SSA - POMS: GN 02402.002 - Direct Deposit for Title II and Title XVI

A. Background for direct deposit

Electronic Funds Transfer (EFT) provides all direct deposit payments to accounts at financial institutions (FI). There are no “checks” involved in direct deposit. For General Information on Title II Checks refer to GN 02401.001.

Although checks no longer contain Social Security Number (SSN) or Beneficiary Identification Code (BIC), all Title II EFT payments contain the full claim number (SSN and BIC). However, the Department of the Treasury (Treasury) suppresses SSNs for Title XVI EFT.

For more information regarding Treasury’s All Electronic Payment Initiative, see Direct Deposit as a Form of Electronic Payment in GN 02402.001.

B. Title II EFT payments

All EFT payments show the scheduled payment date, also called the “settlement date.”

1. Cycled payment dates for Title II

For United States (U.S.) or domestic direct deposit payments, the money is available for deposit in the beneficiary or recipient's account by the opening of business on the settlement date. For International Direct Deposit (IDD), the money is available to the contractor bank on the settlement date.

Recurring monthly EFT payments are payable on one of four dates in the month following the month for which they are due:

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Cycle 1 – 3^rd of the month
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Cycle 2 – 2^nd Wednesday
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Cycle 3 – 3^rd Wednesday
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Cycle 4 – 4^th Wednesday

If the Cycle 1 payment date falls on a Saturday, Sunday, or Federal holiday, the payments are dated for the first day before that date that is not a Saturday, Sunday, or Federal holiday.

NOTE: All payments to beneficiaries or recipients living outside of the country are Cycle 1. In addition, when any one beneficiary receives payment in Cycle 1, all beneficiaries or recipients on the same record receive payment in Cycle 1, whether living in the U.S. or abroad. For more information about cycled payments, including the method of assigning payment dates, refer to GN 02407.005.

2. Types of Title II EFT payments

We issue the following types of payments through EFT:

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Recurring monthly,
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Prior Month Accrual (PMA),
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Current Month Accrual (CMA),
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Lump Sum death,
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International Direct Deposit (IDD),
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Single Payment System (SPS), and
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Critical Payment System (CPS).

We issue immediate payments (IPs) through third-party drafts, primarily at the Social Security Administration’s (SSA’s) field offices (FOs). In addition, Treasury cannot issue CPS payments through IDD due to systems limitations, but they are payable through EFT to an account at a U.S. financial institution (FI).

C. Title II EFT payment process

All Title II EFT payments, except for IDD, from each processing service center (PSC) go to Treasury along with check payments of the same type in one file, IDD payments go in a separate file. For IDD payment processing, see GN 02402.225.

Treasury’s Regional Financial Center (RFC) transmits the payments electronically to the correct Federal Reserve Bank (FRB). The FRBs transmit the EFT payments to the FIs through the Automated Clearing House (ACH) system so that funds will be available on or before the opening of business on the payment date. For IDD payment processing, see GN 02402.225.

We send a separate EFT or check payment for each beneficiary or recipient if he or she receives a payment from both Trust Funds. Sending a separate payment makes it easier to maintain accurate accounting.

We can request Treasury to intercept payments that are not due to beneficiaries or recipients. The period for the request is from the first day of Current Operating Month (COM) to the payment date (minus 4 days for any domestic EFT payment). For more information about EFT intercept payment reference, see GN 02408.650D.3.

The EFT intercept files do not contain information about IDD payments. For information about IDD intercepts, see GN 02402.235.

D. Title XVI EFT payments

1. Payment dates for Title XVI

Regular monthly Title XVI EFT payments are dated the 1^st day of the month for which the payment is due. If the 1^st day of the month falls on a Saturday, Sunday, or Federal holiday, the payments will be dated for the first day before the date that is not a Saturday, Sunday, or Federal holiday.

2. Types of Title XVI EFT payments

The following types of Title XVI benefit payments are payable through EFT:

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Recurring monthly payments,
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Daily payments (underpayments),
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One-time payments (automated or manual),
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Payments made through force pay, and
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Supplemental Security Income (SSI) payments.

We make emergency advance payments (EAPs) and IPs through third party drafts at our FOs.

E. Title XVI EFT payment process

We follow these steps for the payment process:

1.

We send Title XVI EFT and check payments to Treasury in one file;
2.

Treasury’s RFC transmits the payments electronically to the correct FRB;
3.

The FRBs transmit the EFT payments to the FIs through the ACH system, in time for the payments to be posted to the recipients’ accounts and available at the opening of business at the FI on the payment date; and
4.

We send a separate EFT payment for each recipient.

F. Special Veterans Benefits (SVB) Title VIII payments

Title VIII SVB are payable through direct deposit to U.S. banks. Since correspondent banking begins with deposit to a U.S. bank, this is available to beneficiaries receiving SVBs.

G. References

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GN 02402.001 Direct Deposit as a Form of Electronic Payment
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GN 02402.005 Direct Deposit Information for All Types of Interviews
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GN 02402.007 Direct Express Debit Card Program
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GN 02402.201 Background and Policy for Direct Deposit Outside the U.S.
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GN 02402.225 Payment Operation for International Direct Deposit (IDD)
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GN 02402.235 Intercepting Incorrect International Direct Deposit Payments
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GN 02407.005 Payment Cycling
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GN 02408.650 Title II Beneficiary Receiving EFT Payments Dies After the End of the Month but Before the Payment Date

Social Security

Program Operations Manual System (POMS)

GN 02402.002 Direct Deposit for Title II and Title XVI