TN 13 (07-99)

A. Background

The failure to close out an overpayment on a terminated record and transfer it to the current record results in a lost opportunity to recover the overpayment. Adjustment of ongoing payments is the most effective method of overpayment recovery. Yet, many times overpayment data are not balanced and closed out on a terminated record and then transferred for recovery on the current record. Using the automated reconciliation process to the fullest extent possible will greatly increase SSA's ability to recover SSI overpayments.

B. Policy

The field office (FO) is responsible for recognizing the need to transfer an overpayment from a terminated record to the latest record. The correct amount of the overpayment to be transferred must be determined. Then the terminated record must be balanced and closed out. Finally, the overpayment information must be posted to the latest record. Beginning 07/24/99, this process is performed automatically in most cases through the automated reconciliation process. However, the FO must identify those situations that can use the automated reconciliation process, as well as those situations that will continue to require manual processing.

The FO must both recognize the need to trigger the automated reconciliation process and also make the necessary inputs.

C. Process

Reference: See MSOM BUSSR 002.001

1. What automated reconciliation does

Automated reconciliation is the process whereby a debt is transferred from a terminated record to the latest record on the Supplemental Security Record (SSR). For this process, the system:

• Determines the State/Federal allocation of each overpayment on the terminated record.

• Determines how much of each overpayment is debt, i.e., how much has not been collected.

• Closes the debt on the terminated record and balances the terminated record. Automated reconciliation will post Q TACs for uncollected amounts and delete certain dispositions equal to the amount of the Q TAC postings. No excess decision or unresolved debt will remain on the terminated record.

• Transfers the debt to the latest record by posting a P TAC for each sequence.

• Transfers the overpayment notice date related to each Q TAC on the terminated record to the current record.

2. Events that trigger the automated reconciliation process (see MSOM BUSSR 004.017)

As explained in MSOM BUSSR 004.017, automated reconciliation occurs in the Modernized Supplemental Security Income Claims System's (MSSICS) platform. However, automated neither the terminated record nor the current record need to be in MSSICS for automated reconciliation to take place. You cannot trigger automated reconciliation through a batch input, e.g., an SSA-1719B. However, automated reconciliation will be done in the new batch T32 process. Events that will trigger automated reconciliation are:

• A record is terminated through the T33 process and a new record is established through MSSICS. (See SM 01801.001.)

The T33 Process is used to terminate records without a force flag. In T33, the terminated record can be computed by the transmission of force due amounts.

• An MSSICS change occurs on a terminated record and there is a later record on the SSR.

• An application is taken through MSSICS and the last terminated record on the SSR contains unresolved and/or uncollected overpayments.

• An FO requests reconciliation of a terminated record from the UMEN screen. (See SI 02220.011D.2.)

• A record is terminated in the batch T32 Process.

When a record on the SSR becomes too large and presents problems in maintenance and space, the record will be examined in a merge run. If qualified, the record is automatically terminated (pay status T32) and a new record is created. Most data on the new record will be copied from the T32 record. (See SM 01802.001.)

3. Identifiable overpayment on the terminated record

In addition to a triggering event, there must be an identifiable debt on the terminated record. Identifiable debts are listed in MSOM BUSSR 004.017.

4. Records excluded from the automated reconciliation process

When none of the criteria shown in SI 02220.011C.2., are met, automated reconciliation cannot occur. (Reconciliation exceptions are explained in MSOM BUSSR 004.017.)

D. Procedure - field office reconciliation processing

1. Automated reconciliation by FO request

Automated reconciliation of overpayments can only occur in the MSSICS environment. Request automated reconciliation through MSSICS, even on non-MSSICS cases, using the Direct SSR Update procedure described in MSOM BUSSR 004.017. Follow the detailed MSOM instructions.

2. Manual reconciliation

When automated reconciliation cannot occur, continue to manually reconcile the overpayment data on the terminated record and post the overpayment and notice data to the latest record. Instructions for manual reconciliation are found in SI 02220.025B.4., SM 01311.300, SM 01311.350, and SM 01311.385.

E. References

• MSOM BUSSR 002.001 — Direct SSR Update

• SM 01801.001 — Terminations and History File Processing

• SM 01802.001 — System Termination of Large Records