When issuing an underpayment to a living beneficiary, remember:
-
•
The beneficiary does not need to request payment of an underpayment they are due.
-
•
Issue the underpayment with any amount currently payable directly to the beneficiary
unless the beneficiary has a representative payee.
-
•
After issuing the underpayment, annotate the Special Message field on the Master Beneficiary
Record (MBR) to include the date, amount, and reason for the underpayment.
-
•
If the beneficiary has a representative payee, but requests to be paid directly, reevaluate
the beneficiary’s capability following the guidelines in GN 00502.055. If found capable, issue the underpayment to the beneficiary.
-
•
If there is a need for payee change or successor, develop for a representative payee
following instructions in GN 00504.100, then issue the underpayment to the new payee.
-
•
Issue the underpayment by direct deposit, if available. If the beneficiary or representative
payee does not have direct deposit, issue the underpayment by check.
-
•
If the underpaid beneficiary also has an overpayment, we may withhold part or all
of the underpayment to recover the overpayment. For policy on adjustment of underpayments
for an overpaid beneficiary, see GN 02210.006.
-
•
The underpayment should remain in the Special Payment Amount (SPA) field on the MBR
until all necessary development is complete.
IMPORTANT: The Social Security Act prohibits paying any retroactive benefits, including underpayments,
to beneficiaries while they are prisoners, fugitive felons, or probation or parole
violators (with certain arrest warrant offense codes). SSA must hold retroactive benefits
until the beneficiary contacts SSA and provides proof that they are no longer a prisoner,
fugitive felon, or a probation or parole violator. For policy on fugitive felons and
probation or parole violators, see GN 02613.000.
1. When benefits are in a current pay status
When benefits are in a current pay status, issue the underpayment to the beneficiary
or to the representative payee on behalf of the beneficiary (if applicable) using
current MBR information.
2. When benefits are in a terminated status or benefits are being reinstated after a
period of suspense or termination
Issuing an underpayment when benefits are in a terminated status, being reinstated
after a period of suspense, or reinstated after a period of termination requires development
for verification of current direct deposit and address. In addition, confirm any representative
payee change or change to self-payee.
a. Benefits in a terminated status
If entitlement to benefits has terminated:
-
-
2.
Verify the identity of the beneficiary per GN 00203.020A.2;
-
3.
Obtain a current address and bank data for direct deposit (if available); and
-
4.
Issue the underpayment to the beneficiary or to the representative payee on behalf
of the beneficiary (if applicable).
b. Benefits being reinstated after a period of suspense or termination
If benefits are being reinstated after a period of suspense or termination:
-
1.
Verify a current address and bank data for direct deposit (if available); and
-
2.
Issue the underpayment to the beneficiary or to the representative payee on behalf
of the beneficiary (if applicable).
c. Beneficiary requires a representative payee
If the beneficiary requires a representative payee, follow payee development procedures
outlined in GN 00504.160 before issuing the underpayment.