GN 02402: Direct Deposit - Title II and Title XVI

Effective Dates: 07/19/2016 - Present

TN 31 (01-08)

A. Introduction

1. Coding New Zealand Bank Data

This section describes how to code bank data for direct deposit of Title II benefits to a financial institution (FI) in New Zealand. The bank data will be stored on the MBR in the same fields as are used for U.S. direct deposit. Special coding identifies the data as New Zealand International Direct Deposit (IDD) and allows benefit payments to be routed through the Federal Reserve Bank of Kansas City (FRBKC) and the processor bank in New Zealand to the beneficiary's FI in New Zealand.

NOTE: U.S. domestic (i.e., non-border) field offices (FOs) should not attempt to process an IDD request for this country. U.S. domestic FOs must forward all appropriate information to the Office of Earnings and International Operations, Division of International Operations (OEIO, DIO) for processing (For more information on forwarding IDD information, see GN 02402.205C, GN 01010.255, and GN 01702.310C).

2. Where to Obtain Data

The data for coding may come from a check, a signup form for New Zealand (see GN 02402.330E.), or the equivalent information received by mail, phone, fax, or e-mail.

NOTE: If upon receipt of the information, there are any discrepancies, follow instructions in GN 00203.020 and GN 02402.025.

3. Multi-Country Contract

The processor bank in New Zealand will have a prefix of 71 at the beginning of the routing number (RTN) and an assigned letter in the first position of the Depositor Account Number (DAN). The letter assigned for New Zealand is “L.”

B. Description - New Zealand Bank Data

New Zealand bank data consists of a total of 18 digits, as follows:

A Bank Code of 2 digits and a Branch Code of 4 digits.
An Account Number of exactly 12 digits.

On the signup form, the Bank Code of 2 digits is at the left, followed by the Branch Code of 4 digits. The 8-digit Account Number and the 4-digit Account Type Suffix follow.

C. Procedure

Use this procedure to code direct deposit of Title II benefits to an FI in New Zealand.

Are you coding an initial claim?
- If yes, go to step 3.
- If no, go to step 2.
Is the beneficiary's address on the MBR in a foreign country (PCOC = 8)? If no, STOP.

REASON: The MBR will not accept IDD information (RTN begins with 5, 6, or 7) unless the address is in a foreign country.
Is the beneficiary's account a U.S. dollar account at an FI in New Zealand? If yes, STOP.

REASON: IDD payments are sent in local currency, not U.S. dollars. The account must be a local currency account (New Zealand dollars).
Code the type of account as Checking.
Code the Routing and Transit Number field as follows:
- Start with 71, the prefix assigned to the processor bank in New Zealand.
- Code the 2-digit Bank Code and the 4-digit Branch Code.
- Code the U.S. check digit. Obtain the U.S. check digit by using the Check Digit program on Title II/Interactive Comps.
Code the Depositor Account Number as follows:
- Start with L, the letter assigned to show that the FI is in New Zealand.
- Code the 8-digit account number. If the Account Number contains fewer than 8 digits, add zeros at the front to make 8 digits in all.
- Code the 4-digit account type suffix. If the Account Type Suffix contains fewer than 4 digits, add zeros at the front to make 4 digits in all. If the Account Type Suffix is left blank, code 4 zeros.

NOTE: When coding bank data for New Zealand in ITS.gov, the account number and account type suffix cannot be larger than 10 digits.

Code the following in ITS.gov if the account number and the account type suffix equals 12 digits:

If the 1st digit of the account number and the 1st digit of the account type suffix is “0”, drop the two “0”s to produce the 10 digits account number used for coding ITS.gov.
- For example, if the account number is 09999999 and account type suffix is 0999, then the account number will be 999999999.
If the 1st digit of the account number is “0” and the 1st digit of the account type suffix is not a “0” but the first two positions of the account number equal “0”s; drop the first two “0”s from the account number to form the 10 digit account number used for ITS.gov.
- For example, if the account number is 00999999 and the account type suffix is 9999, then the account number would be 9999999999

If the account number is 12 digits and does not match one of the above edit requirements, then reject it.

D. Examples

EXAMPLE 1: A signup form for New Zealand contains the following information:

Bank Code 12. Branch Code 3456. Account Number 12345678. Account Type Suffix, 9012.

The RTN will be 711234563. (The final digit, 3, is the U.S. check digit for 71123456.)
The DAN will be L123456789012. Since the DAN must only have 10 digits, instead of 12, you should review the 1st and 9th digits to determine what numbers to omit or drop from the 12 digit DAN to make the DAN 10 digits. Since the 1st digit of the DAN is a 1 and the 9th digit is a 9, do not code the information. Reject the input as the first digit of the DAN must be a zero and develop for the correct account number and suffix.

EXAMPLE 2: Mr. Beneficiary's bank gives the following information for his direct deposit: Bank code 11. Branch Code 2222. Account Number 123456. No Account Type Suffix is shown.

Code the RTN 711122222. (The final digit 2, is the U.S. check digit for 71112222.)
For the Account Number, code two zeros before the six digits: 00123456.
For the Account Type Suffix, code four zeros: 0000.
Code the DAN L001234560000. Review the 1st and 9th digits to determine which numbers to omit or drop from the DAN to make the DAN 10 digits. Since the 1st digit is a zero and the 9th digit is a zero, drop the 1st zero and the 9th zero from the DAN. The new DAN will be L0123456000. This is the information that should be reflected on the MBR.

EXAMPLE 3:

Ms. Zeal provides the following information for her direct deposit:

Bank Code 22. Branch Code 3333. Account Number 1234. Account Type Suffix 567.

The RTN will be 712233330. (The final digit, 0, is the U.S. check digit for 71223333.)
For the Account Number, add four zeros before the 1234, making the Account Number 00001234.
For the Account Type Suffix, place a zero before the 567, making it 0567.
The DAN will be L000012340567. Review the 1st and the 9th digits to determine which numbers to omit or drop from the DAN to make the DAN 10 digits. Since the 1st digit is a zero and the 9th digit is a zero, drop the 1st zero and the 9th zero from the DAN. The new DAN will be L0001234567. This is the information that should be reflected on the MBR.