TN 37 (06-09)

A. Policy for suspending and terminating supplemental security income (SSI) overpayment recovery efforts from a living individual

SSA does not have the authority to suspend or terminate collection of a debt resulting from fraud, regardless of the amount. We must send debts resulting from fraud to DOJ for approval to suspend or terminate collection action. Follow the instructions in GN 02215.235D.2 to obtain authorization to suspend or terminate debt collection on debts where fraud has already been proven.

1. Overpaid recipient is in non-payment status

We refer an overpayment to the Department of Justice (DOJ) for recovery by civil suit if:

• The liable overpaid recipient has ability to repay at least a portion of the overpayment and

• The overpayment is at least $3,000.

We use our other non-payment recovery tools for overpayments of less than $3,000.

We refer all overpayments of at least $100,000 to the DOJ.

2. Overpaid recipient is subject to the $30 payment limitation

We notify the overpaid recipient of the overpayment and the requirement to repay the overpayment. After notification, we stop all recovery efforts for months the overpaid recipient is subject to the $30.00 payment limitation.

3. Recipient returns to a current payment status

If the recipient returns to a current payment status other than the $30.00 limited payment status, we resume collection of the overpayment from the recipient’s monthly payment.

4. Recipient becomes eligible for Title II benefits

If the recipient becomes eligible for Title II benefits on his or her own record, we recover the overpayment from the recipient’s Title II benefits.

B. Procedure

NOTE: This includes bankruptcy cases not sent to the Regional Office (RO). For policy and procedures on the impact of bankruptcy proceeding on overpayment recovery see SI 02220.040.

1. Individuals in payment status E01 or subject to the $30 payment limitation (FLA-D)

1. If the individual is in payment status E01 (eligible, but not payable) or subject to the $30.00 payment limitation (FLA-D):

   • Send an initial overpayment notice.

   • If there is neither Title XVI payment (ex. an E01 case) nor Title II eligibility on the individual’s own record, use the form SSA-8171-U3, SSI OVERPAYMENT. Record is in non-payment, refund is requested.

   • If there is Title II eligibility on the recipient’s own record, use the form SSA-8172-U2, SSI OVERPAYMENT. Record is in non-payment, cross program recovery is possible.

   • If the recipient is in FLA D, use the form SSA 8170-U2, Notice of Overpayment. Record is in current pay, payment adjustment is proposed.

2. Complete the MSSICS Overpayment Decisions (UOPD) screen.

   • Select the RECOVER BY CHECK ADJUSTMENT to build a D-TAC decision. This allows for the automatic adjustment of payments if the individual is no longer subject to the $30 payment limitation (FLA-D).

   • If the overpayment can be recovered from the individual’s Title II benefits, select the RECOVER FROM TITLE II BENEFITS to build a K-TAC decision.

   • For policy and procedures on recovering Title XVI overpayments from Title II benefits see SI 02220.020.

   • For system procedures for posting a K TAC see SM 01311.105 and MSOM BUSSR 004.008.

2. All other cases in non-payment

• Determine whether there is a liable spouse, sponsor or representative payee. If there is, you must pursue recovery from the liable spouse, sponsor or representative payee.

• If there is neither a liable spouse, nor a sponsor, nor representative payee, complete the MSSICS Overpayment Decisions (UOPD) screen.

• For instructions on completing the UOPD screen, see MSOM BUSSR 004.008.

• If the individual is unwilling to repay the overpayment select the UNWILLING TO REPAY (DB TAC) decision using the UOPD screen.

• If the overpaid individual is unable to repay the overpayment select the UNABLE TO REPAY (DC TAC) decision using the UPOD screen.

• For system instructions on the use of the DB TAC and the DC TAC, see MSOM BUSSR 004.008 and SM 01311.200.

• Document your overpayment disposition determination. Follow the policies and procedures in SI 02220.005.

C. Future recovery

If the recovery of an overpayment, regardless of the amount, is suspended or discontinued, the uncollected overpayment is maintained on the Supplemental Security Record (SSR).

1. If eligibility and payment amount for SSI are reestablished follow the policies and procedures in SI 02220.011.

2. If the overpaid individual becomes eligible for Title II benefits on his or her own record, the overpayment TAC codes must be reviewed for possible resumption of recovery. See instructions for cross program recovery of Title XVI overpayments from Title II benefits in SI 02220.020.

3. If manual action is required to begin or resume recovery, make the appropriate revision to the overpayment TAC codes.

4. If the overpayment is $100,000 or more, recovery cannot be suspended or discontinued. These overpayments must be referred to the Department of Justice (DOJ) through your RO. See the chart in SI 02220.005C.6.

5. Document your overpayment disposition determination. Follow the policies and procedures in SI 02220.005.

D. References

MSOM BUSSR 004.008 - Overpayment Decisions (UOPD)

SI 02220.005 - Documenting the Supplemental Security Income (SSI) Overpayment

SI 02220.010 - SSI Overpayment – Notifying the Individual

SI 02220.011 - Reconciliation of Overpayment Debt on Terminated Records

SI 02220.020 - Cross-Program Recovery (CPR) of SSI Overpayments from Monthly Title II Benefits

SM 01311.105 - How the System Creates, Maintains and Changes D and DA TACs

SM 01311.200 - Suspending Collecting Using the DB, DC or DM TACs

SM 01311.255 - Manual Cross Program Recovery of a Title XVI Overpayment form Title II Benefits (K TAC)

SM 01311.385 - New Application Filed, Overpayment on Prior Record

SM 01311.638 - How to Resolve a B-8 Diary

SM 01311.639 - How to Resolve a B-9 Diary