TN 44 (12-17)
GN 02406.175 Exclusions to the Nonreceipt Process
A. Exclusions for Title II and Title XVI nonreceipt
The nonreceipt process cannot handle certain types of payments. These exclusions require timely processing to ensure that the Social Security Administration Trust Fund and the Treasury General Fund receive credit for amounts due.
Many Title II exclusions require action by the servicing processing center (PC). These situations require the field office (FO) and teleservice center (TSC) to notify the PC via the Modernized Development Worksheet (MDW).
1. Current representative payee reports nonreceipt of check issued to former payee
New representative payee reports of nonreceipt may occur when the change of payee action processed too late to affect payment. To investigate and resolve current and former representative payee nonreceipt reports, locate information from the payee query or the query response selection list (see GN 00502.185 for instructions on documenting payee selections /non-selections and post-entitlement actions in eRPS). For handling representative payee nonreceipt reports, take the following actions:
a. FO and TSC procedure for processing nonreceipt reports
For handling representative payee nonreceipt reports take the following actions:
Review the Master Beneficiary Record (MBR) and Supplemental Security Record (SSR) to determine the payee change.
Determine the latest date a change could be made to the record (systems processing cutoff date; consider payment cycling window period);
If the change of representative payee input missed the cutoff date, explain that payment was sent to the former payee and why;
The TSC must forward the case to the servicing FO to contact the former representative payee.
The FO should contact the former payee to determine if he or she received and used the check to benefit the beneficiary or recipient. If so, explain to the current payee that, since the beneficiary received the benefit of the check, this does not constitute nonreceipt. If the representative payee cashed the check but did not use it for the beneficiary or recipient or if the former representative reports that he or she received and used the check for the beneficiary or recipient but the beneficiary does not agree, refer to Misuse of Benefits Investigation, Determination & Restitution GN 00604.000.
For Title II, if the former rep payee alleges nonreceipt, request (via MDW) the PC to input a stop payment action (F-Stop). For Title XVI cases, the FO/TSC can input the F-Stop.
b. PC procedure for processing nonreceipt
Input an F-Stop payment action to reissue any returned funds or credits to the new payee, as appropriate. Follow the instructions in:
MS RSDHI 002.005 Stop Payment Request (PESP);
SM 00609.200 Processing Center Direct Input of Nonreceipt, Photocopy and Stop Payment Process; and
SM 00609.220 Stop Payment Actions.
2. Former representative payee reports nonreceipt
If a former payee alleges nonreceipt of a payment certified before SSA processed the change of payee action:
FOs and TSCs should take the following actions:
For Title II, send an MDW request to the servicing PC to complete an SF-1184 stop payment action;
For Title XVI, input the F-Stop.
PCs should take the following actions:
3. Payment issued under an incorrect account number
Alleged nonreceipt situations may occur when a payment was issued under an incorrect account number and the MBR and SSR records were corrected after the payment was made.
FO and TSC, take the following actions:
Forward via MDW to the PC and FO of jurisdiction.
Alert the PC and FO, “Payment Issued Under SSN--XXX-XX-XXXX--Stop Payment Action Required.”
PC and FO, process against the incorrect SSN according to PESP screen MS RSDHI 002.005.
4. Partial payment received when total payment expected
FO, TSC, and PC, obtain a Payment History Update System (PHUS), MBR and SSR and attempt to reconcile the discrepancy.
If the payment is due:
FOs and TSC should refer to the servicing FO and PC, as appropriate for action via MDW.
PC: issue the payment according to the current Manual Adjustment, Credit, and Award Process (MADCAP) and Manual Adjustment, Credit, and Award Data Entry (MACADE) procedures (SM 00810.000.)
Tell the claimant to expect receipt of remaining payment in 5 - 7 mail delivery days.
5. Miscellaneous overpayment situations
Do not use the nonreceipt of payment process for the following miscellaneous overpayment situations:
Partial monthly benefit cases involving overpayments (with active partial recovery).
When the Title XVI recipient requests resumption of full benefits.
Conversion cases for Title II beneficiaries who receive payments at the old rate rather than at the converted rate.
Refer these cases to the PC and FO of jurisdiction for action.
6. Nonreceipt report received more than 1 year after the issue date of the check
Process according to the instructions for Limited Payability Cases for Title II and Title XVI in GN 02401.901.
7. Check is not due claimant and check date is 12 months or less prior to date of the nonreceipt reports
Request the PC, via MDW, to input an SF-1184 stop payment (F-Stop) action for Title II checks. FOs can input Title XVI F-Stops.
8. Settlement check
Follow the instructions, Nonreceipt of a Settlement Check for Title II and Title XVI in GN 02406.202.
9. Attorney fees
Request assistance from the PC via MDW. The PC should process according to instructions in Nonreceipt of Paper Check Payments Made to Non-Beneficiaries per GN 02406.127.
10. Nonreceipt of payments made to non-beneficiaries
Follow the instructions for Nonreceipt of Paper Check Payments Made to Non-Beneficiaries,per GN 02406.127.
11. Nonreceipt of Interim Assistance (IA) payments made to State agencies
When a state Agency notifies a FO of nonreceipt of an IA payment, refer the Agency to the Regional Office’s Interim Assistance Reimbursement Coordinator per SM 01311.662
12. Suspension Present on the Record
If a nonreceipt is filed and there is a suspension on the record, refer to the below:
a. Individual suspended pending development of address
S6 for Title II, see How the Returned Check Action (REACT) Program Processes Returned Checks and SF-1184 (“00”) Credits SM 00624.010;
S06 for Title XVI, see, Issuing SSI Checks, SM 01315.001A.
b. Individual suspended pending development of a representative payee
13. Payment due after death
When an individual reports non-receipt for a deceased beneficiary or recipient, Stop payment processing is required as follows:
a. Title II
The FO and TSC should send an MDW to the servicing PSC for SF-1184 stop payment action requests. The FO completes underpayment development (SSA-1274, Claim for Amounts Due in the Case of a Deceased) if applicable. For the statutory order of priority for Title II underpayments, see GN 02301.030A). The PC processes via the PESP screen (see MSOM RSDHI 002.005).
b. Title XVI
For Title XVI cases, the FO and TSC should input the F-Stop. The FO should complete underpayment development (see SI 02101.000ff).
14. “Not due” payments for reasons other than death
This situation usually occurs when:
an overpayment is on the record;
a recent change of payee is on the record; or
the payee or beneficiary is declared legally incompetent.
This situation requires Stop payment processing.
a. Title II
FOs and TSCs should request that the PC of jurisdiction request an SF-1184 stop payment action. PCs process via the PESP Screen (see MSOM RSDHI 002.005).
b. Title XVI
FOs and TSCs should input the F-Stop. See BUSSR 003.017 for input instructions.
15. Processing returned payments
Returned Title II and Title XVI payments posted on the PHUS and SSR do not require an input of nonreceipt. Identify the reasons for the returned payment and determine if repayment is due. For returned check reason codes, see SM 00530.020B. If repayment is still due, take necessary action to reissue the payment with reason code MS (Miscellaneous):
Check the Special Message Field on the MBR and SSR for prior development or for a reason to explain the check return code “MS”.
Review the record to determine if there has been a recent change such as direct deposit, address, or other action that could explain the returned payment. If any of these conditions exist, take appropriate action to resolve the issue.
If the payment is still due, take necessary action to reissue the payment for reason code = MS (Miscellaneous):
If you determine that payment is due, explain to the beneficiary or recipient that we will reissue the payment and to allow 15 days for receipt of the payment.
B. Procedure for Title XVI exclusion
Surviving eligible or ineligible spouse or parent
If the surviving eligible or ineligible spouse or parent reports non-receipt of an A-OTP or M-OTP, and the SSR reflects an underpayment, manual processing as described in SM 01315.168 is required.
C. Procedure for Title II exclusions
1. Black Lung payments involving Department of Labor (DOL) jurisdiction
FOs, TSCs, and Office of Disability and International Operations (ODIO) must redirect reports of nonreceipt to DOL at the following address:
U.S. Department of Labor
Office of Workers’ Compensation Programs
200 Constitution Ave. N.W., Suite S-3524
Washington DC 20210
2. Railroad Retirement Board (RRB) certification payments
FOs and TSCs must redirect the claims to RRB as outlined in GN 02406.805B. PCs must redirect the claims to RRB as outlined in GN 02406.810A.
3. Initial claims not established on the MBR and delayed payment
This is NOT a nonreceipt issue.
For related information and references see:
RS 02805.030 Interrupted Payments,
SM 00609.500B Systems Alerts Received in the Field Office (FO) and Teleservice Center (TSC), and
TC 15001.050 Handling Non-Critical Delayed Claims/Payments.
4. Initial Critical Payment System (CPS) payment or one-time (SAC-P) CPS payment
Process initial CPS or one-time special action code-P (SAC-P) payments per the instructions in GN 02406.201C.