Effective Dates: 11/03/2008 - Present Previous | Next

TN 18 (11-08)

GN 02408.670 Incorrect EFT Payment is Refunded by an Individual

A. Introduction

When an incorrect electronic funds transfer (EFT) Title II or Title XVI payment after death is refunded by an individual in cash, check, or money order, the refund goes to Mid-Atlantic Program Service Center (MATPSC) for input to the SSA record and deposit with our financial institution (FI).

MATPSC looks for the account number on the money order or check before discarding the envelope. When complete information is not present on the check or money order, MATPSC saves the envelope when it contains the name and address of the sender, and tracks down the necessary information when possible.

For situations when dual recovery occurs, see GN 02408.720.

B. Process when a refund is given to the field office (FO)

For handling remittances, see GN 02403.000 procedures. Also see MSOM DMS 003.006 Field Office Remittance Input (RFOR).

1. Refund is in cash

When the refund is given to an FO in cash, the FO keys a receipt for the remitter. Keying the receipt generates a “coupon” for scanning at MATPSC. The coupon contains the account information as well as the money amount and date of receipt. The FO obtains a money order and sends the coupon and money order to MATPSC.

2. Refund is by check or money order

When the refund is by a check or money order, the FO keys a receipt that triggers a coupon. The bar code on the coupon contains the account information and money amount. The FO sends the coupon to MATPSC with the check or money order.

3. Action at MATPSC

MATPSC scans the coupon and makes an image of the check or money order before depositing it at an FI. When the account is:

  • •

    Shown on the coupon, check, or money order, remittance staff at MATPSC applies the refund to the correct account.

  • •

    Not shown, but the name and address of the remitter is given, MATPSC attempts to locate the necessary information.

  • •

    Not available from any source, SSA has the money, but no record is credited with the refund. This can result in another attempt to reclaim the money, which can cause dual recovery. For Dual Recovery, see GN 02408.720.

C. Process when refund is posted to beneficiary’s/recipient’s record

1. Title II partial refund

The Payment History Update System (PHUS) query shows the amount of the remittance, and the Special Payment Amount (SPA) is reduced on the Master Beneficiary Record (MBR) and PHUS.

2. Title II full refund

Effective 08/22/07, when a SPA overpayment is totally recovered by a direct remittance, the beneficiary is in LAF=T1 and EFT data is on the MBR, a Recovery of Overpayments, Accounting, and Reporting (ROAR) processing alert “Code U” POSSIBLE RECLAMATION is generated. For information about ROAR alerts, see SM 00610.405.

  1. a 

    Review PHUS and the MBR for appropriate action to update the Accounts Receivable System (ARS) per SM 00609.850 and SM 00609.865.

  2. b 

    Abandon reclamation per GN 02408.800 when the funds have not been reclaimed.

3. Title XVI refund

The refunded money is displayed in the OPRR field on the Supplemental Security Income Record (SSR). Abandon reclamation per GN 02408.800 when the funds have not been reclaimed.

D. References

SM 00624.300 - Accounts Receivable System

GN 02408.720 - Dual Recovery

SM 01315.142 - How to Handle a Dual Recovery/Erroneous Reclamation (Title XVI)

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202408670
GN 02408.670 - Incorrect EFT Payment is Refunded by an Individual - 11/03/2008
Batch run: 11/18/2024
Rev:11/03/2008