Recovery of SVB overpayments from current benefits is calculated using 10 percent of the maximum possible SVB payment for the month, which is 10 percent of 75 percent of the Federal SSI Benefit Rate (FBR) for the month, unlike SSI calculations based on 10 percent of the monthly countable income. If there is a later change in the FBR, the withholding amount will also change, and this change must be manually computed and applied as directed in VB 02005.215B.

A negotiated recovery amount (i.e., withholding is not based on a percentage of the recipient’s monthly payment) will not fluctuate and will remain the same even if later changes in monthly SVB payment occur.

Manually effectuate the recovery from current benefits to begin with the first recurring SVB payment to be issued after the request is made, using procedures explained in SM 01311.120 and in MSOM

BUSSR 004.013. If a different rate of withholding is approved, but the debtor’s request is made after partial recovery has already begun at the originally proposed rate (e.g., 10 percent), process the change effective with the month the request is made. Do not refund excess amounts withheld for months before the request.

A CVCB payment may only be made if the beneficiary is due a Federal SVB payment in any amount. CVCB overpayment should thus only occur when a beneficiary is issued a CVCB payment for a month in which no Federal SVB payment is due, or when a veteran receives CVCB in error for some other reason.

As noted in VB 02005.108, CVCB overpayments (State of California) and SVB (Federal portion) overpayments are considered to be separate overpayments. Also, CVCB funds may not be used to recover Federal portion SVB overpayments.

IMPORTANT: To preclude erroneous withholding of state funds to recover Federal overpayments while providing for SVB overpayment recovery from current benefits: in CVCB overpayment situations, even when the veteran agrees to monthly withholding at a rate greater than 10% of the maximum possible SVB payment, monthly withholding from current SVB payments should never exceed the FBR.