Do not send a notice to the overpaid person or attempt recovery of an overpayment that is due solely to dollar down rounding. If the system sends an automated notice, take no action unless the person protests the overpayment.

If the overpaid person chooses to refund the overpayment, accept the refund.

If you receive a protest, waive recovery and notify the person of your waiver determination.

If the system automatically posts an overpayment for dollar down rounding and you need to send a manual notice, correct the action by waiving the overpayment and send a notice that only gives information about the action the system took to adjust the overpaid person’s record.

If there is no output showing the dollar down rounding overpayment, waive the overpayment and document the waiver determination on the Remarks screen in the Debt Management System (DMS).

Add the following language:

“The system automatically waived the overpayment amount of XX for the period of XX/XX through XX/XX due to dollar down rounding. The individual had no control over the benefit computation; therefore, we are determining that they are not at fault in causing the overpayment and are waiving recovery based on the $2,000 Administrative Waiver Tolerance.”

EXAMPLE 1:

Bryce Quin is dually entitled to retirement insurance benefits (RIB) and spousal benefits. After processing their 2014 annual report of earnings in June 2015, they now have a $2,500 overpayment for 2014. Bryce received additional delayed retirement credits (DRCs), which increased their RIB benefit effective January 2015. The resulting recalculation of their spousal benefit and dollar down rounding of both benefits resulted in a $1.00 payment decrease for January through May 2015, which makes their total overpayment amount $2,505. However, since the $5.00 overpayment in 2015 is due to dollar down rounding, we should waive the $5.00 overpayment and document the record in case of a subsequent overpayment determination. Bryce is responsible for the $2,500 overpayment.

EXAMPLE 2:

Alex and Diane Fraser each receive $80.00 a month in child's benefits. Their brother Charles was born January 2014 and lives in the same household. Alex and Diane Fraser filed for benefits for Charles in March 2014. Charles was entitled to benefits beginning January 2014. We reduced Alex and Diane's benefits to $53.00 a month effective January 2014. Alex and Diane each received $80.00 for January and February, which caused them to be overpaid $54.00 each. Charles is due $53.00 for January and February 2014. After netting the amount due the family against the amount paid, Alex and Diane are overpaid $1 each. Waive Alex and Diane’s overpayment due to dollar down rounding and document the record in case of a subsequent overpayment determination.

C. Additional Reference

GN 02250.350 Administrative Waiver Tolerance of $2,000 or less