TN 14 (04-00)

GN 02406.125 Transmitting Reports of Nonreceipt, Loss, Theft, or Destruction -- Title II and Title XVI -- Recurring Checks and PMA Checks -- Normal and Dire Need Situations

VERY IMPORTANT: Under NO circumstances should a photocopy request be transmitted when a nonreceipt (as described below) or SF-1184 stop payment action is appropriate. See GN 02406.140B. for the situations where a photocopy request should be transmitted.

A. Introduction

This first section is provided to familiarize FO/PC/TSC personnel with the terminology used for nonreceipt (NRT, NC) inputs and the stop code that results from that action. These alpha codes (such as A, B, C, G, F) will appear on the PHUS and Q query record and are used in communications between SSA and DT.

1. Title II Input Screens

The PEN2 screen of POS has been modified to reflect nonreceipt reporting policy changes as a result of the court-approved Robinson/Reyf Settlement Agreement (GN 02406.002).

Below is a description of the relationship between the nonreceipt selections on the PEN2 screen and the stop code that results from the input. Although this is a title II screen only, the “new definition” of the A, B, and C stop codes also applies to title XVI nonreceipt (see also GN 02406.001 and GN 02406.125A.2.):

STEPACTION
NRT 1 =Nonreceipt of recurring or PMA check (loss, theft, or destruction of an unendorsed check). B-Stop. Courtesy disbursement check will be issued before the status of the original check is known. Most nonreceipt allegations will fall into this category.
NRT 2 =Nonreceipt of recurring check. C-Stop. SSA wants the status of the original check reviewed before a replacement check is issued. Use when (1) claimant is known to have misused the nonreceipt reporting process OR (2) claimant is “unsure” if check was received; i.e., wants to confirm whether the check(s) was cashed before filing nonreceipt (GN 02406.002B.7, GN 02406.150).
 

The beneficiary reports being unsure if he received several checks within the last 12 months. This is a situation where we want to know the status of the checks in question before replacing them.

NRT 3 =Mass Loss. A-stop. DT will issue a courtesy disbursement check. See GN 02406.700 for instructions regarding true mass loss situations.
 The A-stop should also be used for nonreceipt of title XVI type 2, 4 and 9 payments). However, the A-stop does not initiate a courtesy disbursement for these cases (A-stop is not converted to a B-stop). Therefore, the FO must issue an immediate AOTP (unless abuse is apparent, see GN 02406.205D. and GN 02406.207B.) and an IP if dire need is involved (GN 02406.205, GN 02406.207).
NRT 4 = Loss, theft, or destruction of endorsed check. G-Stop. Although claimant has signed the check, if it has not been presented for payment, DT will return the credit and SSA will reissue the check. If the check is later presented for payment, FMS will debit SSA and send a claims package to SSA.

For further explanation of nonreceipt input types, see SM 00609.215C.

2. Title XVI Nonreceipt Screen Inputs and Resulting Stop Codes

The alpha nonreceipt codes transmitted on the 719N screen correlate to the DT stop codes; i.e., nonreceipt code B (NC = B) is a B-stop; nonreceipt code C (NC = C) is a C-stop, etc. The DT response to the stop codes is the same as for title II inputs described in GN 02406.125A.1. Additional information about the codes and when they are used is located in MSOM BUSSR 003.012.

B. Procedure

1. Title II - Missing Check is 12 Months Old or Less

  1. Is dire need involved? (See RS 02801.001 for definition of dire need.) If yes, go to GN 02406.125C.

  2. If no, transmit nonreceipt on the PEN1 and PEN2 screens using one of the following stop codes: (See MSOM 003.012 )

    • Select NRT = 1, B-Stop, for nonreceipt of an unendorsed check, regardless of whether it is a current month check, prior month check, or PMA. A courtesy disbursement check will be issued before status of the original check is known. Allow 7 to 10 calendar days for delivery of the courtesy disbursement check. Or

    • Select NRT = 2, C-Stop, for nonreceipt of an unendorsed check where SSA wants DT to determine the status of the original check before a replacement is issued. Allow up to 5 weeks for delivery of a replacement check or claims package (see also GN 02406.170). If the missing check was cashed, DT will send the claims package directly to the claimant. If forgery is determined, DT will issue a settlement check.

      When payee is known to have misused the nonreceipt reporting system, or when the caller is uncertain whether a check issued within the last 12 months was received. (See GN 02406.150.)

    • Select NRT = 3, A-Stop, for nonreceipt in mass loss situations (see GN 02406.700). The A-Stop for a recurring check identifies nonreceipts in a mass loss situation. The A converts to a B when it transmits to DT and DT replaces the check before status of the missing original is known.

    • Select NRT = 4, G-Stop for lost or stolen, endorsed check. If this check is presented for payment, a claim for nonreceipt will be denied since claimant stated he or she signed the check. If the original check has not been cashed, DT will not issue a replacement check but will credit SSA for the funds. SSA will then reissue the payment to the payee, if appropriate (see GN 02406.125E.).

  3. Explain to the claimant/payee that if the original check is received and the courtesy disbursement or replacement check is also received, one of them must be returned to SSA; otherwise, an overpayment will occur for which he or she will be responsible.

2. Title XVI - Missing Check is 12 Months Old or Less

  1. Is dire need involved? (See RS 02801.010 for requirements to qualify as a dire need situation.) If yes, see GN 02406.125D. If no:

  2. Transmit the nonreceipt via the 719N using the same stop codes found in GN 02406.125B.1, with adjustment for title XVI; e.g., NC = B, NC = C, NC = A, NC = G. See MSOM BUSSR.003.012, How to Complete the 719N Mask.

  3. Use NC = A for nonreceipt of nonrecurring title XVI checks (OTP-type 4, underpayment-type 2, and replacement-type 9). In this instance, the check is not replaced but rather status of the missing check is transmitted to SSA (GN 02406.205 and GN 02406.207).

  4. Explain to the claimant/payee that if the original check is received and the courtesy disbursement or replacement check is also received, one of them must be returned to SSA; otherwise, an overpayment will occur.

Nonreceipt procedures for nonrecurring title XVI checks may be found at GN 02406.205 (type 2 and 4) and GN 02406.207 (type 9).

C. Procedure - DIRE NEED - TITLE II (If criteria in RS 02801.010 are met)

1. TSC:

Do not input nonreceipt or CPS. Refer to FO via PRIORITY MDW.

2. FO:

  • Issue an IP for up to $400 ($999 effective 8/21/99) and a CPS payment for the balance, if any.

  • Code TPT of C43 and in the NPF field on the CPAY transaction enter: ”INPUT STOP PMT SFTF FOR ORIG PMY DTD MM/DD/YY.REPLCMT PMT MADE BY IP/CPS.” (MSOM CPS 001.005 and RS 02801.001)

  • Send a priority MDW to the PC to input F-stop on missing recurring payment.

3. PC:

  • Input an F-stop on the missing recurring payment.

Unlike title XVI, the title II IP is not deducted automatically from the next month's check; therefore, the IP and CPS take the place of the original check and no additional benefits are due.

D. Procedure - DIRE NEED - TITLE XVI (If criteria in SI 02004.100 are met)

1. TSC:

  • Refer to FO via PRIORITY MDW.

2. FO:

  • Issue an IP for up to $400 ($999 effective 8/21/99).

  • Input a B-stop on the missing recurring payment.

  • Enter “MM/DD/YYYY IP issued for MM/DD/YY payment” in SSR RMKS segment.

Remember, for title XVI, the IP is considered an advance on the next month's check and will be deducted automatically by the SSI system.

E. Process - Endorsed Check Lost, Stolen or Destroyed

  • When a check is endorsed by the payee prior to being lost or stolen and the check is presented to DT for payment, DT will send a status code 17 (paid--endorsement may prohibit claims action; photocopy and claim to follow) in response to the G-stop. DT's internal process is set up to send a claims package to SSA. Although the claimant has alleged that the check was signed prior to being lost or stolen, if he or she wishes to review the claims package and check photocopy, the package should be made available. If the claimant wishes to complete the FMS-1133 package and allege forgery because they were mistaken about having signed the check, process the claims package through normal procedures found at GN 02406.160. If the check in question is part of a DCN overpayment situation, process according to GN 02406.310.

  • If the original check has not been cashed, DT will not issue a replacement check but will credit SSA for the funds. SSA will then reissue the payment to the payee if it is still due.

  • If the original check is later presented for payment, DT sends a claims package (same rationale as above) with a code 63 (Payment over Cancellation). SSA is debited and the payee is liable for the overpayment if the check bears the genuine endorsement of the payee. Any recovery of the loss on behalf of the payee would have to be handled by local law enforcement officials dealing with the theft of the check. If the claimant insists the endorsement is not his (and the FMS-1133 was not completed before), have him complete the FMS-1133 and refer it to DT for a forgery determination (GN 02406.160).

  • See GN 02406.235 for instructions involving Holder in Due Course; check endorsed, cashed, then lost before being returned to the RFC.

F. Procedure - Transmitting Loss of Endorsed Check

1. Title II

Transmit the nonreceipt report immediately with an NRT = 4, G-stop.

2. Title XVI

Input the loss by immediately transmitting a code G on the 719N.

G. Procedure - Check Cashed and Proceeds Lost or Stolen from Original Payee

SSA has no jurisdiction once the check has been cashed. The reporter should be referred to local law enforcement authorities.

H. Procedure - Nonreceipt of Check More Than 12 Months Old (See GN 02401.903 and GN 02401.901 for complete limited payability instructions.)

1. DT's requirement:

By law, nonreceipt MUST BE alleged within 12 months of the issue date of the check in order for DT to reclaim from the presenting bank in cases of forgery and to replace the missing check. If an individual does not allege nonreceipt within 12 months of the issue date of the check and the situation in item 2 below does not apply, the check cannot be replaced.

The claimant has 12 months from the issue date of the check to allege nonreceipt. This is a “timely” allegation of nonreceipt and required by statute (with one exception below). Although nonreceipt should be input promptly, SSA has until the end of the 13th month to input the nonreceipt, permanent stop code. IT IS EXTREMELY IMPORTANT THAT THE PERMANENT STOP IS INPUT ASAP IN ORDER TO ENSURE THAT DT HAS THE TIME ALLOTTED BY LAW TO RECLAIM IN FORGERY CASES.

2. SSA's requirement:

  1. If nonreceipt is alleged more than one year from the issue date (not timely) and a limited payability credit is found (usually sent to SSA in the 15th month), SSA will recertify the payment (GN 02401.903). However, if the check has been cashed (i.e., no limited payability credit returned), SSA will not recertify a replacement payment even if a forgery is involved. This is because we do not have the legal authority to make such a recertification.

  2. If 15 months have not yet elapsed, it is possible that a limited payability credit is forthcoming. The claimant may be told to call back after 15 months have elapsed on the chance that a limited payability credit is posted to the record.

  3. If a claimant calls/comes in and alleges nonreceipt after 12 months from the issue date of the check, explain that (1) SSA's system will be queried for a returned credit for that check. If the check was never cashed, DT will return a credit to SSA after 15 months have elapsed. Although claimant is not alleging nonreceipt in a timely manner, SSA CAN reissue the check if there is a returned credit and if it is still due. This is because the money for that benefit month was never paid to anyone. (2) However, if the credit was not returned, this means that someone received the money for that benefit month. Since SSA cannot pay (certify) two payments for the same benefit month, the check cannot be replaced.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202406125
GN 02406.125 - Transmitting Reports of Nonreceipt, Loss, Theft, or Destruction -- Title II and Title XVI -- Recurring Checks and PMA Checks -- Normal and Dire Need Situations - 09/05/2012
Batch run: 09/06/2012
Rev:09/05/2012