TN 34 (10-19)

GN 02403.160 Writing Off the Cost of Stop Payment Orders for Lost Remittances

A. Policy for lost remittances

An individual may refuse to comply with the request for a second remittance because they object to the cost of stopping payment on the original check or money order. For example, an individual otherwise willing to remit the amount in cash, purchase a second money order, or write a second check, objects to the additional cost of stopping payment on the original check or money order. When this happens, SSA should consider adjustment of the second refund amount by the amount of additional cost to the individual as a title II or title XVI 'write off.'

If the individual questions paying the cost of a stop payment, ask him or her to verify the cost with the issuing bank as there may be no charge for the stop payment. If the cost of the stop payment order is equal to or exceeds the amount of the first check or money order, do not request a replacement from the individual. Adjust the overpayment balance using the instructions in GN 02403.160B and GN 02403.160C in this section, according to the appropriate trust fund.

IMPORTANT:If there is no overpayment on the record or a master beneficiary record does not exist, ask the individual to obtain a stop payment order and request a copy as proof of payment. Once you receive a copy of the stop payment order, issue a third party draft (TPD) to the individual for the cost of the stop payment. Use the office CAN, SOC 252K, and input the following comment: “L C Bank Fee for Lost Pay.”

The office issuing the draft is required to maintain all of the supporting documentation associated with the case. In addition, attach copies of the supporting documentation to the copy of the TPD issued. For Operating Procedures for Third Party Drafts, see AIMS FMM 03.05.

B. Stop payment order is $45 or less, Title XVI

Use these steps to 'write off' those stop payment orders that are less than $45 and involve title XVI overpayments.

  1. 1. 

    'Write off' the amount of the stop payment charge by posting to the individual's record an uncollectible decision for the amount of the stop payment. See SM 01311.280 for how to post an uncollectible decision to the SSR.

  2. 2. 

    Enter the replacement remittance according to current procedures, using the Social Security Electronic Remittances System (SERS) when possible.

  3. 3. 

    Annotate the original FORT accordingly and attach the new automated FO receipt to it.

  4. 4. 

    Scan proof of the stop payment charge into NDRED. For information on sending documents to NDRED and viewing them in CFUI, see GN 00301.310, GN 00301.313, and SM 00801.000.

C. Stop payment order is $45 or less, Title II

Use these steps to 'write off' those stop payment orders that are less than $45 and involve title II overpayments.

  1. 1. 

    Notify the MATPSC to write-off the stop payment charge at ||PHI ARC PCO RDDB DMS. MATPSC will adjust the amount of the overpayment balance by the amount of the stop payment fee.

  2. 2. 

    Follow the directions in GN 02403.160B.2-4 in this section to process the replacement remittance.

D. Stop payment order is more than $45, Title II or Title XVI

The following explains how to 'write off' those stop payment orders that are more than $45 and are title II or title XVI.

  1. 1. 

    Ask the servicing Assistant Regional Commissioner/PCO (this responsibility can be delegated to the RSI Sections or RSI/SSI Branches) to approve the additional cost to the trust fund.

  2. 2. 

    Is the additional cost approved?

    • If yes, give the claimant a written notice of the agreement and forward a copy to the servicing ARC/PCO (dependent on jurisdictional procedure RSI Sections or RSI/SSI Branches). Adjust the overpayment as stated in GN 02403.160B or GN 02403.160C in this section according to the appropriate trust fund.

    • If no, notify the individual. If he or she still refuses to issue a new remittance, obtain a statement from him or her setting forth his or her reasons for declining to make another refund and forward it to the ARC/PCO (dependent on jurisdictional procedure RSI Sections or RSI/SSI Branches). Advise the individual that the PSC will notify him or her of its decision concerning the lost remittance.

E. References

GN 02403.155 Investigating Lost Remittances - FO Procedure

OS 00501.415 Lost Remittances within the Processing Centers (PC)

OS 00501.420 Writing off the Cost of Stop Payment Orders for Lost Remittances in Mid-Atlantic Program Service Center (MATPSC)


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202403160
GN 02403.160 - Writing Off the Cost of Stop Payment Orders for Lost Remittances - 10/02/2019
Batch run: 10/02/2019
Rev:10/02/2019