TN 15 (02-95)

A. Introduction

SSA collects penalties by deducting them from FederalSSI payments before any check adjustment for overpayment recovery.

B. Procedure

1. Collect

Collect a penalty (or complete collection) from:

• current Federal SSI payments (not in Federal living arrangement FLA-D), or

• any Federal SSI payments that begin after a period of FLA-D, nonpay or ineligibility, or

• an underpayment due a survivor if the decision to collect the penalty occurred prior to the recipient's death.

2. Do Not Collect

Do not collect a penalty from:

• a recipient by refund, or

• title II benefits, or

• State supplementary payments, or

• Federal SSI payments subject to the FLA-D limit.

C. References

• Manual Overpayments - P TAC, SM 01311.300

• Penalty Input Instructions, SM 01311.305 through SM 01311.307