Identification Number:
EM-18012 REV
Intended Audience:All RCs/ARCs/ADs/FOs/TSCs/PSCs/OCO/OCO-CSTs
Originating Office:ORDP OISP
Title:Clarifying State Overpayment Liability for Minors in Foster Care – Instructions Will Follow Shortly
Type:EM - Emergency Messages
Program:Title II (RSI); Title XVI (SSI)
Link To Reference:See References at the end of this EM.
 
Retention Date: October 13, 2018

REVISION 06/13/2018: C. Revised to clarify that state foster care agencies include county and local governmental entitles/agencies.

REVISION: (Reposting from 5/11/2018 to include this revision statement.) We revised EM-18012 in the following ways:

Title 16 cases:

    · Added instructions to input a unit code on the DW01 (MSSICS cases) or MDW (non-MSSICS cases) so that we will be able to go back and correct these cases as necessary.
Title 2 cases:
    · Added instructions for the FO/TSC to send their adverse actions cases to the PSC for manual action; and
    · Added instructions for the PSC’s to not include overpayment language in the adverse action notice.

A. Purpose

This emergency message (EM) provides interim guidance for handling overpayments involving minors who have a State serving as their representative payees during the period when the minor is in foster care under the responsibility of the State.

B. Background

Effective April 13, 2018, section 104 of the Strengthening Protections for Social Security Beneficiaries Act of 2018, “Clarifying Overpayment Liability for Child in Child Welfare System,” requires SSA to hold the State liable for the repayment of any overpayment(s) made on behalf of a represented minor beneficiary or recipient in a month in which the minor was in foster care under the responsibility of the State and the State was the representative payee. This applies to any new Title II and Title XVI overpayment determinations made on or after the date of enactment. For Title II cases, this also applies to any overpaid amounts that we have not recovered as of the date of enactment.

C. Policy

As of the effective date, when we determine that we overpaid a Title II or Title XVI minor beneficiary or recipient who was in foster care under the responsibility of the State (including county and local governmental entities/agencies) and the State was serving as the minor’s representative payee at the time the overpayment was incurred, the State is solely liable for repaying the overpayment. In addition, for Title II, we will no longer consider the minor liable for repaying any outstanding overpaid amounts that we have not recovered as of April 13, 2018.

For Title II and Title XVI purposes, the term “represented minor beneficiary” means an individual who has not attained 18 years of age in a month in which the individual’s benefits are certified for payment to a representative payee.

D. How to identify a State Represented Minor in Foster Care

Consider all of the following to identify a beneficiary or recipient who is a State Represented Minor in Foster Care:


    · The organizational payee type codes on the MBR, the type of payee (TOP) field on the SSR, or the T (rep payee type) field in the REPY segment as listed in GN 00501.013 indicates the minor is in foster care;
      Important: Most State Foster care agencies are coded as “Social Agency” in eRPS.
    · The Rep Payee Organization Name field in eRPS indicates a State or State Agency is the rep payee; and

    · The beneficiary or recipient is a child under age 18.


Note: Verify the accuracy of the payee information before following the guidance outlined below.

E. Overpayment procedure

Process any manual overpayment determinations for a Title II or Title XVI minor who is in foster care under the responsibility of the State and the State is serving as the minor’s representative payee (i.e., State Represented Minor in Foster Care) using the following instructions:


    1. Title II cases

      Stop all efforts to recover any outstanding overpayment(s) for this affected group (e.g., manual collection activity such as skip tracing for delinquent debt(s)).

      Follow the chart below for processing manual cases:

      IfThen
      You are taking an adverse action which will cause an overpayment on the record of a minor while the State is serving as the payee,FO/TSC Actions

        · Take no action to input the adverse action via the Post-entitlement Online System (POS);

        · Send a modernized development worksheet (MDW) to the Processing Center (PC) of jurisdiction with issue of “104” and category of “2560HP,” and the following language in the remarks:


          “Per Section 104, referring to the PC to process the adverse action. See EM-18012;”

        · Document the RMKS (DMS 009.003) screen in the Debt Management System (DMS), with the following language:

          Per Section 104, halt the overpayment collection. See EM-18012;” and

        · Annotate a Special Message on the MBR:

          Special Handling Instructions, see EM-18012 for overpayment liability instructions.

      PC Actions

        · Manually establish the debt with a protest indicator of “16 Miscellaneous,”

        · Send a notice about the adverse action but do not include any overpayment language (i.e. collection, overpayment waiver, and overpayment appeal language that generate from using the E31/E32/E34 on the enclosure notice block (ENB) );


          NOTE: Include the normal due process appeal language in the notice. The minor beneficiary has appeal rights for the initial determination of a reduction, suspension, or termination in benefits.

        · Document the RMKS (DMS 009.003) screen in the DMS, with the following language:

          Per Section 104, halt the overpayment collection. See EM-18012;

        · Annotate a Special Message on the MBR:

          Special Handling Instructions, see EM-18012 for overpayment liability instructions;”

        · Annotate the listing code of “RPAY” in the Processing Center Action Control System (PCACS);

        · Send Actionable Controlling Record (ACR) to the Development Holding File (DHF) for 90 days and add the following comment:


          “Special Handling Instructions, see EM-18012.”
      You notice an overpayment has already been established on the record of a minor while the State is serving as the payee and recovery has begun or has not begun,
        · Input a protest indicator of “16 Miscellaneous;”

        · Document on the RMKS screen in the DMS, with the following language:


          Per Section 104, halt the overpayment collection. See EM-18012;

        · Annotate a Special Message:

          Special Handling Instructions, see EM-18012 for overpayment liability instructions;

        · Annotate the listing code of “RPAY” in PCACS; and

        · PC’s will send Actionable Controlling Record (ACR) to the Development Holding File (DHF) for 90 days and add the following comment:


      “Special Handling Instructions, see EM-18012.”

        NOTE: If a minor requires a refund after the date of enactment, do not process any refunds until further notice. Annotate this issue on the Remarks screen in DMS.

    2. Title XVI cases

      Continue to update a minor’s record to reflect the accurate information as normal for PE events, RZ’s, LI’s, etc. However, when the State is the payee and you need to manually establish an overpayment on a minor’s record, you will need to suppress the overpayment notice and suspend collection of the overpayment until we issue further instructions regarding how to hold the State liable for an overpayment per this new legislation.

      Follow the chart below for processing manual cases:

      IfThen
      You are taking an adverse action which will cause an overpayment on the record of a minor while the State is serving as the payee,
        · Update record with all available information (e.g., change in income, resources, living arrangement/household composition, etc.)where applicable;

        · Review the simulated SSID to see if there is a B3 diary for the overpayment period you just created; and

        · Transmit your updates to the SSID.

      You notice a B3 diary present (the system will not release an automated notice for the overpayment because of the B3 diary)

        · Go to Direct SSR Update and suspend billing by selecting SUSPEND BILLING = “2” (Overpayment Development Pending) on the UOSD screen, and transmit to the SSID to create a C3 diary (MSOM BUSSR 004.006);

        · Document on the DROC (MSSICS 022.010) screen in MSSICS with the following language:


          Per Section 104, halt the overpayment collection. See EM-18012;” and

        · Annotate a SSR Remark (CRMK):

      Special Handling Instructions, see EM-18012 for

      overpayment liability instruction;” and


        · Annotate “104” and the claims specialist’s three-digit code in the unit code of the Development Worksheet (DW01) screen for MSSICS cases or on the MDW screen for non-MSSICS cases.

          Example: If your unit code is JLM, you would use “104JLM.”
      You notice there is no B3 diary present and no Goldberg-Kelly (GK) (see SI 02301.301):

        · Look at the simulated SSID’s OPSQ line under TS section for an “A” in T column (the “A” means the system intends to send an automated notice. You are trying to change this “A” to an “M” for manual notice);

        · Return to Direct SSR Update and on the Notice Suppression (UNSP) screen select SUPPRESS SYSTEMS NOTICE = “3” (Suppress AONS Notice, Issue Regular Notice), and transmit to the SSID. When you transmit the data to the SSID, the “A” should change to “M”, which means you have successfully suppressed the automated overpayment notice;

        · Return to Direct SSR Update and suspend billing by selecting SUSPEND BILLING = “2” (Overpayment Development Pending) on the UOSD screen, and transmit to the SSID to create a C3 diary (MSOM BUSSR 004.006);

        · Document on the DROC (MSSICS 022.010) screen in MSSICS, with the following language:


          Do NOT clear the C3 diary for overpayment sequence XX, in the amount of $X.XX on record XX of XX. This overpayment occurred when a State served as the payee for the recipient. See EM-18012;” and

        · Annotate a SSR Remark (CRMK):

          Special Handling Instructions, see EM-18012 for overpayment liability instructions;” and

        · Annotate “104” and the claims specialist’s three-digit code in the unit code of the Development Worksheet (DW01) screen for MSSICS cases or on the MDW screen for non-MSSICS cases.

          Example: If your unit code is JLM, you would use “104JLM.”
      You notice there is no B3 diary present and you are in the GK period:

        · If you are updating a record, there is no B3 present on the simulated SSID, and you are within the GK period, STOP.

        · Do not apply changes to the record until the GK period has passed.

        · Once the GK period has passed, follow the directions in the box above.

      You notice the case is outside of MSSICS and outside of the GK period:

        · If you are updating a record outside of MSSICS, follow the same procedures as above to determine if you are in the GK period.

        · If you are within the GK period, wait until the GK period is over to transmit your updates;

        · Annotate a SSR Remark (CRMK):


          Special Handling Instructions, see EM-18012 for overpayment liability instructions;” and

        · Annotate “104” and the claims specialist’s three-digit code in the unit code of the Development Worksheet (DW01) screen for MSSICS cases or on the MDW screen for non-MSSICS cases.

          Example: If your unit code is JLM, you would use “104JLM.”.
      For more information about the 1719 inputs to suppress notices, see SM 01005.535 and SM 01301.675.
      You notice an overpayment has already been established on the record of the minor while the State was serving as the payee and the overpayment determination was made on or after April 13, 2018 and recovery has begun or has not begun,
        · Go to Direct SSR Update and suspend billing by selecting SUSPEND BILLING = “2” (Overpayment Development Pending) on the UOSD screen, and transmit to the SSID to create a C3 diary (MSOM BUSSR 004.006);

        · Document on the DROC (MSSICS 022.010) screen in MSSICS, with the following language:


          Do NOT clear C3 diary for overpayment sequence XX, in the amount of $X.XX on record XX of XX. This overpayment occurred when the State served as the payee for the recipient. See EM-18012;” and

        · Annotate a SSR Remark (CRMK):

          Special Handling Instructions, see EM-18012 for overpayment liability instructions;” and

        · Annotate “104” and the claims specialist’s three-digit code in the unit code of the Development Worksheet (DW01) screen for MSSICS cases or on the MDW screen for non-MSSICS cases.

          Example: If your unit code is JLM, you would use “104JLM.”
      NOTE: If a minor requires a refund after the date of enactment, do not process any refunds until further notice. Annotate this issue on the DROC screen in MSSICS.

Additional guidance on how to 1) remove the liability from the affected minors, 2) establish the overpayment to the State, and 3) recover the overpayment from the State or State agencies is forthcoming.

F. Foster care agency representative payees

Technicians should code foster care agency representative payees using the payee type code “Social Agency” in eRPS.

Process representative payee selections related to children in foster care under normal business practices. For more information about considerations concerning foster care agencies, see GN 00502.159.


Direct all program–related and technical questions to your Regional Office (RO) support staff or Payment Service Center (PSC) OA staff. RO support staff or PSC OA staff may refer questions or problems to their Central Office contacts.

References:

GN 02205.001 Liability for Title II Overpayment Recovery
SI 02201.020 SSI Overpayment: Who is Liable (Responsible) for Repayment? Living Overpaid Individual
SI 02201.023 Supplemental Security Income (SSI) Overpayment: Recovery from a Representative Payee
SI 02301.300 Due Process Protections – General
MS DMS 006.003 Protest/Stop Recovery Request (PC) (DRPR)
MS DMS 006.019 Protest/Stop Recovery Request (FO) (DRPF)
MS DMS 006.020 Protest/Stop Recovery Request (TSC) (DRPT)
GN 00501.013 Explanations for Types of Payees
GN 00502.159 Additional Considerations When Foster Care Agency is Involved
SM 00550.080 Type of Payee (TOP) and Custody (CC) Codes
SM 01601.565 Representative Payee D


EM-18012 REV - Clarifying State Overpayment Liability for Minors in Foster Care – Instructions Will Follow Shortly - 05/11/2018