TN 3 (02-02)

GN 02607.800 SSA's Title XVI and Title II Incentive Payment Programs

A. BACKGROUND

1. Title XVI Incentive Payments—Effective 03/01/97

Section 203 of Public Law (P.L.) 104-193 amended title XVI of the Social Security Act (section 1611(e)(1)) to provide for incentive payments from SSI program funds to State and local correctional and certain mental health institutions which report inmate information to SSA. Such institutions must enter an agreement (e.g. Incentive Payment Memorandum of Understanding or IPMOU) to furnish SSA with inmate confinement and identifying information, and the information must result in the suspension of SSI payments.

The law authorizes payment to an institution for information about an inmate if the inmate was receiving an SSI payment for the month that proceeds the first month throughout which the inmate is in the institution and becomes ineligible for such benefit.

2. Title II Incentive Payments—Effective 04/01/00

Section 402 of Public Law (P.L.) 106-170 amended title II of the Social Security Act (section 202(x)) to provide for incentive payments from title II program funds to State and local correctional and certain mental health institutions which report inmate information to SSA. Such institutions must enter into an agreement (e.g. Incentive Payment Memorandum of Understanding or IPMOU) to furnish SSA with inmate confinement and identifying information, and the information must result in the suspension of title II payments.

The law authorizes payment to an institution for information about an inmate if the inmate was receiving a title II benefit for the month that proceeds the first month in which the inmate is in the institution and becomes ineligible for such benefit.

B. POLICY - MONETARY VALUE OF INCENTIVE PAYMENTS

1. Title XVI Incentive Payment Values

Effective 3/01/97, SSA will pay incentive payment in the following amounts:

  • $400 for information received within 30 days after the individual's date of confinement;

  • $200 for information received after 30 days but within 90 days after the individual's date of confinement; or

  • $0 for information received on or after the 91st day following the individual's date of confinement.

2. Title II Incentive Payment Values

Effective 04/01/00, SSA will pay incentive payment in the following amounts:

  • $400 for information received within 30 days after the individual's date of confinement and conviction;

  • $200 for information received after 30 days but within 90 days after the individual's date of confinement and conviction; or

  • $0 for information received on or after the 91st day following the individual's date of confinement and conviction.

C. POLICY - RULES GOVERNING PAYMENT OF INCENTIVE PAYMENTS

1. Rules for Payment of Title XVI Incentives

The rules for paying incentives are:

  • The title XVI Incentive Payment provision applies to individuals who are confined in an institution at public expense throughout a calendar month effective 03/01/97 and continuing. The institution provides the confinement information to SSA in a complete and timely fashion (see GN 02607.800B.1. for timeframes for the receipt of the inmate data);

  • the institution's inmate information causes SSA to suspend title XVI benefits; and

  • the title XVI recipient receives his/her benefit check in the month before the first month of suspension.

2. Rules for Payment of Title II Incentives

The rules for paying incentives are:

  • The title II Incentive Payment provision applies to individuals who are confined and convicted in an institution for a continuous 30 day period effective 04/01/00 and continuing. The institution provides the confinement and conviction information to SSA in a complete and timely fashion (see GN 02607.800B.2. for timeframes for the receipt of the inmate data);

  • the institution's inmate information (conviction and confinement) causes SSA to suspend title II benefits; and

  • the title II beneficiary receives his/her benefit check in the month before the first month of suspension.

3. Rules for Paying Concurrent Case Incentive Payments

The rules for paying incentive payments are as follows:

  • If SSA pays an incentive payment to an institution for a title II suspension, SSA will pay 50 percent of the original incentive payment to the same institution for the title XVI incentive payment if the SSI is later suspended;

  • If both the title II and the title XVI benefits are suspended at the same time, SSA pays the full incentive payment to reporting institution; SSA will not pay the same reporter any additional monies for the same inmate for the other title suspension;

  • If SSA pays an incentive payment for the title II suspension to an institution, SSA will pay an additional full incentive payment to a second institution (not the same institution that provided the title II suspension information). (If SSA pays a title II incentive payment first, SSA will pay an additional incentive payment for the title XVI suspension, if a different institution reported the title XVI inmate information.)

    NOTE: See MSOM PRISON 003.001-9 for PUPS processing of concurrent incentive payment cases and examples of this process.

D. POLICY - AGENCIES THAT DO NOT QUALIFY FOR INCENTIVE PAYMENTS

SSA will not pay incentive payments to the following:

  • Federal correctional or mental health institutions/agencies;

  • Federal, State or local courts;

  • private jails/institutions filing for incentives on their own behalf (not as an agent of a State or county) cannot receive incentive payments; and

  • private contractors or companies that format and submit inmate data on behalf of a correctional/mental health institution that does not wish to prepare their own inmate files for transmission to SSA.

E. POLICY - DETERMINING IF A CORRECTIONAL INSTITUTION CAN QUALIFY FOR INCENTIVE PAYMENTS

1. Conditions for Paying of Incentives to Qualifying Institutions

a. Title XVI Qualifying Institution for Incentive Payments

In order to pay an institution (facility) an incentive payment, all of the following conditions must exist:

  • the institution is a State or local jail, prison, other penal institution/correctional facility, or other institution. A purpose of such institution is to confine individuals by court order at public expense;

  • the correctional or mental institution must enter an agreement (IPMOU) with SSA to make confinement reports and receive incentive payments. SSA will not pay incentives for inmate reports received from an institution prior to the date the IPMOU agreement with SSA is signed;

  • the confinement report results in the suspension of title XVI payments to a beneficiary who receives a title XVI benefit in the month prior to the suspension month; and

  • SSA receives the report timely; i.e., in the month of confinement or in one of the next three calendar months. (See GN 02607.800B.1. for information on timely reporting of inmate data by sources.)

b. Title II Qualifying Institution for Incentive Payments

In order to pay an institution (facility) an incentive payment, all of the following conditions must exist:

  • the institution is a State or local jail, prison, other penal institution/correctional facility, or other institution. A purpose of such institution is to confine individuals by court order because of conviction of a crime or commitment based on verdicts by a court as described in GN 02607.310, GN 2607.330.

  • the correctional or mental institution must enter an agreement (IPMOU) with SSA to make confinement and conviction reports and receive incentive payments. SSA will not pay incentives for inmate reports received from an institution prior to the date the IPMOU agreement with SSA is signed;

  • the confinement and conviction report results in the suspension of title II payments to a beneficiary who receives a title II benefit in the month prior to the suspension month; and

  • SSA receives the report timely; i.e., in the month of confinement or in one of the next three calendar months. (See GN 02607.800B.2. for information on timely reporting of inmate data by sources.)

2. Privately-Owned Prisons/Jails

Many State or local correctional institutions contract with privately owned facilities to confine their inmates because of overcrowding conditions in their own institutions.

Generally, State or local correctional institutions retain control and jurisdiction over the inmates. The parent agency/correctional institution is responsible for reporting all inmate data to SSA, including the inmate data for their contracted private jails.

Contact your RPC if you become aware of a privately owned prison/jail reporting inmates to SSA, independent of their parent agency or institution who is also reporting inmates to SSA. Also, notify the RPC if the independent privately owned correctional institution is receiving incentive payments for providing SSA with inmate reports.

F. PROCEDURE- DISBURSEMENT OF INCENTIVE PAYMENTS

SSA pays incentive payments on a monthly basis by electronic fund transfer (direct deposit) to the facility's/institution's designated financial institution. The Bounty Update Control System (BUCS) makes the EFT selection on the first business day of each month. SSA then deposits the EFT's to the institution's bank account within 4 business days.

NOTE: EFT deposit transfers are the only method of payment to institutions/facilities that participate in the incentive payment program. SSA will not honor requests for paper checks or other methods of payment.

G. PROCEDURE - INCENTIVE PAYMENT NOTIFICATION TO CORRECTIONAL INSTITUTIONS

1. Incentive Payment Notification to Institutions/Facilities

After the release of an electronic fund transfer payment, the Bounty Update Control System (BUCS) sends the correctional institution; i.e., the institution that reports the inmate information to SSA, a payment documentation letter.

You can view or re-issue the incentive payment notice that is sent to an institution by accessing the letter from the Online Retrieval System on the internet at: http://orsstd.sspf.ssa.gov/orsstd/foldersearch.do .

2. Contents of the Letter to Correctional Institutions

The letter to the correctional or mental health institution gives the amount of the electronic fund transfer and the date of deposit. A subsequent summary page(s) provides a detailed list of all incentive payment activity for the month.

The documentation on the summary page includes the following information for each person on which an incentive payment was made to the facility:

  • SSN (XXX-XX-3709) (only the last 4-digits of the SSN for the inmate are actually shown on the summary page)

  • Name (XXXXXXXXXX) (the name of the inmate is not shown on the summary page)

  • Birth Date (XX/XX/XX) (the inmate's date of birth is not shown on the summary page)

  • Inmate ID Number (Facility's prisoner number)

  • Incentive Payment Amount ($200 or $400)

  • Report Date (Date Report was Prepared)

  • Receipt Date (Date Inmate Data Received at SSA)

  • Date Confined (Date Inmate was Verified by the FO as Confined)

    NOTE: You can obtain a duplicate of the reporter's Incentive Payment Notice by using the Online Retrieval System at: http://orsstd.sspf.ssa.gov/orsstd/foldersearch.do. Refer all questions regarding the Incentive Payment Notice to the Regional Prisoner Coordinators (RPCs). See GN 02607.990 for a list of the RPCs.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202607800
GN 02607.800 - SSA's Title XVI and Title II Incentive Payment Programs - 05/04/2012
Batch run: 05/04/2012
Rev:05/04/2012