TN 9 (12-04)

A. Policy

1. Payment Priority

Unless an exception exists, the entire first check is usually paid to a State/political subdivision that is authorized to receive it as IAR, (see SI 02101.004A.2.), subject only to having an overpayment from another period recovered by adjustment and any prior emergency advance payment, immediate payment, and presumptive disability/blindness payment subtracted.

IAR takes priority over issuance of an underpayment to a survivor.

2. Exception to First Check Being Sent to State

The first check is not paid to the State/political subdivision when the underpayment meets the criteria for payment of an authorized representative for direct fee payment, payment into a dedicated account or the amount must be paid in installments. The State is sent an SSA-L8125 requesting the amount SSA owes the State. When the SSA-L8125 is received, the FO issues an A-OTP for reimbursement to the State for IAR. See SI 02101.010 for dedicated accounts and SI 02101.020 for installments. See GN 03920.017 on payment of a representative’s fee, GN 03930.032 on releasing past due benefits in title XVI fee petition cases, and/or GN 03940.050 for FO processing of fee agreements in favorable title XVI cases.

3. No Underpayment Limit

There is no time limit to the underpayment amount we can pay as IAR.

B. Process

When the State is sent the entire first check, if there is underpayment money left after the State/political subdivision is reimbursed, the State/political agency returns the balance to SSA. The FO must establish whether any of the remaining underpayment funds may be payable to a survivor and make payment, if appropriate.

C. Reference

IAR Requirements, SI 02003.001

Rules Governing Automated One Time Payments (A-OTPs) - Records Containing Interim Assistance Reimbursement (IAR) Data, SM SM 01901.170