TN 12 (03-89)

A. Operating Policy

The Director of each PC has the authority to accept or reject any offer of compromise for an overpayment which does not exceed $20,000.

The PC Director also has the authority to reject an offer for an overpayment in excess of $20,000 (see GN 02215.120B.3.).

Since the FO and DCS have the authority to make compromise settlement on certain overpayments, the PC will generally receive only compromise offers for title II overpayments:

• Exceeding $5,000 when the offer is less than 80 percent of the debt amount, or

• Over $20,000 debts, regardless of the offer. Financial development is required in both of the above situations.

B. Operating Procedure

1. OVERPAYMENT IS LESS THAN $5,000

Process in accordance with GN 02215.115C.

If financial development required and the offer is within the FO scope of authority, forward the offer to the FO for acceptance or rejection.

2. OVERPAYMENT EXCEEDS $5,000 BUT IS NOT OVER $20,000

Generally accept an offer which is at least 60 percent of the debt amount if:

• The debt cannot be fully recovered by adjustment within 3 years, and

• The amount offered bears a reasonable relationship to the debt amount, bearing in mind the ability of the debtor to repay and the possibility of litigation and its cost (GN 02215.100B.).

If the offer is less than 60 percent, the decision to accept or reject rests on:

• The reasonableness of the offer, and

• The financial circumstances of the debtor, and

• The possibility of collection in the future (adjustment or civil suit).

3. OVERPAYMENT EXCEEDS $20,000

Evaluate in accordance with GN 02215.100B.2.

If acceptable, refer to Central Justice in accordance with GN 02215.125.

If the decision is to reject the offer, prepare the SSA-553 and notify the claimant. Follow GN 022015.100B.4. regarding folder documentation.

4. COMPROMISE SUMMARY AND NOTICE

Prepare a summary of the material to support the decision on an SSA-553.

Notify the claimant in writing whether or not the offer is acceptable and, if acceptable, when the compromise amount is due (see GN 02215.115C.5.).

File the SSA-553 and a copy of the notice in the claims folder.

5. UPDATE OF ROAR

Update ROAR when the PC (or FO) accepts a compromise offer.

Prepare an SSA-1112 (TC 53, CM Code 06) to change the overpayment balance on ROAR to reflect the amount of the compromise settlement.

If the FO does not have jurisdiction of the overpayment, input an SSA-1112 (TC-23 with an E indicator) to ensure recovery efforts stop.

If full or partial withholding is in progress, do not refund any money already withheld.

If payment not received in full by due date:

• Reestablish the full debt amount on ROAR/MBR (SM 00610.100), and

• If partial withholding was in effect prior to the compromise offer, resume partial withholding, or

• If full withholding was in effect, resume full withholding.

No advance notice of the resumption of partial or full withholding is necessary.