GN 02210: Methods of Recovery for Title II, Title VIII, Title XVI, and Title XVIII Overpayments - Part I
TN 29 (04-13)
Citations: Social Security Act §1147
20 CFR §404.530, 20 CFR §416.572, 20 CFR §408.930
A. Authority for mandatory (CPR) from Social Security administered program benefits
Section 210 of the Social Security Protection Act of 2004 expanded the Social Security Administration’s (SSA) authority to conduct CPR. The 2004 amendment of Section 1147 of the Social Security Act (Act) permits SSA to recover Social Security (title II), Special Veterans Benefits (title VIII), and Supplemental Security Income (title XVI) overpayments from a debtor by decreasing any amount payable to that debtor under title II, title VIII, or title XVI. With the change in the law, a debtor does not have to provide permission for SSA to collect the overpayment from any program benefit due the debtor.
In general, CPR may recover only ten percent of a monthly benefit paid.
The law limits the amount of CPR recovery from regularly due monthly title XVI benefits to the lesser of:
the amount of that monthly benefit; or
ten percent of the debtor’s income for that month. Such income includes the monthly benefit but excludes payments under title II when we are recovering a title II overpayment from title II benefits and income excluded under section 1612(b) of the Act.
In addition, the law provides that none of the above limits on CPR recovery apply if the debtor requests a greater CPR recovery or if the debtor, or the spouse of the debtor, was involved in willful misrepresentation or concealment of material information in connection with the overpayment amount.
B. General rules for CPR from monthly title II benefits
If we terminated or suspended the title II benefit retroactively, the overpayment recovery for the other program ceases as of the current operating month (COM). Any amount withheld from the title II benefit used to reduce the other program debt effective with the retroactive termination month of is a title II overpayment.
Cessation or suspension of the title II benefit precludes cross program recovery of benefits not regularly paid due to the suspension or cessation. See SM 00610.815 if the ledger account file (LAF) status of the debtor changes from current pay to a non-pay status. Initiate a new CPR action if the debtor becomes eligible again.
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CPR applies nationwide. However, special procedures apply, effective November 21, 2000, to members of the Ellender Class (certain Supplemental Security Income (SSI) recipients who resided in New York State who had title XVI overpayments from the 1980’s), see SI 02220.020A.8.
We must send all class members notices which advise them:
the time periods during which overpayment of SSI benefits arose;
the amount of overpayment in each time period and in total;
the amount of any prior repayments;
the reason for overpayment;
that the recipient has a right to appeal or reconsideration;
that under specified conditions, the recipient may have the right to waive repayment; and
that the time period in which the Government should have collected the overpayments may have passed, but if the recipient pays back any installment or writes a letter acknowledging the overpayment, the Government's right to collect may be revived (i.e., the statute of limitations may have run, but partial repayment or a written acknowledgment by the debtor may revive the claim).
C. Recovery of title VIII overpayments from monthly title II and title XVI benefits
Under Social Security Act §808(e), we recover title VIII overpayments by decreasing a beneficiary’s monthly title II benefits or title XVI payments by CPR. For information about CPR recovery of title VIII overpayments from title II and title XVI benefits, see VB 02005.101.
D. Recovery of title XVI overpayments from monthly title II benefits
The Recovery and Collection of Overpayments (RECOOP) system automatically selects title XVI debts for CPR from title II benefits. For the automated process, see SI 02220.020B. Process Non-RECOOP cases manually per SI 02220.020C.
E. Recovery of title XVI overpayments from monthly VIII benefits
Title XVI and title VIII are two separate programs, but both utilize the Social Security Record (SSR) for record keeping and systems processing. Prior to July 5, 2002, the SSR limited refund of the overpayment efforts to recover title XVI overpayments from title VIII benefits. See VB 02020.005 for CPR recovery of title XVI overpayments from title VIII benefits.
F. Recovery of title II overpayments from monthly title VIII benefits
Recovery of title II overpayments from monthly title VIII benefits is a manual process; for the recovery procedures, see SM 01311.320.
G. Recovery of title II overpayments from monthly title XVI benefits
Recovery of title II overpayments from monthly title XVI benefits is a manual process; for the recovery procedures, see SM 00610.820 and SM 01311.320.
H. References
SI 02220.020 Cross Program Recovery (CPR) of SSI Overpayment from Monthly Title II Benefits
SM 00610.815 A LAF Status Change in a Cross-Program Recovery Case
SM 00610.820 Recovery of a Title II Overpayment from Title XVI Benefits
SM 01311.320 Recovery of Title II Overpayment from Monthly SSI Benefits and Special Veterans Benefits
VB 02005.101 SVB Overpayments - Overview
VB 02020.005 Collection of SSI Overpayments From Special Veterans Benefits