An erroneous death termination is caused by:
a death match with another agency that has received an incorrect report,
an erroneous return by the financial institution (FI) with a reason code of death,
Once the erroneous death is on one of SSA's systems, it is propagated to other SSA
and Medicare/Medicaid systems.
Incorrect returns frequently come from financial institutions (FIs) as a result of
a report received from SSA or another source by the FI. For example, when SSA sends
a Death Notification entry (DNE), the FI “flags” the customer's account to return
any future payments for this customer. Sometimes future payments received for joint
account holders, including a spouse, are returned erroneously with a reason of death.
A Title II EFT payment that the FI returns for death does not automatically result
in death termination. Instead, the beneficiary's/recipient's benefits are suspended
while the responsible component develops to determine whether the report of death
is accurate. However, it is still possible to encounter a case in which the beneficiary/recipient
has been erroneously terminated for death by other means.
For information about DNEs, see GN 02408.605.