TN 22 (06-99)

A. Procedure - different rate of adjustment

1. No waiver request

When there is no waiver request, consider a different rate of withholding only at the debtor's request.

2. Waiver request/debtor at fault/no title xvi involvement

Consider a different rate of withholding if:

• A partial withholding request was received with the waiver request; or

• A specific request is made after receipt of the waiver denial notice.

3. Waiver request/debtor at fault/title xvi involvement

Follow GN 02210.045 if the debtor is also receiving title XVI.

4. Waiver request/without fault/no title xvi involvement

If waiver denied because recovery would not cause hardship, limit withholding to what the defeat the purpose allows.

Example: A person is without fault in causing a $7500 overpayment but waiver is denied because the debtor can afford to repay $65 a month (after the $25 adjusted expense margin) without financial hardship. Withholding is limited to $65 monthly.

5. Subsequent fraud conviction or similar fault established/partial withholding in effect

• In fraud convictions change to full withholding.

• In similar fault cases, follow GN 04020.010A., GN 04020.010C., and GN 04020.010D. to make a similar fault determination, then change to full withholding.

• Notify the debtor of the change in withholding prior to the next payment delivery date.

B. Procedure - establish rate of adjustment

Take the following actions to handle partial withholding requests:

1. Attempt to negotiate a rate of withholding with the debtor that would permit full recovery of the total of all outstanding debt(s) within 12 months. If unsuccessful, negotiate a rate that would permit full recovery of the total of all outstanding debt(s) within 36 months.

2. Grant, without financial development, any request that is at least $10 and would permit recovery within 12 months. Document the Debt Management System (DMS) REMARKS screen.

   However, if an overpayment results from misuse by an organizational payee or an individual payee serving more that one (1) beneficiary, the lowest rate of recovery is $10 per month for each beneficiary.

3. If a negotiated/requested rate is at least $10 and would permit full recovery within 36 months, grant the request and annotate the DMS REMARKS screen with the income/expense/asset information obtained from the debtor. DO NOT OBTAIN AN SSA-632-BK OR REQUEST A DETAILED FINANCIAL STATEMENT (i.e., the information requested in Section II on the SSA-632-BK) . The debtor's response to the following questions is sufficient.

   • What is the amount of your income (i.e., weekly or monthly)?

   • How much are your average monthly expenses (e.g., rent/mortgage, utilities, etc.)?

   • Do you have a savings account, CD or IRA? If so, the approximate value of each.

Important: If the debtor subsequently requests a lesser rate of withholding than was originally requested and the new request will not permit recovery within 36 months, obtain an SSA-632-BK and follow GN 02210.030B.6. Continue the current rate of withholding until the SSA-632-BK is received and processed.

4. If the debtor is receiving title XVI payments, follow GN 02210.045.

5. If the debtor is receiving another type of cash public assistance (e.g., VA service and nonservice related disability pensions, Temporary Assistance for Needed Families (TANF) GN 02250.110), verify assistance and withhold at the rate requestedbut no less than $10. Annotate the DMS REMARKS screen.

6. If a negotiated/requested rate would not permit recovery within 36 months, obtain an SSA-632-BK and evaluate income, expenses and assets. Withhold:

   • the amount by which income exceeds expenses but no less than $10; or

   • the rate permitted by income/assets if there are excess assets (GN 02250.115A.4.), but no less than $10; or

   • the full monthly payment to the extent of any incorrect funds in the person's possession (GN 02250.105).

   • Annotate the DMS REMARKS screen; and

   • Fax the SSA-632-BK and supporting documents into the certified electronic folder or NDRed, whichever is applicable.

   Exception: If a negotiated/requested rate would not permit recovery within 36 months but the debtor has a 100% Medicare Part D subsidy, grant, without financial development, any request that is at least $10. Annotate the Medicare information to the DMS REMARKS screen.

7. If a request for lesser withholding is denied in whole or in part, send a written notice stating:

   • the basis for the denied request, and

   • the manner in which the overpayment will be recovered.

Do not include a reconsideration paragraph. The decision as to the amount of withholding is an administrative action and not an initial determination.

Reminder: If a debtor requests a greater rate of withholding than would be established under the above rules, withhold at the rate requested.

C. Procedure - effective date of lower rate

1. Request made prior to any adjustment

• Initiate withholding effective with the current operating month (COM), or

• The specific date requested by the debtor as long as it does not go beyond six months of COM.

2. Request made after full adjustment initiated

• Effectuate with the month requested.

• If the month the action is taken is later than the month the request was made, pay the difference between what was withheld and what should have been withheld based on the request.

3. Lesser request made after partial adjustment initiated

Effectuate with COM.