TN 43 (11-20)

GN 02408.665 Financial Institution (FI) Returns Incorrect Payments to SSA

A. Introduction

When an FI returns an improper SSA payment after death to the Department of the Treasury (DT), DT passes the payment to SSA.

B. Process for Title XVI

1. Treasury Status Query (UPTQ) does not reflect return

When an FI returns a payment in response to a Title XVI reclamation, UPTQ may or may not reflect the return, depending on how the return was processed by DT. However, the return is posted to the Supplemental Security Income Record (SSR) in either PMTH or OPRR. For Treasury Status Query information, see MSOM BUSSR 003.020.

2. Division of Benefit Certification and Systems Analysis (DBCSA) action

The returned funds are not automatically posted to the SSR. DT sends an FMS-133 to DBCSA in Central Office. DBCSA codes a 3969 and sends it to the Office of Disability and International Operations (ODIO) for keying. When the return is not applied to the record in a timely manner, another attempt may be made to reclaim the money, resulting in dual recovery.

3. SSR shows returned funds

When a Title XVI payment after death is returned and posted, the amount of the returned funds is shown either in the OPRR (overpayment refund) TR1 field on the SSR as a “TU” or “TB” or in payflag 1 of PMTH as a

  • slash (/) (recurring payment returned by Treasury only),

  • S (regular daily payment [underpayment] returned by FO only),

  • T (special supplemental payment returned by Treasury only), or

  • U (OTP returned by Treasury only).

For additional codes, see SM 01601.835.

C. Process for Title II

When a Title II payment after death is returned through DT, the information is usually automatically posted to the Payment History Update System/Master Beneficiary Record (PHUS/MBR). The following changes are shown on the beneficiary’s record:

  • EVENT 009 RET CHECK is posted to PHUS, showing the payment date, amount, and date of return.

  • The BSPA on the MBR and PHUS is reduced by the amount of the payment.

When a returned payment recovers an incorrect payment, notify DT to abandon reclamation if the FMS-133/135 is not received.

Input an SSA-4208 to update the Accounts Receivable System (ARS) with the amount of the refund.

When the returned payment does not automatically post, an exception is sent to the PC. The PC makes a manual input to post the return. When the payment is not posted promptly, it is possible for another reclamation request to be sent, causing a dual recovery.

D. References

GN 02408.720 - Dual Recovery

SM 01315.142 - How to Handle a Dual Recovery/Erroneous Reclamation (Title XVI)

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GN 02408.665 - Financial Institution (FI) Returns Incorrect Payments to SSA - 12/04/2013
Batch run: 11/10/2020