GN 02410.300 Benefit Payment Offset (BPO)

SSA link to the POMS section on Benefit Payment Offset. BPO is the reduction of Social Security's title II benefit payments to recover delinquent non-tax debts owed to other Federal agencies. It is an automated process performed by the Department of the Treasury's Financial Management Service (hereafter called FMS). FMS matches SSA payment records against a large debtor database called the National Interactive Delinquent Debtors Database (NID3). When a match occurs, the title II benefit is reduced if all the criteria for BPO are met. When an offset occurs, FMS notifies the beneficiary and sends the offset funds to the agency where the debt is owed (known as the creditor agency). FMS also notifies SSA that the payment was reduced due to BPO.

Over thirty Federal agencies participate in BPO as creditor agencies. Examples of debts owed to other agencies are student loans owed to Department of Education, home loans owed to Veteran's Administration, and food stamp overpayments owed to Food and Nutrition Service.