VB 04001.001: Processing a Title VIII Claim

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~~Effective Dates: 05/23/2013 - Present~~
Effective Dates: 04/16/2018 - Present
TN 1 (06-00)
VB 04001.001 Processing a Title VIII Claim
A. Background
The servicing field office is responsible for maintaining and processing the SVB claim of an individual who files for SVB in the U.S. until foreign residency is established. The Central Processing Site (CPS) is responsible for all applications filed outside the U.S. The CPSs are also responsible for processing all actions on the Special Veterans Benefit (SVB) claim once the claimant has left the United States and established foreign residency.
Special Veterans Benefits are paid through the Supplemental Security Income (SSI) system. The system computes the SVB based on the computation rules outlined in VB 00701.001. The force due process can be used if the system is unable to support an accurate computation.
A permanent indicator is posted to the title VIII record to specifically identify the record as an SVB claim. The indicator, SVB, is displayed in the Case Header segment of the Supplemental Security Income Record Display (SSIRD). The SVB update function can be accessed from the Modernized Supplemental Security Income Claim System (MSSICS) and is located on the Direct SSR Update Menu (UMEN).
When an active MSSICS pending file exists, the UMEN screen is accessed from the Decision Input path (2/14 on the MSSI Menu). If SVB is selected from the Decision Input path, the system will terminate (T33) the title XVI record and build a start date record. The system will post a permanent title VIII indicator to the start date record, SVB: Y.
NOTE: If the record has not been paid, the record will not be terminated. The system will only apply the SVB indicator.
If SVB is accessed from the Direct SSR Update (2/19 on the MSSI Menu), the system will terminate (T33) the record and not build a start date record. A 450SI start date must be transmitted to establish the title VIII claim. The record will not be terminated if there are no payment history entries on the title XVI record and the SVB update function is selected.
The instructions in this chapter may apply to both the servicing field office and the central processing site (CPS). Servicing field offices should be making any necessary input to suspend SSI payments if the claimant has left the U.S. When the claimant establishes foreign residency and SVB are ready to be paid the servicing field office should forward the SVB file to the CPS. The CPS should update the record with the correct mailing address and post the title VIII indicator to the record.
B. Procedures
Servicing field offices should post all information concerning the application filing to San Francisco's Intranet site (http://sfapp.sf.ad.ssa.gov/Title8/). Servicing field offices should also follow the instructions given in VB 00901.010 for processing the title XVI claim and the SVB claim.
Servicing field offices should post all information concerning the application filing to San Francisco's Intranet site here. Servicing field offices should also follow the instructions given in VB 00901.010 for processing the title XVI claim and the SVB claim.
Central Processing Sites (CPS) should follow the procedures below when title VIII eligibility has been determined, the claimant has established a foreign residence, and title VIII benefits are ready to be paid. When the CPS receives the SVB file from the servicing field office the address information may already have been updated. The CPS must still follow the instructions below to post the title VIII indicator to the record.
Central Processing Sites (CPS) should terminate the title XVI representative payee on the Representative Payee System (RPS). Transmit a 1719B or a 450SI to post representative payee information to the SSR. See VB 04005.001 for processing instructions.
1. RIC G Record Exists with a MSSICS Pending File
Follow these steps:
* Open a stand-alone PE event. If an event is already open or the claim is still pending, select claim update.
* Update the Mailing/Payment Address (ADDR) screen with the claimant's foreign mailing address or representative payee's address. Consular and geographic codes for foreign countries are available on the Foreign Service post directory of the Telecommunications Routing Indicator Directory (TRID). If the claimant's place of residence is different than where the checks and notices are sent, document the actual residence address in remarks. See MSOM MSSICS 008.005.
NOTE: The domestic phone number must be blank if the mailing address is in a foreign country.
* Update the Residence Address (LRES) screen with the address of the central processing site. See MSOM MSSICS 010.002 for instructions on completing LRES.
IMPORTANT: The State/county code on page 1 of LRES should reflect the State/county Code of the central processing site and the State/County override should equal “Y”. To simplify processing, select 5 (Transient) and enter the date foreign residency was established as the Residence Start Date on page 2 of LRES.
* On the State Supplementation screen (LNYO, LCAO, or LOSS), fill in the “OS Code determined by Field Office” with the applicable code. See MSOM MSSICS 011.001.
* On the Resource Menu (RMEN), answer “NO” to all resource types.
* Complete and/or update the Income Menu (IMEN) and related screens with the title VIII countable income. See VB 00205.105 for determining countable income for SVB.
* On Build SSR (DSSR), select Direct SSR Update and select Close the Event.
* On the Direct SSR Update Menu (UMEN), select the SPECIAL VETERANS BENEFIT update function. The system will terminate (T33) the SSI record and build a new start date record beginning with the Current Computation Month. The start date record will have an SVB indicator in the Case Header segment.
NOTE: Termination (T33) will not occur if the SSI claim has not been paid when the title VIII application is processed. The system will only apply the title VIII indicator to the record.
* On BTS Confirmation (BTCF), select Send Data to SSR.
* Prepare a manual notice using the Field Office Notice Software (FONS). The system suppresses the automated notice when the title VIII indicator is present.
2. Recovery of an SSI Overpayment from SVB Benefits
* Background
Many SVB recipients have unresolved SSI overpayments. SSA is charged with recovering unresolved SSI overpayments incurred by persons who are now SVB recipients.
SSA has the authority to require recovery of an SSI overpayment from SVB benefits. For additional information on SSI recovery of overpayments from SVB please see VB 02020.005.
NOTE: If the individual is currently outside the United States and is entitled to SVB benefits, the CPS is the servicing office and will control all overpayment recovery actions.
In response to the overpayment notice, the person can:
* refund the overpayment in one payment;
* refund the overpayment in installments;
* request waiver of recovery;
* negotiate a legitimate compromise agreement; or
* appeal.
* Procedures
Follow the procedure below for collection of SSI overpayments by refund.
For currently entitled SVB individuals with unresolved SSI overpayments, a manual SSI overpayment notice (SSA-L8171) must be sent per SI 02220.025. In addition to the general instructions in SI 02220.025, the CPS should:
* disregard SI 02220.025B.5. for currently entitled SVB individuals;
* state in the notice that all remittances should be mailed to the CPS servicing office (see VB 00901.025);
* substitute the Foreign Paragraph "If You Have Any Questions" found on the Field Office Notice Software (FONS) for the SVB notices rather than the standard "If You Have Any Questions" paragraph; and
* send the payment coupon generated from the DM system to the Mid-Atlantic PSC.
* Installments
If the individual requests an installment agreement:
* post a G TAC to the terminated SSI record. Manual control of the installment agreement will be required because the mailing address is in a foreign country. See SM 01311.235 for instructions on how to process an installment agreement;
* when a check is received, enter the information on the Debt Management Systems" Field Office Remittance Input (RFOR) Screen to generate a payment coupon, see MSOM DMS 003.006. If the check is a foreign check, remember to enter a REMITTANCE TYPE OF "I" or "J" on RFOR and enter the correct record establishment date in the SSI EST DT prompt;
* send the check and payment coupon to the Mid-Atlantic Program Service Center in Philadelphia for processing; and
* make the appropriate follow-ups concerning the SSI overpayment and follow procedures in SI 02220.052 for suspending the overpayment recovery efforts. If follow-up efforts are unsuccessful, post a DB decision to suspend overpayment recovery efforts which indicates the individual is unwilling or unable to repay.
* Compromise
If the individual offers a legitimate compromise offer, follow the procedures in SI 02220.030 for the compromise offer.
* Waiver
For any waiver request, pre-waiver denial procedures in SI 02260.006 apply, with one exception. SI 02260.006.C.4.b., second bullet DOES NOT apply when the overpaid former SSI recipient resides outside the United States. That a former SSI recipient has to travel at his or her own expense to the United States to attend a pre-waiver denial personal conference is not a legitimate reason to determine that the personal conference cannot be held. When a former SSI recipient living outside the United States cannot attend the personal conference, make the waiver determination based on all available evidence.
3. RIC G Record with no MSSICS Pending File
Follow these steps:
* Select Direct SSR Update (2/19 on the MSSI Menu). See MSOM BUSSR 002.001.
NOTE: A pending file can be established in MSSICS if no seeding exclusion exists. See VB 04001.001B.1. for processing a claim with a MSSICS pending file.
* Select the current record from the Direct SSR Selection Screen (USSR) and select the SPECIAL VETERANS BENEFIT update function from the Direct SSR Update Menu (UMEN). The system will terminate the record with T33 payment status and not build a start date record.
* In the next processing run, transmit a 450SI start date using payment status H80 and the following data:
* Use the address of the central processing site for the residence address and the claimant's foreign address or representative payee's address in the mailing address field. Consular and geographic codes for foreign countries are available on the Foreign Service post directory of the Telecommunications Routing Indicator Directory (TRID). If the claimant's place of residence is different than where the checks and notices are sent, document the actual residence address in remarks.
* Use the State and county code of the central processing site, appropriate Federal living arrangement (FLA), and the applicable State supplementation code.
* Complete the unearned income field (UM) with SVB countable income. See VB 00205.105 for determining countable income for SVB.
* Input notice suppression. Prepare a manual notice using the Field Office Notice Software (FONS).
* After the Start Date record is established, select Direct SSR Update (2/19 on the MSSI Menu). See MSOM BUSSR 002.001.
* Select the current record from USSR.
* Select the SVB update function on UMEN. The system will apply the SVB indicator.
* On BTCF, send the SSR.
* Adjudicate the SVB claim.
4. RIC T Record
Follow these steps:
* Resolve any debt on the latest terminated record with Q TACs before establishing a new claim. This will prevent the system from automatically carrying forward debt from the title XVI record to the title VIII record.
* In the next processing run, establish a new claim in MSSICS using the filing date of the title VIII application.
* Collect data in the same manner as you would a title XVI claim, except for the following:
* Enter the claimant's foreign mailing address or representative payee's address on the Mailing/Payment Address (ADDR) screen. Consular and geographic codes for foreign countries are available on the Foreign Service post directory of the Telecommunications Routing Indicator Directory (TRID). If the claimant's place of residence is different than where the checks and notices are sent, document the actual residence address in remarks. See MSOM MSSICS 008.005.
* Enter the address of the central processing site on the Residence Address (LRES) screen. See MSOM MSSICS 010.002 for instructions on completing LRES.
IMPORTANT: The State/county code on page 1 of LRES should reflect the State/county code of the central processing site and the State/County override should equal “Y”. To simplify processing, select 5 (Transient) and enter the date foreign residency was established as the Residence Start Date on page 2 of LRES.
* On the State Supplementation screen (LNYO, LCAO, or LOSS), enter the applicable OS Code for “OS Code determined by Field Office”. See MSOM MSSICS 011.001.
* On the Resources Menu (RMEN), answer “No” to all resource types. The system will derive N04 payment status even though resources are not countable in the Title VIII payment computation. See MSOM MSSICS 013.002.
* On the Income Menu (IMEN) and related screens, enter countable SVB income. See MSOM MSSICS 014.002. See VB 00205.105 for determining countable income for SVB.
* Select Decision Input (2/14 on the MSSI menu).
* On Build SSR (DSSR), DO NOT choose Direct SSR Update and DO NOT close the event. The SSR must be built before the indicator can be posted.
* On BTS Confirmation (BTCF), send Data to SSR.
* Select the Direct SSR Update function (2/19) from the MSSI Menu. Select the SPECIAL VETERANS BENEFIT update function from the Direct SSR Update Menu to apply the SVB indicator.
* On BTCF, send Data to SSR. The record will now have the SVB indicator.
* Prepare a manual notice using the Field Office Notice Software (FONS). The system suppresses the automated notice when the title VIII indicator is present.
* Delete the ZQ TACs posted to the title XVI record. The overpayment should remain unresolved until a decision is made regarding the collection of title XVI overpayments from title VIII.
C. Special Procedures for Couple Records
The system does not establish a title VIII record for a couple. The processing of the title VIII claim depends on which member of the couple qualifies for title VIII benefits. If the title XVI record is for an eligible couple record, process as follows.
NOTE For MSSICS Records: When a couple record is terminated and start dated by the system due to the selection of the SVB update function, the system does not remove the spouse from the pending file. The spouse will still appear in the MSSICS path, but will not be used in the title VIII benefit computation.
1. Housed Under Number (HUN) on the SSR is the SSN for the Title VIII Eligible Individual and Both Members of the Couple Leave the U.S. -- RIC G Record Exists With a MSSICS Pending File
Follow these steps:
* Open a stand-alone PE event. If an event is already open or the claim is still pending, select claim update.
* On Person Claim Summary (PSUM), select the title VIII individual.
* Update the Mailing/Payment Address (ADDR) screen with the claimant's foreign mailing address or representative payee's address. Consular and geographic codes for foreign countries are available on the Foreign Service post directory of the Telecommunications Routing Indicator Directory (TRID). If the claimant's place of residence is different than where the checks and notices are sent, document the actual residence address in remarks. See MSOM MSSICS 008.005.
NOTE: The domestic phone number must be blank if the mailing address is in a foreign country.
* Update the Residence Address (LRES) screen with the address of the central processing site. See MSOM MSSICS 010.002 for instructions on completing LRES.
IMPORTANT: The State/county code on page 1 of LRES should reflect the State/county Code of the central processing site and the State/County override should equal “Y”. Transient cannot be selected as a residence type for couple records. Select the applicable residence type.
* On the State Supplementation screen (LNYO, LCAO, or LOSS), fill in the “OS Code determined by Field Office” with the applicable code. See MSOM MSSICS 011.001.
* On the Resource Menu (RMEN), answer “NO” to all resource types.
* Complete and/or update the Income Menu (IMEN) and related screens with the title VIII countable income. See VB 00205.105 for determining countable income for SVB.
* On Build SSR (DSSR), select Direct SSR Update and Close the Event.
* On the Direct SSR Update Menu (UMEN), select the SPECIAL VETERANS BENEFIT update function. The system will terminate (T33) the SSI record and build a new start date record, for the HUN individual, beginning with the Current Computation Month. The start date record will have an SVB indicator in the Case Header segment.
NOTE: Termination (T33) will not occur if the SSI claim has not been paid when the title VIII application is processed. The system will only apply the title VIII indicator to the record.
* On BTS Confirmation (BTCF), select Send Data to SSR.
* Prepare a manual notice using the Field Office Notice Software (FONS). The system suppresses the automated notice when the title VIII indicator is present.
* The system will not bring forward debt from the title XVI record. This debt should remain on the title XVI record until further instructions are provided regarding the collection of title XVI debts from title VIII payments.
2. Housed Under Number (HUN) on the SSR is the SSN for the Title VIII Eligible Individual and Both Members of the Couple Leave the U.S. -- RIC G Record Exists with No MSSICS Pending File
Follow these steps:
* Select Direct SSR Update (2/19 on the MSSI Menu). See MSOM BUSSR 002.001.
NOTE: A pending file can be established in MSSICS if no seeding exclusion exists. See VB 04001.001C.1.
* Select the current record from the Direct SSR Selection Screen (USSR) and select the SPECIAL VETERANS BENEFIT function from the Direct SSR Update Menu (UMEN). The system will terminate the record with T33 payment status.
* In the next processing run, transmit a 450SI start date for the title VIII eligible individual using payment status H80 and the following data:
* Use the address of the central processing site for the residence address and the claimant's foreign address or representative payee's address in the mailing address field. Consular and geographic codes for foreign countries are available on the Foreign Service post directory of the Telecommunications Routing Indicator Directory (TRID). If the claimant's place of residence is different than where the checks and notices are sent, document the actual residence address in remarks.
* Use the State and county code of the central processing site, appropriate Federal living arrangement (FLA), and the applicable State supplementation code.
* Complete the unearned income field (UM) with SVB countable income. See VB 00205.105 for determining countable income for SVB.
* Input notice suppression. Prepare a manual notice using the Field Office Notice Software (FONS).
* After the Start Date record is established, select Direct SSR Update (2/19 on the MSSI Menu). See MSOM BUSSR 002.001.
Select the current record from USSR.
* Select the SVB update function on UMEN. The system will apply the SVB indicator.
* On BTCF, send the SSR.
* Adjudicate the SVB claim.
3. Housed Under Number (HUN) on the SSR is the SSN for the Title VIII Eligible Individual and Eligible Spouse Remains in the U.S. -- RIC G Record Exists with MSSICS Pending File.
* Follow the steps in VB 04001.001C.1.to pay the title VIII eligible member.
* Select Manual Processes (2/12 on MSSI Menu).
* On the Manual Process screen (MNPS), select Manual Clearance to lock the pending file.
* In the next processing run, transmit a 450SI start date for the title XVI eligible member of the couple who remains in the U.S.
* Seed the claim for the title VIII eligible individual.
4. Housed Under Number (HUN) on the SSR is the SSN for the Title VIII Eligible Individual and Eligible Spouse Remains in the U.S. -- RIC G Record Exists with No MSSICS Pending File.
* Follow the steps in VB 04001.001C.2.to pay the title VIII eligible member.
* Transmit a 450SI start date for the title XVI eligible member of the couple who remains in the U.S.
5. Title VIII Eligible Individual's SSN is not the HUN and Both Leave the U.S. -- RIC G Record Exists with MSSICS Pending File.
Follow the steps in VB 04001.001C.2.to pay the title VIII eligible member. The system will not be able to do an automated start date in this situation.
6. Title VIII Eligible Individual's SSN is not the HUN and Both Leave the U.S. -- RIC G Record Exists with no MSSICS Pending File.
Follow the steps in VB 04001.0001C.2.to pay the title VIII eligible member.
7. Title VIII Eligible Individual's SSN is not the HUN and the Other Member of the Couple Remains in the U.S. -- RIC G Record Exists with or without a MSSICS Pending File.
* Follow the steps in VB 04001.001C.2.to pay the title VIII eligible member.
* Transmit a 450SI start date for the member who remains in the U.S.
8. Both Members of the Couple are Eligible for Title VIII -- RIC G Record Exists with or without MSSICS Pending File.
Follow the instructions in VB 04001.001C.2.
NOTE: A 450SI start date must be established for each eligible individual since the system does not establish title VIII couple records.
D. Process
When the SVB indicator is posted to a record, the system will:
* Compute the SVB based on the computation rules outlined in VB 00701.001.
* Compute the title VIII benefit on a monthly basis using prospective accounting.
* Set the Budget Month indicator to “0”.
* Ignore living arrangement in the benefit computation.
* Suppress the computation of optional state supplementation.
* Continue to derive N04 payment status if excess resources are posted to the record. Therefore, resource data should not be posted to the record.
* Compute N01 payment status if countable income exceeds the maximum title VIII payment.
* Suppress automated notices.
* Compute a ten percent overpayment recovery rate.
E. References
Central Processing Sites, VB 00901.025
Determining What is Other Benefit Income, VB 00205.105

POMS Reference

VB 04001.001: Processing a Title VIII Claim