If the Mass Loss procedure applies, the FO/PSC/TSC will transmit a stop code of “A” (NRT = 3 or NC code A) for Title II and Title XVI checks. When the “A-stop” is transmitted, Treasury will issue a courtesy disbursement if the check has not been returned to the RFC. The claim is then sent to CCB for processing. If the check is outstanding, CCB cancels the original check and returns credit to SSA. (See GN 02406.700 for additional information about mass loss.)

A POC is negotiating any check for which Treasury has put under a stop payment order. For example, when Treasury cancels the original check, issues a courtesy disbursement check, and the original is later cashed, this is a possible POC.

Due to updates to Treasury  regulations, the FI must take reasonable measures to avoid POCs or the FI will be liable for the negotiated check payment. Treasury upgraded its post payment system to provide check return information to financial institutions (FI) and ensure they have current and accurate check information. This update will help reduce monetary losses arising from situations when Treasury puts a stop payment on a check, but the FI still negotiates payment on that check. Additionally, Treasury will no longer charge the issuing agency (SSA) in POC situations...[BT1]   [BT1] This is based on EM -23074 SEN REV

• •

  If a B-stop generated the courtesy disbursement check, for Title II the claims package goes to the PC from Treasury; for Title XVI cases, the claims package goes to the FO via the Division of Benefit Certification and Systems Analysis (DBCSA) for routing to the claimant.

• •

  See GN 02406.310 for procedures if claimant denies cashing one or more of the checks and requests reconsideration of the overpayment.

• •

  If a C-stop generated the replacement check (GN 02406.150), Treasury will send the claims package directly to the claimant.

• •

  If the claimant denies cashing one or more of the checks, see GN 02406.310 for procedures on reconsideration of the overpayment.

• •

  If a G-stop was input (because an endorsed check is lost, stolen or destroyed), and the check has not been presented for payment, Treasury will send credit to SSA so the check can be reissued if still due (GN 02406.235).

• •

  If the check is later cashed, Treasury will send a claims package to SSA and debit SSA for the POC.

1. a. 

   Title II: Examine PHUS to see if the courtesy disbursement check has been returned. If so, no action is necessary.

2. b. 

   Title XVI: Examine SSR to see if the returned check is indicated by an “S“ in
   
   Payflag 3.

1. a. 

   Title II: If the courtesy disbursement check has not been returned, input an F-stop through thePESP screen or SSA-4510 web application (MSOM MS 05602.005 and MS 05602.005), in order to determine the status of that check (TSCs and FOs will have to request that this action be taken by the PC). Obtain the check range and pay date from the listings provided by Treasury or from TCIS. Prepare a 30-day PCACS diary to ensure that the stop payment processes correctly. Take the appropriate action once the final disposition is received from Treasury. When interim/final disposition information is received, see SM 00609.610.

2. b. 

   Title XVI: When the original check is cashed, the SSI nonreceipt system automatically transmits an F-stop on the courtesy disbursement check. If Treasury determines this check has been cashed, an overpayment is computed and posted to the SSR.

1. a. 

   Returned and cancelled, no further action is necessary.

2. b. 

   Not cashed, Treasury will cancel the payment and return the credit to SSA. No further action is necessary.

1. a. 

   Follow DCN procedures found at GN 02406.300.

2. b. 

   If the original nonreceipt claim was Mass Loss, process per GN 02406.700.