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

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

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:

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  Number holder;

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  Spouse, including divorced spouse;

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  Surviving spouse, including divorced or remarried surviving spouse;

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  Child; or

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  Parent.

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

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.

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).

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).

The priority of recovery is as follows:

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  Withhold any benefits due the deceased, see GN 02301.065.

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  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.

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  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.

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

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  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.

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