BASIC (08-06)

All SVB overpayments must be resolved by one (or a combination) of the following:

• Recovery;

• Waiver;

• A determination that the debt either did not exist or cannot be collected.

A. Policy – Overpayment Resolution by Recovery

1. Recovery by Full Refund

Full refund of an overpayment is the preferred method of recovery in all cases. All initial overpayment notices will request refund of the entire overpaid amount. See VB 02005.200 when an SVB overpayment is refunded in full upon notification of the overpayment.

2. Recovery from SVB

Recovery from SVB can occur only when the veteran is in SVB current pay status, and is accomplished by deducting a portion of the recipient’s monthly SVB payable until full recovery is completed. See VB 02005.205 when an SVB overpayment is to be recovered from SVB.

3. Cross-Program Recovery

The Social Security Act authorizes the recovery of title VIII overpayments from title II and title XVI monthly benefits until full recovery of the SVB overpayment is completed. However, pending development of procedures for this method of recovery and for notifying beneficiaries that it applies, verify that the overpayment is established on the SSR using Direct SSR Update (MSOM BUSSR 002 and MSOM BUSSR 003), and recover the overpayment in full through refund, recovery from SVB, installment payments and/or through tax refund offset as appropriate.

4. Recovery by Installment Payments

Another recovery method is refund by remittance through monthly installments until full recovery is completed. See VB 02005.225 when an SVB overpayment is to be recovered by monthly installments.

5. Recovery by Tax Refund Offset

SSA may recover delinquent title VIII overpayments from former SVB recipients by offsetting their Federal income tax refunds. This process is referred to as Tax Refund Offset. See SI 02220.012 for a description of this process. VB 02005.230 provides instructions.

B. Policy – Overpayment Resolution by Waiver

A request for waiver is a request for release from the responsibility for repayment. Any person who is determined to be liable for an SVB overpayment may request that repayment of all or part of the overpayment be waived. There are no time limitations for requesting waiver and waiver can be requested at any point in the overpayment recovery process (including after recovery has been initiated). See VB 02005.300 for waiver procedures for SVB overpayments.

C. Policy – Overpayment Resolution by Revised Determination

All persons who are responsible for repayment of an overpayment have the right to appeal the determination of overpayment as well as the right to appeal their responsibility for repayment. Follow

VB 02502.000 and VB 02005.355 when an SVB overpayment determination is appealed.