TN 15 (09-01)

Citations:

Social Security Act Sections 1631(b)

Federal Claims Collection Act 31 USC 3101

20 CFR 416.535,

20 CFR 416.538,

20 CFR 416.543-416.571, 20 CFR 416.1402

A. Policy

1. Notification

Notifying the recipient of the existence of an overpayment is both an initial determination of the overpayment and notification that the overpayment must be repaid. (See SI 02201.005B.4.) The overpayment notice documents the beginning of the appeal time limits.

Many overpayment notices are systems-generated through the Automated Overpayment Notice System (AONS) and are recorded on the system.

Overpayment cases that are excluded from AONS (see SM 01310.305) require a manually prepared notice.

2. Actions subsequent to initial notification — individual in current pay

1. The system automatically begins check adjustment at the 10 percent rate (SI 02220.016) 60 days after the date of the automated or manual overpayment notice (see SM 01310.400 and SM 01311.105) if:

   • There is no response to the overpayment notice within 30 days; or

   • During an interview concerning the overpayment notice the individual does not request reconsideration of the overpayment determination, or waiver of recovery of the overpayment;

     AND

   • The individual has not refunded the overpayment.

2. The check adjustment proposed in the notice must stop in the month a request for reconsideration, or waiver is filed, or a request for a different rate of repayment is received. See SM 01311.130B.1. and MSOM BUSSR 004.008.

3. Recovery may begin again only after the determination is made on the request for a waiver, reconsideration, or different rate of repayment. See SI 02220.017A.4. for the timing of the resumption of recovery.

3. Individual in non-payment status

Most non-payment status cases are under the Recovery and Collection of Overpayments Process (RECOOP).

For cases excluded from RECOOP control, act quickly to:

• Send the debtor the initial overpayment notice; and

• Resolve the overpayment (through full payment, installment plan, compromise or waiver).

4. Appeal and waiver

1. All individuals who are responsible for repayment of an overpayment have the right to appeal:

   • the determination of overpayment; and

   • their responsibility for repayment.

2. They may ask — at any time:

   • That repayment of all or part of the overpayment be waived (see SI 02201.005A.5.c.; SI 02260.001); and

   • That the rate at which they are repaying the overpayment be changed (see SI 02220.017).

B. References

• Suspension of recovery efforts: SI 02220.050 and MSOM BUSSR 004.008.

• Determining overpayment period: SI 02201.005B.3. and SI 02201.005.

• Overpayments involving alien supplemental security income (SSI) recipients and their sponsors: SI 02205.001; SI 02220.065.

• Manual overpayment notices: SI 02220.010.

• Notice procedures: NL 00803.100 and NL 00803.300.

• AONS Notices: SM 01310.300.

• RECOOP: MSOM DMS 015.002 and MSOM DMS 015.003.

• How SSR Selects New Cases for the Recovery and Collection of Overpayment Process (RECOOP) System: SM 00610.845