TN 22 (06-99)

GN 02210.065 Change in entitlement or eligibility - full or partial adjustment in effect - pc action

A. Procedure — overpaid person

If adjustment (full or partial) is in effect when the overpaid person's benefit ceases to be payable, send a notice explaining the change in entitlement and request full refund of the outstanding amount. For sample notice, see NL 00703.106.

Example: In 4/88, the RSI benefit due Al Jones was reduced $50 a month to recover his 1987 work deduction overpayment of $910. Based on a report of work beginning 2/89 and an earnings estimate of $40,000, payment is suspended effective 2/89. Mr. Jones' overpayment has been reduced to $410 by the 4/88 - 1/89 benefit adjustment. The work suspension notice requests refund of the $410.

If adjustment (full or partial) is in effect and it is determined that a benefit is not payable retroactively, refigure the amount which has been recovered and determine any new or additional overpayment (GN 02201.025).

Example: Since 1/88, the $200 student child's benefit due Mona Mills has been reduced to $170 to permit her $300 overpayment to be recovered at the rate of $30 monthly. In 6/88, she reports that she married in 4/88. The prior overpayment has been reduced to $210 (i.e., $30 withheld 1/88-3/ 88), and there is a new overpayment of $340 (i.e., $170 paid 4/88 and 5/ 88). The termination notice requests refund of $550, explaining the new $340 overpayment (including her right to appeal and waiver) and why it was possible to recover only $90 of her prior overpayment.

B. Procedure — other than overpaid person

If adjustment (full or partial) is in effect when another person's benefit ceases to be payable, do not request refund of the overpayment balance . The notice explaining the change in entitlement or eligibility will request refund only if the change is retroactive and caused the person to be overpaid in his/her own right.

Example: James Jay's $280 child's benefit is being withheld in full to recover an overpayment to his mother. As a result of the 12/87 - 9/88 withholding, there is only $770 still to be recovered from him. However, based on a felony conviction in 5/88, he is notified that he is not due payment beginning 5/88. Refund is not requested in the suspension notice; he did not receive payment for 5/88 - 9/88 and is not overpaid, and he is not liable for refunding his mother's overpayment. Request refund from his mother of the $2,170 (i.e., $280 ×5 = $1,400 plus $770) still outstanding.

C. Procedure — subsequent overpayment

If a new overpayment is determined while a prior overpayment is being recovered by partial adjustment, propose 100 percent adjustment of the new overpayment and the balance of the old overpayment.

If the person subsequently requests continuance of the current adjustment rate, grant request without development.

D. Procedure change in benefit

1. Benefit increase

  • Withhold any increase for prior months to adjust the overpayment (GN 02210.006.2.a., GN 02210.007B.2.b.).

  • Pay the increase prospectively when less than full withholding is involved. Do not establish a new rate of withholding.

2. Benefit decrease

  • If partial adjustment is in effect, continue the established withholding.

  • If the refigured benefit is less than the established withholding, withhold the full new monthly benefit.

  • If the benefit decreased retroactively, follow A. or B. above.

3. Notifying the beneficiary

In the notice of the increase or decrease of a monthly benefit,explain that all or part of the benefit will continue to be withheld to recover the overpayment.

Include in the explanation the amount of the original overpayment, the current balance, the amount being withheld, and when recovery will be completed.

If any part of an increase is withheld to adjust the overpayment,provide a clear explanation of what was withheld.

If any decrease results in an additional overpayment, see GN 02210.010A.1.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202210065
GN 02210.065 - Change in entitlement or eligibility - full or partial adjustment in effect - pc action - 09/30/2005
Batch run: 01/30/2014
Rev:09/30/2005