Effective Dates: 7/09/2024 - Present

Identification Number:
GN 02402 TN 274
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Direct Deposit - Title II and Title XVI
Type:POMS Full 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. 274, 07/09/2024

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

OFPO

Effective Date

Upon Receipt

Background

International Direct Deposit (IDD) service is a joint effort between our agency and the Federal Reserve Bank of Kansas City (FRBKC).  We are seeking accuracy and consistency within out IDD POMS, therefore, we are requesting a full review of the policies in the control.

 

Summary of Changes

GN 02402.201 Background and Policy for Direct Deposit Outside the U.S.

Subsection B, we added an important paragraph to emphasize the identity validation when enrolling individuals into IDD.

We replaced "he or she" with the pronouns "them or they" to conform with the Agency initiative to use inclusive language.

 

GN 02402.210 Direct Deposit for Title II Beneficiaries Who Moves to Another Country

Subsection A, we updated the language on the chart per plain language guidelines.

We replaced "he or she" with the pronouns "them or they" to conform with the Agency initiative to use inclusive language.

 

GN 02402.215 International Direct Deposit (IDD) Cancellation

We requested a full review of the policy for accuracy and consistency of the process outlined. Based on the feedback received from the eIRD, the policy is accurately updated per plain language guidelines.

 

GN 02402.225 Payment Operation for International Direct Deposit (IDD)

We requested a full review of the policy for accuracy and consistency of the process outlined. Based on the feedback received from the eIRD, the policy is accurately updated per plain language. guidelines.

GN 02402.201 Background and Policy for Direct Deposit Outside the U.S.

A. Background and advantages of International Direct Deposit (IDD) as a service joint effort

International Direct Deposit (IDD) service is a joint effort between our agency and its fiscal agent, the Federal Reserve Bank of Kansas City (FRBKC). The process also involves the assistance of a processor financial institution (FI). This may be either the central FI of that country (e.g., the Bank of England) or a large commercial FI. Treasury deposits payments in the beneficiary's account at an FI in that country. IDD for foreign beneficiaries:

  • •

    significantly reduces the Government's administrative expenses;

  • •

    is more reliable than checks and allows beneficiaries to receive payments on time; and

  • •

    saves the average beneficiary $7 - $30 per month in check cashing and currency conversion fees because Treasury usually makes payments in local currencies and deposits them directly in the beneficiary's account. In a few countries where the U.S. dollar is the usual currency or in general use, IDD is available for accounts in U.S. Dollars. For Canada, we offer a choice of Canadian dollars or U.S. dollars.

The process used to make direct deposit payments is generally similar among countries. However, special IDD instructions exist for each country. For a list of countries participating in IDD and corresponding references for coding account data, see GN 02402.220D.

B. Policy for direct deposit in a foreign country

1. Method of payment

New applicants for Social Security and Supplemental Security Income benefits must receive their payments electronically. Treasury instituted an all-electronic initiative that required check receivers to switch to an electronic form of payment. Treasury determined that beneficiaries living in a foreign country who refuse to participate in electronic payments based on hardship can file for a waiver.

While we prefer to pay beneficiaries in foreign countries electronically, Treasury may grant an exemption to the electronic payment requirement based on certain conditions. Please see Direct Deposit Policy regarding other exemptions to Treasury’s All Electronic Payment Initiative in GN 02402.001. This policy applies regardless of date of eligibility. Pay benefits by check if a beneficiary residing outside the U.S. inquiries about a waiver from the direct deposit requirement or otherwise indicates that payment by direct deposit would impose a hardship.

NOTE: Because of local automated clearinghouse (ACH) requirements, Treasury generally makes IDD payments in local currencies. Interviewers in claims-taking Federal Benefits Units (FBUs) or border offices should ask if the beneficiary has an account in either the U.S. or an IDD country. If the answer is yes, interviewers should assume that the beneficiary will receive payment by direct deposit. If the answer is no, ask them if they would like to enroll for direct deposit. If they do not wish to enroll for direct deposit, inform the beneficiary that they can file for a waiver. When developing a claim by mail from a claimant in a country with no claims-taking unit, Office Earnings and International Operations (OEIO) should inform the claimant about the availability of direct deposit in the U.S. or an IDD country.

REMINDER: There are very rare instances when title XVI recipients living outside the U.S. may receive benefits. For instances when we consider an SSI recipient living abroad eligible for payments see SI 00501.411 and SI 00501.415.

IMPORTANT: If the FBU, OEIO/DIO, or border field office receives the IDD signup form (e.g., SSA-1199) via mail, you must verify the beneficiary’s identity before adding or updating the new IDD information into our systems. For more information on how to verify the beneficiary’s identity please refer to GN 02402.025.

2. Schedule of IDD payments

Beneficiaries generally receive regular monthly IDD payments on the third of the month. Treasury sends IDD Prior Monthly Accrual (PMA) payments on a daily basis. When the payment date for a regular monthly payment or a PMA payment coincides with a non-business day in the foreign country, Treasury generally deposits payments on the next business day. In some IDD countries, FIs may post direct deposit payments 1 to 3 days after the payment date, according to the local banking customs.

The payment date for a PMA payment is generally 4 workdays from the date it goes to Treasury. However, a PMA payment sent to Treasury after the close of the current operating month may contain the payment for that month. Therefore, it is illegal for a PMA check to contain a date earlier than the first day of the following month. For details about how to determine the date of an IDD PMA payment see GN 02402.225A.2.

3. Conditions for IDD

Beneficiaries must meet the following conditions to be eligible for IDD:

  • •

    Beneficiaries using IDD must reside outside the U.S. and have a foreign address on record.

    NOTE: When we say “outside the U.S.” we mean that beneficiaries are not residing in one of the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa.

  • •

    Beneficiaries using IDD must keep us informed of their residence address.

NOTE: When beneficiaries return to live in the U.S., IDD will cease.

  • •

    Accounts selected for direct deposit in foreign financial institutions (FI) must meet the requirements outlined in GN 02402.030 and GN 02402.045 through GN 02402.060.

  • •

    The beneficiary must submit their request for IDD on the signup form developed for the country or a document containing the same information. For a list of countries that have forms available, see GN 02402.220.

Beneficiaries may reside in one foreign country and have IDD arrangements in another foreign country (e.g., a beneficiary who resides in Belgium but banks in France). The only exception is beneficiaries residing in a Treasury barred country cannot receive payments. For more details on Treasury IDD restrictions see RS 02650.001. Requests for direct deposit to a foreign FI must be on the signup form developed for that country or in a format that includes the same information found on the country's signup form. For foreign country enrollment forms, see GN 02402.220D. The FBU will code IDD account data on applications taken at claims development posts. Section 3 (below the signature block on the application) contains the account data.

C. References

  • •

    GN 02402.300 Coding Canadian Bank Data for the MBR

  • •

    GN 02402.220 Updating International Direct Deposit to the Master Beneficiary Record (MBR)

  • •

    SI 00501.411 SSI Eligibility for Students Temporarily Abroad – Overview

  • •

    SI 00501.415 Blind or Disabled Children of Military Personnel Stationed Overseas - Overview

  • •

    RS 02650.001 Treasury Department Restrictions

GN 02402.210 Direct Deposit for Title II Beneficiaries Who Moves to Another Country

A. When a beneficiary moves from a country with International Direct Deposit (IDD) to the United States (foreign to domestic)

NOTE: U.S. domestic (non-border) field offices (FOs) should not attempt to process an IDD request for any country. U.S. domestic FOs must forward all appropriate information to the Office of Earnings and International Operations (OEIO), Division of International Operations (DIO) for processing. For more information on how to forward the appropriate IDD information, see GN 02402.205C, GN 01010.255, and GN 01702.310C.

When a beneficiary moves from a country with IDD to the United States, follow the instructions in the chart provided.

If

Then

the beneficiary still has an IDD account and has a United States bank account
  • •

    Explain that IDD cannot continue while the beneficiary has a United States address

  • •

    Obtain and input the United States bank data; and

  • •

    Input the change of address to the United States the same workday.

the beneficiary has a bank account in the United States but does not provide direct deposit information

Pay the benefits by check. Advise the beneficiary that they can update the direct deposit information online via http://www.ssa.gov/myaccount/ . If the beneficiary does not want, or cannot make the changes online, advise them to re-contact us with the acceptable routing and account number. .

the beneficiary still has IDD account but does not have a bank account in the United States
  • •

    Cancel the IDD and input the change of address to the United States the same workday; and

  • •

    Encourage them to obtain a United States account or a Direct Express Card.

  • •

    Advise the beneficiary to enroll in direct deposit at http://www.ssa.gov/myaccount/. If they cannot update the direct deposit information online, advise them to re-contact us for assistance.

  • •

    Explain that the financial institution (FI) may be able to make direct deposit input directly to us through the automated enrollment (Quick$tart) program.

B. When a beneficiary moves from a non-IDD country to the United States. (foreign to domestic)

When a beneficiary moves from a non-IDD country to the United States, follow the instructions in the chart provided.

If

Then

the beneficiary has a bank account in the United States
  • •

    Obtain and input the United States bank data; and

  • •

    Input the change of address to the U.S the same workday.

the beneficiary does not have a bank account in the United States
  • •

    Input the change of address to the United States; and

  • •

    Encourage them to obtain a United States account or a Direct Express Card.

  • •

    Explain that the FI may be able to make direct deposit input directly to us through the automated enrollment (Quick$tart) program.

    Advise the beneficiary that once they open a United States bank account, they can enroll in direct deposit at http://www.ssa.gov/myaccount/.

    If the beneficiary cannot update the direct deposit information via mySSA, advise them to re-contact us with the acceptable routing number and account.

C. When a beneficiary moves from the United States to an IDD country (domestic to foreign)

When a beneficiary moves from the United States to an IDD country, follow the instructions in the chart provided.

If

Then

the beneficiary still has a United States account, but wants to use their IDD account in the new country
  • •

    Input the change of address to the IDD country; and

  • •

    encourage the beneficiary to contact the Office of Earnings and International Operations (OEIO) or the Foreign Benefits Unit (FBU) to enroll in IDD. The beneficiary must complete the forms SSA-21 and SSA1199. Fax it to PC8 paperless fax number 877-385-0645.

  • •

    Encourage the beneficiary to keep the United States account open until payments start coming to the IDD account.

the beneficiary has an IDD account and does not have a bank account in the United States
  • •

    Input the change of address to the IDD country; and

  • •

    have the beneficiary complete the forms SSA-21 and SSA-1199. Fax it to PC8 fax number 877-385-0645.

 

the beneficiary does not have an IDD account, has a bank account in the United States, and wants to enroll in IDD
  • •

    Input the change of address to the IDD country; and

  • •

    Encourage the beneficiary to contact the FBU, or OEIO to enroll in IDD. Have the beneficiary complete the forms SSA-21 and SSA-1199. Fax it to PC8 paperless number 877-385-0645.

  • •

    Encourage the beneficiary to keep the United States account open until they establish an IDD account in the IDD country and the payments start coming to the new account.

NOTE: Payments will continue to the United States bank account until the beneficiary cancels the account or decides to have payments deposited to an IDD bank account.

the beneficiary does not have an IDD account and does not have a bank account in the United States (i.e., they closed the United States bank account):
  • •

    Input the change of address to the IDD country;

  • •

    Input the direct deposit cancellation; and

  • •

    Encourage the beneficiary to contact the FBU, or OEIO to enroll in IDD. Have the beneficiary complete the forms SSA-21 and SSA-1199. Fax it to PC8 paperless number 877-385-0645.

D. When a beneficiary moves from the United States or an IDD country to a non-IDD country

When the beneficiary moves from the United States or an IDD country to a non-IDD country, follow the instructions in the chart provided.

IF

THEN

the beneficiary has an account in the United States,

Input the change of address.

NOTE: Payments continue to the United States bank account while the beneficiary resides in the non-IDD country, unless the beneficiary cancels the United States direct deposit.

the beneficiary has an account in an IDD country

Input the change of address.

NOTE: Payments continue to the old IDD account unless the beneficiary cancels the direct deposit.

the beneficiary does not have an account in either the United States or an IDD country:
  • •

    Input the change of address; and

  • •

    Encourage the beneficiary to obtain a Direct Express Card (if available in that country) or have the beneficiary contact the FBU or OEIO to inquire about correspondent banking.

E. When a beneficiary moves from an IDD country to another IDD country (foreign to foreign)

When a beneficiary moves from an IDD country to another IDD country, follow the instructions in the chart provided.

IF

THEN

the beneficiary has an IDD account in the new country and requests to use that account to receive payment
  • •

    Input the change of address to the new country; and

  • •

    The FBU or OEIO must input the IDD to the new bank the same work day.

  • •

    Encourage the beneficiary to keep the old IDD account open until the payments start coming to the new IDD account;

the beneficiary does not have an IDD account in the new country and they want to receive benefits via IDD in the new country
  • •

    Input the change of address to the new IDD country;

  • •

    Encourage the beneficiary to contact the FBU or OEIO to enroll in direct deposit in the new IDD country; and

  • •

    Provide the beneficiary with a form for the new country, if available.

NOTE: Payments continue to the old IDD bank account unless the beneficiary cancels the direct deposit or sets up an IDD account at the new IDD bank.

F. When a beneficiary moves from a non-IDD country to an IDD country (foreign to foreign)

When a beneficiary moves from a non-IDD country to an IDD country, follow the instructions in the chart provides.

IF

THEN

the beneficiary has a bank account in the IDD country
  • •

    Input the change of address to the IDD country; and

  • •

    Encourage the beneficiary to contact OEIO or the FBU to enroll in IDD.

the beneficiary does not have an IDD account in the new country
  • •

    Input the change of address to the new IDD country;

  • •

    Encourage the beneficiary to contact the FBU or OEIO to enroll in direct deposit in the IDD country; and

  • •

    Provide the beneficiary with a form for the new country, if available.

G. References

  • •

    TC 16001.050 Processing Requests for International Direct Deposit (IDD)

  • •

    GN 02402.110 Domestic Financial Institutions (FIs) and Beneficiaries Outside the United States

  • •

    GN 02402.115 Power of Attorney to Foreign Financial Institutions (FI) for Title II Beneficiaries

  • •

    GN 02402.201 Background and Policy for Direct Deposit Outside the U.S.

  • •

    GN 02402.205 Direct Deposit Enrollment Outside the U.S.

GN 02402.215 International Direct Deposit (IDD) Cancellation

A. Beneficiary requests cancellation

When a beneficiary requests cancellation of the IDD;

  • •

    Identify the beneficiary, recipient, or payee per GN 02402.025B.

  • •

    Discuss the reason for the beneficiary’s request, and encourage continuing payment via IDD.

  • •

    If there have been problems associated with the IDD, assist the beneficiary, recipient, or payee in correcting the problems.

B. Change Direct Deposit

When changing direct deposit to a different international account;

  • •

    Advise the beneficiary to keep the old account open until a benefit payment is received in the new account.

  • •

    Before inputting new bank information, see the references for coding foreign bank data at GN 02402.220D.

C. Cancel Direct Deposit

If the beneficiary, recipient, or payee insists on cancelling the IDD;

  • •

    Input the cancellation.

  • •

    However, advise the beneficiary to keep the account open until payments start arriving via paper check.

 

 

GN 02402.225 Payment Operation for International Direct Deposit (IDD)

A. Processing Payments

1. Payment date for regular monthly payments

SSA sends a file containing all foreign direct deposit payments to Federal Reserve Bank of Kansas City (FRBKC), by way of the Department of the Treasury's Financial Management Services (FMS) approximately 6 business days before the scheduled payment date for recurring monthly payments.

2. Payment date for IDD PMA payments

Prior month accrual (PMA) payments are sent to FRBKC (through FMS) on a flow basis one workday after the input. The payment is sent on the run processing date (RPD) as displayed on Payment History Update System (PHUS).

The payment date will be 4 workdays later. Therefore, it is safe to tell IDD beneficiaries that a PMA payment will have a payment date approximately 5 workdays after the input to release the payment, or 4 workdays from the date on the PHUS, if it has already been input.

EXCEPTION: If a PMA payment on PHUS is dated after the close of current operating month (COM) but before the next month, it may include the payment for that month and therefore cannot by law be dated earlier than the first day of the following month. For example, a payment on PHUS dated 3/22/18 (the day after the End of COM for March) would have a payment date of 4/1/18, the first workday in the following month, even though this is 8 workdays from the date on PHUS. Continue with the rule of 4 workdays, when fewer than 4 workdays between the date on the PHUS and the first workday of the following month, the payment date moves to the date 4 workdays from the release date.

a. Example 1

Our system releases an IDD PMA payment on 3/10/18. The payment date is 4 workdays from then, 3/15/18.

b. Example 2

An IDD payment has a PHUS date of 3/22/18, the day after the END of COM for March. The payment must be paid in April. It is at least 4 workdays until 4/1/18, so that is the payment date. This is also the payment date for IDD PMA payments released on 3/23/18 through 3/28/18.

c. Example 3

Our system releases an IDD PMA payment on 3/29/18. Four workdays from that date is 4/4/18, which is the correct payment date.

3. Date payment available in beneficiary's account

In most countries, the payment will be available on the payment date (also known as the settlement date). However, in some countries the banking rules vary, so an IDD payment is not available in the account until one or more days after the payment date.

a. Example 1

We input information for a beneficiary in Canada on March 11, 2018. A PMA payment is released with a date of March 14 on the PHUS. The payment date is March 20, and the payment will be in the beneficiary's account on March 20.

b. Example 2

The PHUS shows that the initial payment for a beneficiary in Grenada was released March 15, 2018. The payment date is March 21. The payment should be in the beneficiary's account on March 22 (one day after the payment date).

4. Separating payments by countries

FRBKC separates the payments by

  • •

    contractor bank, based on the two-digit RTN prefix and the DAN multi-country code (if applicable) and,

  • •

    formats each file to comply with the contract requirements.

For prefix and multi-country codes, see GN 02402.220B.

5. Currency conversion

IDD for some countries is in U.S. dollars (USD). For Mexico and countries included in multi-country contracts that receive IDD in local currency, FRBKC transmits the files to the processor banks, where the currency rate of exchange is established. For local currency payments to other countries, FRBKC establishes the currency rates of exchange before transmitting the files.

6. Payment displays

FRBKC displays the current and historical payment information on IDD.gov, which is on a secure Treasury website. This includes the payee name, claim number, payment date, amount, and trace number. For countries in which FRBKC does the currency conversion, IDD.gov shows the payment amounts in both USD and the local currency.

FRBKC no longer produces copies of payment files, either electronically or on paper.

7. Forwarding the Payment Files

Approximately 1-4 business days before the scheduled payment date, FRBKC forwards the payment files to the processing facilities that send the payments through the foreign ACH systems.

B. Processing payment information on the internet

View recurring payment processed and sent by FRBKC on the site International Treasury Services or with security access at ITS.gov. View both the USD amount and the foreign amount if FRBKC converted the payment to foreign currency.

1. Example 1

FRBKC converts payments to Germany to euros and shows both the USD and the euro amount on ITS.gov.

2. Example 2

Payments to Grenada are made in East Caribbean Dollars, but the conversion is done after the file arrives at the processor bank. The USD amount is shown in both the Payment Dollar Amount and Payment Foreign Amount columns.

3. Example 3

Send payments to Canada in either USD or Canadian dollars (CAD), and the FRBKC converts to CAD.

A CAD payment to Canada shows both USD and CAD amounts.

A USD payment to Canada shows the USD amount under both headings.


GN 02402 TN 274 - Direct Deposit - Title II and Title XVI - 7/09/2024