GN 02215: Methods of Recovery for Title II, Title XVI, and Title XVIII Overpayments - Part II
TN 15 (08-90)
A debtor outside the U.S. is notified of the overpayment in dollars and asked to make refund in U.S. currency where alien taxation is involved and the debtor is in current pay status). The debtor may, however, submit a check, money order, or cash in the applicable foreign currency to SSA, or its agent (i.e., the Federal Benefits Unit (FBU), due to national currency restrictions precluding the mailing of dollar instruments out of these countries. A refund made in foreign currency is converted into U.S. dollars and the debt account credited with the actual dollar value. If the foreign currency refund is received by the FBU, the applicable exchange rate will be that in effect at the time the agent actually receives the foreign currency, check, or money order. If the foreign currency refund is received in DIO, the applicable exchange rate will be that in effect at the time of the actual monetary conversion.
1. REFUND TO SSA AGENT ABROAD
The applicable exchange rate will be reflected on the receipt which the person receives at the time payment is actually made (at the time the debtor hands over the check, money order, or cash). Credit the full amount of the refund received in the FBU to the overpaid beneficiary record and the appropriate trust fund.
2. REFUND TO SSA, DIO
The exchange rate will be that in effect at the time the actual monetary conversion (by the Mellon Bank) takes place (not the time the cash clerk in DIO receives the foreign currency, check, or money order). The Mellon Bank will notify DIO as to the exact money amount after the conversion.
If the amount refunded in U.S. dollars is more or less than what was intended by the foreign currency remittance, credit the debtor`s account only with the amount actually received in U.S. dollars.
If full refund was intended (i.e., installments were not involved), any loss of less than $30 will be absorbed by the trust fund. Discontinue collection efforts for the less than $30 balance (GN 02215.235A.).
If installment refunds are involved, the loss is not absorbed; the actual balance is subject to recovery. However, if the loss is less than $30 for a final installment payment, limit recovery efforts to a single written request for final payment (GN 02210.180).
If the amount refunded exceeds the outstanding debt by $1.00 or more, pay the excess remittance.
If the amount refunded exceeds the outstanding debt by less than $1.00, take no action to pay.