TN 21 (02-14)

A. Background on last withdrawers

Federal regulations under 31 CFR 210.11(b)(3)(i) clarify the reporting requirements for financial institutions (FIs) in the automated reclamation process. In order to qualify for limited liability, an FI must report the name, last known address, and phone number of any person who have withdrawn, or had authorization to withdraw funds subject to reclamations. We must attempt to contact the last withdrawers to request a refund of any funds due the agency.

B. Process for Title II last withdrawers

The Title II process is as follows:

1. Treasury uploads the Form FMS-133 (Notice of Reclamation (NOR)) via fax into our paperless repository. Technicians in the processing center (PC) of jurisdiction will review the NOR and code the SSA-4208 (Reclamation Data Input Form) for any funds recovered, and mails a notice (the E3595 or overpayment notice) to the last withdrawer requesting repayment of any outstanding funds withdrawn from the account. For instructions on how to code the SSA-4208 or process the FMS-133 NOR, see SM 00609.855 and GN 02408.626B.2.

2. To determine which notice to mail:

   • If the payment after death is not an overpayment per GN 02201.001B.2., see the E3595 notice information on recovery from an individual who withdrew funds from a deceased beneficiary’s bank account after death in NL 00703.595.

   • If the individual is receiving benefits, and the payment after death is an overpayment per GN 02201.001B.2., see the information on notification of a Title II overpayment in GN 02201.009.

3. Upon release of the E3595 or overpayment notice, prepare a 45-day diary for returning the funds.

4. If the last withdrawer refunds part of the money, the PC notifies Treasury of the amount collected and codes the SSA-4208 for the refunded amount. If an individual refunds an improper Electronic Funds Transfer (EFT) Payment, see GN 02408.670. Any funds still outstanding and still due to SSA are debited from the FI’s federal reserve account via the FMS-135 (Request for Debit of the FI’s Account). See GN 02408.626B.2.

5. If the last withdrawer refunds all of the money, the PC codes the SSA-4208 for the refunded amount. See also information on when an individual refunds an improper EFT payment in GN 02408.670.

6. If the last withdrawer does not respond within 45 days, complete and return the FMS-133 to Treasury. Be sure to stamp “RECLAIM” in the top-middle portion of the FMS-133. Treasury debits the FI’s federal reserve account and returns an FMS-135 to SSA when the debit is completed.

7. It is important for the PC to let Treasury know of the additional amount collected, in order to avoid collecting funds twice. See the instructions on dual recovery in GN 02408.720.

NOTE: Do not use Manual Adjustment Credit and Award Process (MADCAP) or Recovery of Overpayments, Accounting and Reporting (ROAR) to reduce or clear the special payment amount (SPA) or beneficiary overpayment or underpayment data (BOUD) because they do not post the credit to the appropriate payment and do not clear the Accounts Receivable System (ARS).

C. Process for Title XVI last withdrawers

The Title XVI process is as follows:

1. Treasury uploads the FMS-133 NOR form into the Treasury Check Information System (TCIS) for an electronic copy to be available for retrieval by the Office of Benefit Accounting and Systems Analysis (OBASA) Treasury Operations Branch (TOB) daily.

2. OBASA will review the FMS-133 retrieved from TCIS and analyzes the Supplemental Security Record (SSR).

   • If the recipient is deceased and money is not due SSA, OBASA will process an abandonment of reclamation to stop recovery efforts.

   • If the recipient is alive or the NOR is invalid due to an incorrect date of death and money is not due SSA, OBASA will process an abandonment of reclamation to stop recovery efforts.

   • If the recipient is deceased and money is due SSA, OBASA will post any remitted funds returned on the FMS-133 NOR to the SSR, establish a 180-day diary, and email the FMS-133 NOR file to the field office (FO) of jurisdiction to contact the last withdrawer.

3. After receiving the email from OBASA, FO technicians will mail either an e3595 or an overpayment notice to the last withdrawers to request repayment of any outstanding funds withdrawn from the account. For an example of the notice, refer to NL 00703.595.

4. To determine which notice should be mailed:

   For an example of the notice if the payment after death is not an overpayment, see NL 00703.595.

   If the individual is receiving benefits, and the payment after death is an overpayment, see instructions on notifying individuals of Title XVI overpayments in SI 02220.010.

5. Upon release of the E3595 or overpayment notice, the FO technicians will create a 45-day diary for return of funds.

   • If the last withdrawer returns only part of the funds owed within the 45 days, the FO technician will email OBASA at OBASA.TOB@ssa.gov with the amount collected and enter the remittance in the Debt Management System (DMS) if not already posted to the SSR. For information on the field office remittance input, see GN 02403.003 and MSOM DMS 003.006. Do not waive any outstanding overpayment/payment(s) after death. Treasury will debit any funds still outstanding and still due to SSA from the FI’s federal reserve account via the FMS-135.

   • If the last withdrawer refunds all the money, the FO technician will email OBASA at OBASA.TOB@ssa.gov with the amount collected and enter the remittance in DMS if not already posted on the SSR. For information on how to complete an SSA 3969-U2 (SSI Remittance Register), see OS 00515.020. See also the information on when an individual refunds an incorrect EFT payment in GN 02408.670. Once the payment posts to the Overpayment Refund Data (OPRR) field of the SSR, the FO must request abandonment of reclamation from Treasury via SSA-1714 (Abandon Reclamation Request); see GN 02408.800.

   • If the last withdrawer does not refund any money owed within 45 days, the FO should take no additional action. After the 180-day OBASA diary matures, OBASA will complete the FMS-133 NOR, stamp “RECLAIM” in the top-middle portion of the form, and forward the completed form to Treasury.

6. If any funds are still due, Treasury processes the FMS-133 NOR and debits the 45-day limited liability amount from the FI’s federal reserve account, returning the credit to OBASA via an FMS-135.

7. OBASA will post any additional money collected on the FMS-135 to the SSR.

8. OBASA will review DMS and the SSR for any credits posted to avoid collecting funds twice.

NOTE: It is important for FO technicians to inform OBASA of any additional amounts collected in order to avoid collecting the funds twice. See information on dual recovery in GN 02408.720.

D. References

• GN 02201.001 What is a Title II Overpayment

• GN 02201.009 Notification of a Title II Overpayment

• GN 02210.221 How to Process Death Cases – DCR/DS Actions

• GN 02403.003 The Field Office Remittance Input

• GN 02408.626 Processing the Notice of Reclamation (FMS-133) and the Request for Debit of the FI’s Account (FMS-135) for Title II EFT Payments

• GN 02408.670 Incorrect EFT Payment is Refunded by an Individual

• GN 02408.720 Dual Recovery

• NL 00703.595 Recovery From Individual Who Withdrew Funds From a Deceased Beneficiary’s Bank Account After Death

• OS 00515.020 How to Complete an SSA-3969-U2, SSI Remittance Register

• MSOM DMS 003.006 Field Office Remittance Input (RFOR)

• SM 00609.855 How to Complete Form SSA-4208 for FALCON Transactions – General