If the amount of the unresolved overpayment or the outstanding overpayment balance is less than $30.01, we determine the amount to be uncollectible and do not pursue recovery.

Exception: If the overpayment was the result of a representative payee receiving SSI payments on behalf of a deceased recipient after the month of the recipient’s death, we pursue recovery of the overpayment solely from the representative payee or the representative payee’s estate.

If the amount of the unresolved overpayment or the outstanding overpayment balance is at least $30.01 but less than $5,000.01, we notify the estate of the deceased of the overpayment but do not pursue further recovery unless any of the following situations are present:

• •

  A liable representative payee;

• •

  A liable spouse;

• •

  Under certain circumstances, the sponsor of an alien recipient; or

• •

  An indication of fraud

If the amount of the unresolved overpayment or the outstanding overpayment balance is more than $5,000.00, we determine whether an estate exists.

If an estate exists, we pursue recovery from the estate. We also may pursue recovery from a distributee of the estate.

A distributee of an estate is liable for repayment of the overpayment if they have in their possession proceeds of the estate or property attributable to such proceeds.

If there are indications that the overpayment was the result of fraud, we develop the potential for recovery of the overpayment from the individual(s) who committed fraud.

1. a. 

   Complete the MSSICS Overpayment Decisions (UOPD) screen.

2. b. 

   Select the UNCOLLECTABLE decision (MSOM BUSSR 004.008).

1. a. 

   Take minimal recovery actions unless there is a surviving eligible spouse, a representative payee, or an alien sponsor.

2. b. 

   If a representative payee received payments on behalf of a deceased recipient for month(s) after the month of the recipient’s death the representative payee is solely liable for repayment of overpayment. Recover only from the representative payee or from the representative payee’s estate. This policy was effective on 12/04/2008.

3. c. 

   Complete the MSSICS Overpayment Decisions (UOPD) screen.

4. d. 

   Select the UNCOLLECTIBLE decision. (See MSOM BUSSR 004.008 - Overpayment Decisions (UOPD))

   The system builds a N TAC in the OPDD Segment of the SSR.

   Remember: If the amount of the overpayment is at least $2,000, you must follow the 2-PIN overpayment documentation procedures in SI 02220.005.

5. e. 

   Take no further action unless there is:

   • •

     An eligible spouse;

   • •

     A representative payee;

   • •

     An alien sponsor; or

   • •

     A refund

Do not suspend or terminate your recovery efforts. Continue your recovery efforts against the liable spouse, representative payee or sponsor.

For policies and procedures on development of liability for repayment of an overpayment see SI 02201.020.

Accept any refund offered. Use the automated FO remittance process in GN 02403.001 to record the refund.

Reduce the amount of the N TAC decision by the amount of the refund. Use the MSSICS Add/Change/Delete Overpayment Decisions (UODC) screen. For system instructions see MSOM BUSSR 004.007 and SM 01311.285 - Deleting or Correcting the N TAC or the NT TAC.

If the overpayment or the outstanding overpayment balance is more than $5,000.00:

1. a. 

   Determine whether an estate exists.

   • •

     To develop for the existence of an estate, follow the procedures in SI 02220.045.

   • •

     If the estate is closed or will not be administered, follow the procedures in GN 02215.070.

   • •

     If an estate does not exist, continue your recovery efforts against the liable payee or the liable spouse.

   • •

     If there is neither a liable representative payee nor a spouse, discontinue recovery efforts. See SM 01311.280 for uncollectible overpayment procedures.

2. b. 

   Waive recovery from an estate if the deceased was without fault and recovery would have been barred during their lifetime as being against equity or good conscience.

3. c. 

   If recovery from the estate has been waived, do not recover from the liable spouse or the liable representative payee.

   EXCEPTION: If a representative payee received payments on behalf of a deceased recipient for month(s) after the month of the recipient’s death the representative payee is solely liable for repayment of overpayment. Recover only from the representative payee or from the representative payee’s estate. This policy was effective on 12/04/2008.

A distributee of the decedent’s estate is liable for repayment of the decedent’s overpayment if they have in their possession proceeds of the estate or property attributable to the proceeds of the estate.

If a distributee is liable, send a notice patterned after the SSA- L8171-U3 (see NL 00806.000 -Stock Title XVI Paragraphs for ODO Use in Issuing Title XVI Notices).

The content of an overpayment notice is found in SI 02201.025. If a distributee is liable the overpayment notice must include the reason you are proceeding against a third party (i.e., as distribute of the deceased's estate, they are liable for repayment).

Include appeal and waiver rights in the notice. (See NL 00806.000)

To determine whether to waive recovery from a distributee use regular waiver rules (i.e., the distributee is without fault and recovery from the distributee would defeat the purpose of Title XVI, would be against equity or good conscience, or would impede effective or efficient administration of Title XVI of the Act).

For policies and procedures on waiver of an overpayment see SI 02260.000.