International Direct Deposit (IDD) payments issued after the death of a beneficiary must be recovered using procedures outlined in GN 02408.901 through GN 02408.920. These procedures are only for IDD payments in which the Routing and Transit Number (RTN) begins with the number 5, 6, or 7.

NOTE: The Department of Treasury has no authority over financial institutions (FI) in other countries.

Title II beneficiaries living outside the United States can receive their payments several ways:

1. 1. 

   IDD Electronic Fund Transfer (EFT);

2. 2. 

   Correspondent banking arrangements through U.S. banks;

3. 3. 

   Checks mailed directly to beneficiary’s home address outside the U.S.; or

4. 4. 

   Checks mailed to a foreign FI via an FMS 233 (Power of Attorney).

Incorrect IDD payments after death occur due to the following:

1. 1. 

   The death report may arrive after issuance of an IDD payment, or after the cutoff for the monthly payment file; or

2. 2. 

   A systems limitation may prevent automated termination when transmission of a death report occurs or a payment returns for reason of death.

NOTE: If your component receives a report of the death of a beneficiary who received direct deposit to an FI outside the U.S., follow the instructions in GN 02402.230. This section also explains systems limitations that affect death terminations for beneficiaries living outside the U.S.

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  GN 02402.115 Power of Attorney to Foreign Financial Institutions (FI)

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  GN 02402.120 Correspondent Banking

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  GN 02402.200 List of International Direct Deposit (IDD) Countries

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

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  GN 02408.610 Overview of the Reclamation Process for Title II and Title XVI EFT Payments

The appropriate FBUs process reclamations for countries not supported by the National Payment Center Of Excellence(NPCE). The FBUs use locally developed forms to request reclamations. For more information concerning reclamations to NPCE see GN 02408.910 and GN 02408.930.

The U.S. Embassy in Tokyo processes reclamations for Japan that are at least $30. The U.S. Embassy in Tokyo also processes reclamation requests from the Office of Earnings and International Operations (OEIO). This occurs when an incorrect payment transmits to a bank in the Embassy’s assigned region and the payment did not return.

NPCE processes reclamation requests for certain countries, when the outstanding amount is $100 or more. For a list of countries see GN 02408.920F. Technicians must enter all reclamation requests for NPCE through the International Treasury Services application (ITS.gov).

NOTE: All refunded money goes to the Federal Reserve Bank of New York (FRBNY). NPCE writes request letters for reclamations, but FRBNY is in charge of the movement of money in or out of ITS.gov.

OEIO is responsible for the reclamations under certain circumstances. For determining when OEIO is responsible for processing reclamations, see GN 02408.915.

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  GN 02408.910 Starting the International Direct Deposit (IDD) Reclamation Process in the Office of Earnings and International Operations (OEIO)

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  GN 02408.920 International Direct Deposit (IDD) Payment Reclamation Forms and the International Treasury Services Application (ITS.gov)

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  GN 02408.930 International Direct Deposit (IDD) Reclamation Process for a Federal Benefits Unit (FBU)

When OEIO receives a report of death that does not contain the date of death (DOD), OEIO attempts to obtain the DOD from the reporter or the Federal Benefits Unit (FBU).

When OEIO has the DOD and determines that reclamation is appropriate for IDD payments issued after the death of a beneficiary, OEIO technicians take the following steps:

1. 1. 

   The technician queries the International Treasury Services application (ITS.gov), the Payment History Update System (PHUS), and the Treasury Check Information System (TCIS), as appropriate, to verify that the incorrect payments issued after death have not yet been returned.

2. 2. 

   If the incorrect payment went outside the U.S. to a country other than those listed in GN 02408.910B.3. or GN 02408.920F, OEIO notifies the Federal Benefits Unit (FBU) of the incorrect payment and asks the FBU to do a reclamation. For the FBU’s development, see GN 02408.930.

3. 3. 

   If the incorrect payments went to a financial institution (FI) in Japan, and the total outstanding amount is at least $30 but less than $100, OEIO sends an modernized development worksheet (MDW) to the U.S. Embassy in Tokyo.

4. 4. 

   If the incorrect payment went outside the U.S. to a country listed in GN 02408.920F, and if the total outstanding amount is $100 or more, the OEIO technicians must send a reclamation request to NPCE through ITS.gov. The technician inputs a stop-payment in ITS.gov with an event equal to the claimant’s date of death and initiates the reclamation.

   NPCE does a reclamation for all payments after death, except for already returned payments and joint bank accounts. OEIO also lists the returned payments received. For a description of NPCE’s development, see GN 02408.930. See process for OEIO’s follow-ups in GN 02408.910C.

5. 5. 

   If the outstanding amount is less than $30, OEIO takes no action to recover the funds.

6. 6. 

   OEIO is responsible for the reclamation under certain circumstances. For determining when OEIO is responsible for processing a reclamation request, see GN 02408.915.

When OEIO sends a reclamation request to NPCE via ITS.gov, the technician places the case on hold for 45 days. When the diary matures, the technician will check ITS.gov for the status. NPCE sends out two letters to the bank for reclamation. If there is no response from the bank or if partial payment returned, NPCE annotates that the case is closed. If partial payment returned, OEIO follows instructions in GN 02408.945.

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  GN 02408.910 Starting the International Direct Deposit (IDD) Reclamation Process in the Office of Earnings and International Operations (OEIO)

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  GN 02408.915 Process when the Office of Earnings and International Operations (OEIO) is Responsible Reclamations

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  GN 02408.920 International Direct Deposit (IDD) Payment Reclamation Forms and the International Treasury Services Application (ITS.gov)

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  GN 02408.930 International Direct Deposit (IDD) Reclamation Process for a Federal Benefits Unit (FBU)

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  GN 02408.945 Partial Recovery or No Recovery of International Direct Deposit (IDD) Payments

The U.S. Embassy in Tokyo usually contacts the survivors or the executor of the estate for reclamations from Japan. This is less costly than contacting the bank, in terms of both time and money. Banks in Japan do not release funds until all of the inheritors have been contacted. Fees are also higher than elsewhere, including foreign exchange fees.

The U.S. Embassy in Tokyo uses locally produced forms and letters for reclamations of incorrect payments made to beneficiaries living in Japan. For suggested language for letters sent to survivors on the deceased international direct deposit (IDD) beneficiary’s record, see MBR Reflects an Entitled Survivor on the Deceased IDD Beneficiary’s Record, GN 02408.950.

GN 02408.950 Master Beneficiary Record (MBR) Reflects an Entitled Survivor on the Deceased International Direct Deposit (IDD) Beneficiary's Record