TN 30 (04-06)

A. Policy

1. Authority for mandatory CPR

Section 1147 of the Social Security Act, added by the Noncitizen Benefit Clarification and Other Technical Amendments Act of 1998, permits SSA to collect SSI overpayments owed by former recipients from any title II benefits due them. As a result of the law, it is no longer necessary to get written permission from the SSI debtor in order for SSA to collect the debt from title II benefits by CPR. SSA’s authority to conduct CPR was expanded by section 210 of the Social Security Protection Act of 2004.

SSA’s regulations governing its CPR program are in 20 Code of Federal Regulations (CFR) Part 416, Subpart E, sections 416.572-416.575. Effective January 2005, section 416.572 was revised and sections 416.573-416.575 were added to provide the Agency’s rules for its expanded use of mandatory CPR.

SSA’s expansion of mandatory CPR under section 1147 as implemented in 20 CFR 416.572 (effective January 2005) included the following changes: (1) SSA may impose mandatory CPR even when the debtor is repaying the SSI debt in regular monthly installments, and (2) SSA may use mandatory CPR to collect SSI debts from title II underpayments at a rate higher than 10% of the amount payable in a month. See SI 02220.021, CPR of SSI Overpayments from Title II Underpayments for policy and procedure on expanded authority regarding underpayments.

2. Criteria for automated mandatory CPR

Selection of SSI debts for mandatory CPR from monthly title II benefits is automatically made from the Recovery and Collection of Overpayments (RECOOP) system (See MSOM DMS 011.001 for information on RECOOP). Following are the main criteria for automated selection of cases for CPR:

1. The SSI debtor is not eligible for any cash payments under title XVI or State supplementary payments that SSA administers; and

2. The SSI debtor is receiving any title II benefits; and

3. The SSI debtor has an SSI debt under the control of the RECOOP system; and

4. The SSI debtor is not repaying the SSI debt via regular monthly payments controlled by the RECOOP system (see SI 02220.020A.2., NOTE); and

5. The SSI debt is on the latest SSI record; and

6. The SSI debtor does not have a title II debt being withheld from his or her title II benefit; and

7. The SSI debtor does not have a pending waiver or reconsideration request on the debt; and

8. The SSI debtor is not already repaying the debt by voluntary CPR; and

9. The SSI debt must be a minimum of $2.00; and

10. The SSI debtor is not an Ellender class member. (See SI 02220.020A.8.)

NOTE: Even though SSA’s policy is to impose mandatory CPR when the debtor is repaying in regular monthly installments, the automated mandatory CPR system has not yet been changed to select debts being repaid in regular monthly payments. The system will be changed in a future enhancement, thus enabling the automated selection of such cases for CPR. Until then, CPR must be set up manually. (See SI 02220.020C.).

3. Policy on non-recoop cases

During the course of working SSI cases, you will identify SSI debts that were not selected for CPR by the automated process (i.e., the case was not controlled by RECOOP) but could still be subject to mandatory CPR. The policy is to impose CPR on those non-RECOOP cases meeting all of the criteria for collection from title II benefits. Impose CPR after the initial 60-day due process period has expired following the date the initial notice of overpayment was sent. (See SI 02220.020C. for more detail about manual CPR.)

4. Installment requests

SSA policy is not to accept installment agreements when CPR is available. SSA will accept only full refunds and bonafide compromise payments. (See SI 02220.020D.2. for instructions on handling debtor offers to repay debt in installments.)

5. Debtor has an existing installment agreement

SSA’s policy is to impose mandatory CPR regardless of whether the overpaid individual is repaying the debt in regular monthly installments. Whenever you identify an SSI overpayment that can be collected by mandatory CPR, follow the instructions in SI 02220.020C. for setting up the recovery. If the SSI debt was caused by willful misrepresentation or concealment of material information, establish mandatory CPR at the highest possible rate as described in SI 02220.020C.3.

NOTE: Until the automated CPR system is changed to select RECOOP cases with regular monthly installments, instructions in SI 02220.020C., Manual CPR for Non-RECOOP SSI Debts, will also apply to RECOOP cases with regular monthly installment payments.

6. Reduction of title II benefits and SSI eligibility

Recovery of an SSI overpayment by mandatory CPR against title II benefits will not serve as the basis for resumed eligibility for SSI payments.

7. Rate of withholding

In general, the law that authorizes mandatory CPR allows SSA to withhold 10 percent of the title II benefit payable in a month as payment toward the SSI debt. In the following situations, we can withhold at a different rate:

1. The SSI debtor (or his/her spouse) engaged in willful misrepresentation or concealed material information that led to the overpayment; i.e., fraud or similar fault. In this case, the law authorizes 100 percent withholding (See SI 04070.020 for policy on imposing 100 percent withholding due to an SSA finding of fraud or similar fault). Due to systems considerations, SSA's policy is to withhold the maximum amount that would result in a monthly benefit payment of $1.00 (see SI 02220.020C.3. for instructions on debts arising from fraud or similar fault);

2. The SSI debtor requests and SSA approves a different rate of withholding (See SI 02220.017 for policy on handling a request for a different rate of withholding).

3. The debt amount is less than 10 percent of the title II monthly benefit payable (in this case ½ of the debt amount will be the withholding amount).

8. Ellender court case

The Ellender court case is a class action suit brought in the early 1980s regarding SSA's use of voluntary CPR in the State of New York. As a result of settlement activity in the Ellender case, SSA will not impose mandatory CPR against people who:

1. Lived in the State of New York on October 26, 1982; and

2. Were receiving title II benefits on October 26, 1982; and

3. Were former SSI recipients on October 26, 1982; and

4. Received an SSI overpayment before October 26, 1982.

SSA's systems will not have any automated coding to indicate that a debtor is a member of the Ellender class. However, the system has been programmed, to the maximum extent possible, not to select an SSI overpayment for mandatory CPR when the debtor meets the above criteria. For instructions on how to handle a person who alleges being a member of the Ellender class, see SI 02220.020D.10.

NOTE: Except for those select cases in the Ellender class, CPR can now be used in all states.

9. SSI debtor in payment status E01

The policy is to use mandatory CPR to collect from SSI debtors in PSY E01 (eligible but no payment due). Since cases in PSY E01 are excluded from RECOOP, those SSI debtors who otherwise meet the criteria for mandatory CPR are not selected by the automated system. Consequently, impose manual CPR per instructions in SI 02220.020C.

10. CPR for overpayments subject to the Treasury Offset Program (TOP), Administrative Wage Garnishment (AWG) and credit bureau reporting

a. Overpayments subject to TOP/AWG

The use of mandatory CPR supersedes the use of TOP/AWG to collect SSI overpayments. If an SSI overpayment has been selected for TOP/AWG and mandatory CPR is subsequently initiated, TOP/AWG activity will automatically stop. Initiation of mandatory CPR either by the automated system or by manual setup will halt any further TOP/AWG activity. You do not need to take any special action to stop or delay TOP/AWG processing. (See GN 02201.029 and SI 02220.012 for information on TOP. See GN 02201.040 through GN 02201.042 and SI 02220.018 for information on AWG.)

Due to the timing of Treasury’s TOP processing cycles, it is possible for a TOP collection to occur after SSA initiates mandatory CPR. Unless an excess collection occurs due to the TOP offset, SSA’s policy is not to refund TOP collections that occur after mandatory CPR is initiated.

b. Overpayments subject to credit bureau reporting

Mandatory CPR will be used regardless of the debtor’s status with respect to credit bureau reporting. Once an individual’s indebtedness is reported to the credit bureau, the person’s debt will remain on the credit report. Collections via mandatory CPR will be automatically credited to the report, and the debt balance will decrease accordingly. (See GN 02201.032 and SI 02220.014 for information on credit bureau reporting.)

11. When mandatory CPR stops

Mandatory CPR will stop when:

1. The individual goes into title XVI current pay; or

2. The individual begins receiving a State supplement that SSA administers; or

3. The debt balance drops to zero; or

4. The SSI debtor requests reconsideration or waiver on the SSI debt being collected from the title II benefits; or

5. The SSI debtor dies; or

6. The SSI debtor's title II ledger account file (LAF) code changes from LAF C (current pay) or LAF E (Railroad Board certified) to LAF T (terminated), LAF S (suspended) or LAF D (deferred). See SI 02220.020E.1. for instructions on how to process LAF code changes; or

7. The individual incurs a title II overpayment; or

8. SSA receives a bankruptcy petition that names the SSI debtor; or

9. The debtor is determined to be a member of the Ellender class.

B. Process – automated mandatory CPR

1. System Selects the SSA Debtors

Once a month, SSA selects qualified SSI debtors from the RECOOP system for mandatory CPR. “Qualified debtors” are those who meet the selection criteria listed in SI 02220.020A.2.

2. System initiates the CPR

After selecting the qualified debtors, the system initiates the CPR by automatically posting a K TAC to the latest SSI record. The system automatically posts all required information about the debt and debtor, such as the debt balance and the amount of the title II reduction. The K TAC will post to the SSR on the last day of the title II Current Operating Month (COM).

NOTE: The system uses 10 percent of the title II monthly benefit payable as the rate of withholding. If the SSI debt is less than 10 percent of that title II benefit, the system will take the debt amount, divide it in half, round up to the next whole dollar and withhold that amount. (This way the system creates the required minimum 2 withholding transactions.) If the debt is less than $2.00, the system cannot do CPR.

3. System notifies the debtor

As a result of the automated posting of the K TAC, the SSR creates an exchange record to the ROAR system to establish the overpayment on the MBR/ROAR and set it up for withholding. (See SM 00610.020 and SM 02001.700 for more information.) The ROAR system generates a notice to the debtor. The notice tells the debtor:

1. That he/she still owes an SSI debt;

2. The amount of the debt;

3. The amount of the title II benefit reduction, and the amount of the title II benefit left after the reduction is taken;

4. The month SSA will begin to reduce the title II benefit and the month and year when that reduction is expected to end. SSA will begin reduction unless he/she takes an action described in e. - h. below within 30 days of the date of the notice, and the month and year when that reduction is expected to end;

5. He/she can repay the full amount;

6. He/she can request a different withholding amount than the one SSA is proposing;

7. He/she can request review and provide evidence showing that the debt is no longer owed or the amount of the debt is different than that stated in the notice;

8. He/she can request waiver.

See SI 02220.020D. for instructions on handling the requests mentioned in SI 02220.020B.3.e. through SI 02220.020B.3.h.

4. System performs the mandatory CPR

Unless certain actions noted in SI 02220.020B.3.e. through SI 02220.020B.3.h. are taken within 30 days from the date of the ROAR notice, the system will begin to reduce the title II benefit after the 30-day period expires; that is, with the first payment due in the month after the automated ROAR notice is mailed. It will continue the recovery until the debt is collected as long as all criteria for CPR continue to be met.

EXAMPLE: The automated CPR system produces the ROAR notice on February 1. If the debtor does not react to the notice (request waiver, repay the debt, request review or request a different withholding amount), the system will reduce the title II benefit payable that is due on March 3 (assuming the beneficiary is receiving a 3^rd of the month payment).

NOTE: Cycled title II payments follow the same logic. The automated CPR system produces the ROAR notice on February 1. The system will reduce the title II benefit payable that is due on the 2^nd, 3^rd or 4^th Wednesday of March.

C. Process – manual CPR for non-recoop SSI debts

1. Overview

Since the automated system that performs mandatory CPR selects qualified SSI debts only under control of RECOOP, non-RECOOP debts must be manually coded on the SSR for CPR; i.e., the FO must add a RECOVER FROM TITLE II BENEFITS (K TAC) decision via the Overpayment Decisions (UOPD) screen in MSSICS (See MSOM BUSSR 004.008).

As with automated CPR, once the K TAC has posted to the SSR, the system generates the ROAR notice that informs the debtor about the reduction of his/her title II benefit as payment toward the SSI debt. Do not use the Manual Adjustment Credit and Award Data Entry (MACADE) system to process cross program recovery actions of any kind.

You do not need to tell the debtor in advance and you do not need to obtain the debtor's approval for CPR. The notice produced by the ROAR system will serve as SSA's official notification (see the exhibit for an example of the notice).

IMPORTANT: Until the automated CPR system is changed to select RECOOP cases with regular monthly installments, instructions in SI 02220.020C., Manual CPR for Non-RECOOP SSI debts, will also apply to RECOOP cases with regular monthly installment payments.

NOTE: See SI 02220.025B.2.a. for identifying RECOOP cases, or look at the ARC in the MPMT data on the SSR to see if anything on the account is in RECOOP (ARC of 1, 2, 3, or 4). You can also look at the sequence level ARC in the second field of the OPSQ data, which tells when a sequence is in RECOOP jurisdiction.

2. Instructions for setting up manual CPR

1. Determine if the former SSI recipient meets all of the criteria for mandatory CPR. (See SI 02220.020A.2. for the criteria. Note that in these non-RECOOP cases, the criteria in SI 02220.020A.2.c. and SI 02220.020A.2.d. do not apply.) If the person meets all of the criteria, go to SI 02220.020C.2.b.

2. Determine if the former SSI recipient's initial overpayment notice for the debt in question has been sent and that the 60-day due process period has expired without protest. If not, do not continue with CPR until it has and there is no pending protest activity. If the due process period has expired, and there is no pending protest activity, go to SI 02220.020C.2.c. and SI 02220.020C.2.d.

3. Do not ask the former recipient to sign form SSA-730-U2, Request to Have Supplemental Security Income Overpayment Withheld From My Social Security Benefits. It is no longer necessary to get the person's permission to establish CPR of title XVI debts from title II benefits.

4. Code the K TAC per instructions in SM 01311.255C. and MSOM BUSSR 004.008.

   IMPORTANT: Post the RECOVER FROM TITLE II BENEFITS (K TAC) decision on the last day of the title II COM via the Overpayment Decisions (UOPD) screen in MSSICS (for example, if January 24 is the last day of the January COM). The K TAC posting causes the interface with the ROAR that, in turn, causes the ROAR notice to be generated and mailed to the debtor. The system will generate and date the ROAR notice telling the SSI debtor about CPR about 7 days after the January 24 posting of the K TAC; i.e., January 31. If the individual does not respond to the notice and the K TAC is not removed, the system will initiate CPR from the next title II benefit payable for the February COM, due on March 3 (or on the appropriate cycled payment date). If you can't input the K TAC on the last day of the title II COM, you must wait until the last day of the next title II COM to input the K TAC.

   NOTE: Use the following Intranet site for title II COM information http://chforums.ch.ssa.gov:8085/yearly. Under Information, select PE Memo-Treasury, then select Current Report. Page down to the chart with PE Scheduling Event/Current Operating Month heading. Check the event list for “Last Day of COM.”

5. Set up the CPR withholding amount in the dollar amount equal to 10 percent of the title II monthly benefit payable, unless conditions in SI 02220.020C.2.f. or SI 02220.020C.3. exist. It must be a whole dollar amount.

   EXAMPLE: The SSI debt balance is $500. The title II monthly benefit payable is $835. Ten percent of $835 is $83.50. Round up to $84 for the withholding amount.

6. If the balance of the SSI debt is less than 10 percent of the title II monthly benefit payable, calculate the CPR withholding amount by dividing the debt in half. Use the quotient as the withholding amount. It must be a whole dollar amount.

EXAMPLE: The SSI debt balance is $51. The title II monthly benefit payable is $750. Ten percent of the $750 is $75. Establish CPR withholding of $26. This satisfies the minimum 2 withholding transactions for CPR as required by the system. The system will withhold $26 the first month and automatically adjust the 2^nd month's withholding amount to $25. A total of $51 will be withheld.

IMPORTANT: Due to systems limitations, set up CPR in a whole dollar amount of withholding that will result in a title II monthly benefit amount of no less than $1.00.

3. Willful misrepresentation or concealment of material information involved

When a debt involves willful misrepresentation or concealment of material information by the debtor or the debtor’s spouse, SSA may withhold 100% of the monthly title II benefit payable. However, due to systems limitations, SSI debts resulting from willful misrepresentation or concealment of material information by the debtor (or his/her spouse) must be manually coded on the SSR for mandatory CPR. Determine that willful misrepresentation or concealment of material information exists when:

• The Office of the Inspector General or the Department of Justice makes a determination that the debtor (or his/her spouse) committed fraud which caused the SSI debt; or

• SSA determines that the debtor (or his/her spouse) committed similar fault which caused the SSI debt (See SI 04070.020 for policy and procedures regarding similar fault).

If the debtor (or his/her spouse) engaged in willful misrepresentation or concealed material information that led to the overpayment, set up CPR in a whole dollar amount of withholding that will result in a title II monthly benefit payment of no less than $1.00.

Follow the instructions in SI 02220.020C.2.a. through SI 02220.020C.2.d. for setting up the mandatory CPR.

When the balance of the SSI debt that resulted from willful misrepresentation or concealment of material information is less than the full title II monthly benefit payable, CPR must be set up for the required minimum 2 withholding transactions. Also, due to systems limitations, set up CPR in a whole dollar amount of withholding that will result in a title II monthly benefit amount of no less than $1.00.

D. Procedure – handling debtor requests during mandatory CPR

1. Debtor requests rate of withholding other than 10 percent

In the automated CPR system, the default withholding rate is 10 percent of the monthly benefit payable. Since the ROAR notice that informs the SSI debtor about the planned reduction of the title II benefit extends the right to request a different rate of withholding, some debtors will contact SSA about arranging a different rate of withholding.

The former SSI recipient may request a different rate of withholding at any time. Follow the guidelines in SI 02220.017 for determining the new rate of withholding and when it will begin.

After you determine the new rate of withholding from the title II benefit, follow existing instructions in MSOM DMS 006.015 for changing the rate of withholding via the debt management system (DMS) DROA screen Enter a Start Date (MMYY) of the month following the month of input (e.g., if you input a rate change on January 15, the Start Date would be February).

NOTE: System limitations necessitate using the DMS DROA screen for these withholding rate changes. FO's have been given access to this screen.

IMPORTANT: When the withholding rate is changed via DMS, the amount reflected in the K TAC may not be accurate. Check ROAR to find out what the true withholding amount is.

2. Debtor offers to repay in installments

If the debtor offers to repay the SSI debt in installments rather than by mandatory CPR, tell the debtor:

1. SSA will accept either a full and immediate refund of the SSI debt or a legitimate compromise settlement; and

2. SSA will not accept repayment by installments when CPR is available; and

3. CPR will continue until the SSI debt is collected or otherwise resolved.

3. Debtor offers to repay full refund

If the debtor offers to repay the SSI debt in full rather than continue to incur CPR, tell the debtor that we will accept the full refund by check, money order or credit card. Advise the debtor as to the current balance of the debt.

a. FO instructions

Handle full refunds in accordance with instructions in GN 02403.001.

b. PC instructions

Handle full refunds in accordance with instructions in GN 02210.214A., steps 1-3.

IMPORTANT: Do not take any action to stop the CPR. If the debtor repays the entire debt, the system will reduce the debt balance to zero and automatically stop the cross program withholding. If the debtor fails to repay as promised, CPR will continue without interruption.

Explain that due to the timing of the automated CPR system, the debtor's future title II benefit payment may still be reduced for one more month. If an excess collection occurs, tell the debtor SSA will refund the excess recovery amount.

4. Debtor offers compromise settlement

If a debtor undergoing CPR offers a compromise settlement, consider the offer. Use the same guidelines that apply for overpayments being collected by intra-program withholding.

a. FO instructions

Follow the guidelines in SI 02220.030 and SI 02220.031 (sensitive instructions) for processing compromise offers.

b. PC instructions

Follow the guidelines in GN 02215.105 and GN 02215.120 for processing compromise offers.

NOTE: See SM 01311.290 and MSOM BUSSR 004.008 for systems input.

5. Debtor involved in bankruptcy proceedings

If a debtor undergoing CPR has a pending bankruptcy petition that names the SSI debtor for the title XVI debt, stop the recovery efforts effective with the month the bankruptcy petition was filed (See SI 02220.040C.). Delete the K TAC (See SM 01311.261). If the debt is in RECOOP, suspend billing by selecting BANKRUPTCY DECISION PENDING on the Update Sequence Data (UOSD) screen in MSSICS (MSOM BUSSR 004.006).

a. FO instructions

Follow the guidelines in GN 02215.190B.2.a., GN 02215.195 and SI 02220.040C.1.

b. PC instructions

Follow the instructions in GN 02215.195.

If/when a dismiss order is received, remove the suspend billing indicator by selecting DELETE on the Update Sequence Data (UOSD) screen. The debt will then be put back into RECOOP and become eligible for selection for automated CPR. If the debt is not in RECOOP, resume CPR in accordance with instructions in SI 02220.020C.

If/when a discharge order is received, remove the suspend billing indicator by selecting DELETE on the Update Sequence Data (UOSD) screen. Delete the overpayment from RECOOP. Post an uncollectable debt indicator (N TAC) to the SSR by selecting UNCOLLECTABLE on the Overpayment Decisions (UOPD) screen (See MSOM BUSSR 004.008). The discharge order bars the Agency from pursuing recovery of any prebankruptcy debt.

6. Debtor alleges he/she does not owe the debt or owes a different amount

The ROAR notice about the proposed CPR gives the debtor the opportunity to request that we review our finding and to present evidence that he/she does not owe the debt or owes an amount that is different than the amount stated in the notice. The evidence can be a cancelled check, remittance receipt from SSA, an acceptable document showing the debt was waived or other valid document. If the circumstances indicate that the debtor wants SSA to review the overpayment determination, rather than the current status of the debt, see SI 02220.020D.7. and SI 02220.020D.8.

a. Debtor requests review within 30 days of ROAR notice

If the debtor requests review within 30 days of the date of the ROAR notice, stop the CPR until a determination is made about the debt. Take the following actions when the debtor requests review within 30 days:

• Accept Form 561 or equivalent when the debtor requests a review (See GN 03102.000 for title II reconsideration instructions); and

• Tell the debtor SSA will stop the CPR and refund any money that was withheld due to CPR on or after receipt of the signed request: and

• Tell the debtor SSA will review the information in our records and any evidence submitted by the debtor and provide a written determination after the review; and

• Stop the CPR by deleting the K TAC (Follow the instructions in SM 01311.261); and

• If the debt is in RECOOP, Select OVERPAYMENT DEVELOPMENT PENDING on the Update Sequence Data (UOSD) screen (MSOM BUSSR 004.006) in MSSICS to build a suspend billing code of E on the record (See SM 01311.421 and SM 01311.423).

• Refund any money withheld due to CPR on or after receipt of the signed request; and

• Refer the information in SSA's records and any evidence submitted by the debtor to the appropriate employee for a determination whether the debt still exists and the correct amount of the debt.

If the amount of the debt shown on the notice is correct:

• Notify the debtor in writing that after review of the evidence, the amount shown on the notice is correct; and

• Input the decision: and

• Resume CPR only after 30 days (plus 5 days for mailing) have passed from the date of the reconsideration determination. If the debt is not under control of RECOOP, set it up for CPR in accordance with instructions in SI 02220.020C.; or

• If the debt is in RECOOP, select DELETE on the Update Sequence Data (UOSD) screen (MSOM BUSSR 004.006) in MSSICS to delete the suspend billing code of E from the SSR (See SM 01311.423C.). The automated system will set the debt up for recovery at the next monthly systems selection.

If the debt no longer exists (e.g., was waived, repaid, discharged in bankruptcy):

• Notify the debtor in writing that the debt no longer exists; and

• Correct the systems records to show that the debt was paid in full or no longer exists.

If the amount of the debt shown on the notice is incorrect:

• Notify the debtor in writing of the correct amount of the debt; and

• Correct the systems records to show the correct amount; and

• Resume CPR only after 30 days (plus 5 days for mailing) have passed from the date of the reconsideration determination. If the debt is not under control of RECOOP, set it up for CPR in accordance with instructions in SI 02220.020C.; or

• If the debt is in RECOOP, select DELETE on the Update Sequence Data (UOSD) screen (MSOM BUSSR 004.006) in MSSICS to delete the suspend billing code of E from the SSR (See SM 01311.423C.). The automated system will set the debt up for recovery at the next monthly systems selection.

IMPORTANT: The determination on the debtor's request for review is a reconsideration determination. Therefore, the notice that SSA sends to the debtor must include language explaining the right to a hearing before an administrative law judge.

b. Debtor requests review within 31-60 days from ROAR notice

If the debtor requests review after the 30-day period expires, take the following actions:

• Accept Form 561 or equivalent when the debtor requests a review (see GN 03102.000 for reconsideration instructions); and

• Tell the debtor SSA will stop the CPR and refund any money that was withheld due to CPR on or after receipt of the signed request; and

• Tell the debtor SSA will review the information in our records and any evidence submitted by the debtor and provide a written determination after the review; and

• Stop the CPR by deleting the K TAC (See SM 01311.261 for instructions on deleting the K TAC); and

• If the debt is in RECOOP, select OVERPAYMENT DEVELOPMENT PENDING on the Update Sequence Data (UOSD) screen (MSOM BUSSR 004.006) in MSSICS to build a suspend billing indicator of E. (See SM 01311.421 and SM 01311.423.); and

• Refund any money withheld due to CPR on or after receipt of the signed request; and

• Refer the information in SSA's records and any evidence submitted by the debtor to the appropriate employee to determine whether the debt still exists and the correct amount of the debt.

If the amount of the debt shown on the notice is correct:

• For processing instructions, see the section entitled “If the amount of the debt shown on the notice is correct” in SI 02220.020D.6.a.

If the debt no longer exists (e.g., was waived, repaid, discharged in bankruptcy):

• For processing instructions, see the section entitled “If the debt no longer exists (e.g., was waived, repaid, discharged in bankruptcy)” in SI 02220.020D.6.a.

If the amount of the debt shown on the notice is incorrect:

• For processing instructions, see the section entitled “If the amount of the debt shown on the notice is incorrect” in SI 02220.020D.6.a.

IMPORTANT: The determination on the debtor's request for review is a reconsideration determination. Therefore, the notice that SSA sends to the debtor must include language explaining the right to request a hearing before an administrative law judge.

c. Debtor requests review after 60 days from the ROAR notice

If, after 60 days, the debtor requests review because he/she alleges not owing the debt or alleges owing an amount that is different than the amount stated in the ROAR notice, develop good cause for late filing. Make a determination as to whether the person had good cause for late filing (See GN 03101.020). If a good cause determination can't be made right away, take the following actions when the debtor requests a review beyond the 60-day time limit:

• Tell the debtor SSA will stop the CPR and refund any money that was withheld due to CPR on or after receipt of the signed request; and

• Stop the CPR by deleting the K TAC per instructions in SM 01311.261; and

• Select OVERPAYMENT DEVELOPMENT PENDING on the UOSD screen (MSOM BUSSR 004.006) to build a suspend billing code of E on the record (See SM 01311.421 and SM 01311.423 for more information about the suspend billing codes); and

• Refund any money withheld due to CPR on or after receipt of the signed request; and

• See SI 02220.020D.6.d. or SI 02220.020D.6.e. for further instructions once a good cause determination is made.

d. Good cause is established

If good cause is established according to guidelines in GN 03101.020, review the information in SSA's records and any evidence submitted by the debtor and determine whether the debt still exists and the correct amount of the debt.

If the amount of the debt shown on the notice is correct:

• For processing instructions, see the section entitled “If the amount of the debt shown on the notice is correct” in SI 02220.020D.6.a.

If the debt no longer exists (e.g., was waived, repaid, discharged in bankruptcy):

• For processing instructions, see the section entitled “If the debt no longer exists (e.g., was waived, repaid, discharged in bankruptcy)” in SI 02220.020D.6.a.

If the amount of the debt shown on the notice is incorrect:

• For processing instructions, see the section entitled “If the amount of the debt shown on the notice is incorrect” in SI 02220.020D.6.a.

IMPORTANT: The determination on the debtor's request for review is a reconsideration determination. Therefore, the notice that SSA sends to the debtor must include language explaining the right to request a hearing before an administrative law judge.

e. Good cause is not established

Follow the instructions in GN 03101.020 when good cause is not established. If CPR was stopped, resume CPR according to instructions in SI 02220.020D.7.f.

7. Debtor requests reconsideration of the fact or amount of the original debt (the overpayment determination)

Some debtors may still request reconsideration of the overpayment determination. Accept form SSA-561-U2 or equivalent when the debtor asks for reconsideration of the fact or amount of the original overpayment.

a. Debtor requests reconsideration within the time limit

In most cases involving CPR, the time period for requesting reconsideration has already expired. If, however, the debtor requests reconsideration within 60 days of the date of the initial overpayment notice, take the following actions:

• Tell the debtor SSA will review the information in our records and any evidence submitted by the debtor and provide a written determination after the review; and

• Stop the CPR by deleting the K TAC (Follow the instructions in SM 01311.261); and

• Input the reconsideration request on the Appeal (UOAP) screen in MSSICS (See MSOM BUSSR 004.010); and

• Post the appeal to the APPE segment of the SSR per MSOM BUSSR 002.007; and

• Refund any money withheld due to CPR on or after receipt of the signed request; and

• Adjudicate the request for reconsideration per instructions in GN 03102.000. For additional instructions on processing reconsideration approvals and denials, see SI 02220.020D.7.e. through SI 02220.020D.7.f.

b. Debtor requests reconsideration beyond the time limit

If a debtor requests reconsideration of the fact or amount of the original overpayment after the 60-day time limit has expired, develop good cause for late filing (See GN 03101.020). If a good cause determination cannot be made immediately, take the following actions when the debtor requests reconsideration beyond the time limit:

• Tell the debtor SSA will stop the CPR and refund any money that was withheld due to CPR on or after receipt of the signed request; and

• Stop the CPR by deleting the K TAC (Follow the instructions in SM 01311.261); and

• Input the reconsideration request on the Appeal (UOAP) screen in MSSICS (See MSOM BUSSR 004.010); and

• Post the appeal to the APPE segment of the SSR per MSOM BUSSR 002.007; and

• Refund any money withheld due to CPR on or after receipt of the signed request.

• See SI 02220.020D.7.c. or SI 02220.020D.7.d. for further instructions once a good cause determination is made.

c. Good cause is established

Adjudicate the request for reconsideration per instructions in GN 03102.000. For additional instructions on processing reconsideration approvals and denials see SI 02220.020D.7.e. through SI 02220.020D.7.f.

d. Good cause is not established

Follow the instructions in GN 03101.020 when good cause is not established. If CPR was stopped, see SI 02220.020D.7.f. for instructions on resuming CPR.

e. Reconsideration approval (initial determination revised or reversed)

• Notify the debtor in writing of the correct amount of the debt (See GN 03102.425 for information about the reconsideration notice of determination); and

• Correct the systems records to show the correct amount of the debt; and

• Input the determination in MSSICS on the Appeal (UOAP) screen; and

• Post the appeal to the APPE segment of the SSR per MSOM BUSSR 002.007; and

• If a new debt balance (other than zero) exists after the reconsideration approval, resume CPR only after 30 days (plus 5 days for mailing) have passed from the date of the reconsideration determination; and

• If the debt is not under control of RECOOP, set it up for CPR in accordance with instructions in SI 02220.020C.; or

• If the debt is under control of RECOOP, the automated system will set the debt up for recovery at the next monthly systems selection.

f. Reconsideration denial (initial determination affirmed)

• Notify the debtor in writing per instructions in GN 03102.425A.; and

• Input the determination in MSSICS on the Appeal (UOAP) screen; and

• Post the appeal to the APPE segment of the SSR per MSOM BUSSR 002.007; and

• Resume CPR only after 30 days (plus 5 days for mailing) have passed from the date of the reconsideration determination; and

• If the debt is not under control of RECOOP, set it up for CPR in accordance with instructions in SI 02220.020C.; or

• If the debt is under control of RECOOP, the automated system will set the debt up for recovery at the next monthly systems selection.

8. Debtor requests a hearing or appeals council review on the overpayment determination (fact or amount of the original debt)

• If the debtor requests a hearing or Appeals Council review on the fact or amount of the overpayment, handle the request according to instructions for SSI hearings. See SI 04030.000 for Administrative Law Judge hearings and SI 04040.000 for Appeals Council reviews.

• In any event, do not take action to stop the CPR nor to refund any money already withheld from the title II benefit as payment toward the SSI debt.

• Input the hearing request on the APPEAL (UOAP) screen in MSSICS (See MSOM BUSSR 004.010).

• Post the appeal to the APPE segment of the SSR per MSOM BUSSR 002.007.

• Follow instructions in SI 02220.020D.7.e. through SI 02220.020D.7.f. for effectuating the hearing or Appeals Council decision.

9. Debtor requests waiver

The ROAR notice that tells the debtor about the proposed CPR explains waiver rights. The debtor may request waiver at any time. If a request for waiver is received, obtain an SSA-632-BK in accordance with current instructions in SI 02260.005.

Advise the debtor that CPR remains in effect until SSA receives a signed SSA-632-BK (or its equivalent). When you receive the signed document, take the following actions:

a. Debtor requests waiver within 30 days from ROAR notice

• Tell the debtor SSA will stop the CPR and refund any money that was withheld due to CPR on or after receipt of the signed request; and

• Stop the CPR by deleting the K TAC in accordance with instructions in SM 01311.261; and

• Input the waiver request on the Waiver (UOWV) screen in MSSICS (See MSOM BUSSR 004.009; SM 01311.421 and SM 01311.423); and

• Refund any money withheld due to CPR on or after receipt of the signed request; and

• Adjudicate the waiver request per instructions in SI 02260.001.

b. Debtor requests waiver after 30 days from ROAR notice

• Tell the debtor SSA will stop CPR and refund any money that was withheld due to CPR on or after receipt of the signed request; and

• Stop the CPR by deleting the K TAC in accordance with instructions in SM 01311.261; and

• Input the waiver request on the Waiver (UOWV) screen in MSSICS (See MSOM BUSSR 004.009; SM 01311.421 and SM 01311.423); and

• Refund any money withheld due to CPR on or after receipt of the signed request; and

• Adjudicate the waiver request per instructions in SI 02260.001.

c. Waiver approval

• Process a full waiver approval in accordance with instructions in SM 01311.423C.3. and SM 01311.423C.4.

• If you waive part but not all of the overpayment, see SM 01311.423C.5. for instructions for screen input. See SI 02220.020D.7.f. bullets 3-5 for more instructions about resuming collection efforts via CPR for the amount of the overpayment not waived.

d. Waiver denial

• Follow waiver procedures in SI 02260.006 and SI 02260.006C.5.; and

• Input the waiver denial via the MSSICS Waiver (UOWV) screen; and

• Resume CPR only after 30 days (plus 5 days for mailing) have passed from the date of the notice of waiver denial; and

• If the debt is not under control of RECOOP, set it up for CPR in accordance with instructions in SI 02220.020C.2.; or

• If the debt is under control of RECOOP, the automated system will set the debt up for recovery at the next monthly systems selection.

10. Debtor alleges being member of Ellender class

Take the following actions only when a debtor alleges being a member of the Ellender class:

• Review the system records to determine if the debtor received an SSI overpayment before October 26, 1982; and

• If yes, review the system records to determine if the debtor was receiving title II benefits on October 26, 1982; and

• If yes, ask the debtor if he/she lived in the State of New York on October 26, 1982; and

• If yes, ask the debtor for proof of his/her New York State residency for the above period. (Acceptable proof includes, but is not limited to, New York State and local income tax returns, property tax bills, documents from the motor vehicle administration, and utility bills.)

If the debtor meets all the criteria above, find that he/she is a member of the Ellender class. Take action to stop the CPR and to refund any money withheld.

NOTE: Annotate in Remarks on the SSR and the DMS that this debtor is a member of the Ellender class. Also notify the Program Staff in the Regional Office so the SSN can be added to the list of numbers excluded by the automated selection process in RECOOP.

If the debtor does not meet all the criteria above, find that he/she is not a member of the Ellender class. Explain that CPR will continue.

IMPORTANT: The finding that a debtor does or does not meet the criteria for the Ellender class is not an initial determination subject to additional appeals.

E. Procedure – changes in debtor's title XVI and title II status

1. Debtor's ledger account file (LAF) status changes from current pay

If the debtor's LAF status changes from current pay to deferred (D), terminated (T) or suspended (S), the CPR will automatically stop. Due to the limitations of the existing MBR/SSR interface, no exchange record is sent by the MBR to the SSR regarding the disposition of the title XVI overpayment. Instead, the MBR generates a PC alert.

Handle the PC alerts in accordance with instructions in SM 00610.815.

2. Debtor's title II monthly benefit payable decreases

If the debtor's monthly benefit payable decreases after mandatory CPR has begun and the debtor remains in LAF C or E, the amount of withholding must be decreased to the equivalent of 10 percent of the new title II amount payable.

After you determine the new rate of withholding from the title II benefit (see SI 02220.020C.2.e. through SI 02220.020C.2.f.), follow existing instructions in MSOM DMS 006.015 for changing the rate of withholding via the debt management system (DMS) DROA screen. Enter a Start Date (MMYY) of the month following the month of input (e.g., if you input a rate change on January 15, the Start Date would be February).

NOTE: System limitations necessitate using the DMS DROA screen for these withholding rate changes. FO's have been given access to this screen.

IMPORTANT: When the withholding rate is changed via DMS, the amount reflected in the K TAC may not be accurate. Check ROAR to find out what the true withholding amount is.

If the debtor has committed willful misrepresentation or concealed material information that lead to the debt being collected by CPR, then do not decrease the withholding to an amount equivalent to 10 percent of the new title II amount payable. Instead, adjust the withholding to a whole dollar amount that will result in a title II monthly benefit payable of no less than $1.00 (keeping in mind the required minimum 2 withholding transactions). See SI 02220.020C.3. for more information about CPR when willful misrepresentation and concealment of material information is involved.

3. Debtor returns to title XVI current pay

Due to systems limitations, SSA cannot collect a title XVI debt by automated CPR when the person is receiving title XVI payments. When a debtor, who is incurring CPR, returns to title XVI current pay status (C01), the system creates a B8 diary. The B8 diary indicates that a title XVI record is in C01 with an overpayment amount due and an inappropriate disposition code such as the K TAC.

Handle the B8 diaries in accordance with instructions in SM 01311.638.

4. Debtor files new SSI claim that is subsequently denied

An overpayment on a terminated record is being collected by CPR. The recipient files a new claim which is subsequently denied. (See SM 01311.385 for information.) Since the ROAR interface cannot direct refunds to prior records, the overpayment and the K TAC have to be transferred to the new record. (See SM 01311.261D. for instructions on transferring a K TAC.)

NOTE: When an application is filed and a new record is created, either through MSSICS or through the 450S batch process, the SSI system will attempt to reconcile the new SSR with the last terminated record on the SSR (See MSOM BUSSR 004.017 for reconciliation and overpayment transfer in MSSICS).

5. Exceptions

Regardless of whether the CPR is initiated by the automated or manual process, exceptions will occur that prevent the recovery. For example, these exceptions can result from an attempt to set up CPR on an inappropriate title II LAF status, such as LAF D, T and S. Refer to SM 00616.001B., Stages 7 and 8, for more information about exceptions from the SSR/MBR CPR interface.

Process the exceptions in accordance with instructions in SM 00610.415.

F. Exhibit

SSA-53-EP Mandatory Cross Program Recovery

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