Effective Dates: 5/16/2025 - Present

Identification Number:
SI 02220 TN 134
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Recovery Procedures for Supplemental Security Income Overpayments
Type:POMS Full Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM

Part SI – Supplemental Security Income

Chapter 022 – Overpayments

Subchapter 20 – Recovery Procedures for Supplemental Security Income Overpayments

Transmittal No. 134, 05/16/2025

Audience

PSC: BA, CCRE, CS, DS, LEAD DS, PETE, TA, TST;
OCO-ODO: CST, CTE, CTE TE, RCOVTA, RECONR, RECOVR;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OISP

Effective Date

Upon Receipt

Background

 

This transmittal provides instructions to technicians for recovering overpayments from the estate of a deceased overpaid individual, or any other liable individuals or their estates.

Summary of Changes

SI 02220.045 Supplemental Security Income Overpayment Recovery from an Estate

 

This transmittal provides instructions to technicians for recovering Supplemental Security Income (SSI) overpayments from a deceased individual's estate, a surviving liable payee, spouse or sponsor, or the surviving payee, spouse or sponsor's estate. We reformatted the instructions and revised the language throughout the section and made changes listed.

1. Removed the acronym (SSI) from the section title.

2. Added relevant citations to the Social Security Act and regulations.

3. Subsection A: Added an introduction.

4. Subsection B: Clarified policy regarding overpayment recovery from any liable individual to comply with OIG audit 22022012, recommendation 9 (Revise policies for existing overpayment diaries, as appropriate, that will alert employees to develop for an estate when a deceased recipient has an overpayment and there are no liable persons to whom it should transfer).

5. Subsection C: Updated the tolerance for recovering from an estate from $5,000 to $3,000, per OIG advice.

6. Corrected MSOM references.

 

 

SI 02220.053 Suspension and Termination of Supplemental Security Income Overpayment Recovery Efforts for a Deceased Individual

This transmittal provides instructions for suspending and terminating recovery of SSI overpayments made to an individual who died before repaying the overpayment. We reformatted the instructions and reviewed the language throughout the section and made changes listed.

1. Removed the acronym (SSI) from the section's title.

2. Added relevant citations to the Social Security Act and regulations.

3. Subsection A: Added an introduction.

4. Subsection B: Added instructions for developing for an estate of any liable individual and, when applicable, notify the estate of the overpayment and pursue recovery to comply with OIG audit 22022012, recommendation 9 (Revise policies for existing overpayment diaries, as appropriate, that will alert employees to develop for an estate when a deceased recipient has an overpayment and there are no liable persons to whom it should transfer).

5. Subsection C: Clarified procedures for suspending or terminating overpayment recovery for deceased individuals, and updated the references for overpayment waiver instructions.

6. Corrected MSOM references.

 

SI 02220.045 Supplemental Security Income Overpayment Recovery from an Estate

CITATIONS:

The Social Security Act §§1631(b)(1)(A), 1631(b)(2); 20 CFR §416.570

A.  Introduction

We must pursue recovery of Supplemental Security Income (SSI) overpayments from an individual's estate, or any other liable individual, after the overpaid individual has died. These instructions provide guidance on overpayment recovery from an estate.

B. Policy

When an individual with an SSI overpayment dies and there is no surviving liable spouse, or surviving sponsor of a non-citizen, we must determine if there is an estate. If the overpaid individual has an estate, we may recover from the estate, depending on the amount of the overpayment.

In certain situations, we may also recover from the estate of a liable spouse or sponsor, including distributees and the legal representative of the estate.

EXCEPTIONS: We must pursue recovery, including from an estate, regardless of the amount of the overpayment if:

  • •

    A representative payee (payee) received SSI payments on behalf of the deceased individual for months after the month of the individual's death, refer to SI 02201.021C; or

  • •

    The overpayment was the result of fraud by the deceased overpaid individual, the surviving liable spouse, or the surviving sponsor of a non-citizen, refer to SI 02201.021D.

C. Procedure for recovering SSI overpayments from an estate

1. Recover the overpayment of a deceased individual from their estate if there is no

2. If there is a liable payee

For purposes of these instructions, a "liable payee" is a payee who received SSI payments on behalf of the deceased individual for months after the month of the individual's death. The liable payee or their estate is solely liable for repayment, and we must recover, regardless of the amount of the overpayment.

If the payee dies and there is still an outstanding overpayment balance, we must recover from the payee's estate, or in some cases, the distributees or legal representative of the estate.

NOTE: The instructions in this section do not apply to payee misuse. When a payee has misused funds, the payee is solely liable for repayment. For information about payee misuse, refer to sensitive instructions GN 00604.000.

3. If you suspect fraud

If you suspect the overpayment was a result of fraud by the deceased overpaid individual, liable spouse, or eligible non-citizen, develop the potential for recovery. Regardless of the overpayment amount, we must attempt recovery from the estate of the individual who committed fraud. Then we will attempt recovery from other liable individuals and their estates, refer to SI 02201.021. For additional information regarding SSI overpayments resulting from fraud, refer to SI 02201.007.

4. If there is no liable payee, surviving liable spouse, surviving sponsor of a non-citizen, or indication of fraud

If there is no liable payee, surviving liable spouse, surviving sponsor or a non-citizen, or indication of fraud, we may recover from the deceased individual's estate, depending on the amount of the outstanding balance of the overpayment.

If the deceased overpaid individual does not have an estate, we may recover from the estate of the liable spouse or sponsor.

If the outstanding balance of the overpayment in the month of the overpaid individual's death is:

  • •

    $30 or less, do not pursue recovery from the estate, as the cost of recovery would likely exceed the amount recovered;

  • •

    More than $30, but not more than $3,000, notify the estate but do not pursue further overpayment recovery; or

  • •

    More than $3,000, notify and pursue recovery from the deceased overpaid individual's estate or the estate of the surviving spouse or the surviving sponsor of a non-citizen.

For all overpayments of more than $30, send notice SSA-L8171, addressed to "The Estate of (name of deceased)," to the last known mailing address of the deceased overpaid individual. Find this notice in the Document Processing System (DPS) under the national and overpayment notices tabs. If the decedent received payments through direct deposit, send the notice to the residence address shown on the Supplemental Security Record (SSR).

5. Develop the estate

If the decedent's estate is liable for repayment, attempt to obtain all developmental information by contacting the appropriate court.

Initiate estate development no earlier than 60 days after the individual's death, and no later than 2 years after the individual's death.

Estate development is the same for Title II and Title XVI.

For more information regarding estate liability and instructions for developing the deceased individual's estate, refer to GN 02215.050B.

6. Notify the legal representative of the overpayment

We must notify the estate's legal representative that the decedent was overpaid and of the estate's liability for repayment. In cases where the estate has insufficient funds in the estate to satisfy all of the decedent's debts, certain expenses take priority over debts owed to the United States.

For all overpayments of more than $30 (or for overpayments of any amount when there is a liable payee or fraud), send notice SSA-L8171, addressed to “The Estate of (name of decedent) to the last known mailing address of the overpaid deceased individual. Find this notice in DPS under the national and overpayment notices tabs. If the decedent received payments via direct deposit, send the notice to the residence address shown on the Supplemental Security Record (SSR).

For instructions regarding legal representative notification, and more information on whether the debt owed to the agency takes priority over other estate debts, refer to GN 02215.055.

7. Legal representative closes the estate without repaying the overpayment

After we notify an estate's legal representative of an SSI overpayment, they may be held personally liable for repayment if they subsequently disburse estate funds to pay other debts and fail to repay the SSI overpayment.

In cases where the court has distributed the assets of a debtor's estate, we may also proceed against the distributee(s) of the estate.

For instructions regarding closed estates and recovering assets from distributees, refer to GN 02215.070.

8. Legal representative refuses to repay the overpayment

Refer the overpayment to the Office of General Counsel (OGC) if the legal representative of an estate refuses to refund the overpayment and

  • •

    the outstanding overpayment balance is more than $3,000; or

  • •

    there is a liable payee or fraud, regardless of the overpayment amount.

If the OGC authorizes referral to the Department of Justice (DOJ), refer the debt to the DOJ with a request for recovery through civil litigation.

For instructions on recovery by referring an estate for civil suit, refer to SI 02220.035 and GN 02215.160.

SI 02220.053 Suspension and Termination of Supplemental Security Income Overpayment Recovery Efforts for a Deceased Individual

CITATIONS:

Social Security Act §§ 1631(b)(1)(A), (b)(2); 20 C.F.R § 416.570

A. Introduction

If an overpaid individual dies before repaying their Supplemental Security Income (SSI) overpayment, under certain circumstances, we may suspend or terminate our efforts to recover the overpayment. These instructions provide guidance on when to suspend or terminate overpayment recovery efforts.

B. Policy for suspension and termination of recovery efforts for a deceased individual

After an individual's death, we must pursue recovery from a liable individual, or their estate, or the distributees or legal representative of their estate. For more information on liability for recovery of a deceased individual's overpayment, refer to SI 02201.021B

1. Representative payee liability

Any payments received by a representative payee (payee) on behalf of a deceased individual for months after the month of the individual's death, are overpayments that the liable payee is solely responsible for repaying to us. For purposes of these instructions, a "liable payee" is a payee who received SSI payments on behalf of a deceased individual for months after the month of the individual's death. We will pursue recovery from the payee or the payee's estate, regardless of the amount of the overpayment. If we cannot recover from the payee, their estate, distributees, or the legal representative of the estate, we will discontinue recovery efforts.

2. Fraud

If we suspect that the overpayment was the result of fraud, we develop the potential for recovery of the overpayment from the individual who committed fraud. We will develop for fraud regardless of the amount of the overpayment. We must also pursue recovery when we suspect fraud involving an overpayment to a deceased individual.

For more information on developing for fraud during overpayment recovery, refer to SI 02201.007 and SI 02220.045B.3.

  • •

    If the deceased overpaid individual's fraud caused the overpayment, we will first seek recovery from the overpaid individual's estate. In certain cases, we may also recover from distributees or the legal representative of the estate. For more information on recovery from an estate, refer to SI 02220.045B.7.

  • •

    If the liable spouse's fraud caused the overpayment, we will first seek recovery from the liable spouse or their estate.

  • •

    If fraud by the sponsor of an eligible non-citizen caused the overpayment, we will seek recovery from the sponsor or their estate.

3. If there is no liable payee or fraud

In cases where there is neither a liable payee nor fraud, recovery from the overpaid individual's estate, a liable spouse or the liable spouse's estate, a non-citizen's sponsor, or the sponsor's estate, depends on the amount of the unresolved overpayment, or the outstanding overpayment balance in the month of the overpaid individual's death.

a. Overpayment is $30 or less

If the amount of the unresolved overpayment, of the outstanding overpayment balance is $30 or less, we determine the overpayment to be uncollectible and do not pursue recovery because, consistent with stewardship obligations and the efficient administration of the SSI program, the cost of recovery would likely exceed the amount recovered.

EXCEPTIONS:

  • •

    If the overpayment was the result of a payee receiving SSI payments on behalf of a deceased individual for months after the month of the individual's death, we pursue recovery solely from the payee or the payee's estate.

  • •

    If we suspect that the overpayment was the result of fraud, we develop the potential for recovery of the overpayment from the individual who committed fraud, regardless of the amount of the overpayment.

b. Overpayment is more than $30 but not more than $3,000

If the amount of the unresolved overpayment, or the outstanding overpayment balance, is more than $30, but not more than $3,000, we issue a notice of overpayment and pursue recovery if there is

  • •

    a liable payee (for purposes of these instructions, a "liable payee" is a payee who received SSI payments on behalf of a deceased individual for months after the month of the individual's death);

  • •

    a surviving liable spouse;

  • •

    a surviving non-citizen's sponsor; or

  • •

    an indication of fraud.

If there is no

  • •

    Liable payee;

  • •

    Surviving liable spouse;

  • •

    Surviving sponsor of a non-citizen; or

  • •

    Indication of fraud

    We notify the estate of the overpayment but do not further pursue recovery from the estate. Also, we will not issue notice to or further pursue recovery from a distributee or the legal representative of the estate.

    If the overpaid individual does not have an estate, we will notify the estate of the liable spouse or sponsor of a non-citizen but we will not further pursue recovery from the estate because, consistent with stewardship obligations and efficient administration of the SSI program, the costs of doing so would likely exceed the amount recovered. Also, we will not issue notice to or further pursue recovery from a distributee or legal representative of the estate.

c. Overpayment is more than $3,000

If the amount of the unresolved overpayment, or the outstanding overpayment balance, is more than $3,000, and there is:

  • •

    A liable payee;

  • •

    A surviving liable spouse;

  • •

    A surviving sponsor of a non-citizen; or

  • •

    An indication of fraud

We issue notice of the overpayment and pursue recovery.

If there is no:

  • •

    Liable payee;

  • •

    Surviving liable spouse;

  • •

    Surviving sponsor of a non-citizen; or

  • •

    Indication of fraud.

We notify and pursue recovery from the overpaid individual's estate. Also, we may pursue recovery from a distributee or a legal representative of the estate.

For more information on recovery from an estate, distrubutee, or legal representative of an estate, refer to SI 02201.021 and SI 02220.045C.

If the deceased individual does not have an estate, or if there is no distributee or legal representative from whom we can recover, we may pursue recovery from the estate of the liable spouse.

C. Procedure for suspending and terminating recovery efforts for a deceased individual

1. Notice to an estate

For all overpayments of more than $30 (or for overpayment to a liable payee or in the case of fraud, regardless of the overpayment amount), issue notice SSA-L8171-U3, addressed to “The Estate of (name of decedent)” to the deceased individual’s last known mailing address. Find the notice in the Document Processing System (DPS), under the national and overpayment notices tabs.

If the decedent received payments via direct deposit, issue the notice to the residence address shown on the Supplemental Security Record (SSR).

2. Documenting an overpayment determination

a. If the overpayment is $30 or less

  • •

    Complete the MSSICS Overpayment Decisions (UOPD) screen in Direct SSR Updates.

  • •

    Select the UNCOLLECTIBLE decision, MS 00304.008.

b. If the overpayment is more than $30 but not more than $3,000

  • •

    Take minimal recovery actions unless there is a surviving eligible spouse, a liable payee, or a sponsor of a non-citizen.

  • •

    If the payee received payments on behalf of a deceased individual for months after the month of the individual's death, the payee is solely liable for repaying the overpayment. Recover only from the payee or the payee's estate.

  • •

    Complete the MSSICS UOPD screen.

  • •

    Select the UNCOLLECTIBLE decision. Refer to UOPD, MS 00304.008. The system builds a N TAC in the OPDD segment of the SSR.

  • •

    If the amount of the overpayment is more than $2,000, you must follow the 2-PIN overpayment documentation procedures in SI 02220.005.

  • •

    Take no further recovery action unless there is

    • –

      a surviving liable spouse;

    • –

      a surviving sponsor of a non-citizen;

    • –

      an indication of fraud; or

    • –

      a refund of the full amount of the unresolved overpayment or outstanding overpayment balance.

c. If the overpayment or the outstanding overpayment balance is more than $3,000

If there is no liable payee, surviving liable spouse, or surviving sponsor of a non-citizen, determine whether an estate exists for the overpaid individual. Follow the procedures in SI 02220.045 and GN 02215.050B.

  • •

    If an estate exists, obtain the information located in GN 02215.050B.3. and for further instructions, follow GN 02215.055

  • •

    If the estate is closed or will not be administered, follow the procedures in SI 02220.045C.

  • •

    If an estate does not exist and you cannot recover from a distributee or legal representative of the estate, continue recovery efforts against the liable spouse's estate.

  • •

    If there is no estate of a spouse and you cannot recover from a distributee or legal representative of the estate, discontinue recovery efforts.

  • •

    For uncollectible overpayment procedures, refer to SM 01311.280. We must refer all overpayments over $100,000 to the Department of Justice for a suspension or termination decision.

If a distributee or legal representative of an estate requests a waiver of recovery, refer to GN 02250.005B.3.b and GN 02250.150G.

If we waive recovery from the distributee or legal representative of the estate, do not recover from the liable spouse's estate.

EXCEPTION: If a payee received payments on behalf of a deceased individual for any months after the month of the individual's death, the payee is solely liable for repayment. Recover only from the payee or from the payee's estate.

3. Procedure when there is a liable payee

Any payments we issued to a payee on behalf of the deceased overpaid individual for months after the month of the deceased individual's death, regardless of the amount, are overpayments. The responsibility for repaying these amounts lies solely with the payee or the payee's estate.

If the payee is deceased, recover from the payee's estate, following procedures in SI 02220.045 and GN 02215.050B. For further instructions on recovering from the estate of a liable payee, refer to GN 02215.055.

If the payee's estate is closed or will not be administered, follow procedures in SI 02220.045C.

If an estate does not exist and you cannot recover from the distributee or legal representative of the estate, discontinue recovery efforts.

For uncollectible overpayment procedures, refer to SM 01311.280. We must refer all uncollectible overpayment decisions over $1000,000 to the Department of Justice for a suspension or termination decision.

4. Procedure when there is fraud

We must pursue recovery when the Office of the Inspector General (OIG) has determined that the deceased overpaid individual, liable spouse, or the sponsor of a non-citizen, committed fraud, regardless of the amount of the overpayment.

First, we will issue a notice of the overpayment and pursue recovery from the individual whose fraud caused the overpayment, their estate, and the distributees and the legal representative of their estate.

Next, we will issue notice and pursue recovery from any other liable individual (i.e., the liable spouse, or the sponsor of an eligible non-citizen), the estate of the overpaid individual, liable spouse or sponsor, and distributees, or the legal representative of such estate.

When recovering from an estate, follow the procedures in SI 02220.045 and GN 02215.050B. For further instructions, refer to GN 02215.055.

If an estate is closed or will not be administered, refer to procedures in SI 02220.045C.

If an estate does not exist and you cannot pursue recovery from a distributee or legal representative of an estate, discontinue recovery efforts. For uncollectible overpayment procedures, refer to SM 01311.280. We must refer all debts over $100,000 to the DOJ for a suspension or termination decision.

5. Procedures when there is no liable payee or fraud

a. If the overpayment is $30 or less

  • •

    Complete the MSSICS UOPD screen in Direct SSR Updates.

  • •

    Select the UNCOLLECTIBLE decision, refer to MS 00304.008.

b. If the overpayment is more than $30 but not more than $3,000

  • •

    Take minimal recovery actions unless there is a surviving liable spouse, or sponsor of an eligible non-citizen.

  • •

    Complete the MSSICS UOPD screen.

  • •

    Select the UNCOLLECTIBLE decision, refer to MS 00304.008. The system builds a N TAC in the OPDD segment of the SSR.

  • •

    If the overpayment amount is more than $2,000, you must follow the 2-PIN overpayment documentation procedures in SI 02220.005.

  • •

    Take no further action unless there is a

- surviving liable spouse;

- surviving sponsor of a non-citizen; or

- refund of the full amount of the unresolved overpayment or the outstanding overpayment balance.

c. If there is a surviving liable spouse or the surviving sponsor of a non-citizen

If there is a surviving liable spouse or the surviving sponsor of a non-citizen do not suspend or terminate recovery efforts. Continue recovery efforts against the surviving liable spouse or the surviving sponsor of a non-citizen.

For policies and procedures on development of liability for repayment of an overpayment, refer to SI 02201.020.

d. Refund

Accept any refund offered. To record the refund, use the Automated Field Office (FO) Remittance Process in GN 02403.001.

Reduce the amount of the NTAC overpayment decision by the amount of the refund.

Use the MSSICS Add/Change/Delete Overpayment Decisions (UODC) screen. For systems instructions, refer to MS 00304.007 and SM 01311.285.


SI 02220 TN 134 - Recovery Procedures for Supplemental Security Income Overpayments - 5/16/2025