Identification Number:
GN 01061 TN 6
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Preparing Amended and Underpayment Awards in Processing Centers and Field Offices
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 010 – Adjudication
Subchapter 61 – Preparing Amended and Underpayment Awards in Processing Centers and Field Offices
Transmittal No. 6, 11/09/2020

Audience

PSC: CA, CCRE, CS, DS, IES, RECONR, SCPS, TSA, TST;
OCO-OEIO: CAQCR, CR, CTE, ERE, FCR, FDEC, RECONR, RECOVR;
OCO-ODO: BTE, CR, CST, CTE, CTE TE, PETE, PETL, RCOVTA, RECOVR;
FO/TSC: CS, CS TII, CSR, CTE, DRT, DT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OISP

Effective Date

Upon Receipt

Background

We updated this transmittal to clarify and incorporate instructions to assist technicians in processing Title II underpayments.

 

Summary of Changes

GN 01061.020 How to Process Title II Underpayments

We updated the title, subtitles, and clarified instructions and added a new subsection to incorporate relevant cross-references.

Subsection A – We rewrote this section to provide the definition of an underpayment.

Subsection B – We rewrote this section to:

  • Update the subheading;

  • Separate and update the instructions for a living beneficiary and a deceased beneficiary;

  • Separate and update chart based on technician/component role;

  • Remove instructions and cross-reference related to SSA-3601;

  • Incorporate FO instructions for a completed SSA-409;

  • Incorporate relevant instructions from GN 01061.025; and

  • Clarify the instructions.

Subsection C – We added this new subsection to include relevant cross-references.

 

GN 01061.025 How to Instruct BAs to Pay Underpayments

We archived this section and incorporated the relevant information in section GN 01061.020.

GN 01061.020 How to Process Title II Underpayments

A. Definition of an underpayment

An “underpayment” is any monthly benefit amount (or part of a monthly benefit amount) that is due to a person but has not been paid. For policy on Title II underpayments, see GN 02301.001 through GN 02301.075.

B. Processing Title II underpayments

1. Title II beneficiary is alive

The office that detects an underpayment due to a living beneficiary issues the notice and payment following the instructions in GN 02301.010 and GN 02301.020.

2. Title II beneficiary is deceased

If the underpaid beneficiary is deceased, we must issue any underpayment following the order of priority in GN 02301.030.

a. Steps a Benefits Authorizer (BA) (or equivalent) will take when a Title II underpayment is due to a deceased beneficiary

The BA (or equivalent) is generally responsible for processing underpayments. When the BA discovers an underpayment and the evidence clearly identifies the proper recipient(s) of the underpayment, the BA pays the underpayment to the recipients(s). Otherwise, the BA should develop for a proper recipient per GN 02301.060 and GN 02301.075B, or refer the case to a Claims Authorizer (CA) or equivalent.

For more information on BA payment instructions for a Title II underpayment due a deceased beneficiary, see GN 02301.075.

This chart describes how the BA pays a Title II underpayment due to a deceased beneficiary:

IF

THEN

the underpayment recipient is not a currently or previously entitled beneficiary on the same SSN of the deceased

pay the underpayment via the Single Payment System (SPS) on the Social Security Number (SSN) of the deceased. For more information on SPS, see SM 00834.000.

NOTE: The recipient's SSN must be entered on all SPS inputs. Enter the recipient’s SSN under the fill-in RECIPIENT INFORMATON - SSN on the MPAY screen.

the underpayment recipient is annotated as a currently or previously entitled beneficiary on the same SSN of the deceased (including LSDP recipients)

pay the underpayment via the Manual Adjustment Credit and Award Data Entry (MACADE) system to the recipient on the deceased's SSN under the recipient's PIC on that SSN record.

NOTE: Use a MACADE action with a special entry of "AU" whenever possible to pay the underpayment. Make sure the BIC has a BOAN on the record, and verify address if recipient is not in current pay. Also, place a special message on all cases. For more information, see SM 00805.040B.3.c.

b. CA (or equivalent) authorizes underpayment

If the CA (or equivalent) in the Payment Center (PC) authorizes the payment, they will instruct the BA to pay the underpayment on form SSA-559, Transmittal Slip for Claims Folder.

If the Field Office (FO) can determine the fact and amount of an underpayment and the proper recipient(s), they will authorize payment and instruct the BA to pay the underpayment on form SSA-409, Post-adjudicative Routing Form. The FO will fax the completed SSA-409 into the Paperless system under TOEL combination STATUS DEATHUP.

For more information on component responsibilities for payment of a Title II underpayment due a deceased beneficiary, see GN 02301.070.

This chart describes the instructions the CA (or equivalent) sends to the BA for payment of a Title II underpayment due to a deceased beneficiary:

IF

THEN on form SSA-559 or SSA-409

there is one underpayment recipient

Instruct the BA to pay the underpayment and provide the:

  • recipient’s name;

  • recipient’s address;

  • recipient’s routing transit number (RTN) and depositor account number (DAN) for direct deposit, if available; and

  • basis of payment- recipient’s name along with “on account of” (O/A/O), the name of the deceased beneficiary and “DEC'D."

there is more than one underpayment recipient (same category)

Instruct the BA to divide the underpayment equally and pay the underpayment and provide the:

  • recipients’ names;

  • recipients’ addresses ;

  • recipients’ RTN and DAN for direct deposit, if available; and

  • basis of payment- recipients’ names along with O/A/O, the name of the deceased beneficiary and “DEC’D."

the underpayment recipient is an estate

Instruct the BA to pay the underpayment and provide the:

  • name of estate administrator;

  • designation (as shown in court order);

  • address of estate administrator;

  • RTN and DAN for direct deposit, if available; and

  • basis of payment-FOR THE ESTATE OF (name of deceased)

Reference: SM 00805.040B.1.b

c. CA (or equivalent) completes award

This chart describes the steps the CA (or equivalent) follows to complete an award for a Title II underpayment due to a deceased beneficiary:

IF

THEN

the underpayment recipient is a nonresident alien

follow instructions in GN 05010.300.

the survivors award is on the same SSN as the underpayment

add a remark regarding the underpayment to the A101 or EF101 BCRN screen for survivors benefits to explain the basis of the underpayment.

Example: “Pay the underpayment to (recipient’s name) O/A/O, (the name of deceased beneficiary), DEC’D.”

the claimant died before adjudication of the claim with accrued benefits or the amended award to a deceased beneficiary results in an underpayment

complete an A101 or EF101. For more information, see SM 00805.040.

C. References

  • SM 00834.435-SPS Processing of the Miscellaneous Payment (MPAY) Screen

  • SM 00848.315-Coding “AU” (Death Underpayment) Special Entry

 


GN 01061 TN 6 - Preparing Amended and Underpayment Awards in Processing Centers and Field Offices - 11/09/2020