Effective Dates: 5/20/2025 - Present

Identification Number:
GN 02301 TN 17
Intended Audience:
Originating Office:ORDP OISP
Title:Updates to Foreign Death Underpayments POMS
Type:POMS Full Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM

Part GN – General

Chapter 023 – Underpayments

Subchapter 01 – Policy and Disposition of Underpayments

Transmittal No. 17, 05/20/2025

Originating Component

OISP

Effective Date

Upon Receipt

Background

This transmittal clarifies policy and procedure for handling foreign underpayments due deceased beneficiaries who resided outside the United States at the time of their death. It also moves existing guidance for when a Treasury barred country is involved to GN 02301.080 from GN 02301.085 (which is being archived) to streamline POMS.

Summary of Changes

GN 02301.080 Handling Foreign Death Underpayments

We revamped this section by adding detailed policy and procedure for handling foreign death underpayments. We also moved guidance for when a Treasury barred country is involved to this section from GN 02301.085 (which is being archived). The substantive updates are as follows:

  • •

    Subsection A - We added an introductory section with information about the office with jurisdiction over these cases.

  • •

    Subsection B - We expanded this subsection, which provides policy for handling foreign death underpayments, to include policy for handling written requests for underpayments and policy for underpayments involving Treasury barred countries. We clarified that the agency does not develop for the recipient(s) of an underpayment when the underpaid deceased beneficiary resided outside the United States at the time of their death or the potential recipient resides outside the United States. Finally, we removed obsolete references to the use of listing codes for foreign death underpayments involving a barred country.

  • •

    Subsection C - We created a subsection with the procedure for handling inquiries about foreign death underpayments.

  • •

    Subsection D - We created a subsection with the procedure for handling claims for foreign death underpayments, including special considerations for claims involving a Treasury barred country.

  • •

    Subsection E - We added examples to help technicians understand how to apply the policies and procedures of this section.

GN 02301.085 Special Considerations When a Barred Country is Involved - Underpayment Processing

To streamline POMS, we are archiving this section and placing the relevant information (about handling inquiries and underpayments when a Treasury barred country is involved) into GN 02301.080.

GN 02301.095 Adjudicating Foreign Death Underpayments

In addition to minor, editorial revisions for plain language, we re-formatted this section to deliver the guidance more clearly.

GN 02301.080 Handling Foreign Death Underpayments

A. Introduction and Jurisdiction

The Division of International Operations (DIO), Payment Center (PC)-8, has jurisdiction when a beneficiary resided outside the United States at their time of death. DIO handles underpayment inquiries and claims related to the deceased beneficiary.

For information about foreign death adjudication, see GN 02301.095.

B. Policy for foreign death underpayments

Do not develop for the recipient(s) of an underpayment when the underpaid deceased beneficiary resided outside the United States at the time of death or the potential recipient resides outside the United States. Post any unissued underpayment to the Special Payment Amount (SPA) field on the Master Beneficiary Record (MBR).

However, if the underpaid deceased beneficiary has an eligible survivor already on the record (based upon Payment Identification Code), follow the steps in GN 02301.030 to issue the underpayment. For more information about eligible survivors on the record, see SM 03005.400.

If the underpayment is less than $50, we may pay the unclaimed underpayment only if the file contains sufficient information to determine who is entitled to receive it without further development. For processing instructions and determining who is entitled, see GN 02301.080D in this section. Do not pay any underpayment under $1 unless specifically requested.

1. Written Requests for Underpayments

Treat a first written request or Form SSA-1724 as an inquiry (not a claim) when:

  • •

    There is no underpayment;

  • •

    Available information indicates the existence of someone in a higher priority category than the inquirer; or

  • •

    The inquirer does not appear to bear the necessary relationship to the deceased or the deceased's estate.

NOTE: Treat subsequent written requests from the same person as a claim.

Treat a written request or Form SSA-1724 as a claim when:

  • •

    There is an underpayment;

  • •

    The request identifies the underpaid individual;

  • •

    The request specifies the relationship to the deceased (i.e., the inquirer alleges they are the spouse, child, parent of the deceased, or the legal representative of the estate);

  • •

    The available information does not indicate the existence of anyone else in a higher priority category; and

  • •

    The request includes the address and signature of the person requesting the underpayment.

Also treat subsequent written requests, where the inquirer already submitted a written request or Form-1724, as a claim.

2.  Special Considerations when a Treasury Barred Country is Involved

Payments are prohibited to people residing in countries barred by the U.S. Department of the Treasury (Treasury). For more information about Treasury barred countries, see RS 02650.001.

a. Claims from an individual residing in a Treasury barred country

We do not pay underpayments to an individual who resides in a Treasury barred country.

If the eligible individual expresses interest in leaving the barred country to receive payment, process the claim and arrange for delivery of the check outside the Treasury barred country.

b. Deceased beneficiaries who resided in a Treasury barred country

  • •

    If the deceased beneficiary was a U.S. citizen and died in a Treasury barred country, process inquiries and claims for the underpayment according to statutory order of payment in GN 02301.030, unless the inquirer resides in a Treasury barred country. If the inquirer resides in a Treasury barred country, follow instructions in GN 02301.080D.3 in this section.  

  • •

    For a deceased beneficiary who was not a U.S. citizen and died in a Treasury barred country after June 30, 1968, we can only pay unpaid benefits to a person entitled to a monthly benefit for the month of death on the same account as the deceased. The underpayment amount is usually limited to the last 12 months of benefits payable.

3. Special Considerations when an SSA Restricted Country is Involved

Generally, we do not make payments to people in SSA Restricted Countries. However, there are rules for handling underpayments due deceased beneficiaries in specific SSA Restricted countries. For those policies and procedures, see the RS 02650 chapter of POMS. RS 02650.040 houses our special payment policy and procedure for SSA Restricted Countries.

C. Procedure for handling inquiries about foreign death underpayments 

If there is no underpayment, or if the inquirer is not eligible to receive the underpayment, send a notice explaining why they cannot receive it. Do not include a reconsideration paragraph.

When an FO, TSC, or PC receive a Form SSA-1724 involving a foreign death underpayment, route that Form SSA-1724 to DIO.

If the inquirer resides in a Treasury barred country, send a letter explaining that, even if eligible, they cannot receive payment in the Treasury barred country. Do not include a reconsideration paragraph.  If a person in a Treasury barred country expresses interest in leaving the country to receive payment, treat it as a claim for the underpayment and follow GN 02301.080D.3 in this section.

D. Procedure for handling claims for foreign death underpayments

Title II underpayments must be paid according to the statutory order of priority for Title II underpayments in GN 02301.030. For information about legal representatives, see GN 02301.035. For information about evidence needed to release Title II underpayments, see GN 02301.055.

When an FO, TSC, or PC receive a Form SSA-1724 involving a foreign death underpayment, route that Form SSA-1724 to DIO.

1. Inquirer is not in the highest priority category

  • •

    Deny the request for underpayment. There is no need to establish the entitlement of individuals in the higher category before denying the request.

  • •

    Send a disallowance notice with a full explanation for the denial.

  • •

    Do not contact the potentially eligible persons in the higher category, even if the inquirer shared such information, unless contact is essential to the adjudication of other claims.

2. Inquirer is in the highest priority category

a. The inquirer is the only eligible individual in the highest category of priority.

If the claimant is the only eligible individual in the highest category, pay the underpayment according to normal procedure.

b. There are other eligible individuals in the highest priority category besides the inquirer.

If the inquirer has indicated there are other eligible individuals in the same category of priority and has provided their addresses, make payment to all eligible individuals without contacting them, unless we need proof of relationship.  

If we need proof of relationship to make payment, send one letter to those individuals informing them of the underpayment and required evidence. Do not follow up if the individual fails to respond to the letter. After 60 days without a response, pay the portions due to those individuals who have established entitlement. Post the unpaid portion of the underpayment for the individual who did not provide proof of relationship to the SPA field on the MBR and take no further action.

c. The file indicates that there may be other individuals in the highest priority category, not reported by the inquirer.

  • •

    Ask directly whether there are others residing outside the country in which the inquirer resides.

  • •

    If development shows that the inquirer is not in the highest priority category (or if necessary documentation is not submitted), deny the request.

  • •

    It is not necessary to establish the entitlement of the individuals in the highest category before denying the request.

  • •

    Do not contact the potentially eligible person(s) in the higher category, even if such information is volunteered by the inquirer.

  • •

    Give a full explanation for the denial in the disallowance notice.

3. Special considerations for claims involving a Treasury barred country

a. Claim from an otherwise eligible individual residing in a Treasury barred country

Do not pay any portion of an underpayment to an otherwise eligible individual residing in a Treasury barred country. Post the portion of the underpayment owed to the eligible individual residing in the barred country to the SPA field on the MBR. Send a formal notice explaining that Treasury regulations prohibit sending federal payments to Treasury barred countries. Mention only the portion of the underpayment that would otherwise be payable to the barred country resident and include a reconsideration paragraph.  

If there is more than one eligible individual in the same category of priority as the individual living in the Treasury barred country, make payment only to the eligible individuals who do not live in a barred country. Follow instructions in the preceding paragraph for handling the portion owed to the barred country resident.

If the eligible individual expresses interest in leaving the barred country to receive payment, request the usual claims information and documentation and if payment is appropriate, arrange for delivery of the check outside the barred country.

b. Underpaid beneficiary is a non-U.S. citizen who died in a Treasury barred country

Refer to GN 02301.080B.2.b in this section to determine if the inquirer is eligible for payment. If the inquirer is not eligible, send a letter explaining why we cannot pay the underpayment (i.e., not entitled to benefits on the deceased beneficiary’s record at the time of death). 

E. Examples of foreign death underpayment requests

1. Example of when not to develop for a foreign death underpayment:

Pat was due an underpayment of $150 when he died while residing in Scotland. No other beneficiaries were entitled on his record and no one has requested the underpayment.

ACTION: Do not develop, post the underpayment to the MBR, and take no further action.

2. Example of when we can pay all individuals in the highest category without development:

Jordan, BIC-D, died while residing in Spain. Maria, Jordan's daughter, requests the underpayment and submits a birth certificate as proof of relationship to the deceased. Maria also provides the name, address, and birth certificate for BIC-D’s other living child, Jon.  

ACTION : Pay half of the underpayment to each survivor. No development is needed.

3. Example of claim with more than one individual in the highest priority category, proof of relationship needed:

Joseph, BIC-A, became entitled to benefits but died while residing in Italy before we were able to pay any benefits.  The oldest child, Marco, requests the underpayment and provided a birth certificate as proof of relationship. Marco states that the deceased beneficiary had one other child living in Italy, Adrienne, and provided the name and address but no proof of relationship for the other child.  

ACTION : Pay one-half of the underpayment to Marco and post the unpaid portion to the MBR. There is no need to contact the other child, Adrienne.

4. Example of claim when inquirer is not in the highest priority category:

William Burton, BIC-A, died while residing in England. The executor of their estate filed Form SSA-1724 requesting underpayment. Our records show that the deceased beneficiary is survived by a father who lives in Jamaica.

ACTION : Deny the executor's request for the underpayment, post the underpayment to the MBR, and take no further action.

5. Example of multiple eligible candidates for underpayment in the highest category of priority but one lives in a Treasury barred country:

BIC-A died while residing in France and has an underpayment. BIC-A has three children. Two children live in France, and one child lives in Cuba.  One of the children requested the underpayment and provided the addresses and birth certificates for all three children.  

ACTION: Pay only the children that reside in France and post the remaining one-third of the underpayment to the MBR. There is no need to contact the child living in Cuba.

NOTE: If the child residing in Cuba submits a claim for the underpayment, send a letter informing them that Treasury restrictions prohibit sending federal payments to that country.

6. Example of underpayment to non-U.S. citizen beneficiary who died while living in a Treasury barred country:

BIC-A had an underpayment of $1,350 on their record when they died while residing in Cuba. One of BIC-A’s three children requested the underpayment. The request included the names, addresses, and birth certificates for all of the children. All three children live in Italy and were all entitled on the record the month that BIC-A died.

ACTION:  Pay the underpayment without further development, one-third to each child.

NOTE: We cannot pay the underpayment to any children who were not entitled to benefits on the beneficiary’s record at the time of death.

GN 02301.095 Adjudicating Foreign Death Underpayments

A.  Policy for adjudicating foreign death underpayments 

Benefit authorizers and claims authorizers in the Division of International Operations (DIO) process inquiries and claims for foreign death underpayments.

NOTE: For the difference between a foreign death underpayment inquiry and claim, see GN 02301.080.

B. Procedure for adjudicating foreign death underpayments

1. Underpayments only (that do not involve awards or disallowances)

Complete any development (if required) and indicate the disposition of the underpayment on a Form SSA-559, and route it to the proper technician for processing as explained below.

a. Benefit Authorizers (BA)

BAs process underpayments for individuals:

  • •

    in the first three categories of priority; or

  • •

    in the fourth, fifth, or sixth category when the underpayment is one month's benefit payment, but no more than $750;

b. Claims Authorizers (CA)

CAs process underpayments for individuals:  

  • •

    in the fourth, fifth, or sixth category of priority and the underpayment is more than $750 or more than one month's benefit payment; or

  • •

    seeking to qualify as a legal representative of the deceased.

2. Underpayments involving awards or disallowances

Do not prepare awards or disallowances in underpayment cases, unless:

  • •

    the underpayment is being paid to the same person for whom you are currently awarding the lump sum or monthly benefits; or

  • •

    no award has been prepared for the deceased individual; i.e., the claimant died before adjudication of their application, and the underpayment is currently being paid.


GN 02301 TN 17 - Updates to Foreign Death Underpayments POMS - 5/20/2025