TN 84 (06-24)

GN 02210.016 Applying Priority of Overpayment Adjustment

A. Procedure overpaid individual alive

1. Benefits payable to the overpaid individual

Propose 10% withholding of any monthly benefit amount that is payable to the overpaid individual in their own right.

2. Overpaid individual is the representative payee

Propose 10% withholding of the monthly benefit amount the payee receives on the same overpayment record.

3. Living in the same household

If adjustment is not possible based on 1. and 2. above and the overpaid individual does not refund the overpayment, propose to withhold 10% of the monthly benefit amount that is payable on the same earnings record to another individual living in the same household as the overpaid individual at the time of the overpayment. If there is more than one individual in the same household, propose adjustment as follows:

  • Number holder;

  • Spouse, including divorced spouse;

  • Surviving spouse, including divorced or remarried surviving spouse;

  • Child; or

  • Parent.

Propose adjustment against the lowest beneficiary identification code (BIC) code first and then in ascending order (e.g., C1, C2, C3, etc.).

4. Living in a different household

If waiver is granted the individuals living in the same household or to the payee or there are no such individuals, continue normal recovery efforts against the overpaid individual (e.g., followup bills, DCS telephone contact), up to consideration for civil suit (GN 02215.150).

Before developing for civil suit against the overpaid individual, propose adjustment of 10% of the monthly benefit amount that is payable to any other individual(s) who were living in a different household when the overpayment occurred and who did not help to cause the overpayment. Apply the same BIC priority in 3. above.

5. Overpaid individual back in current pay

If an overpaid individual begins receiving benefit payments after adjustment against another individual (same or different household) is initiated, stop the adjustment and transfer the overpayment balance back to the overpaid individual via Macade or the Debt Management System (DMS).

6. Adjustment not possible

If the overpayment cannot be recovered by adjustment, refer for possible civil suit against the overpaid individual when the conditions for referral are met (see GN 02215.150 through GN 02215.180). If the conditions for referral are not met, discontinue collection efforts (see GN 02215.235).

B. Procedure overpaid individual deceased

1. Priority of recovery

The priority of recovery is as follows:

  • Withhold any benefits due the deceased, see GN 02301.065.

  • Withhold any lump-sum death payment (LSDP) payable on the same earnings record. The LSDP is not a benefit payment. Therefore, do not withhold a LSDP payable on other than the overpayment earnings record.

  • Propose adjustment against benefits payable on the same earnings record to any individual who was living in the same household with the overpaid individual at the time of overpayment or helped cause the overpayment.

  • Propose recovery from any estate (or its distributees) if the overpayment is $3,000 or more, see GN 02215.050.

  • Propose adjustment against benefits payable on the same earnings record to any individual who was living in a separate household from the overpaid individual at the time of the overpayment.

Note: 

Beginning December 4, 2008, 20 CFR Parts 404 and 416 have been revised. When a representative payee receives benefits intended for a beneficiary after the beneficiary has died, the representative payee is liable for repaying the overpayment. 42 U.S.C. 404(a)(2) and 1383(b)(2) have been clarified to say that we collect these overpayments solely from the representative payee and their estate. We do not collect from the benefits of the representative payee’s spouse, the estate of the spouse, the auxiliaries of the overpaid representative, or the deceased beneficiary’s estate. This policy applies only to overpayments occurring on or after December 4, 2008.

2. Joint liability

If joint and several liability is involved (e.g., a deceased overpaid beneficiary and a living representative payee), see GN 02205.007.


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http://policy.ssa.gov/poms.nsf/lnx/0202210016
GN 02210.016 - Applying Priority of Overpayment Adjustment - 06/25/2024
Batch run: 06/25/2024
Rev:06/25/2024