SSA - POMS: GN 02406.705 - Determination for Mass Loss of Checks

A. Mass loss background

The term “mass loss” describes the situation when all checks in a specific geographic location are undeliverable due to:

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permanent loss,
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theft, or
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any reason the checks are otherwise unavailable for delivery.

See General Information on Mass Loss of Checks in GN 02406.700.

The declaration of mass loss usually results from a delay in delivery situation described in GN 02406.705B and GN 02406.705C in this section.

When the Division of Fraud and Payment Compliance (DFPC) declares a mass loss, the Office of Analysis, Integration, and Performance Oversight (OAIPO) requests that the specific mass loss information is posted on SSAlerts via Communications Central.

The Field Office (FO), Regional Office (RO), Teleservice Center (TSC) and Processing Center (PC) may view mass loss information in SSAlerts.

B. Delay in delivery of checks (not a mass loss)

A delay in delivery of checks is when:

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the United States Postal Service (USPS) has not received the checks timely; and
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USPS has not located the checks.

These are not mass-loss situations, only a delay in delivery, which may lead to a determination of mass loss. Normal nonreceipt procedures apply when there is a delay-in-delivery situation. Therefore, wait 3 mailing days before inputting a nonreceipt in order to allow adequate time for locating the check(s). See Failure to Receive a Paper Check, Title II, Title XVI –FO, PC, TSC Procedures—Overview in GN 02406.117.

NOTES:

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Mass loss instructions do not apply when the USPS holds checks due to natural disasters.
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Since checks delivered outside of the U.S. may arrive at different times of the month in each succeeding month, additional time (beyond 3 days) may be required before inputting nonreceipts.

IMPORTANT: Do not use the SSI Early Missing Check Report (UPER) screen for delay in delivery scenarios. To view the SSI Early Missing Check Report screen see MS 00303.021.

C. Investigation of delayed delivery of checks

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Step 1: The FOs notify the ROs that a pattern of missing checks has occurred.
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Step 2: The RO Payment Delivery Alert System (PDAS) Coordinator receives missing check information directly from the FOs.
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Step 3: The RO PDAS Coordinator reports the missing checks to the Division of Management and Logistic Services (DMLS).
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Step 4: The FO manager obtains the following information for the RO PDAS Coordinator to pass on to DMLS:
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  Did post offices receive and process the normal volume of SSA checks? If the investigation began on or after the scheduled delivery date, the FO manager gives the postmasters any available information about the number of inquiries or nonreceipts reported to date.
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  How many checks or trays of checks does this location usually receive? How many did it receive?
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  Did the missing checks appear to be from a particular Treasury Regional Financial Center (RFC)?
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  What is the location of the USPS distribution center that processes mail for this post office, and how does it transport the checks (by air, truck, etc.)?
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  Has the local postmaster contacted the USPS distribution center to determine if the checks were received there? What was the result of the contact?
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  How many inquiries has the local postmaster received from their customers regarding missing benefit checks?

After receiving the information, the RO PDAS Coordinator shares the information with regional management. The FO and RO PDAS coordinator also determine if media contact is appropriate.

D. Declaration of mass loss

DFPC declares a delivery delay as a mass loss. Depending on the number of checks involved, DFPC will:

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advise OAIPO to input mass-loss nonreceipts (A-stops), or
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invoke the Mass Loss Central Office Systems Replacement procedures.

To avoid any confusion, please see the scenario in GN 02406.705D.1. and GN 02406.705D.2. in this section.

1. Technician instructions for inputting mass-loss nonreceipts

If the loss of checks does not include an entire zip code (consular code for foreign checks) or only involves a small number of checks, then OAIPO posts the information to SSAlerts. This action advises the field that we are aware of the mass loss and they must input the mass-loss nonreceipts.

For this scenario, the SSAlerts message will read:

MASS LOSS - TITLE II (or TITLE XVI) MASS-LOSS NONRECEIPT INPUT REQUIRED FOR ZIP CODES (or CONSULAR CODES):

ST:XX 99999 99999 99999

ST:XX99999 99999 99999

Technicians input mass-loss nonreceipts (Type A) as people in the affected area allege nonreceipt of their regular monthly payments. This input prompts Treasury to issue a courtesy disbursement payment to the beneficiary or recipient. We do not consider previous double-check negotiation abuse when processing a mass-loss nonreceipt in this scenario, which is a consideration in other nonreceipt situations when we suspect abuse. Technicians must not wait 3 days before inputting a mass loss nonreceipt in this situation.

If the beneficiary or recipient alleges dire need, they may be eligible to receive an Immediate Payment (IP). For more information on IPs, for Title II see RS 02801.010 or for Title XVI see SI 02004.100.

2. Central Office Mass Loss Systems Input for replacement check

If the mass loss affects an entire zip code(s) or an entire consular code(s), DFPC invokes the Mass Loss Systems Input for replacement check procedures. DFPC authorizes Systems to send a special mass-loss nonreceipt payment file to Treasury. Systems gathers each beneficiary or recipient's payment information within that zip code or consular code and places the data on the mass-loss file. Treasury creates and issues a replacement check for individuals in the special file regardless of a history of abuse. Treasury takes this action without input from the field. When DFPC invokes mass-loss procedures, technicians do not input nonreceipt actions.

The purpose of a systems replacement mass loss declaration is for SSA Central Office to make the large volume of nonreceipt inputs using the special nonreceipt payment file. The payment file eliminates the need for FOs and TSCs to input large volumes of nonreceipts manually.

If DFPC invokes the Central Office Mass Loss Systems Input for Replacement Check procedures, the SSAlerts message will read:

CENTRAL OFFICE MASS LOSS SYSTEMS INPUT FOR REPLACEMENT CHECK - TITLE II (or TITLE XVI) -- NO MASS LOSS NONRECEIPT INPUT REQUIRED FOR ZIP CODES (or CONSULAR CODES):

ST: XX 99999 99999

In this situation, if someone living in the affected zip code(s) alleges nonreceipt, advise them that Treasury has already initiated a replacement check for delivery within 7–10 days. Explain the advantages of electronic payment.

If the beneficiary or recipient alleges dire need, they may be eligible to receive an IP. For more information on IPs, see RS 02801.010 for Title II or SI 02004.100 for Title XVI.

If a technician in the field inputs a regular nonreceipt before we became aware that the Central Office Mass Loss Systems Input for Replacement Check procedure applies, Treasury will issue only one replacement check. The second nonreceipt input will reject.

E. Nonreceipt reports and inputs for Title II and Title XVI

A declaration of mass loss affects FO, TSC, and PC processing of nonreceipt reports. Technicians must follow the instructions below when DFPC authorizes OAIPO to input mass loss non-receipts.

1. Title XVI mass loss nonreceipt inputs

The FO or TSC must use only UPER (see MS 00303.021) to make Title XVI mass loss nonreceipt inputs when:

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USPS cannot deliver the checks and
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SSAlerts indicates the required Operational mass loss nonreceipt inputs (i.e., theft or destruction of a mailbag or mail truck).

The FO or TSC inputs the mass loss nonreceipt using #1 on the UPER screen. The UPER screen is only available on check-delivery day (e.g., the 1st of the month) and the next day (the 2nd).

Do not use the UPER screen for regular nonreceipt and delay in delivery (PDAS) situations (i.e., when a group of checks has not arrived at designated postal stops for sorting or delivery and postal authorities are searching for the checks). These situations require a 3-day mailing waiting period so that the checks may arrive before the nonreceipt is input.

NOTE:

Mailing delivery days are Monday through Saturday. Exclude Sundays and postal holidays.

See How to Process Mass Loss Cases in SM 01315.185 and Early Mission Check Report (UPER) in, MS 00303.021.

2. Title II mass-loss nonreceipt inputs

When a beneficiary or recipient reports nonreceipt of a Title II check to an FO, TSC or PSC in a designated mass loss situation, input a Title II mass loss nonreceipt, using NONRECEIPT TYPE 3 (MASS LOSS). This action sends a B-stop to Treasury and applies code A to the Payment History Update System (PHUS).

Do not consider previous double-check negotiations in mass-loss situations. See Direct Input of a Nonreceipt, Photocopy or Stop Payment Request in, SM 00609.001 and Nonreceipt 2 (PEN2) in MS 06303.029.

3. Title II and Title XVI Central Office (CO) Mass Loss Systems Input for Replacement Check

An indication will appear on SSAlerts when CO invokes the Central Office Mass Loss Systems Input for Replacement Check procedures for Title II or Title XVI. When this occurs, nonreceipt reports do not require an input. In this scenario, CO has made nonreceipt reports to Treasury for all affected beneficiaries and recipients in the area without waiting for individual reports from the affected persons.

EXCEPTIONS: Record a mass-loss nonreceipt input for a beneficiary or recipient after the CO has invoked the Central Office Mass Loss Systems Input for Replacement Check procedures when:

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The PHUS/Treasury Status Query shows no nonreceipt action 4 days after the check delivery date (See Treasury Status Query (UPTQ) in MS 00303.020 .); or
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The zip code on the beneficiary or recipient’s record is incorrect and the person lives in an area affected by the mass loss.

If there is more than one Beneficiary Identification Code (BIC) involved for a Title II record when CO invokes the Central Office Mass Loss Systems Input for Replacement Check procedures, the Return Check Action (REACT) program sends a nonreceipt report for one BIC per day to Treasury, one by one in priority order. For example, if the household contains a BIC A and a BIC B receiving checks (i.e., the record contains 2 BICs), REACT sends the nonreceipt for BIC A on the first day and the nonreceipt for BIC B the following workday.

F. References

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GN 02406.117 Failure to Receive a Paper Check—Title II, Title XVI—Field Office (FO), Processing Center (PC), Teleservice Center (TSC) Procedures—Overview
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MS 00303.020 Treasury Status Query (UPTQ)
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MS 00303.021 Early Missing Payment Report (UPER)
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MS 06303.029 Nonreceipt2 (PEN2)
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RS 02801.010 Immediate Payment (IP) Criteria and Process
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SI 02004.100 Immediate Payments (IPs)
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SM 00609.001 Direct Input of a Nonreceipt, Photocopy or Stop Payment Request
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SM 01315.185 How to Process Mass Loss Cases

Social Security

Program Operations Manual System (POMS)

GN 02406.705 Determination for Mass Loss of Checks