Identification Number:
GN 02402 TN 178
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Direct Deposit - Title II and Title XVI
Type:POMS 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. 178, 11/18/2020

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

This is an update to GN 02402.017 and GN 02402.020 to change the Title XVI work flow from including an MO TAC to an NT TAC. This new process will eliminate the continuously alerting BZ diary.

Summary of Changes

GN 02402.017 Handling Overpayments Attributed to Unauthorized Redirection of Payments

Subsection A: Added language to provide clarity that for unauthorized redirection of payment situations, the beneficiary is not at fault. Added additional policy cross references to assist technicians when processing these types of cases.

Subsection B: Changed procedural posting of overpayment for Title XVI. Previously the overpayment was posted to Title XVI using an MO TAC. The MO TAC was creating a 180 day BZ diary that was unresolvable in some situations. Procedure changed to use the NT TAC.

 

GN 02402.020 SSA Title II and Title XVI Reimbursement Process Due to Unauthorized Redirection of Reoccurring Payments

Subsection D: Reference to MO TAC changed to NT TAC.

Subsection E: Reference to MO TAC changed to NT TAC.

Subsection F: Reference to MO TAC changed to NT TAC. Reference to 180 day BZ diary removed.

Subsection K: Removed reference for the MO TAC policy, added the NT TAC policy.

GN 02402.017 Handling Overpayments Attributed to Unauthorized Redirection of Payments

A. Instructions for handling overpayments attributed to unauthorized redirection of payments

After receiving an overpayment alert due to unauthorized redirection of payments, the technician must take the following actions

  • Determine if the overpayment was due to issuance of a Critical Payment System (CPS)/Immediate Payment (IP) or an Automated One Time Payment (A-OTP) because of unauthorized redirection of payment or payments. Also reference GN 02402.012 and GN 02402.020 for further information on nonreceipt alleged fraud and unauthorized redirection of payments;

  • Complete instructions making an overpayment fraud referral per GN 02201.050 for Title II and SI 02201.007 for Title XVI. Remember, the beneficiary is not at fault when unauthorized redirection of payment occurs. If a fraud report is input for OIG via the Allegation Referral Intake System (ARIS), it is to inform OIG of the unauthorized redirection of payments. When a fraud report is complete, field office technicians enter the beneficiary information into the Claim and Victim sections of the referral in ARIS; and

  • Follow Title II and Title XVI specific policies as detailed in this section.

B. Handling Title XVI overpayments due to unauthorized redirection of payments:

For Treasury issuing credits for reports of non-receipt, see SM 00609.610 . If Treasury does not issue a credit for the report of non-receipt, you must select from the following actions:

If an IP replaced an unauthorized redirected payment, the next available payment will automatically recover the IP. In these cases, issue an A-OTP to replace that payment.

If an A-OTP resulted in an overpayment, then review these instructions:

  1. 1. 

    Do not send the overpayment notice;

  2. 2. 

    Stop overpayment collection and write off the overpayment as an erroneous overpayment decision (NT TAC), see SM 01311.280 . Document the determination, per SI 02220.005.

NOTE: Previous instructions involve the use of the MO TAC (SM 01311.220) which created a BZ diary. Correct any MO TAC input with NT TAC if it meets the criteria in this section.

If Treasury subsequently issues a credit for a nonreceipt, review these instructions:

  1. 1. 

    If SSA wrote off the overpayment with an erroneous overpayment decision (NT TAC), any credit received from Treasury will not automatically reduce the overpayment and will appear in either the PMTH or OPRR segments of the SSR. The SSR should reflect remarks stating, "Alleged direct deposit or direct deposit fraud for MMDDYYYY Payment CPS or ATOP issued", per GN 02402.012B. NOTE: If a partial credit is received from Treasury, it will post to the OPRR segment with a DOC code of 534. If a full credit is received, it will reflect in the PMTH segment with a "/" next to the date of the payment.

  2. 2. 

    When the credit is received from Treasury, the remittance will create an excess decision to be resolved in the form of an OPX/B4 in the MPMT section and a B4 diary alert. The technician should reduce the NT TAC decision to resolve the excess and account for the remittance amount. For more information on how to resolve a B4 diary alert, see SM 01311.634.

NOTE: If the FO receives a case involving Title II, contact the Processing Center (PC) via Modernized Development Worksheet (MDW) or Request for Assistance (RQFA).

C. Handling Title II overpayments due to unauthorized redirection of payments - PSC Actions

Review the Master Beneficiary Record (MBR) special messages (SP MSG) and the remarks field (RMKS) on the Critical Payment System (CPS) output, to determine if alleged direct deposit fraud is involved. The remark on the CPS output should indicate "Alleged DD Fraud, Review Teletrace Result - Possible Delay in O/P Collection," per GN 02402.012B2c.

If the CPS involves alleged Direct Deposit fraud, take action to make the Total Amount Paid (TAP) equal to the Total Amount Recovered (TAR) on the CPS record.

If the MBR and CPS output identify the case as possible Direct Deposit fraud, take the following actions:

  1. 1. 

    If you determine the CPS input is missing the required remark identifying the involvement of fraud, add a Special Message "Alleged D/D Fraud, Review Teletrace Result-Possible Delay in O/P Collection."

  2. 2. 

    Establish an overpayment for the non-entitled debtor on the beneficiary's SSN via the Establish Debt (SMED) screen in the Debt Management System (DMS) to post the overpayment to the affected BIC with a subscript of "X" . Use the ROAR's Debt Management System (DMS) to post the overpayment to the affected BIC with a subscript of "X" (e.g., "AX" or "CX").

  3. 3. 

    Use a Type of Event (TOE) code of 65, with the fraud indicator of No (N) (see SM 00610.515F).

  4. 4. 

    Post the overpayment using the following: FIRST NAME: DIRECT MIDDLE NAME: DEPOSIT LAST NAME: FRAUD

  5. 5. 

    Annotate DMS remarks with the details of the overpayment.

  6. 6. 

    Post a Special Message to the MBR: "ALLEGED AUTO ENROLLMENT FRAUD-DO NOT INITIATE OVERPAYMENT RECOVERY OR CONTACT BENEFICIARY." Do not send an overpayment notice.

  7. 7. 

    On the next business day, review the ROAR record to determine if the case processed correctly.

  8. 8. 

    If the case processed correctly, establish a 90-day diary via the ROAR Diary Processing screen (DRDY) in DMS .

  9. 9. 

    If the 90-day diary matures and no additional guidance or credits is received, annotate the case with the listing code 119 and terminate collection activity for the overpayment (See subsection GN 02402.017E).

NOTE: Ensure the name input for the Non-Entitled Debtor (NED) remains as FIRST NAME: DIRECT MIDDLE NAME: DEPOSIT LAST NAME: FRAUD. Do not change the name of the debtor to reflect the alleged bank account owner shown in the Teletrace response. Do not charge the alleged bank account owner an overpayment unless instructed to do so by Office of Program Integrity (OPI) or OIG.

D. Handling overpayments identified in the "O/U PAY" field

If there is an overpayment in the O/U PAY field of the beneficiary, rather than on the ROAR under the NED record, then processing may have occurred incorrectly. To handle these cases, take the following actions:

Field Office (FO) Staff

  1. 1. 

    Contact the Processing Center (PC) via an MDW to request the following:

    1. a. 

      Follow steps in GN 02402.017C.2.a to properly establish the overpayment in ROAR with the subscript of "X."

    2. b. 

      Delete any O/U PAY amount pertaining to the alleged direct deposit fraud.

Processing Center (PC) Staff

After requested action is completed:

  1. 1. 

    Review the ROAR field to determine if the case processed correctly.

  2. 2. 

    Once verified, contact the FO via telephone and send an MDW to notify the field office of the following:

    1. a. 

      The PC established a ROAR overpayment and updated the DMS remarks.

    2. b. 

      The name, SSN, and overpayment amount of the alleged victim of the unauthorized Direct Deposit changes.

E. Processing Centers handling overpayments attributed to treasury credits or remittances where SSA issued a CPS to replace the redirected payments

If SSA receives a Treasury credit or remittance and SSA issued a CPS to replace the redirected payment, select from the below applicable scenarios and follow it's instructions:

A non-cleared CPS and no overpayment posted on the record:

  1. 1. 

    Clear the CPS via Manual Adjustment Credit Award Data Entry (MACADE) system using a CP entry of 0.00.

  2. 2. 

    If PHUS does not reflect a 170 event for the CPS payment, manually post the 170 event to PHUS via the SSA-1257.

  3. 3. 

    Manually post the non-entitled debtor overpayment for the redirected payment amount.

  4. 4. 

    On the next business day, make sure the overpayment posted correctly to the ROAR and review the PHUS to verify the 170 event posted.

  5. 5. 

    Review the credit, remittance, or Inter-governmental Payment and Collection (IPAC) documentation to determine the amount of the returned credit.

  6. 6. 

    Apply the credit or remittance to the overpayment with subscript of "X" via DMS RRRE screen per MS 01103.020 .

    1. a. 

      If the credit received was for the full amount of the overpayment, then annotate the *119 listing code and send the action control record (ACR) to FIN.

    2. b. 

      If SSA only received a partial credit, allow the 90-day diary to control the case, and then send the ACR to files (FIN/FIN).

    3. c. 

      If the 90-day diary matures and there is no additional guidance nor did SSA receive an additional remittance or credit, then annotate the case with the listing code 119 for alleged Direct Deposit Fraud Cases, per GN 01040.005B.5 and MS 04905.010 . Terminate the collection activity for the overpayment, and send the ACR to FIN.

A cleared CPS and no overpayment posted on the record:

  1. 1. 

    Follow steps in C.2.a. in this section and manually post the overpayment for the CPS related to the redirected payment.

  2. 2. 

    If PHUS does not reflect a 170 event via the SSA-1257.

  3. 3. 

    On the next business day, review ROAR to make sure the overpayment posted correctly and PHUS for the 170 event, and continue to follow C.2.a. through C.8 in this POMS.

  4. 4. 

    Review the credit, remittance, or IPAC documentation to determine the amount of the returned credit.

  5. 5. 

    Apply the credit or remittance to the overpayment with subscript of "X" (via DMS ROAR Remittance Exception (RRRE) screen) per MS 01103.020 .

  6. 6. 

    On the next business day, review the record to make sure that the remittance posted correctly.

  7. 7. 

    If credit received for the full amount of the overpayment, then annotate the *119 listing code and send the ACR to FIN.

  8. 8. 

    If SSA receives a credit or remittance and issued a CPS, and there is an existing overpayment on the record due to an unauthorized Direct Deposit change, take the following actions:

    1. a. 

      Clear CPS via MACADE with CP of 0.00.

    2. b. 

      Review the credit, remittance, or IPAC documentation to determine the amount of the returned credit.

    3. c. 

      Manually apply the credit to the ROAR overpayment with a subscript of "X" using DMS RRRE screen.

    4. d. 

      On the next business day, review the ROAR field to determine if the case processed correctly.

    5. e. 

      Determine the case's processing status and follow these applicable steps:

      IF

      THEN

      If an overpayment still exists (the balance remains and it is not from some other type of overpayment),

      Diary the case for 90 days via the DRDY screen; do not diary any other overpayments on the record

      If the 90-day diary matures and there is no additional guidance or any additional remittance or credit

      Annotate the case with the listing code 119 for Alleged Direct Deposit Fraud Cases (see GN 01040.005 and MS 04905.010 . Terminate collection activity for the overpayment, and send the ACR to FIN.

      If SSA applied the amount of the unauthorized redirected payment to the wrong overpayment listed under the ROAR section

      Adjust the overpayment and follow subsection GN 02402.017D.2.c . to repost a new overpayment with a subscript of "X.

      If SSA receives an IPAC credit greater than the alleged missing benefit payment and the remarks field indicates that possible fraud is involved, but there is no O/P or CPS record on the MBR Take the following actions:
      1. 1. 

        Review the IPAC documentation.

      2. 2. 

        Review the applicable records and queries (i.e., MBR, PHUS) to determine the origin of the remittance and if the beneficiary had a fraudulently redirected payment or payments.

      3. 3. 

        After reviewing the record for the IPAC received, release any underpayment to the beneficiary.

NOTE: If the FO receives a case involving Title II and not Title XVI, they should contact the PC via Modernized Development Worksheet (MDW) or Request for Assistance (RQFA). If the case is concurrent, resolve all actions for the Title XVI case, than contact the PC for the Title II case actions to be taken. In addition, the name input for the NED should remain as FIRST NAME: DIRECT MIDDLE NAME: DEPOSIT LAST NAME: FRAUD. Do not change the name of the debtor to reflect the alleged bank account owner shown in the Teletrace response. Also, do not charge the alleged bank account owner an overpayment unless instructed to do so by OPI or OIG.

F. References

  • MS 01103.020 ROAR Remittance Exception (RRRE)

  • GN 02201.050 Overpayment, Fraud Referral

  • GN 01040.005 Establishment of Diaries and Listings

  • GN 02402.012 Field Office (FO) Instructions for Nonreceipt Alleged Fraud

  • GN 02402.020 SSA Title II and Title XVI Reimbursement Process Due to Unauthorized Redirection of Reoccurring Payments

  • SI 02201.007 Supplemental Security Income (SSI): Overpayment Fraud

  • SI 02220.005 Documenting the supplemental Security Income (SSI) Overpayment

  • SM 01311.220 Bankruptcy and Referral to Another Agency - MJ, MO, MS, and MT TAC

  • SM 01311.280 Uncollectible and Erroneous Overpayment Decisions – N TAC and NT TAC

  • SM 01311.634 How to Resolve a B4 Diary

  • SM 00609.610 Treasury RFC and CSD Disposition Codes

  • SM 00610.515 Description of Data Maintained on Recovery of Overpayments, Accounting, and Reporting System

  • MS 04905.010 Listing Code (LIST)

GN 02402.020 SSA Title II and Title XVI Reimbursement Process Due to Unauthorized Redirection of Reoccurring Payments

A. Purpose of the Electronic File Transfer (EFT) Claim Form

If a Title II (TII) or Title XVI (TXVI) unauthorized redirected payment results from an Automated Enrollment (ENR), Treasury will pursue the liable Financial Institution (FI) in an attempt to recover lost payments. Treasury will issue EFT Claim Forms (See Section J., Exhibit 1) to FIs sponsoring the automated enrollments (ENR) of redirected payments, associated with SSA beneficiaries, recipients, or representative payees.

B. Overview of Treasury's Recovery Process Using EFT Claim Forms

When the technician selects the fraud alleged option, within the non receipt screen, it initiates the process for Treasury to recover unauthorized redirected payments. If this recovery effort is unsuccessful, Treasury mails the EFT Claims Form, Treasury notifies the receiving financial institution (RFI) and attains the requested funds.

NOTE: If the beneficiary, recipient, or representative payee does not complete a return the EFT Claim Form, the individual may be at fault for the overpayment (See section C for more information).

C. Instructions if a Beneficiary, Recipient, or Representative Payee has not Received or Completed the EFT Claim Form After Claiming Nonreceipt

If the beneficiary, recipient, or representative payee filed nonreceipt and then visits the FO, they can fill out the EFT Claim Form. The Treasury Check Information System (TCIS), Integrated View, has a print option for the EFT Claim Form. Please follow the below instructions for filling out an EFT Claim Form:

  1. 1. 

    Query the TCIS Integrated View.

  2. 2. 

    Print the EFT Claim Form.

  3. 3. 

    Request the beneficiary, recipient, or representative payee complete the EFT Claim form in its entirety.

  4. 4. 

    Mail the EFT Claim form to the address located at the bottom of page 1 in the EFT Claim Form.

  5. 5. 

    Place a copy of the EFT Claim Form in the Electronic Folder (EF) or Non-Disability Repository for Evidentiary Documents (NDRED).

For individuals with Direct Express, the EFT Claim Form is not sent, nor stored in TCIS for printing. The technician must complete the R16 request for Direct Express redirected payments.

NOTE: 

If TCIS ENR Status shows "Reprint Date: MM/DD/YYYY" for the claim form, an SSA technician may have been in contact with the beneficiary and the form may be complete. Verify the beneficiary's EF or NDRED before reprinting.

D. Instructions for Handling Treasury Responses After EFT Claim is Sent

The following chart explains the ENR Status Codes, as well as, the actions and the explanations to provide to the beneficiary, recipient, or representative payee.

ENR Disposition Chart

ENR Status

Description

Action

How to handle inquiries: Explain the following

Payment Returned (ENR Match and TeleTrace (TT) Status Payment Returned)

Treasury has returned the redirected payment in full.

If there is an overpayment on the record due to a duplicate payment, reduce or recover the overpayment with the returned funds.

Title II- If we have not repaid the beneficiary, the PC technician will issue the funds to the beneficiary using the DR or RC Special Entry in Manual Adjustment Credit Award Data Entry (MACADE).

Title XVI - Office of Benefit Accounting and System Analysis (OBASA) posts remittances for partial payments to the Overpayment Refund Data (OPRR) segment of the Supplemental Security Record (SSR) with a DOC of 534 and updates the credit for a full remittance to the appropriate payment in the payment history (PMTH) segment.

If the beneficiary, recipient, or representative payee received a replacement payment(s):

Explain we have updated the record and there is no further action for them to take.

If they did not receive replacement payment, explain that they should receive the payment within 10 business days.

Comerica as seen in TCIS Claim Details tab (ENR Match and RTN is Comerica, enrollment was erroneously established).

Treasury has contacted Comerica for return of the redirected payment.

Field Office (FO) and National 800 Number Network (N8NN) Technicians ONLY check the Direct Express R14/R16 Application under R16 Return Request Cases-Search a case tab-to check for the status. Refer to TC 16001.070 Section E and the R14/R16 User Guide for all the possible results that can display in the R14/R16 application.

Refer to TC 16001.070 Section E (R14/R16 Result Scenarios) and the R14/R16 User Guide for instructions.

Claim Form Sent

(Full payment not returned from FI)

The ENR Status Date shown in TCIS or the paperless alert shows the date Treasury sent the EFT Claim Form to the beneficiary.

No action is required at this time.

The beneficiary, recipient, or representative payee states that they have an EFT Claim Form. Instruct them to complete the form within 30 days and to return to the address shown on the bottom of page 1 of the EFT Claim Form.

Undeliverable resent referral (Form returned undeliverable and new address is on the Master Benefit Record (MBR) or SSR)

Treasury resent the EFT Claim Form to the beneficiary, recipient, or representative payee. The TCIS Resent Date shows the date Treasury resent the form. The individual has 30 days to return the form.

No action is required at this time.

The beneficiary, recipient, or representative payee states that they have an EFT Claim Form. Instruct them to complete the form within 30 days and to return to the address shown on the bottom of page 1 of the EFT Claim Form.

Undeliverable NOT resent (Form returned undeliverable and NO new address is on the MBR or SSR)

Treasury sent the EFT Claim Form to the beneficiary, recipient, or representative payee. The Post Office has returned the form to Treasury because of an invalid address. Treasury does not resend the form.

Check to see if address has been recently updated. If the address is updated:

  • Print the EFT Claim Form from TCIS and send to the beneficiary, recipient, or representative payee’s new address.

  • If TCIS ENR Status shows “Reprint Date: MM/DD/YYYY” for the claim form, an SSA technician may have already resent the form. Verify the form is not currently present in the EF or NDRED before reprinting.

  • If the address has not been recently updated:

  • Develop for current address GN 02605.055 .

  • If unable to contact beneficiary, recipient, or representative payee to update address, continue to follow GN 02605.055 Section B.

Phone Call Requests

  • Verify the Title II and Title XVI address on the record.

    If the address is correct:

  • Print the EFT Claim Form from TCIS and send to the beneficiary, recipient, or representative payee’s address.

  • Explain that they should receive the form within 10 business days.

  • Instruct them to complete the form within 30 days and return to the address shown on the bottom of page 1 of the EFT Claim Form.

    If the address is incorrect: IMPORTANT: If there is a (Direct Deposit Fraud Block (DDFP) on the record, follow GN 02402.023 .

    If there is no DDFP block on the record:

  • Verify their identity and change the address.

  • Print the EFT Claim Form from TCIS and send to their new address.

  • Explain that they should receive the form within 10 business days.

  • Instruct them to complete the form within 30 days and return to the address shown on the bottom of page 1 of the EFT Claim Form.

  • In-Office Requests Verify the Title II or Title XVI address on the record.

    If the address is correct:

  • Print the EFT Claim Form from TCIS and have them complete the form.

  • Mail the form to the address shown on the bottom of page 1 of the EFT Claim Form. If the address is incorrect:

  • Verify their identity and change the address.

  • Print the EFT Claim Form from TCIS and have them complete the form.

  • Mail the form to the address shown on the bottom of page 1 of the EFT Claim Form.

Incomplete Resent (Form returned incomplete)

The beneficiary, recipient, or representative payee submitted an incomplete EFT Claim Form. The TCIS Resent Date shows the date Treasury resent the EFT Claim Form. Treasury sends a Denial Notice and a blank EFT Claim Form to the beneficiary, recipient, or representative payee. The beneficiary, recipient, or representative payee must return the form within 30 days.

No action is required at this time.

Customer states that they have a Denial Notice. Treasury sends the Denial Notice because they submitted an incomplete EFT Claim Form. Instruct the beneficiary, recipient, or representative payee to complete the form within 30 days and to return to the address shown on the bottom of page 1 of the EFT Claim Form.

No Response (No response)

Beneficiary, recipient, or representative payee has not returned the EFT Claim Form within 60 days.

Upload Treasury response into the EF or NDRED.

If there is an overpayment on the record due to a duplicate payment, the overpayment recovery process begins (see Section F).

NOTE: The overpayment recovery process begins 60 days after Treasury mailed the original EFT Claim Form. See ENR Claim Details Tab in TCIS.

  • Customer did not return the EFT Claim Form and therefore may be overpaid.

  • Explain that we can provide the EFT Claim Form.

  • If the claimant states that they will complete the form, print the EFT Claim Form from TCIS and mail or hand them the form.

    TII - Place the overpayment in protest status of “E” (explanation). TXVI - Stop overpayment collection with an NT TAC. (See GN 02402.017 for further instructions.) Previous instructions involved the use of the MO TAC (SM 01311.220) which created a BZ diary. Correct any MO TAC input with NT TAC if it meets the criteria in this section.

Approved - Debit Notice Sent (Claim form is returned complete and Treasury has the authority to debit the FI.)

Treasury received the EFT Claim Form and submitted it to the FI. NOTE: The FI has 30 days to respond.

No action is required at this time.

Treasury has received the beneficiary, recipient, or representative payee’s EFT Claim Form and Treasury will make a determination within 30 days.

Denied - Payee received payment (The beneficiary, recipient, or representative payee returned the completed EFT Claim Form)

Treasury received the EFT Claim Form and determined the beneficiary, recipient, or representative payee received the payment. Treasury sends a denial notice.

Upload Treasury status to the EF or NDRED. If there is an overpayment on the record due to a duplicate payment, the overpayment recovery process begins.

Explain that Treasury determined that they deposited their funds into the correct account and that they received the payment. Explain that they should contact Treasury regarding the Denial Notice. The Denial Notice will have the contact number included for questions.

Denied - Benefited from Payment (The beneficiary, recipient, or representative payee returned the completed EFT Claim Form)

Treasury received the EFT Claim Form and determined the beneficiary, recipient, or representative payee benefited from the payment. Treasury sends a denial notice.

Upload Treasury status to NDRED. If there is an overpayment on the record due to a duplicate payment, the overpayment recovery process begins (see section F).

Explain that Treasury determined that the beneficiary, recipient, or representative payee deposited their funds into the correct account and that they benefited from the payment. Explain that they should contact Treasury regarding the Denial Notice.

Denied - Someone Else Benefited (The beneficiary, recipient, or representative payee returned the completed EFT Claim Form)

Treasury received the EFT Claim Form and determined the beneficiary, recipient, or representative payee authorized someone to use their personal information to receive the payment. Treasury sends a denial notice.

Upload Treasury status to NDRED. If there is an overpayment on the record due to a duplicate payment, the overpayment recovery process begins (see section F).

Explain that Treasury determined that the beneficiary, recipient, or representative payee deposited their funds into the correct account and an authorized person benefited from the payment. Explain that they should contact Treasury regarding the Denial Notice.

Appeal – Pending (The beneficiary, recipient, or representative payee submitted an appeal)

Treasury received the EFT Claim Form and denied the original claim. The beneficiary, recipient, or representative payee has submitted an appeal through Treasury.

Upload Treasury status to the EF or NDRED. TII- If there is an overpayment on the record due to a duplicate payment and SSA has begun recovery, then place the overpayment in protest status of “E” (explanation).

TXVI - Stop overpayment collection with an NT TAC.

Treasury has received the beneficiary, recipient, or representative payee’s appeal. We will take no further action on collection of the debt until Treasury makes a determination on the appeal.

Appeal – Denied (Appeal submitted, reviewed and denied.)

Treasury received the appeal and made a determination to deny the claim.

Upload Treasury status to the EF or NDRED. If there is an overpayment on the record due to a duplicate payment, the overpayment recovery process begins (see section F).

Treasury has received the beneficiary, recipient, or representative payee’s appeal and denied the claim. If they wish to protest the overpayment, mail or hand them the appropriate appeal forms (see GN 02201.021 , GN 02201.025 , GN 02210.030 , GN 02406.310 , SI 02220.001 , SI 02260.001 , SI 02220.017 ).

Financial Institution Debit Process

ENR Status

Description

Action

How to handle inquiries: Explain the following

FI Debit (FI Responds authorizing debit)

SSA receives credit from FI

For actions necessary Title XVI, see SI 02201.007 Section C

If the beneficiary, recipient, or representative payee received a replacement payment:
  • Explain that we have updated the record and there is no further action for them to take.

If they did not receive replacement payment:

  • Explain that they should receive the payment within 10 business days.

Auto debit (FI does not respond within 30 days)

SSA receives credit from FI

For actions necessary Title XVI, see SI 02201.007 Section C

If the beneficiary, recipient, or representative payee received a replacement payment:

  • Explain that we have updated the record and there is no further action necessary for them to take.

If they did not receive replacement payment:

  • Explain that they should receive the payment within 10 business days.

FI Protest-Denied (Protest is denied) See section J., Exhibit 2.

SSA receives credit from FI

For actions necessary Title XVI, see SI 02201.007 Section C

If the beneficiary, recipient, or representative payee received a replacement payment:
  • Explain that we have updated the record and there is no further action for them to take.

If they did not receive replacement payment:

  • Explain that they should receive the payment within 10 business days.

FI Protest (FI Responds with protest)

SSA is awaiting Treasury response on FI protest.

No action is required at this time.

We are awaiting a Treasury response.

FI Protest – Approved (Protest approved)

Treasury received FI protest and determined that the beneficiary, recipient, or representative payee benefited from the payment. Treasury sends a denial notice.

Treasury determined that the beneficiary, recipient, or representative payee benefited from the payment. Upload Treasury status to the EF or NDRED. If there is an overpayment on the record due to a duplicate payment, the overpayment recovery process begins.

Explain that Treasury determined that the beneficiary, recipient, or representative payee deposited their funds into the correct account and that they benefited from the payment. Explain thatthey should contact Treasury regarding the Denial Notice.

E. Overpayment Posting Instructions for Non-Returned or Incomplete EFT Claim Forms and SSA Issued a Replacement Payment

1. For FO instructions regarding Title XVI recipients, follow the below instructions and then choose the applicable option listed under subsection “c”:

  1. a. 

    Check TCIS for the status of the EFT Claim Form.

  2. b. 

    Prepare and mail a manual overpayment notice and ensure that appeal rights are included in the notice.

  3. c. 

    Change the NT TAC and review the record to begin overpayment recovery (follow instructions in SM 01311.285 ). In addition, please follow one of the following applicable scenarios:

    • If the Title XVI record is in current pay (i.e., the SSR shows payment status C01), follow the C01 instructions in SM 01311.285 to change the decision on the (Overpayment Decision) UOPD screen from 7 = Erroneous to 3 = RECOVERY BY CHECK ADJUSTMENT, and send to the Supplemental Security Record (SSR). If the overpayment has no notice date posted, then input the notice date using the MSSICS UOSD Screen, see MS 00304.006 . Update Sequence Data (UOSD). A manual overpayment notice maybe necessary.

    • If the Title XVI record is in non-pay status or if the Title XVI record is in terminated status, follow the applicable instructions under SM 01311.225.B .

2. For Processing Center procedures regarding Title II beneficiaries, please follow the below instructions:

  1. a. 

    Check TCIS or Paperless for the status of the EFT claim form

  2. b. 

    Delete the non-entitled debtor overpayment.

  3. c. 

    Establish the overpayment on the beneficiary’s record via the Debt Management System (DMS) Establish Debt (SMED) screen.

  4. d. 

    Prepare and mail a manual overpayment notice and include an appeal rights in the notice.

F. Field Office (FO) Instructions for Handling Title XVI Financial Institution (FI) Return Payments, Due to Unauthorized Direct Deposit Changes

If the suspected overpayment is the result of fraud, follow SI 02201.007C on handling Title XVI overpayment fraud. After following “SSI: Overpayment Fraud” policy, review the PMTH and OPRR segment of the SSR to determine if SSA applied a credit. Please follow the below applicable scenario:

  • If the credit (returned payment) covers the full overpayment amount, the system reduces the overpayment balance to zero.

  • If the credit (returned payment) does not fully recover the overpayment (i.e., the FI returned a partial payment), then reduce the overpayment by the credit amount or the partial payment remittance found in the OPRR. OBASA Treasury Operations Branch (TOB) posts the partial payment remittance to the OPRR segment, of the SSR, with a District Office Code (DOC) code of 534. In addition, balance the overpayment on the SSR, if applicable.

NOTE: 

For any remaining overpayment balance resulting from the A-OTP: Do not send the overpayment notice. Stop overpayment collection with an NT TAC. See GN 02402.017.

G. Processing Center Instructions for Handling Title II Financial Institution (FI) Return Payments, Due to Unauthorized Direct Deposit Changes.

When the FI returns redirected payments to Treasury, Treasury will fax an ENR Recovery Debit Detail Report (see section J., Exhibit 3.). This report will have one of the following TOEL combination codes:

  1. 1. 

    TOEL 1: CHECK

  2. 2. 

    TOEL 2: DIRDEP

  3. 3. 

    TOEL 3: FRAUD

  4. 4. 

    TOEL 4: FIDEBIT

Once SSA receives this information into paperless, use the following steps to process:

  1. 1. 

    Review the ENR Recovery Debit Detail Report to determine the amount of the returned credit.

  2. 2. 

    Apply the credit or remittance by reducing or removing the overpayment with the subscript of X (via DMS RRRE screen).

  3. 3. 

    On the next business day, review the record to make sure the overpayment reduced or removed correctly.

  4. 4. 

    Post a Special Message to the MBR: “FI DEBIT RECEIVED FOR FRAUD REDIRECTED PAYMENT – OVERPAYMENT WAS REMOVED OR REDUCED IN THE AMOUNT OF $$$.$$.” If an overpayment balance remains, then terminate collections and ensure the *119 listing code has been annotated before sending the ACR to FIN.

NOTE: 

If there is no NED overpayment on ROAR, follow the applicable instructions under section SM 01311.225.B .

H. Instructions for Handling Protests of Overpayments Resulting from Incorrectly Processed Redirected Payments, After the Overpayment Recovery Process

If the beneficiary, recipient, or representative payee protests the overpayment and alleges fraud, after SSA begun recovery efforts for the redirected payment, refer the case to Office of the Inspector General (OIG) via the Allegation Referral Intake System (ARIS).

  1. 1. 

    For Title XVI, follow SM 01311.220 .

  2. 2. 

    For Title II, reestablish the overpayment back on the Non-Entitled Debtors (NED) record and follow the steps in SM 01311.225.B .

If the account holder failed to respond to the EFT Claim Form and protests the overpayment posted, then take the following applicable action:

  1. 1. 

    For Title XVI, follow SI 02220.017

  2. 2. 

    For Title II, follow GN 02201.025

NOTE: 

If a FO receives a case involving Title II, they must refer the case to the PC via MDW or RQFA.

I. Instructions for Handling Reports of Incorrect SSA-1099 Forms (Social Security Benefit Statement) Due to Unauthorized Redirected Payments Initiated Through Auto-Enrollments (ENR)

  1. 1. 

    If a beneficiary, recipient, or representative payee alleges the inflation of payments on the SSA-1099, because of nonreceipt of one or more payments due to alleged fraud, then issue a corrected benefit statement.

  2. 2. 

    If the beneficiary did not receive payments during the related tax year in question, then the PC will follow the process to prepare a manual SSA-1099, showing $0.00 in all boxes. (For the processing of the manual SSA-1099, see SM 00630.070 .)

  3. 3. 

    If the real beneficiary filed for cash benefits during the related tax year, the SSA-1099 will reflect the amount of benefits that the real beneficiary received.

NOTE: 

The FO must contact the PC via MDW or RQFA regarding requests for a manual SSA-1099.

Direct all program–related and technical questions to your RO support staff or PSC OA staff. RO support staff or PSC OA staff may refer questions or problems to their CO contacts.

K. References

  • GN 02605.055 Title II Undeliverable Mail — Change of Address (COA)

  • GN 02402.023 Direct Deposit Fraud Prevention Policy

  • SM 01311.220 Bankruptcy and Referral to Another Agency - MJ, MO, MS and MT TAC

  • GN 02201.021 Field Office (FO) Actions Title II Overpayment Waiver Request

  • GN 02402.025 Direct Deposit Post Entitlement Interview

  • GN 02210.030 Request for Change in Overpayment Recovery Rate, Form SSA-634-BK

  • GN 02406.310 Request for Reconsideration of DCN Overpayment or Forgery Determination

  • SI 02220.001 Recovery Procedures for SSI Overpayments- General

  • SI 02260.001 Basic Requirements Concerning Supplemental Security Income (SSI) Overpayment Waiver

  • SI 02220.017 SSI Overpayment- Request for a Different Rate of Adjustment, a Reconsideration or a Waiver

  • SM 01311.285 Deleting or Correcting the N TAC or the NT TAC

  • MS 00304.006 Update Sequence Data (UOSD)

  • SI 02201.007 Supplemental Security Income (SSI): Overpayment Fraud

  • GN 02201.025 Title II Overpayment Reconsideration Request

  • SM 00630.070 Issuing Replacement, Correction, and Manual Form SSA-1099 or SSA-1042S (Social Security Benefit Statement)


GN 02402 TN 178 - Direct Deposit - Title II and Title XVI - 11/18/2020