The following is a procedure to prevent the repeated reissuing of a type 2E underpayment
check as described in the following example:
-
a.
The FO/TSC transmits a B-stop for a missing recurring check. DT cancels the missing
recurring check and a courtesy check is issued. These actions are reflected in PMTH
segment on the SSR:
10/01/97 |
9 |
N |
|
484.00 |
10/01/97 |
6 |
N |
S |
484.00 |
(Type 1 changed to 6 to indicate nonreceipt; S indicates check cancelled, credit back
to SSA.)
-
b.
Frequently, the recurring check is received and cashed and the recipient returns the
courtesy check to the FO for forwarding to DT. If the courtesy check is received and
processed by DT before the credit for the type 1 is “reversed,” a type 2 underpayment check will be issued:
10/01/97 |
9 |
N |
|
484.00 |
10/01/97 |
6 |
N |
S |
484.00 |
10/15/97 |
2 |
10/97 |
|
484.00 |
10/15/97 |
2E |
|
|
484.00 |
-
c.
To prevent this from happening, FOs should HOLD THE RETURNED COURTESY CHECK (clearly
stamped “NOT NEGOTIABLE”) in the office safe and query the system weekly until the credit reversal is shown
on the SSR. At that time, mail the check to the RFC. Other examples of nonreceipt
posting and credit reversals are shown in
SM 01315.250.
10/01/97 |
9 |
N |
|
484.00 |
10/01/97 |
6 |
N |
U |
484.00 |
(No 2E check will be issued.)
IMPORTANT: A solution mentioned in nonreceipt training indicated that the recipient should endorse
the check over to Social Security, then process the returned title XVI check as a
refund which would set up an excess decision. Then when the endorsed check was returned
to the RFC, SSA would be debited for the check (POC) and the POC and excess decision
would cancel each other out. DO NOT DO THIS. The reason for this is that DT has no alternative but to treat this as a double check
negotiation (both checks were signed) and to send out claims packages for the two
checks. This creates an unnecessary workload for DT. It also creates an unnecessary
workload for SSA when the PC/FO puts the claims packages into the “process.” This is because this is not a true DCN overpayment situation, no overpayment notice
will be issued, and the claims packages will not be needed because a forgery determination
is not necessary.