Section 1147 of the Social Security Act, added by the Noncitizen Benefit Clarification and Other Technical Amendments Act of 1998, permits SSA to collect SSI overpayments owed by former recipients from any Title II benefits due them. As a result of the law, it is no longer necessary to get written permission from the SSI debtor in order for SSA to collect the debt from Title II benefits by CPR. SSA’s authority to conduct CPR was expanded by section 210 of the Social Security Protection Act of 2004.

SSA’s regulations governing its CPR program are in 20 Code of Federal Regulations (CFR) Part 416, Subpart E, sections 416.572-416.575. Effective January 2005, section 416.572 was revised and sections 416.573-416.575 were added to provide the Agency’s rules for its expanded use of mandatory CPR.

SSA’s expansion of mandatory CPR under section 1147 as implemented in 20 CFR 416.572 (effective January 2005) included the following changes: (1) SSA may impose mandatory CPR even when the debtor is repaying the SSI debt in regular monthly installments, and (2) SSA may use mandatory CPR to collect SSI debts from Title II underpayments at a rate higher than 10% of the amount payable in a month. See SI 02220.021, CPR of SSI Overpayments from Title II Underpayments for policy and procedure on expanded authority regarding underpayments.

Selection of SSI debts for mandatory CPR from monthly Title II benefits is automatically made from the Recovery and Collection of Overpayments (RECOOP) system (See MS 01111.001 for information on RECOOP). Following are the main criteria for automated selection of cases for CPR:

1. a. 

   The SSI debtor is not eligible for any cash payments under Title XVI or State supplementary payments that SSA administers; and

2. b. 

   The SSI debtor is receiving any Title II benefits; and

3. c. 

   The SSI debtor has an SSI debt under the control of the RECOOP system; and

4. d. 

   The SSI debtor is not repaying the SSI debt via regular monthly payments controlled by the RECOOP system (see SI 02220.020A.2., NOTE); and

5. e. 

   The SSI debt is on the latest SSI record; and

6. f. 

   The SSI debtor does not have a Title II debt being withheld from his or her Title II benefit; and

7. g. 

   The SSI debtor does not have a pending waiver or reconsideration request on the debt; and

8. h. 

   The SSI debtor is not already repaying the debt by voluntary CPR; and

9. i. 

   The SSI debt must be a minimum of $2.00; and

10. j. 

    The SSI debtor is not an Ellender class member. (See SI 02220.020A.8.)

NOTE: Even though SSA’s policy is to impose mandatory CPR when the debtor is repaying in regular monthly installments, the automated mandatory CPR system has not yet been changed to select debts being repaid in regular monthly payments. The system will be changed in a future enhancement, thus enabling the automated selection of such cases for CPR. Until then, CPR must be set up manually. (See SI 02220.020C.).

During the course of working SSI cases, you will identify SSI debts that were not selected for CPR by the automated process (i.e., the case was not controlled by RECOOP) but could still be subject to mandatory CPR. The policy is to impose CPR on those non-RECOOP cases meeting all of the criteria for collection from Title II benefits. Impose CPR after the initial 60-day due process period has expired following the date the initial notice of overpayment was sent. (See SI 02220.020C. for more detail about manual CPR.)

SSA policy is not to accept installment agreements when CPR is available. SSA will accept only full refunds and bonafide compromise payments. (See SI 02220.020D.2. for instructions on handling debtor offers to repay debt in installments.)

SSA’s policy is to impose mandatory CPR regardless of whether the overpaid individual is repaying the debt in regular monthly installments. Whenever you identify an SSI overpayment that can be collected by mandatory CPR, follow the instructions in SI 02220.020C. for setting up the recovery. If the SSI debt was caused by willful misrepresentation or concealment of material information, establish mandatory CPR at the highest possible rate as described in SI 02220.020C.3.

NOTE: Until the automated CPR system is changed to select RECOOP cases with regular monthly installments, instructions in SI 02220.020C., Manual CPR for Non-RECOOP SSI Debts, will also apply to RECOOP cases with regular monthly installment payments.

Recovery of an SSI overpayment by mandatory CPR against Title II benefits will not serve as the basis for resumed eligibility for SSI payments.

In general, the law that authorizes mandatory CPR allows SSA to withhold 10 percent of the Title II benefit payable in a month as payment toward the SSI debt. In the following situations, we can withhold at a different rate:

1. a. 

   The SSI debtor (or his/her spouse) engaged in willful misrepresentation or concealed material information that led to the overpayment; i.e., fraud or similar fault. In this case, the law authorizes 100 percent withholding (See SI 04070.020 for policy on imposing 100 percent withholding due to an SSA finding of fraud or similar fault). Due to systems considerations, SSA's policy is to withhold the maximum amount that would result in a monthly benefit payment of $1.00 (see SI 02220.020C.3. for instructions on debts arising from fraud or similar fault);

2. b. 

   The SSI debtor requests and SSA approves a different rate of withholding (See SI 02220.026 for policy on handling a request for a different rate of withholding).

3. c. 

   The debt amount is less than 10 percent of the Title II monthly benefit payable (in this case ½ of the debt amount will be the withholding amount).

The Ellender court case is a class action suit brought in the early 1980s regarding SSA's use of voluntary CPR in the State of New York. As a result of settlement activity in the Ellender case, SSA will not impose mandatory CPR against people who:

1. a. 

   Lived in the State of New York on October 26, 1982; and

2. b. 

   Were receiving Title II benefits on October 26, 1982; and

3. c. 

   Were former SSI recipients on October 26, 1982; and

4. d. 

   Received an SSI overpayment before October 26, 1982.

SSA's systems will not have any automated coding to indicate that a debtor is a member of the Ellender class. However, the system has been programmed, to the maximum extent possible, not to select an SSI overpayment for mandatory CPR when the debtor meets the above criteria. For instructions on how to handle a person who alleges being a member of the Ellender class, see SI 02220.020D.10.

NOTE: Except for those select cases in the Ellender class, CPR can now be used in all states.

The policy is to use mandatory CPR to collect from SSI debtors in PSY E01 (eligible but no payment due). Since cases in PSY E01 are excluded from RECOOP, those SSI debtors who otherwise meet the criteria for mandatory CPR are not selected by the automated system. Consequently, impose manual CPR per instructions in SI 02220.020C.

Mandatory CPR will stop when:

1. a. 

   The individual goes into Title XVI current pay; or

2. b. 

   The individual begins receiving a State supplement that SSA administers; or

3. c. 

   The debt balance drops to zero; or

4. d. 

   The SSI debtor requests reconsideration or waiver on the SSI debt being collected from the Title II benefits; or

5. e. 

   The SSI debtor dies; or

6. f. 

   The SSI debtor's Title II ledger account file (LAF) code changes from LAF C (current pay) or LAF E (Railroad Board certified) to LAF T (terminated), LAF S (suspended) or LAF D (deferred). See SI 02220.020E.1. for instructions on how to process LAF code changes; or

7. g. 

   The individual incurs a Title II overpayment; or

8. h. 

   SSA receives a bankruptcy petition that names the SSI debtor; or

9. i. 

   The debtor is determined to be a member of the Ellender class.

Once a month, SSA selects qualified SSI debtors from the RECOOP system for mandatory CPR. “Qualified debtors” are those who meet the selection criteria listed in SI 02220.020A.2.

After selecting the qualified debtors, the system initiates the CPR by automatically posting a K TAC to the latest SSI record. The system automatically posts all required information about the debt and debtor, such as the debt balance and the amount of the Title II reduction. The K TAC will post to the SSR on the last day of the Title II Current Operating Month (COM).

NOTE: The system uses 10 percent of the Title II monthly benefit payable as the rate of withholding. If the SSI debt is less than 10 percent of that Title II benefit, the system will take the debt amount, divide it in half, round up to the next whole dollar and withhold that amount. (This way the system creates the required minimum 2 withholding transactions.) If the debt is less than $2.00, the system cannot do CPR.

As a result of the automated posting of the K TAC, the SSR creates an exchange record to the ROAR system to establish the overpayment on the MBR/ROAR and set it up for withholding. (See SM 00610.020 and SM 02001.700 for more information.) The ROAR system generates a notice to the debtor. The notice tells the debtor:

1. a. 

   That he/she still owes an SSI debt;

2. b. 

   The amount of the debt;

3. c. 

   The amount of the Title II benefit reduction, and the amount of the Title II benefit left after the reduction is taken;

4. d. 

   The month SSA will begin to reduce the Title II benefit and the month and year when that reduction is expected to end. SSA will begin reduction unless he/she takes an action described in e. - h. below within 30 days of the date of the notice, and the month and year when that reduction is expected to end;

5. e. 

   He/she can repay the full amount;

6. f. 

   He/she can request a different withholding amount than the one SSA is proposing;

7. g. 

   He/she can request review and provide evidence showing that the debt is no longer owed or the amount of the debt is different than that stated in the notice;

8. h. 

   He/she can request waiver.

See SI 02220.020D. for instructions on handling the requests mentioned in SI 02220.020B.3.e. through SI 02220.020B.3.h.

Unless certain actions noted in SI 02220.020B.3.e. through SI 02220.020B.3.h. are taken within 30 days from the date of the ROAR notice, the system will begin to reduce the Title II benefit after the 30-day period expires; that is, with the first payment due in the month after the automated ROAR notice is mailed. It will continue the recovery until the debt is collected as long as all criteria for CPR continue to be met.

EXAMPLE: The automated CPR system produces the ROAR notice on February 1. If the debtor does not react to the notice (request waiver, repay the debt, request review or request a different withholding amount), the system will reduce the Title II benefit payable that is due on March 3 (assuming the beneficiary is receiving a 3^rd of the month payment).

NOTE: Cycled Title II payments follow the same logic. The automated CPR system produces the ROAR notice on February 1. The system will reduce the Title II benefit payable that is due on the 2^nd, 3^rd or 4^th Wednesday of March.

Since the automated system that performs mandatory CPR selects qualified SSI debts only under control of RECOOP, non-RECOOP debts must be manually coded on the SSR for CPR; i.e., the FO must add a RECOVER FROM Title II BENEFITS (K TAC) decision via the Overpayment Decisions (UOPD) screen in MSSICS (See MS 00304.008).

As with automated CPR, once the K TAC has posted to the SSR, the system generates the ROAR notice that informs the debtor about the reduction of his/her Title II benefit as payment toward the SSI debt. Do not use the Manual Adjustment Credit and Award Data Entry (MACADE) system to process cross program recovery actions of any kind.

You do not need to tell the debtor in advance and you do not need to obtain the debtor's approval for CPR. The notice produced by the ROAR system will serve as SSA's official notification (see the exhibit for an example of the notice).

IMPORTANT: Until the automated CPR system is changed to select RECOOP cases with regular monthly installments, instructions in SI 02220.020C., Manual CPR for Non-RECOOP SSI debts, will also apply to RECOOP cases with regular monthly installment payments.

NOTE: See SI 02220.025B.2.a. for identifying RECOOP cases, or look at the ARC in the MPMT data on the SSR to see if anything on the account is in RECOOP (ARC of 1, 2, 3, or 4). You can also look at the sequence level ARC in the second field of the OPSQ data, which tells when a sequence is in RECOOP jurisdiction.

1. a. 

   Determine if the former SSI recipient meets all of the criteria for mandatory CPR. (See SI 02220.020A.2. for the criteria. Note that in these non-RECOOP cases, the criteria in SI 02220.020A.2.c. and SI 02220.020A.2.d. do not apply.) If the person meets all of the criteria, go to SI 02220.020C.2.b.

2. b. 

   Determine if the former SSI recipient's initial overpayment notice for the debt in question has been sent and that the 60-day due process period has expired without protest. If not, do not continue with CPR until it has and there is no pending protest activity. If the due process period has expired, and there is no pending protest activity, go to SI 02220.020C.2.c. and SI 02220.020C.2.d.

3. c. 

   Do not ask the former recipient to sign form SSA-730-U2, Request to Have Supplemental Security Income Overpayment Withheld From My Social Security Benefits. It is no longer necessary to get the person's permission to establish CPR of Title XVI debts from Title II benefits.

4. d. 

   Code the K TAC per instructions in SM 01311.255C. and MS 00304.008.

   IMPORTANT: Post the RECOVER FROM Title II BENEFITS (K TAC) decision on the last day of the Title II COM via the Overpayment Decisions (UOPD) screen in MSSICS (for example, if January 24 is the last day of the January COM). The K TAC posting causes the interface with the ROAR that, in turn, causes the ROAR notice to be generated and mailed to the debtor. The system will generate and date the ROAR notice telling the SSI debtor about CPR about 7 days after the January 24 posting of the K TAC; i.e., January 31. If the individual does not respond to the notice and the K TAC is not removed, the system will initiate CPR from the next Title II benefit payable for the February COM, due on March 3 (or on the appropriate cycled payment date). If you can't input the K TAC on the last day of the Title II COM, you must wait until the last day of the next Title II COM to input the K TAC.

   NOTE: Use the following Intranet site for Title II COM information Monthly System Calendar. Under Information, select PE Memo-Treasury, then select Current Report. Page down to the chart with PE Scheduling Event/Current Operating Month heading. Check the event list for “Last Day of COM.”

5. e. 

   Set up the CPR withholding amount in the dollar amount equal to 10 percent of the Title II monthly benefit payable, unless conditions in SI 02220.020C.2.f. or SI 02220.020C.3. exist. It must be a whole dollar amount.

   EXAMPLE: The SSI debt balance is $500. The Title II monthly benefit payable is $835. Ten percent of $835 is $83.50. Round up to $84 for the withholding amount.

6. f. 

   If the balance of the SSI debt is less than 10 percent of the Title II monthly benefit payable, calculate the CPR withholding amount by dividing the debt in half. Use the quotient as the withholding amount. It must be a whole dollar amount.

EXAMPLE: The SSI debt balance is $51. The Title II monthly benefit payable is $750. Ten percent of the $750 is $75. Establish CPR withholding of $26. This satisfies the minimum 2 withholding transactions for CPR as required by the system. The system will withhold $26 the first month and automatically adjust the 2^nd month's withholding amount to $25. A total of $51 will be withheld.

IMPORTANT: Due to systems limitations, set up CPR in a whole dollar amount of withholding that will result in a Title II monthly benefit amount of no less than $1.00.

When a debt involves willful misrepresentation or concealment of material information by the debtor or the debtor’s spouse, SSA may withhold 100% of the monthly Title II benefit payable. However, due to systems limitations, SSI debts resulting from willful misrepresentation or concealment of material information by the debtor (or his/her spouse) must be manually coded on the SSR for mandatory CPR. Determine that willful misrepresentation or concealment of material information exists when:

• •

  The Office of the Inspector General or the Department of Justice makes a determination that the debtor (or his/her spouse) committed fraud which caused the SSI debt; or

• •

  SSA determines that the debtor (or his/her spouse) committed similar fault which caused the SSI debt (See SI 04070.020 for policy and procedures regarding similar fault).

If the debtor (or his/her spouse) engaged in willful misrepresentation or concealed material information that led to the overpayment, set up CPR in a whole dollar amount of withholding that will result in a Title II monthly benefit payment of no less than $1.00.

Follow the instructions in SI 02220.020C.2.a. through SI 02220.020C.2.d. for setting up the mandatory CPR.

When the balance of the SSI debt that resulted from willful misrepresentation or concealment of material information is less than the full Title II monthly benefit payable, CPR must be set up for the required minimum 2 withholding transactions. Also, due to systems limitations, set up CPR in a whole dollar amount of withholding that will result in a Title II monthly benefit amount of no less than $1.00.

In the automated CPR system, the default withholding rate is 10 percent of the monthly benefit payable. Since the ROAR notice that informs the SSI debtor about the planned reduction of the Title II benefit extends the right to request a different rate of withholding, some debtors will contact SSA about arranging a different rate of withholding.

The former SSI recipient may request a different rate of withholding at any time. Follow the guidelines in SI 02220.026 for determining the new rate of withholding and when it will begin.

After you determine the new rate of withholding from the Title II benefit, follow existing instructions in MS 01106.015 for changing the rate of withholding via the debt management system (DMS) DROA screen Enter a Start Date (MMYY) of the month following the month of input (e.g., if you input a rate change on January 15, the Start Date would be February).

NOTE: System limitations necessitate using the DMS DROA screen for these withholding rate changes. FO's have been given access to this screen.

IMPORTANT: When the withholding rate is changed via DMS, the amount reflected in the K TAC may not be accurate. Check ROAR to find out what the true withholding amount is.

If the debtor offers to repay the SSI debt in installments rather than by mandatory CPR, tell the debtor:

1. a. 

   SSA will accept either a full and immediate refund of the SSI debt or a legitimate compromise settlement; and

2. b. 

   SSA will not accept repayment by installments when CPR is available; and

3. c. 

   CPR will continue until the SSI debt is collected or otherwise resolved.

If the debtor offers to repay the SSI debt in full rather than continue to incur CPR, tell the debtor that we will accept the full refund by check, money order or credit card. Advise the debtor as to the current balance of the debt.

If a debtor undergoing CPR offers a compromise settlement, consider the offer. Use the same guidelines that apply for overpayments being collected by intra-program withholding.

If a debtor undergoing CPR has a pending bankruptcy petition that names the SSI debtor for the Title XVI debt, stop the recovery efforts effective with the month the bankruptcy petition was filed (See SI 02220.040C.). Delete the K TAC (See SM 01311.261). If the debt is in RECOOP, suspend billing by selecting BANKRUPTCY DECISION PENDING on the Update Sequence Data (UOSD) screen in MSSICS (MS 00304.006).

The ROAR notice about the proposed CPR gives the debtor the opportunity to request that we review our finding and to present evidence that he/she does not owe the debt or owes an amount that is different than the amount stated in the notice. The evidence can be a cancelled check, remittance receipt from SSA, an acceptable document showing the debt was waived or other valid document. If the circumstances indicate that the debtor wants SSA to review the overpayment determination, rather than the current status of the debt, see SI 02220.020D.7. and SI 02220.020D.8.

Some debtors may still request reconsideration of the overpayment determination. Accept form SSA-561-U2 or equivalent when the debtor asks for reconsideration of the fact or amount of the original overpayment.

• •

  If the debtor requests a hearing or Appeals Council review on the fact or amount of the overpayment, handle the request according to instructions for SSI hearings. See SI 04030.000 for Administrative Law Judge hearings and SI 04040.000 for Appeals Council reviews.

• •

  In any event, do not take action to stop the CPR nor to refund any money already withheld from the Title II benefit as payment toward the SSI debt.

• •

  Input the hearing request on the APPEAL (UOAP) screen in MSSICS (See MS 00304.010).

• •

  Post the appeal to the APPE segment of the SSR per MS 00302.007.

• •

  Follow instructions in SI 02220.020D.7.e. through SI 02220.020D.7.f. for effectuating the hearing or Appeals Council decision.

The ROAR notice that tells the debtor about the proposed CPR explains waiver rights. The debtor may request waiver at any time. If a request for waiver is received, obtain an SSA-632-BK in accordance with current instructions in SI 02260.005.

Advise the debtor that CPR remains in effect until SSA receives a signed SSA-632-BK (or its equivalent). When you receive the signed document, take the following actions:

Take the following actions only when a debtor alleges being a member of the Ellender class:

• •

  Review the system records to determine if the debtor received an SSI overpayment before October 26, 1982; and

• •

  If yes, review the system records to determine if the debtor was receiving Title II benefits on October 26, 1982; and

• •

  If yes, ask the debtor if he/she lived in the State of New York on October 26, 1982; and

• •

  If yes, ask the debtor for proof of his/her New York State residency for the above period. (Acceptable proof includes, but is not limited to, New York State and local income tax returns, property tax bills, documents from the motor vehicle administration, and utility bills.)

If the debtor meets all the criteria above, find that he/she is a member of the Ellender class. Take action to stop the CPR and to refund any money withheld.

NOTE: Annotate in Remarks on the SSR and the DMS that this debtor is a member of the Ellender class. Also notify the Program Staff in the Regional Office so the SSN can be added to the list of numbers excluded by the automated selection process in RECOOP.

If the debtor does not meet all the criteria above, find that he/she is not a member of the Ellender class. Explain that CPR will continue.

IMPORTANT: The finding that a debtor does or does not meet the criteria for the Ellender class is not an initial determination subject to additional appeals.

If the debtor's LAF status changes from current pay to deferred (D), terminated (T) or suspended (S), the CPR will automatically stop. Due to the limitations of the existing MBR/SSR interface, no exchange record is sent by the MBR to the SSR regarding the disposition of the Title XVI overpayment. Instead, the MBR generates a PC alert.

Handle the PC alerts in accordance with instructions in SM 00610.815.

If the debtor's monthly benefit payable decreases after mandatory CPR has begun and the debtor remains in LAF C or E, the amount of withholding must be decreased to the equivalent of 10 percent of the new Title II amount payable.

After you determine the new rate of withholding from the Title II benefit (see SI 02220.020C.2.e. through SI 02220.020C.2.f.), follow existing instructions in MS 01106.015 for changing the rate of withholding via the debt management system (DMS) DROA screen. Enter a Start Date (MMYY) of the month following the month of input (e.g., if you input a rate change on January 15, the Start Date would be February).

NOTE: System limitations necessitate using the DMS DROA screen for these withholding rate changes. FO's have been given access to this screen.

IMPORTANT: When the withholding rate is changed via DMS, the amount reflected in the K TAC may not be accurate. Check ROAR to find out what the true withholding amount is.

If the debtor has committed willful misrepresentation or concealed material information that lead to the debt being collected by CPR, then do not decrease the withholding to an amount equivalent to 10 percent of the new Title II amount payable. Instead, adjust the withholding to a whole dollar amount that will result in a Title II monthly benefit payable of no less than $1.00 (keeping in mind the required minimum 2 withholding transactions). See SI 02220.020C.3. for more information about CPR when willful misrepresentation and concealment of material information is involved.

Due to systems limitations, SSA cannot collect a Title XVI debt by automated CPR when the person is receiving Title XVI payments. When a debtor, who is incurring CPR, returns to Title XVI current pay status (C01), the system creates a B8 diary. The B8 diary indicates that a Title XVI record is in C01 with an overpayment amount due and an inappropriate disposition code such as the K TAC.

Handle the B8 diaries in accordance with instructions in SM 01311.638.

An overpayment on a terminated record is being collected by CPR. The recipient files a new claim which is subsequently denied. (See SM 01311.385 for information.) Since the ROAR interface cannot direct refunds to prior records, the overpayment and the K TAC have to be transferred to the new record. (See SM 01311.261D. for instructions on transferring a K TAC.)

NOTE: When an application is filed and a new record is created, either through MSSICS or through the 450S batch process, the SSI system will attempt to reconcile the new SSR with the last terminated record on the SSR (See MS 00304.017 for reconciliation and overpayment transfer in MSSICS).

Regardless of whether the CPR is initiated by the automated or manual process, exceptions will occur that prevent the recovery. For example, these exceptions can result from an attempt to set up CPR on an inappropriate Title II LAF status, such as LAF D, T and S. Refer to SM 00616.001B., Stages 7 and 8, for more information about exceptions from the SSR/MBR CPR interface.

Process the exceptions in accordance with instructions in SM 00610.415.