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SI 02201.023: Supplemental Security Income (SSI) Overpayment: Recovery From A Representative Payee

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  • Effective Dates: 05/25/2012 - Present
  • Effective Dates: 07/18/2018 - Present
  • TN 5 (10-09)
  • SI 02201.023 Supplemental Security Income (SSI) Overpayment: Recovery From A Representative Payee
  • A. Procedure for recovery of an overpayment from a representative payee
  • Your determination that an individual is liable for repayment of an overpayment does not preclude you from determining that the individual is without fault in causing the overpayment.
  • For policy and procedures on determining fault, see SI 02260.010 and SI 02260.015.
  • 1. Notification
  • If representative payment changed since the time of the overpayment and the current representative payee was not the representative payee at the time the overpayment occurred,
  • * Suppress the AONS notice and
  • * Send an overpayment notice along with the SSA-L8176 Cover Sheet to both representative payees.
  • For policy and procedures on the use of the SSA-L8176, see SI 02220.010.
  • a. Overpaid capable adult
  • If the overpaid adult has not been adjudged to be legally incompetent (see GN 00502.010 Capability Determination), send copies of the overpayment determination notice to both the representative payee and the overpaid adult individual. (A manual notice is necessary only if the case is an AONS exclusion. AONS exclusions are listed in SM 01310.305.)
  • If the overpaid adult has not been adjudged to be legally incompetent (see GN 00502.020 Determining Capability – Adult Beneficiaries), send copies of the overpayment determination notice to both the representative payee and the overpaid adult individual. (A manual notice is necessary only if the case is an AONS exclusion. AONS exclusions are listed in SM 01310.305.)
  • b. Overpaid legally incompetent adult
  • * Do not use the AONS system.
  • * Prepare and release a manual overpayment determination notice to both the legal guardian and the representative payee (if they are not the same person).
  • For information on manual notice preparation, see NL 00804.000.
  • c. Overpaid child
  • If the guardian is not the representative payee, do not use the AONS system. Instead manually prepare and send the overpayment determination notice to both the representative payee and legal guardian. If the legal guardian's name and address are not in the current file, this information can usually be obtained by telephone from the representative payee. If the representative payee does not know the name/address of the legal guardian, obtain this information from other sources.
  • 2. Government entity questions its liability
  • If a government entity raises a legal question regarding its liability:
  • * Forward the question to the Regional Attorney through the Assistant Regional Commissioner for Management and Operations Support (ARC MOS).
  • * Coordinate further recovery efforts with the regional attorney.
  • B. Representative payee’s use of the overpaid recipient’s funds to repay an overpayment
  • 1. Use of conserved funds to repay an overpayment
  • A representative payee may use a recipient's properly conserved funds to repay an overpayment only if:
  • * The overpaid recipient is liable for the repayment of the overpayment; and
  • * You have not waived recovery of the overpayment with respect to the overpaid recipient.
  • NOTE: Funds misused by a representative payee are reissued to the SSI individual. However, if the SSI individual has been overpaid, the reissued funds will be used to reduce or recover the outstanding overpayment.
  • 2. Use of dedicated account funds
  • The representative payee cannot use dedicated account funds to repay an overpayment.
  • For information on repayment of misapplied dedicated account funds, see SI 02220.060.
  • C. Recovery of the overpayment from a representative payee’s own title II or title XVI benefits
  • 1. Use of cross-program recovery to recover an SSI overpayment from the representative payee’s title II benefits
  • If the representative payee is:
  • * Liable (either individually or jointly) for repayment of an overpayment, and
  • * He or she is eligible for title II benefits on his or her own earnings, and
  • * Recovery is waived or otherwise unavailable on the SSI individual's own record:
  • * Recover the overpayment from the representative payee's title II payments.
  • * Use the UOPD screen to select “13” RECOVERS FROM TITLE II BENEFITS – see MSOM BUSSR 004.008, SM 00616.030 and SM 01311.255 for instructions.
  • EXAMPLE: Rita Randall, an SSI beneficiary, is the representative payee for Tony Taylor. Tony was overpaid $300 in March 2008. Social Security granted a waiver recovery from Tony’s record. The FO should use the P TAC process to transfer the overpayment to Rita’s record for recovery.
  • NOTE: Cross-program recovery is available in all States except those select cases in New York that fall within the Ellender class action suit.
  • For criteria for inclusion in the Ellender class, see GN 02210.214.
  • 2. Use of the representative payee's title XVI payment
  • * If the liable representative payee is receiving SSI payments, recover the recipient’s overpayment from the representative payees’ title XVI payments.
  • * Use the P TAC/Q TAC process to transfer the overpayment to the representative payees’ record. For information on the P TAC/ Q TAC process, see SM 01311.300 and SM 01311.350.
  • D. References
  • * GN 00502.010 - Capability Determination Overview
  • * GN 00502.020 - Determining Capability – Adult Beneficiaries
  • * GN 01010.360 - Special Determinations – General Adjudications
  • * GN 02210.214 - Debtor Willing to Repay
  • * MSOM BUSSR 004.008 - Overpayment Decisions (UOPD)
  • * NL 00804.000 - Manual Paragraphs for Use in SSI Initial Claims, Posteligibility and Overpayment Notices
  • * SI 02201.025 - Supplemental Security Income (SSI) Overpayment: Notifying Overpaid Individuals
  • * SI 02220.010 - SSI Overpayment – Notifying the Individual
  • * SI 02220.060 - Waiver Provisions For Supplemental Security (SSI) Overpayments
  • * SM 00616.030 - Field Office Processing of Non-Automated Cases
  • * SM 01310.305 - AONS Notice Exclusions
  • * SM 01311.255 - Manual Cross Program Recovery of a Title XVI Overpayment from Title II Benefits (K TAC)
  • * SM 01311.300 - Manual Overpayments – P TAC
  • * SM 01311.350 - Overpayment to be Collected on Another Record
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