We may accept a compromise offer if one of the following conditions exists:

• •

  The overpaid individual or their estate is unable or unwilling to repay the full amount of the overpayment balance within the time periods specified in SI 02220.031C, either by refund or adjustment;

• •

  The overpaid individual is unable or unwilling to repay the full overpayment balance and enforced collection is unavailable, refer to GN 02215.150A and GN 02215.235;

• •

  The cost of collecting the overpayment is likely to exceed the amount recovered (e.g., the difference between the overpayment balance and the amount offered as a compromise is less than $1,0000, refer to GN 02215.235; or

• •

  There is real doubt concerning SSA's ability to prove its case in court for the full overpayment amount when considering the factors in GN 02215.150.B.3.

When determining the individual's ability to pay, we consider:

• •

  The individual's income, resources, and expenses, and

• •

  The length of time it would take for full repayment by adjustment.

Policy regarding when financial development is needed is required and how to determine if recovery by adjustment is the preferred collection can be found in sensitive instruction SI 02220.031.

Document financial development and ability to refund the overpayment on a Report of Contact.

When financial information is needed, obtain the information from the overpaid person in accordance with SI 02220.026.

To determine financial ability to repay, calculate the individual's available resources and compare monthly income and expenses refer to SI 02220.026C.

We do not have compromise authority

• •

  The overpayment balance exceeds $100,000 (DOJ will make the decision on a compromise offer, refer to GN 02215.125);

  SSA can reject an offer in excess of $100,000 without DOJ concurrence,refer to GN 02215.120.

• •

  There is an indication that the overpayment resulted from fraud and the overpaid individual is alive;

• •

  There is an indication that the overpayment resulted from fraud and the overpaid person is deceased, and;

  • –

    There is evidence that another person, who is still alive, contributed to the fraud; or

  • –

    The overpayment balance is more than $5,000 and the potential for prosecution of another person exists, refer the offer to the Department of Justice, see GN 02215.125.

• •

  A claim against an individual who, as a representative payee, is indebted to a beneficiary when a request for the return of conserved benefits has been made to a former representative payee, refer to GN 06603.055.; and

• •

  Representative payee misuse overpayments.

If we find that the criteria for compromise have been met, we must determine the amount to accept for compromise. The amount offered must bear a reasonable relationship to the amount that could be recovered by enforced collection proceedings and we may consider the length of time for full recovery. We usually consider the individual's income, resources and expenses in determining the amount that we will accept.

Refer to instructions:

• •

  GN 02215.235 Suspension or Termination of Collection Action for Title II and Title XVI Debts;

• •

  GN 02215.115 FO handling of compromise offers;

• •

  GN 02215.150A When a Title II Debt is Referred for Civil Suit.

The compromise amount is due in full within 30 days. If the debtor wishes to pay the compromised amount in weekly, monthly, or multiple installments, advise that the debt must be recovered in full within 90 days. When warranted by the facts of the case (e.g., money to be used to satisfy the compromise offer will not be available within 30 days), you may extend the payment due date.

A compromise offer must be in writing, refer to SI 02220.030D.2.

If we accept the offer, we will provide written notice stating the amount of compromise payment and when it is due, refer to SI 02220.030D.4.

If we do not accept the compromise offer, we will notify the individual of the rejection in writing and resume normal recovery efforts. Refer to SI 02220.030D.4.

If the individual does not make the full compromise payment by the due date, we will resume recovery or adjustment. For more information, refer to SI 02220.030D.5.

1. a. 

   Accept a partial refund prior to approval of a compromise offer.

2. b. 

   Inform the individual that our acceptance of the partial refund does not constitute acceptance of their compromise offer; we will issue a Compromise Offer - Notice of Acceptance if we accept the compromise offer. This notice is found on the National tab in the Document Processing System (DPS).

3. c. 

   Explain that there may be a delay in notification of the decision in cases that require further review.

   This delay occurs because, in certain situations, we must refer the compromise settlement offer to the ARC MOS or DOJ if the overpayment amount exceeds certain thresholds or to the regional office of OIG if fraud is involved.

4. d. 

   We will issue a Compromise Offer- Notice of Acceptance if we accept the compromise offer. This notice is found on the National tab in the Document Processing System (DPS). For sample Notice language refer to NL 00703.140 or NL 00703.141.

1. a. 

   The offer must be:

   • •

     In writing;

   • •

     Written in the individual's own words; and

   • •

     Over the signature of the overpaid individual or their representative.

2. b. 

   Representative's signature alone is acceptable only when:

   • •

     You are reasonably certain they are acting for the individual or the individual's estate; and

   • •

     The representative is in a position to carry out the terms of the settlement; or

   • •

     There is a SSA-1696-U4 or other proof of appointment in file.

Development is the same for Title II and Title XVI. Refer to sensitive instructions in SI 02220.031.

1. a. 

   Refer any questions of whether to accept a compromise offer to the ARC MOS for their opinion prior to final acceptance of the offer.

2. b. 

   Actions following rejection of a compromise settlement offer

   • •

     Notify the individual on notice SSA-L8165-U2 which is found in the Document Processing System (DPS) on the national and overpayment tabs.

   • •

     Notify the appropriate ARC.

   • •

     Resume normal recovery efforts.

3. c. 

   For actions when accepting a compromise offer, refer to sensitive instructions in SI 02220.031C.

1. a. 

   If the individual does not make the refund, we will resume adjustment. Consider reporting the overpayment case to DOJ through ARC MOS, refer to SI 02220.035.

2. b. 

   If fraud is not involved, refer to DOJ for consideration of civil suit if the amount of the overpayment is $3,000 or more, refer to SI 02220.052B.3.

3. c. 

   Do not refer an overpayment to a deceased individual if there is no estate.

If we discontinue recovery, regardless of the overpayment amount, we must maintain documentation of the outstanding overpayment amount on the Supplemental Security Record (SSR) This information will allow us to resume adjustment or recovery if the individual does not pay the compromise amount in full by the due date.

If the individual reestablishes eligibility make the appropriate overpayment disposition input on the Direct SSR Update screens. For more information about overpayment decisions refer to MS 00304.002.