OIG.

D. Handling overpayments identified in the "O/U PAY" field

If there is an overpayment in the O/U PAY field of the beneficiary, rather than on the ROAR under the NED record, then processing may have occurred incorrectly. To handle these cases, take the following actions:

  1. 1. 

    Contact the processing center (PC) for them to follow steps in C.2.a in this POMS section. This will establish the overpayment in ROAR with the subscript of "X."

  2. 2. 

    Request the PC to delete any O/U PAY amount pertaining to the alleged direct deposit fraud.

  3. 3. 

    The PC will review the ROAR field to determine if the case processed correctly.

  4. 4. 

    After the PC verifies that the case was processed, contact the FO via telephone and send an MDW to notify the field office (FO) of the following:

    1. a. 

      The PC established a ROAR overpayment and updated the DMS remarks.

    2. b. 

      The name, SSN, and overpayment amount of the alleged victim of the unauthorized Direct Deposit changes.

E. Processing Centers handling overpayments attributed to treasury credits or remittances where SSA issued a CPS to replace the redirected payments

If SSA receives a Treasury credit or remittance and SSA issued a CPS to replace the redirected payment, select from the below applicable scenarios and follow its instructions:

A non-cleared CPS and no overpayment posted on the record:

  1. 1. 

    Clear the CPS via Manual Adjustment Credit Award Data Entry (MACADE) system using a CP entry of 0.00. If PHUS does not reflect a 170 event for the CPS payment, manually post the 170 event to PHUS via the SSA-1257.

  2. 2. 

    Manually post the non-entitled debtor overpayment for the redirected payment amount.

  3. 3. 

    On the next business day, make sure the overpayment posted correctly to the ROAR and review the PHUS to verify the 170 event posted.

  4. 4. 

    Review the credit, remittance, or Inter-governmental Payment and Collection (IPAC) documentation to determine the amount of the returned credit.

  5. 5. 

    Apply the credit or remittance to the overpayment with subscript of "X" via DMS RRRE screen per MS DMS 003.020.

    1. a. 

      If the credit received was for the full amount of the overpayment, then annotate the *119 listing code and send the action control record (ACR) to FIN.

    2. b. 

      If SSA only received a partial credit, allow the 90-day diary to control the case, and then send the ACR to files (FIN/FIN).

    3. c. 

      If the 90-day diary matures and there is no additional guidance nor did SSA receive an additional remittance or credit, then annotate the case with the listing code 119 for alleged Direct Deposit Fraud Cases, per GN 01040.005B.5 and MS PCACS 005.010,. Terminate the collection activity for the overpayment, and send the ACR to FIN.

A cleared CPS and no overpayment posted on the record:

  1. 1. 

    Follow steps in C.2.a. in this section and manually post the overpayment for the CPS related to the redirected payment.

  2. 2. 

    If PHUS does not reflect a 170 event via the SSA-1257.

  3. 3. 

    On the next business day, review ROAR to make sure the overpayment posted correctly and PHUS for the 170 event, and continue to follow C.2.a. through C.8 in this POMS.

  4. 4. 

    Review the credit, remittance, or IPAC documentation to determine the amount of the returned credit.

  5. 5. 

    Apply the credit or remittance to the overpayment with subscript of "X" (via DMS ROAR Remittance Exception (RRRE) screen) per MS DMS 003.020.

  6. 6. 

    On the next business day, review the record to make sure that the remittance posted correctly.

  7. 7. 

    If credit received for the full amount of the overpayment, then annotate the *119 listing code and send the ACR to FIN.

  8. 8. 

    If SSA receives a credit or remittance and issued a CPS, and there is an existing overpayment on the record due to an unauthorized Direct Deposit change, take the following actions:

    1. a. 

      Clear CPS via MACADE with CP of 0.00.

    2. b. 

      Review the credit, remittance, or IPAC documentation to determine the amount of the returned credit.

    3. c. 

      Manually apply the credit to the ROAR overpayment with a subscript of "X" using DMS RRRE screen.

    4. d. 

      On the next business day, review the ROAR field to determine if the case processed correctly.

    5. e. 

      Determine the case's processing status and follow these applicable steps:

      IF

      THEN

      If an overpayment still exists (the balance remains and it is not from some other type of overpayment),

      diary the case for 90 days via the DRDY screen; Do not diary any other overpayments on the record

      If the 90-day diary matures and there is no additional guidance or any additional remittance or credit

      annotate the case with the listing code 119 for Alleged Direct Deposit Fraud Cases (see GN 01040.005 and MS PCACA 005.010. Terminate collection activity for the overpayment, and send the ACR to FIN.

      If SSA applied the amount of the unauthorized redirected payment to the wrong overpayment listed under the ROAR section

      adjust the overpayment and follow subsection GN 02402.017D.2.c. to repost a new overpayment with a subscript of "X.

      If SSA receives an IPAC credit greater then than the alleged missing benefit payment and the remarks field indicates that possible fraud is involved, but there is no O/P or CPS record on the MBR take the following actions:
      1. 1. 

        Review the IPAC documentation.

      2. 2. 

        Review the applicable records and quires (i.e., MBR, PHUS) to determine the origin of the remittance and if the beneficiary had a fraudulently redirected payment or payments.

      3. 3. 

        After reviewing the record for the IPAC received, release any underpayment to the beneficiary.

NOTE: If the FO receives a case involving Title II, they should contact the PC via Modernized Development Worksheet (MDW) or Request for Assistance (RQFA). In addition, the name input for the NED should remain as FIRST NAME: DIRECT MIDDLE NAME: DEPOSIT LAST NAME: FRAUD. Do not change the name of the debtor to reflect the alleged bank account owner shown in the Teletrace response. Also, do not charge the alleged bank account owner an overpayment unless instructed to do so by OAFP or OIG.

F. References

  • DMS 003.020 ROAR Remittance Exception (RRRE)

  • GN 02201.050 Overpayment, Fraud Referral

  • GN 01040.005 Establishment of Diaries and Listings

  • SI 02201.007 Supplemental Security Income (SSI): Overpayment Fraud

  • SM 01311.220 Bankruptcy and Referral to Another Agency - MJ, MO, MS, and MT TAC

  • SM 00610.515 Description of Data Maintained on Recovery of Overpayments, Accounting, and Reporting System

  • PCACS 005.010 Listing Code (LIST)


GN 02402 TN 161 - Direct Deposit - Title II and Title XVI - 3/23/2020