The control of an outstanding check(s) for the month of death or any subsequent month
is part of the “Death Termination” Program. If a beneficiary is terminated by this program, the amount of the outstanding
check(s) is recorded on the MBR in the history field as terminated but paid. If the
outstanding check(s) is returned and entered into the system, the IP is reduced by
the amount of the returned check and history is corrected. However, in single-beneficiary-(no
survivors)-on-the-account situations, where the date of termination (DOST) is 2 or
more months prior to the current operating month, (COM) or the DOST is 1 or more months
prior to COM, and the MBR contains a bank address, the case will be alerted with the
remark “Prepare SF-1184.” In addition, the Death Termination Program will not create or annotate the OPA on
the MBR for these cases. The above procedures should be used whenever a manual death
termination is processed.
If the outstanding check(s) has not been returned within 60 days, an MBR printout
will be received. The folder will be examined to ascertain if the outstanding check
or an equivalent refund is in file or the amount of the outstanding payment was withheld
from a lump-sum or underpayment award. If the IP has been adjusted or refund made,
correct payment history and the OPA field established on the MBR, if necessary, and
return the folder to files. Where the folder does not indicate the return of the outstanding
check, refund, or an adjustment of the IP, the appropriate check cancellation listing
should also be examined before any further recoupment action is taken.
Where the outstanding check(s) appear on these listings and no action has been processed
to credit the returned check to the account, correct payment history and the OPA field
on the MBR and return the folder to files. Where action has been taken to update the
returned check to the MBR, no further action is necessary.
Where all information in file indicates the checks(s) is still outstanding, the case
will be handled as follows:
The case will be referred to the exception and inquiries examiner. The exception and
inquiries examiner will prepare an SF-1184 for the outstanding checks.
Where a representative payee is involved, an overpayment has been made if the payee
is not entitled to benefits, or adjustment against his benefits is not currently available,
follow instructions in SM 00610.772, Non-Entitled Overpaid Persons, to establish an
event on ROAR. Proceed with overpayment recovery in accordance with recovery procedures.
In this instance, the SF-1184OP will not be prepared. This procedure is used for both
EFT and direct payment.