Social Security

A. Purpose

This Emergency Message (EM) outlines the policy requirements associated with the increase of the amount of an SSI underpayment that requires a prepayment review. This EM will also provide instructions for processing a small universe of cases that will require manual action by technicians in order to properly release underpayment installments that are currently pending.

Since May of 1992, a prepayment review is required for any SSI case (initial or post eligibility), if an underpayment (UP) of $5,000 or more is due through the month prior to the current computation month (CCM) as per SI 02101.025 - Basic Requirements of Supplemental Security Income (SSI) Underpayment (UP) Review (ssa.gov). Effective 03/16/2024, the amount of an SSI underpayment that requires a prepayment review will increase from $5,000 to $15,000. Effective that same date, the SSI system is changing the rules for setting a U2 diary. The U2 diary will be set when the underpayment amount in the UPX field in the MPMT segment of the SSR is greater than $14,999.99.

For cases having a U2 diary and a UPX amount less than $15,000.00, the SSI system will remove the U2 diary if a technician makes any update to the SSR without requiring a prepayment review. During the computation run on 03/23/2024, the SSI system will remove the majority of U2 diaries where the UPX is less than $15,000.00. When the U2 diary is removed, the SSI system will apply normal underpayment processing rules in the following manner:
i) setting an EA diary and setting a UPV:B in the MPMT segment of the SSR if Dedicated Accounts are involved
ii) setting a UPV:V if Interim Assistance Reimbursement is involved, or
iii) releasing the first installment payment.

In some instances, an Estimated Fee Withheld amount may be posted in the AUTH segment and an RF diary set to control for fee development, or a T16$ (Title XVI Maximum Authorized Representative Fee) may be set, or a fee payment may be issued.

Additionally, on 3/16/2024, the UDIA MSSICS screen display text for the U2 diary is changed to reflect the new prepayment review amount.

NOTE: Overpayment recovery rules will be applied normally.

IMPORTANT: Some U2 diaries will not be deleted in the computation run and those will require technician action to remove the U2 diary. This will happen when the SSR computation level in the CPD field in the CMSC segment of the SSR screens out the SSR from being updated in a computation run, or if the UPX exceeds $14,999.99.

Effective 03/16/24, technicians must conduct prepayment reviews on any SSI underpayment over $15,000 in accordance with the policy and procedure outlined in SI 02101.025. Although the amount of an SSI underpayment that requires a prepayment review is changing, all other underpayment provisions will remain the same. Therefore, installment cycles and dedicated account requirements will continue as outlined in SI 02101.020 and SI 02101.010, respectively.

However, a small universe will require manual actions by technicians. In those cases, we will be removing the U2 diary and placing a U4 diary in its place to hold the existing underpayment. Without holding the underpayment, the system would release the entire pending underpayment, even if it is larger than three times the FBR. This U4 diary will have 03/16/24 as a unique diary date for easier identification. Technicians must follow the following instructions when processing these cases:

The record is in C01:
If the record is in C01, the technician may release the first installment of the underpayment via A-OTP, after they have reviewed the record to ensure that no other outstanding underpayment requirement exists (i.e. dedicated accounts, IAR, overpayment netting).

If the record is in non-pay:
If the record is in non-pay, the technician must contact the claimant in order to ensure that they have the correct bank account and mailing address for the claimant. Once the technician is able to verify that information, they may release the first installment of the underpayment via A-OTP, after they have reviewed the record to ensure that no other outstanding underpayment requirement exists (i.e. dedicated accounts, IAR, overpayment netting).

IMPORTANT: As stated in SI 02101.020 , installment payments are not required for a recipient who is no longer eligible for SSI and is determined likely to remain ineligible for the next 12 months.

NOTE: If the claimant has an active MBR in LAF-C, but the SSID is non-pay status, re-contact is not required only if the address and bank information on the SSID matches that of the MBR.