Compliance Question of the Week

We received a Notice of Reclamation from the Social Security Administration… but the member is still alive. In fact, he’s standing right in front of me. What should I do?

You are still required to complete and return the notice of reclamation. Here’s what to do:

  1. Correct the error in the fact of the death on the Disbursing Office Copy of the Notice of Reclamation. You would check the first box marked “Recipient/beneficiary did not die; financial institution will not take further action,” in the section “THIS BLOCK FOR FINANCIAL INSTITUTION USE” on the second page of the Notice of Reclamation.
  2. Sign Certification #1 on the back of the Disbursing Office Copy of the Reclamation certifying that a correction has been made.
  3. Return in a timely manner the Notice of Reclamation with a copy of proof of error in fact of death to the Government Disbursing Office.*
    • * Acceptable proof would be:
      1. Driver’s license, picture ID or other evidence similar to that required for cashing a check, if the recipient or beneficiary appears at the credit union.
      2. A signed, dated, and notarized statement attesting to the fact that the recipient or beneficiary is alive if, he/she is unable to appear at the credit union.
  4. A written statement from the authorizing Federal agency verifying that the recipient or beneficiary is alive.
  5. Advise the recipient to contact the authorizing Federal agency to restart payments.

Related Links
Treasury Greenbook – Reclamations

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.