TN 25 (04-14)

GN 02401.903 Allegations of Nonreceipt Not Filed Timely

A. Policy for nonreceipt allegations not timely filed

“Not timely” means alleging nonreceipt after 12 months from the issue date of a check. Public Law 100-86 mandates that an allegation of nonreceipt must be made within a 12-month time period from the issue date of the check before SSA can take an action to replace the check, if appropriate. If the nonreceipt allegation is not timely, and we have a limited payability (LP) credit on the record because the Treasury records indicate the check was uncashed, we should repay the check.

NOTE: It is only in this situation that we will accept an untimely allegation of nonreceipt (i.e., one made after the 12-month period) and replace the check since it remains uncashed.

B. Procedure for nonreceipt allegations not timely filed

The technician should take the following steps to verify the timeliness of the allegation:

1. Analyze the beneficiary or recipient’s record

Analyze the master beneficiary record (MBR) and Payment History Update System (PHUS) query for title II or the Modernized Supplemental Security Income Claims System (MSSICS) Treasury Status Query and Supplemental Security Income Detail (SSID) record for title XVI to determine if a LP credit is on the record.

NOTE: If 15 months have not passed from the issue date of the check, the LP credit will not be on the MBR or Supplemental Security Record (SSR).

2. Create diary and alerts

Set a diary and alert the case 7 workdays after the 15-month timeframe has passed.

3. Inform beneficiary or recipient of action

Inform the beneficiary or recipient of the date we will have the status of the LP credit in question (i.e., the date the diary is set to mature).

C. Procedure when the diary matures after the 15-month timeframe has passed

The technician should take the following steps to verify if the LP credit is on the record.

1. Analyze beneficiary or recipient record to verify if LP credit posted on the record

Analyze the MBR and PHUS for title II or the MSSICS Treasury Status Query and SSID for title XVI to determine whether an LP credit is on the record.

2. Title II diary matures

a. LP credit received and posted to record

If we receive the LP credit, the returned check program (REACT) creates and posts an EVENT 169 UNNEG CK on PHUS and creates a notice record, and sends it to the beneficiary for review. The Department of the Treasury (Treasury) informs us of the type of action taken on the credit by sending various codes, which REACT annotates to the Reclamation Reason (RCLRN) field on the PHUS record. The codes could be “B”, “C”, “N”, or “I.”

b. LP credit did not post to record

If we receive the LP credit and it did not post to the PHUS, the RCEDIT program generates two types of exceptions indicating the LP credit did not process. The RCCOLA RCCLIMEX is a surface edit exception RCEDIT creates before the REACT program processes the LP file. When REACT cannot process the LP credit, it produces an LP REACT exception.

c. LP credit did not post to record

If the LP credit did not post to the MBR, the PC technician should check the Treasury Check Information System (TCIS) or call Treasury at (855) 868-0151 to determine the status of the credit. If Treasury sent the LP credit to SSA, the PC technician should alert their appropriate operations analyst to obtain assistance and guidance.

3. Title XVI diary matures

a. LP credit posted to record

If SSA received a title XVI LP credit, the title XVI system posts the LP credit to the Unnegotiated Check Indicator (UCI) segment of the Payment History (PMTH) field on the SSR and generates a K5 diary to the field office (FO) for investigation, if necessary.

FO technician will review the UCI field in the PMTH segment on the SSR to verify the status of the limited payability credit.

b. LP credit did not post to record

If the LP credit did not post to the SSR, the FO technician should check TCIS or call Treasury at (855) 868-0151 to determine the status of the credit. If Treasury sent the LP credit to SSA, the FO technician should alert their appropriate regional analyst to obtain assistance and guidance.

See details:

  • MSOM BUSSR 003.020 Treasury Status Query (UPTQ)

  • SM 00624.420 FO/PC Processing of a Returned Check More Than One Year Old

  • SM 00624.405 How to Process PC Limited Payability Exceptions

  • SM 01315.100 How the System Issues Unnegotiated Check/Limited Payability Alerts

  • SM 01315.101 The Limited Payability (K5) Diary

  • SM 01601.835 Payment History - PMTH

D. Title II procedure when the credit is present after 15 months

The technician should take the following steps to verify and process an LP credit if it is present on the record.

1. Analyze the Treasury Check Information System (TCIS)

FO technician reviews the TCIS to obtain the status of the payment and if necessary, refers the case to a processing center (PC) via modernized development worksheet (MDW) for processing.

NOTE: Prior to releasing payment, the PC technician should refer to instructions in GN 02401.903D.2 through GN 02401.903D.7 in this section.

2. PC technician determines the payment status

PC technician reviews the MBR to determine the payment status of the beneficiary.

3. Beneficiary is now deceased

If the beneficiary is now deceased and check replacement is appropriate, make the payment as defined in GN 02301.030A.

4. Beneficiary is no longer entitled

If the beneficiary is no longer entitled, the PC technician should:

  • Attempt to contact the beneficiary directly.

  • If direct contact is unsuccessful, obtain a current address from the FO servicing the last known address. For notice language to use when the beneficiary is not entitled, see NL 03001.025.

5. Beneficiary has an overpayment present on the record

If there is an overpayment on the record, adjust any underpayment due to recover the overpayment. To determine if an adjustment of the underpayment is necessary, see item 2 in GN 02210.006.

6. Beneficiary entitled to benefits and no overpayment on record

PC technician places the following message in the special message field on MBR with the type of payment issued. Remember to use the payment date of the check for which the LP credit represents.

“Limited Payability Case MM/DD/YYYY paid via Single Payment System (SPS) Critical Payment System (CPS), Manual Adjustment, Credit, and Award Data Entry (MACADE), etc.”

7. Possible prior check replacement

If the record indicates that a credit may be due, the PC technician should take the following steps:

  • Review the beneficiary’s record carefully to ensure the check is due.

    NOTE: Take extreme care to avoid replacing the check again and possibly causing an overpayment.

  • Analyze and review the PHUS record.

  • If the PHUS 169 event has an RCLRN code of C, do not replace the payment because we already reissued it. Also, review the special message field for LP check status.

For additional limited payability procedures, see SM 00624.400 through SM 00624.412, and for instructions on completing the intranet SSA-4208 Reclamation Data Input form, see MSOM INTRANETMAMPSCDI 002.001.

NOTE: Actions taken using the intranet SSA-4208 Reclamation Data Input form will not produce a notice. The PC technician must prepare a manual notice, if necessary following instructions outlined NL 00601.040.

8. PC technician reissues the check

Only issue the check if it is still due the beneficiary.

a. Analyze MBR to determine if payment is due

If the beneficiary is not in LAF C and payment is still due, verify that the payee’s address is correct prior to releasing the payment.

If the beneficiary is in LAF C, reissue the payment via the intranet SSA-4208 Reclamation Data Input form, which will properly annotate the PHUS record.

NOTE: Actions taken using the intranet SSA-4208 Reclamation Data Input form will not produce a notice. The PC technician must prepare a manual notice, if necessary.

See details:

  • SM 00609.901 Nonreceipt or SF-1184 Processing of a Limited Payability (LP) Check Non-Receipt -- Limited Payability

  • MSOM INTRANETMAMPSCDI 002.001 SSA-4208 Reclamation Data Input Forms - Overview (SSA4208)

  • MSOM INTRANETMAMPSCDI 002.002 SSA-4208 Reclamation Data Input Form- Claim Number & BIC (SSA4208)

  • MSOM INTRANETMAMPSCDI 002.003 SSA-4208 Reclamation Data Input Form 1 & Form 2 (SSA4208)

b. Additional coding requirements depending upon the system used to issue the payment

PC technician should follow these specific processing instructions:

  • If you use MADCAP, code the Form SSA-1257 (PHUS Data Change) with the AC field = “2” to post the 170 PHUS event to offset the payment.

  • If you use CPS, code the form SSA-3263 (CPS Input Form) with a Type of Payment Code of C40 to suppress the notice and provide a means to identify these payments.

    Enter a Tax Code of “NR” and a First Remark of “REISSUE CHECK” in the Nature of Problem field.

  • If you use SPS, code the Form SSA-1257 with the AC field = “2” to post the 170 PHUS event to offset the payment.

    NOTE: Be sure to use this for check replacement to non-beneficiaries.

See details:

  • SM 00630.080 Stages of The SSA-1257 Process

  • SM 00630.081 Completing Top Fields of SSA-1257

  • SM 00630.082 Completing AC1 Fields of SSA-1257

  • SM 00630.083 Completing AC2 Fields of SSA-1257

  • SM 00635.400 How to Complete CPS Input Form SSA-3263

  • SM 00834.001 Single Payment System (SPS)

  • MSOM INTRANETCPS 001.001 The Critical Payment System - Overview

9. Send notice

Send notice informing beneficiary that he or she is entitled to the payment per instructions in NL 03001.025.

E. Title XVI FO procedure when the credit is present after 15 months

FO personnel should refer to the following instructions.

1. Analyze the Treasury Check Information System (TCIS)

FO technician reviews the TCIS to obtain the status of the payment.

NOTE: Prior to releasing payment, the FO personnel should refer to instructions in GN 02401.903E.2. and GN 02401.903E.7. in this section.

2. Analyze and review Supplemental Security Record (SSR)

Analyze and review SSR to determine the codes posted in the Unnegotiated Check Indicator (UCI) LP fields.

If the UCI field is coded with an L, the system already reissued the payment if it was due or resolved the overpayment if caused by the check.

If an M is in the UCI field, the recipient:

  • acknowledges receipt of check; or

  • is unable to locate the check; or

  • does not respond; or

  • is deceased.

The FO technician should update the record if the recipient later inquires about the LP credit and if we determine the recipient was due the payment. For additional information regarding LP codes, see SM 01601.835C.9.

3. Recipient is now deceased

If the recipient is now deceased and check replacement is appropriate, make payment as defined in SI 02101.003.

4. Recipient is no longer entitled

Attempt to contact the recipient directly. If direct contact is unsuccessful, obtain a current address from the FO servicing the last known address. For notice language to use when the recipient is not entitled, for more information see NL 03001.025.

5. Recipient has an overpayment present on the record

If there is an overpayment on the record, adjust any underpayment due to recover any collectible overpayment per SI 02101.002A.

6. Recipient entitled to benefits and no overpayment on record

FO technician places the following message in the REMARKS field of the SSR with the type of payment issued. Remember to use the payment date of the check for which the LP credit represents.

“Limited Payability Case MM/DD/YYYY.”

7. Possible prior check replacement

Review the recipient’s record to ensure the check is due.

NOTE: Take extreme care to avoid replacing the check again and possibly causing an overpayment.

8. Reissue check

Only reissue the check if it is still due the recipient.

a. LP credit on SSR

When the LP credit is already posted to the SSR (UCI of I or M in PMTH segment), and the payment is still due, use the limited payability screens in MSSICS to release the payment via a one-time payment (OTP). For additional instructions on the completion of the screen, for more information see MSOM BUSSR 003.006.

b. Verify address

Review the OTP for current address or rep payee data prior to issuance.

c. Release payment

When MSSICS releases the payment, the system will reissue the payment if it is due or will resolve an overpayment created by the check.

9. Send notice

Send notice informing recipient that he or she is entitled to the payment per NL 03001.025.

F. Procedure when an LP credit is not present after 15 months

The technician should take the following steps when an LP credit is not present.

1. Analyze the Treasury Check Information System (TCIS)

The FO, RO, and PC technicians should access the TCIS to determine the check status.

2. TCIS indicates check was cashed

a. Check in question not part of existing overpayment

  • If the check in question is not part of an existing overpayment already on the record, Treasury does not need to analyze the handwriting.

  • Process the check according to GN 02405.300.

  • Send the Limited Payability Notice for Beneficiary or Recipient Entitled or Not Entitled to Replacement Check in NL 03001.025.

b. Check in question is part of an overpayment

If the check in question is part of an existing overpayment on the record:

  • obtain a photocopy either from TCIS, eVIEW or directly from Treasury via SSA system.

  • forward photocopy and the signature request form to the beneficiary or recipient for review per GN 02401.910.

    IMPORTANT: Do not request photocopies for checks older than 6 years, 9 months from the present date.

  • if the beneficiary or recipient indicates he or she did not sign the check on the signature request form, get a handwriting analysis from Treasury by following instructions in GN 02401.910C; or

  • if the beneficiary or recipient indicates he or she did sign the check, no further action is necessary.

Example of no LP credit and check is part of overpayment:

The agency receives an untimely allegation of nonreceipt for a check not due the beneficiary or recipient because of a subsequent suspension or termination of his or her benefits. This check is part of an overpayment on the beneficiary or recipient’s record. We forward the claims package to Treasury for a handwriting analysis. Treasury determines that the check was forged. We adjust the overpayment amount on the beneficiary or recipient’s record by the amount of the check.

See details:

GN 02406.140-Photocopy Requests

3. TCIS indicates check was not cashed

When TCIS indicates the check was not cashed, contact Treasury at (855)-868-0151 to determine why they did not send an LP credit. After the LP credit posts to the record, follow instructions in GN 02401.903D for title II and GN 02401.903E for title XVI.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202401903
GN 02401.903 - Allegations of Nonreceipt Not Filed Timely - 12/21/2015
Batch run: 12/21/2015
Rev:12/21/2015