When the system determines a dedicated account based on the payment amount and the
FO determines that the past-due benefits met the dedicated account criteria, it is
assumed that the benefits were paid into a dedicated account but the FO failed to
establish the “X, 1, 2, or F” in pay flag 5. Review the file which documents dedicated account financial information
(See SI 02101.010.C.2.).
If the payee response indicates that a dedicated account was never established, and
the FO has no record of establishing the account, and the payee does not request that an account be established, follow the instructions in GN 00605.230.B.1., DI Diary Set-No Dedicated Account Exists. FOs are required to obtain an annual accounting SSA-623.
If the payee response indicates that SSA released the past-due benefits into a non-dedicated
account (i.e., paper check, or checking/savings account) even though the past-due
benefits met the dedicated account criteria, and the FO has no record of establishing
the account, and the payee requeststhat a dedicated account now be established, the FO should take the following actions:
Determine the amount of past-due benefits paid and the unspent balance; and
NOTE: The payee may be holding the exact amount or any portion thereof.
Notify the payee of the dedicated account requirements following the instructions
in SI 02101.010.F.; and
Obtain proof from the payee that the dedicated account has now been established; and
Record the amount of money deposited by the payee into the dedicated account in the
dedicated account balance field following the instructions in SM 01301.637 so that
the account can be identified for future monitoring.