POMS on Resources, Overpayments Updated

November 16, 2009

Author: Catherine M. Callery (Kate)| Louise M. Tarantino

SSA has updated several sections of its Program Operations Manual System (POMS) related to resources in the SSI program and to handling overpayments.

New section SI 01140.150 restates SSA policy regarding “Qualified Tuition Plans,” aka 529 Plans (“QTP”). These plans are designed to save money for educational purposes while avoiding taxes.  QTPs are resources of the “owner,” not of the “designated beneficiary,” (except, of course, for the designated beneficiary who also is the owner of the QTP). Transfer by an SSI recipient or applicant of ownership of a 529 Plan account or funds must be reviewed and may be treated as an uncompensated transfer.

This change was effective October 23, 2009, and is posted at https://s044a90.ssa.gov/apps10/public/reference.nsf/8b709aba3e20a0dd852574da00547b45/eafe47c9c766472085257657003da587!OpenDocument.

With respect to overpayments, SSA issued a transmittal that contained rewritten and reformatted sections of the POMS designed to improve the clarity of the information and state more completely policy and procedures. According to SSA, the revisions did not change existing policy or procedures.

Summary of Changes

• SI 02201.005 Supplemental Security Income (SSI) - What Is an Overpayment?

SSA reformatted and rewrote this section, changing the terms “responsible” and “responsibility” to “liable” and “liability” to correct inconsistent and incorrect terminology. Policy and procedures relating to suspected overpayment fraud are deleted and placed in a new section: SI 02201.007.

• SI 02201.007 Supplemental Security Income (SSI): Overpayment Fraud

This new section contains policy and procedures on suspected overpayment fraud previously located in SI 02201.005.

• SI 02201.020 Supplemental Security Income (SSI) Overpayment: Who Is Liable for Repayment? Living Overpaid Individual

This section was reformatted, rewritten and expanded. The terms “responsible” and “responsibility” were changed to “liable” and “liability.” This section contains policy and procedures for determining representative payee liability previously found in SI 02201.021.

• SI 02201.021 Supplemental Security Income (SSI) Overpayment: Who Is Liable for Repayment? Overpaid Individual Is Deceased

This section was reformatted and rewritten. The terms “responsible” and “responsibility” were changed to “liable” and “liability.” This section contains policy and procedures on determining liability when the overpaid individual is deceased; this information was previously in SI 02201.023.

• SI 02201.023 Supplemental Security Income (SSI) Overpayment: Recovery From A Representative Payee

This section is completely rewritten to contain policy and procedures previously located in SI 02201.020, SI 02201.021 and SI 02201.023.

• SI 02201.025 Supplemental Security Income (SSI) Overpayment: Notifying Overpaid Individuals

This section was reformatted and rewritten to improve the clarity of the policy and procedures on notifying overpaid individuals.

These revisions to the POMS sections are posted at https://secure.ssa.gov/apps10/poms.nsf/lnx/0502201000