Now that SSA is comming in throughout the month is when does a one have live past to be entitled to the payment. Say Jim gets his normal payment on the 3 Wed. of the month does he still have to only live to the 1st to be entitled to it?

As far as I've read, the payment, regardless of when it comes during the month, is for the previous month. So as long as the beneficiary is alive on the last day of the prior month, they are entitled to the payment. However, I'd like to know if anyone is hearing something different.

The Green Book section on Reclamations instructs to return all post-death SSA payments.

"An RDFI must immediately return any post-death benefit payments received after the RDFI becomes aware of the death or legal incapacity of a recipient."

If the survivors are entitled to some of the benefits, the RDFI should refer them to the appropriate agency. See section 3 of the Chapter on Reclamations:

http://fms.treas.gov/greenbook/pdf/ReclamationsRevAugust2012.pdf

Right. What they are saying now is: "We'll figure out whether they are entitled to the payment; just send it back and don't worry your pretty little head about it."

Almost verbatim to the Reclamation workshop I attended!

That's the advice I have gotten when I have called to ask if I need to return a deceased customer's payment. They always say return anything after the date of death and have the family call us.

But if the bank doesn't learn of the death until after the direct deposit has arrived and the funds have been pulled (by a surviving joint account holder, for example), the determination on who's liable will start with the fact that the deposit is always received in the month AFTER it is "earned." So if the payment arrives anytime in January 2013, the beneficiary of the payment must have been alive through all of December 2012.