When Treasury receives an F-stop request and the check is outstanding, Treasury cancels
the outstanding check and returns a credit to SSA. Credit will appear on Title II/Title
XVI queries and on the Treasury Check Information System (TCIS).
When the check is outstanding (disposition code “32”) and then subsequently cashed
, Treasury debits SSA. Procedures for payment over-cancellation apply, see GN 02406.245.
When the check is already cashed at the time of the F-stop, Treasury transmits a disposition
code “11”. Additionally. Treasury sends an FS-1133 claims package to the beneficiary
or recipient and makes the package available on TCIS. The disposition code appears
on PHUS for Title II and the Treasury Status Query for Title XVI.
This section describes possible scenarios.
1. When the check has been cashed
When an F-stop is already input and the check has been cashed, Treasury sends an FS-1133
claims package to the beneficiary or recipient (FS-1133, FS-3858, and check photocopy).
When the beneficiary or recipient protests the overpayment created when the check
was cashed and they do not recognize the signature as their own, have the beneficiary
or recipient complete the FS-1133, see GN 02406.160. If the beneficiary or recipient returns the FS-1133 to the FO, scan the completed
FS-1133 with the check photocopy into Evidence Portal and forward the completed FS-1133
with the check photocopy to Treasury for a forgery determination. For instructions
on mailing the FS-1133, see GN 02406.160H.
2. When the check has not been cashed
When Treasury finds that the check has not been cashed or negotiated within 12 months
after the issue date, it cancels the check and will credit the funds back to SSA.
The F-stop ensures that Treasury can reclaim the funds from the Financial Institution
(FI) if the check is cashed over a forged signature at a later date. For instructions
concerning follow up see GN 02406.160C. Treasury gathers information on checks not submitted for payment (determined to be
“uncashed”). After the 12th month determination, Treasury furnishes SSA with (Limited
Payability) LP credits. The credits contain identifying information and represent
the funds for “uncashed” checks. If the replacement check is more than 12 months old
from the date of issue follow limited payability policies, see GN 02401.901.
3. When the check is returned
When the check is returned, a credit is posted to the MBR/SSR. The SSI system does
not automatically reissue funds in non-entitlement situations. For Title II, the Return
Check Action program (REACT) automatically reissues the returned payment, even when
not due, if the reason for return is “AD” (address) (see GN 02408.020B.2. in this section). When the reason for return is “MS” (miscellaneous) or “DC” (duplicate
check), REACT does not automatically reissue the payment.