TN 14 (04-00)
GN 02406.127 Nonreceipt of Paper Check Payments Made To Non-Beneficiaries
Nonreceipt of direct deposit instructions are in GN 02406.007 for U.S., and GN 02402.000 for International.
Most payments made to title II non-beneficiaries are OCO A-payments made to attorneys, Internal Revenue Service, and in garnishment situations. Checks to non-beneficiaries are often sent to offices where they are stamped for deposit, not endorsed by the same person month-to-month as a beneficiary's or recipient's check. Because the nature of the relationship with SSA is different in that “overpayments” cannot be recovered from future benefits, allegations of nonreceipt should be handled differently.
These allegations of nonreceipt must be processed manually by the PC.
When FO/TSC receives this type of an allegation, forward the case to the PC via MDW for processing.
In order to ensure that we maintain control over these cases, the PC should input an F-stop to determine the status of the check, to produce a claims package if the check has been cashed, and to determine who cashed the check before a replacement is generated. This is in lieu of a B- or C-Stop that would replace the check immediately or if the check had not yet been presented for payment and possibly create an overpayment that would be difficult to recover.
If the check has been cashed, have the office in question review the check photocopy the same as if it were a beneficiary or recipient.
If the check has been cashed but the endorsement/stamp on the back of the check photocopy is not recognizable to the non-beneficiary, the FMS-1133 should be completed, photocopied, and forwarded to DT for a forgery determination and reclamation, if appropriate.
If the check was forged, when DT returns the credit to SSA the payment can be replaced, if still due.
If it was not a forgery, no additional payment is due.