B-140429, MAR. 24, 1960
Highlights
EDUCATION AND WELFARE: REFERENCE IS MADE TO OUR LETTER OF SEPTEMBER 9. TO PAYEES WHO WERE LIVING WHEN THE CHECKS WERE ISSUED BUT WHO DIED WITHOUT HAVING NEGOTIATED THE CHECKS. WHEN NO SUBSEQUENT BENEFITS WERE DUE UNDER THE SOCIAL SECURITY ACT. AS A RESULT OF RECENT DISCUSSIONS BETWEEN REPRESENTATIVES OF THE BUREAU OF OLD AGE AND SURVIVORS INSURANCE AND OF THIS OFFICE IT HAS BEEN MUTUALLY AGREED THAT THE INTERESTS OF THE GOVERNMENT AND THE CLAIMANTS WOULD BEST BE SERVED BY REVISING EXISTING PROCEDURES TO THE EXTENT THAT SETTLEMENT WILL BE MADE BY YOUR DEPARTMENT OF THOSE CLAIMS FALLING WITHIN CATEGORY (2). IT IS UNDERSTOOD. THAT ANY CASE INVOLVING DOUBT AS TO THE PROPRIETY OF PAYMENT WILL BE FORWARDED TO THE CLAIMS DIVISION OF THE GENERAL ACCOUNTING OFFICE FOR SETTLEMENT.
B-140429, MAR. 24, 1960
TO THE SECRETARY OF HEALTH, EDUCATION AND WELFARE:
REFERENCE IS MADE TO OUR LETTER OF SEPTEMBER 9, 1959, B-140429, TO YOU AND TO LETTER OF JUNE 8, 1963, B-13686-B-74791, TO THE FORMER SECRETARY OF HEALTH, EDUCATION AND WELFARE, RELATIVE TO THE SETTLEMENT OF CLAIMS FOR THE PROCEEDS OF CHECKS ISSUED UNDER TITLE II OF THE SOCIAL SECURITY ACT, AS AMENDED, TO PAYEES WHO WERE LIVING WHEN THE CHECKS WERE ISSUED BUT WHO DIED WITHOUT HAVING NEGOTIATED THE CHECKS.
IN CONFORMITY WITH THE POLICY ENUNCIATED IN THOSE LETTERS, YOUR DEPARTMENT HAS BEEN SETTLING ALL SUCH CLAIMS EXCEPT (1) THOSE INVOLVING DOUBT AS TO LAW OR FACT, AND (2) THOSE INVOLVING UNCASHED BENEFIT CHECKS DUE A BENEFICIARY AT THE TIME OF HIS DEATH, WHEN NO SUBSEQUENT BENEFITS WERE DUE UNDER THE SOCIAL SECURITY ACT.
AS A RESULT OF RECENT DISCUSSIONS BETWEEN REPRESENTATIVES OF THE BUREAU OF OLD AGE AND SURVIVORS INSURANCE AND OF THIS OFFICE IT HAS BEEN MUTUALLY AGREED THAT THE INTERESTS OF THE GOVERNMENT AND THE CLAIMANTS WOULD BEST BE SERVED BY REVISING EXISTING PROCEDURES TO THE EXTENT THAT SETTLEMENT WILL BE MADE BY YOUR DEPARTMENT OF THOSE CLAIMS FALLING WITHIN CATEGORY (2), ABOVE.
IT IS UNDERSTOOD, OF COURSE, THAT ANY CASE INVOLVING DOUBT AS TO THE PROPRIETY OF PAYMENT WILL BE FORWARDED TO THE CLAIMS DIVISION OF THE GENERAL ACCOUNTING OFFICE FOR SETTLEMENT. THE PRIOR PROCEDURES ARE MODIFIED ACCORDINGLY.
IT IS FURTHER UNDERSTOOD THAT YOU INTEND TO SEEK LEGISLATION WHICH WOULD ESTABLISH THE ORDER OF PRIORITIES FOR PAYMENT OF AMOUNTS DUE ON ACCOUNT OF DECEASED BENEFICIARIES. WE AGREE, IN PRINCIPLE, THAT SUCH LEGISLATION IS DESIRABLE AND WE SHALL BE GLAD TO ASSIST IN ACCOMPLISHING THIS PURPOSE.
IT IS CONTEMPLATED THAT REPRESENTATIVES OF THE BOASI AND THIS OFFICE WILL WORK OUT THE NECESSARY DETAILS TO EFFECTUATE THE PROCEDURAL CHANGES MENTIONED ABOVE AS SOON AS POSSIBLE.