GN 02402.045:
Direct Deposit and Assignment of Benefits
Effective Dates: 01/08/2008 - Present- Effective Dates: 07/12/2018 - Present
TN 31 (01-08)- TN 107 (07-18)
- GN 02402.045 Direct Deposit and Assignment of Benefits
A. Policy - General- A. Assignment of benefits overview
Section 207 of the Social Security Act specifically prohibits the assignment or transfer of the right to future Social Security payments.- Section 207 of the Social Security Act specifically prohibits the assignment or transfer of the right to future Social Security payments. Unless otherwise specified in subsection GN 02410.001B, beneficiaries and recipients may not request direct deposit that assigns payments to an individual or an entity other than the beneficiary or recipient (e.g. credit card company, insurance company). Such requests constitute an assignment of benefits.
B. Policy - Request for Direct Deposit- B. Handling direct deposit requests with potential assignment of benefits
A request for direct deposit which assigns or transfers the right to future payments to someone other than the beneficiary, e.g., to a credit card company or an insurance company, will not be honored. Such a request constitutes an assignment of benefits.(See GN 02410.001 for a full discussion of assignment of benefits.)C. ProcedureWhen a request for direct deposit is made which raises a question about possible assignment of benefits, take the following actions:* Get an SF-1199A, and* Verify that there is no assignment, and* Verify that the account title meets the requirements in GN 02402.050.- Upon receiving a request for direct deposit that raises a question about possible assignment, perform the following actions:
- * Obtain an SF-1199A (Direct Deposit Sign-Up Form),
- * Ensure the SF-1199A form does not reflect an assignment of benefits and that proper account titling requirements are met (see GN 02402.050).
- If there is no assignment, then approve the request.
- C. References
- * GN 02410.001 Assignment of Benefits
- * GN 02402.050 Account Titles
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