Identification Number:
EM-18012 REV 2
Intended Audience:All RCs/ARCs/ADs/FOs/TSCs/PSCs/OCO/OCO-CSTs
Originating Office:ORDP OISP
Title:Clarifying State Overpayment Liability for Minors in Foster Care – Instructions Will Follow Shortly
Type:EM - Emergency Messages
Program:Title II (RSI); Title XVI (SSI)
Link To Reference:See References at the end of this EM.
 
Retention Date: May 13, 2019

REVISION 2: We revised this EM for the following:

    · Automating the halting of collection activity for Title II minor beneficiaries,
    · Notifying the Title II minor beneficiaries to do nothing until we verify or records regarding their involvement with Section 104,
    · Processing any remittances that we receive as normal until we can verify involvement with Section 104 and make further systems changes for holding a SFCA liable for a debt, and
· Handling inquiries from State Foster Care Agencies

A. Purpose

This emergency message (EM) provides interim guidance for handling overpayments involving minors who have a State serving as their representative payee during the period when the minor is in foster care under the responsibility of the State.

B. Background

Effective April 13, 2018, Section 104 of the Strengthening Protections for Social Security Beneficiaries Act of 2018, “Clarifying Overpayment Liability for Child in Child Welfare System,” requires SSA to hold the State liable for the repayment of any overpayment(s) made on behalf of a represented minor beneficiary or recipient in a month in which the minor was in foster care under the responsibility of the State and the State was the representative payee. This applies to any new Title II and Title XVI overpayment determinations made on or after the date of enactment. For Title II cases, this also applies to any overpaid amounts that we have not recovered as of the date of enactment.

C. Policy

As of the legislation’s effective date, when we determine that we overpaid a Title II or Title XVI minor beneficiary or recipient who was in foster care under the responsibility of the State (including county and local governmental entities/agencies) and the State was serving as the minor’s representative payee at the time the overpayment was incurred, the State is solely liable for repaying the overpayment. In addition, for Title II, we will no longer consider the minor liable for repaying any outstanding overpaid amounts that we have not recovered as of April 13, 2018. For Title II and Title XVI purposes, the term “represented minor beneficiary” means an individual who has not attained 18 years of age in a month in which the individual’s benefits are certified for payment to a representative payee.

D. How to identify a State Represented Minor in Foster Care

Consider all of the following to identify a beneficiary or recipient who is a State Represented Minor in Foster Care:

· The type of payee (TOP) field on the Master Beneficiary Record (MBR) shows organizational payee, type of payee (T) field in the REPY segment the Supplemental Security Record (SSR) as listed in GN 00501.013 indicates the minor is in foster care;

    Important: Most State Foster care agencies are coded as “Social Agency” in eRPS.
· The Rep Payee Organization Name field in eRPS indicates a State or State Agency is the rep payee (ex: Franklin County Children’s Services); and

· The beneficiary or recipient is a child under age 18.

NOTE: Verify the accuracy of the payee information before following the guidance outlined below.

E. Overpayment procedure

Beginning November 26, 2018, the Debt Management System (DMS) will perform a monthly batch run to add a new Section 104 protest code on all active debts involving Title II minor child beneficiaries (BIC Cs) who we believe meet the criteria for Section 104. The transaction code on the Recovery of Overpayments, Accounting and Reporting (ROAR) record will show, “TC 23-6 -- SECTION 104 LEGIS.”

The system will automatically send a Title II Halting Notice to these individuals. The notice briefly describes the impact of the legislation and explains that SSA is halting overpayment collection efforts while we verify whether the BIC C was in foster care with the State serving as rep payee when the overpayment occurred. See the below sample copy of this notice:

Sample Section 104 Halting Notice.docxSample Section 104 Halting Notice.docx

In addition, the system will annotate the Central Office Message Data Line (CO MSG) for each affected master beneficiary record (MBR) with the following message that cannot be overlaid “Section 104 Legislation – Do Not Delete.” The Central Office message is shown below the Special Message on the MBR.

Process any manual overpayment determinations for a Title II or Title XVI minor who is in foster care under the responsibility of the State, and for whom the State is serving as the minor’s representative payee (i.e., State Represented Minor in Foster Care), using the following instructions:


    1. Title II cases

      DMS will stop all efforts to recover any outstanding overpayment(s) for this affected group (e.g., manual collection activity such as skip tracing for delinquent debt(s)).

      Follow the chart below for processing manual cases or cases that DMS was unable to process:

      IfThen
      You are taking an adverse action which will cause an overpayment on the record of a minor while the State is serving as the payee,Take normal action to input the adverse action.

      DMS will automatically input the new TC23-6 protest to stop collection activity, send a notice, and annotate the new Central Office message to the MBR.

      This is a case that DMS was unable to process or you notice an overpayment has already been established on the record of a minor while the State is serving as the payee and recovery has begun or has not begun, (For PCs only)
        · Process the exception per SM 00610.415;

        · Input a protest indicator of “18 Section 104 LEGIS” via the Protest/Stop Recovery Request (PC) (DRPR);

        · Document on the RMKS screen in the DMS, with the following language:


          Possible Section 104, halting the overpayment collection. See EM-18012;” and

        · Input a special message with the following language: “Section 104 Legislation – Do Not Delete.”

        NOTE: If a minor requires a refund after the date of enactment, do not process any refunds until further notice. Document this issue on the RMKS screen in DMS by doing the following:

        · Establish a new remark titled “Section 104 Refund Request,” on the Remark Name field, and

        · Enter detailed remarks about the refund request.

      You are processing any overpayment protest (e.g. waiver, reconsideration) and you notice a Section 104 protest code already on the record,
        · Take no action to update or change the protest indicator;

        · Document the RMKS screen in DMS by doing the following:


          · Establish a new remark with the date and type of the protest on the DMS Remark Name field:

            Example: In the Remark Name: “Section 104 Waiver Request Filed.” In the remarks text: “Waiver filed for C1 by Hope Foster Care Agency 10/25/18. Section 104 case. No action taken per EM-18012;” and
        · Scan a copy of the protest and documentation into the Non-Disability Repository for Evidentiary Documents (NDRed) or the electronic file (whichever is applicable).

        NOTE: The minor (BIC C) should have already received the Title II halting notice. Do not send another notice with this action.


    2. Title XVI cases

      Continue to update a minor’s record to reflect the accurate information as normal for PE events, RZ’s, LI’s, etc.

      However, when the State is the payee and you need to manually establish an overpayment on a minor’s record, you will need to suppress the overpayment notice and suspend collection of the overpayment until we issue further instructions regarding how to hold the State liable for an overpayment per this new legislation.

      Follow the chart below for processing manual cases:

      IfThen
      You are taking an adverse action which will cause an overpayment on the record of a minor while the State is serving as the payee,
        · Update record with all available information (e.g., change in income, resources, living arrangement/household composition, etc.) where applicable;

        · Review the simulated SSID to see if there is a B3 diary for the overpayment period you just created; and

        · Transmit your updates to the SSID.

      You identify a B3 diary present (the system will not release an automated notice for the overpayment because of the B3 diary)

        · Go to Direct SSR Update and suspend billing by selecting SUSPEND BILLING = “2” (Overpayment Development Pending) on the UOSD screen, and transmit to the SSID to create a C3 diary (MSOM BUSSR 004.006);

        · Document on the DROC (MSSICS 022.010) screen in MSSICS with the following language:


          Per Section 104, halt the overpayment collection. See EM-18012;” and

        · Annotate a SSR Remark (CRMK):

      Special Handling Instructions, see EM-18012 for

      overpayment liability instruction;” and


        · Annotate “104” and the claims specialist’s three-digit code in the unit code of the Development Worksheet (DW01) screen for MSSICS cases or on the MDW screen for non-MSSICS cases.

          Example: If your unit code is JLM, you would use “104JLM.”
      You identify there is no B3 diary present and no Goldberg-Kelly (GK) (see SI 02301.301):

        · Look at the simulated SSID’s OPSQ line under TS section for an “A” in T column (the “A” means the system intends to send an automated notice. You are trying to change this “A” to an “M” for manual notice);

        · Return to Direct SSR Update and on the Notice Suppression (UNSP) screen select SUPPRESS SYSTEMS NOTICE = “3” (Suppress AONS Notice, Issue Regular Notice), and transmit to the SSID. When you transmit the data to the SSID, the “A” should change to “M”, which means you have successfully suppressed the automated overpayment notice;

        · Return to Direct SSR Update and suspend billing by selecting SUSPEND BILLING = “2” (Overpayment Development Pending) on the UOSD screen, and transmit to the SSID to create a C3 diary (MSOM BUSSR 004.006);

        · Document on the DROC (MSSICS 022.010) screen in MSSICS, with the following language:


          Do NOT clear the C3 diary for overpayment sequence XX, in the amount of $X.XX on record XX of XX. This overpayment occurred when a State served as the payee for the recipient. See EM-18012;” and

        · Annotate a SSR Remark (CRMK):

          Special Handling Instructions, see EM-18012 for overpayment liability instructions;” and

        · Annotate “104” and the claims specialist’s three-digit code in the unit code of the Development Worksheet (DW01) screen for MSSICS cases or on the MDW screen for non-MSSICS cases.

          Example: If your unit code is JLM, you would use “104JLM.”
      You identify there is no B3 diary present and you are in the GK period:

        · If you are updating a record, there is no B3 present on the simulated SSID, and you are within the GK period, STOP.

        · Do not apply changes to the record until the GK period has passed.

        · Once the GK period has passed, follow the directions in the box above.

      You identify the case is outside of MSSICS and outside of the GK period:

        · If you are updating a record outside of MSSICS, follow the same procedures as above to determine if you are in the GK period.

        · If you are within the GK period, wait until the GK period is over to transmit your updates;

        · Annotate a SSR Remark (CRMK):


          Special Handling Instructions, see EM-18012 for overpayment liability instructions;” and

        · Annotate “104” and the claims specialist’s three-digit code in the unit code of the Development Worksheet (DW01) screen for MSSICS cases or on the MDW screen for non-MSSICS cases.

          Example: If your unit code is JLM, you would use “104JLM.”.
      For more information about the 1719 inputs to suppress notices, see SM 01005.535 and SM 01301.675.
      You identify an overpayment has already been established on the record of the minor while the State was serving as the payee and the overpayment determination was made on or after April 13, 2018 and recovery has begun or has not begun,
        · Go to Direct SSR Update and suspend billing by selecting SUSPEND BILLING = “2” (Overpayment Development Pending) on the UOSD screen, and transmit to the SSID to create a C3 diary (MSOM BUSSR 004.006);

        · Document on the DROC (MSSICS 022.010) screen in MSSICS, with the following language:


          Do NOT clear C3 diary for overpayment sequence XX, in the amount of $X.XX on record XX of XX. This overpayment occurred when the State served as the payee for the recipient. See EM-18012;” and

        · Annotate a SSR Remark (CRMK):

          Special Handling Instructions, see EM-18012 for overpayment liability instructions;” and

        · Annotate “104” and the claims specialist’s three-digit code in the unit code of the Development Worksheet (DW01) screen for MSSICS cases or on the MDW screen for non-MSSICS cases.

          Example: If your unit code is JLM, you would use “104JLM.”
      NOTE: If a minor requires a refund after the date of enactment, do not process any refunds until further notice. Annotate this issue on the DROC screen in MSSICS.
Additional guidance on how to: 1) remove the liability from the affected minors, 2) establish the overpayment to the State, and 3) recover the overpayment from the State or State agencies is forthcoming.

F. Remittances

Remittances for debts potentially affected by the legislation will continue to be processed according to established remittance procedures, per GN 02403.001. Technicians should thoroughly document the Remarks screen in DMS for Title II or the DROC screen in MSSICS for Title XVI with the following information:

For Title II:


    · Document this issue on the RMKS screen in DMS by typing the following in the Remark Name field: “Section 104 Remittance;” and

    · Enter the following information:

        o Who the remittance is from,
        o Amount of the remittance,
        o Date remittance received,
        o The debt that the remittance should be applied to, if known.
For Title XVI:

    · Document this issue on the DROC by establishing a new remark titled, “Section 104 Remittance;”

    · Enter the following information:

        o Who the remittance is from,
        o Amount of the remittance,
        o Date remittance received,
        o The debt that the remittance should be applied to, if known;

    · Lock the DROC; and

    · Add the following message on the SSR Remarks “Remittance Payment for Section 104- Refer to the DROC”– Do Not Delete.”


G. Foster care agency representative payees

Technicians should code State foster care agency representative payees using the payee type code “Social Agency” in eRPS.

Process representative payee selections related to children in State foster care under normal business practices. For more information about considerations concerning foster care agencies, see GN 00502.159.

H. Handling Inquiries

If you receive an inquiry requesting an explanation about Section 104, see the following instructions below:


    · Check the SSR, MBR, special message, or central office message section to determine if the “Section 104 Legislation” appears on the fields;

    · Check the Online Retrieval System (ORS) to determine the date we sent the Title II Halting Notice;

    · Explain the following to the individual, if this information is on the MBR/special message section:

        o No action is required at this time;
        o We have taken action on their record to stop collection of the overpayment until we conduct further investigation; and
        o We will notify them in a new notice when we make a determination on their record which could include a refund if applicable; and

    · Follow normal business procedures for addressing their concerns, if the individual does not meet the Section 104 legislation.


If you receive an inquiry from a State (county or local) agency regarding their repayment process, direct them to contact their agency’s legal counsel.
    NOTE: Title XVI halting will be implemented at a future date.


    Direct all program–related and technical questions to your Regional Office (RO) support staff or Payment Service Center (PSC) OA staff. RO support staff or PSC OA staff may refer questions or problems to their Central Office contacts.

    References:

    GN 02205.001 Liability for Title II Overpayment Recovery
    SI 02201.020 SSI Overpayment: Who is Liable (Responsible) for Repayment? Living Overpaid Individual
    SI 02201.023 Supplemental Security Income (SSI) Overpayment: Recovery from a Representative Payee
    SI 02301.300 Due Process Protections – General
    MS 01106.003 Protest/Stop Recovery Request (PC) (DRPR)
    MS 01106.019 Protest/Stop Recovery Request (FO) (DRPF)
    MS 01106.020 Protest/Stop Recovery Request (TSC) (DRPT)
    GN 00501.013 Explanations for Types of Payees
    GN 00502.159 Additional Considerations When Foster Care Agency is Involved
    GN 02403.001 Overview of Field Office Remittance Process
    SM 00550.080 Type of Payee (TOP) and Custody (CC) Codes
    SM 01601.565 Representative Payee Data – REPY
    SM 00510.080 Central Office Message Data Line
    SM 00610.415 Processing Exception Codes



    EM-18012 REV 2 - Clarifying State Overpayment Liability for Minors in Foster Care – Instructions Will Follow Shortly - 11/30/2018