TN 39 (05-19)

GN 02401.904 Field Office Processing of Limited Payability (LP) Alerts for Title XVI Cases

A. Title XVI system process

The title XVI system generates several alerts. When a title XVI check remains uncashed 6 months past the issue date, it is not an LP situation. The title XVI system generates an L5 alert to the FO for investigation. The FO should contact the recipient via phone to determine the status of the check. For more information on direct phone contact with the public, see GN 01070.315. If the title XVI check is still uncashed 12 months past the issue date, the Department of the Treasury (Treasury) sends SSA an LP credit in the 15th month past the issue date. The Title XVI system:

  • posts the credit to the supplemental security record (SSR),

  • generates a K5 alert to the FO, and

  • sets a K5 diary.

See details:

  • GN 02401.901 Limited Payability Policy for Title II and Title XVI

  • SM 01315.085 Stages of the Limited Payability Process

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

  • SM 01315.101 The Limited Payability (K5) Diary

B. Procedure for limited payability K5 alert

The FO will:

  • Contact the recipient or payee and request any information the person has to verify he or she is the recipient or payee on our records (name, address, monthly benefit amount, SSN, etc.). (For more information on establishing identity, see GN 03340.015C.)

  • Attempt to determine why the check remained uncashed for 12 months paying special attention to any unreported post eligibility changes that may affect eligibility or payment amount; (For more details on recipient reporting, see SI 02301.001.)

    NOTE: Because title XVI is a needs based program, title XVI checks should not ordinarily go uncashed for 12 months.

  • Explain that our records indicate the check is uncashed; and

  • Take the necessary action depending on the recipient's response and any unreported post eligibility changes.

    NOTE: An update to the SSR, payment of an underpayment, or adjusting an existing overpayment, could be required actions based on the person’s response. For post eligibility details, see SI 02301.001. For further instructions if the check is still due based on a recipient’s response see GN 02401.904C through GN 02401.904E in this section.

C. When the recipient indicates check was not cashed or does not know if the check was cashed

  • When the recipient says he or she did not cash the check, follow the steps outlined in see GN 02401.903E.

    NOTE: When an LP credit is present on our records, Treasury has no record of a cashed check.

  • When the recipient cannot remember if he or she cashed the check, take the following actions:

    • reduce an overpayment, or

    • pay the recipient.

See details:

GN 02401.903E Title XVI FO procedure when the credit is present after 15 months

D. When a recipient indicates check was cashed

When the recipient indicates he or she cashed the check:

  • access the Payment History - Limited Payability (UPLP) screen in MSSICS Direct SSR Update; and

  • select the payment in question and select “N” for the “Release Payment (Y/N)” field.

The system holds the payment and the credit stays on the record. The SSR Unnegotiated Check Indicator (UCI) field changes from a code of “I” to a code of “M.”

See details:

  • MSOM BUSSR 003.006 Payment History - Limited Pay (UPLP)

  • SM 01315.095 Kinds of Unnegotiated Check Indicator (UCI) Codes

  • SM 01601.835 Payment History - PMTH

E. When we cannot locate an SSI recipient or payee

When we cannot locate an SSI recipient, or payee, update the SSR.

  • select the UCI of "I" (payment unresolved); and

  • select "N" in the release payment field on the Payment History -- Limited Pay UPLP screen.

The SSR UCI field will change from a code of ‘I” to a code of ‘M’

See details:

MSOM BUSSR 003.006 Payment History - Limited Pay (UPLP


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202401904
GN 02401.904 - Field Office Processing of Limited Payability (LP) Alerts for Title XVI Cases - 05/14/2019
Batch run: 05/14/2019
Rev:05/14/2019