TN 26 (08-11)
GN 02406.180 Statutory Limitation on Processing Claims of Nonreceipt and Lost, Stolen, or Destroyed Payments (Also Credits and Limited Payability)
A. Paper check issued over 12 months ago
To process nonreceipt of a paper check issued more than 12 months ago, follow these procedures
B. Processing credits
1. Title II
If the beneficiary’s record reflects an uncashed payment within the past 12 months, SSA sends a notice to the beneficiary inquiring if the check was received and cashed. If the beneficiary does not respond or indicates a cashed payment, take no further action. SSA technicians will reissue payments or inquiry responses indicating payments were not received and cashed see, Beneficiary/Recipient Contacts SSA Concerning a Limited Payability Notice (Title II) GN 02401.905.
Treasury cancels the check in the 13th or 14th month and returns the credit back to SSA in the 15th month after issue date of the check. This credit appears on the Payment History Update System (PHUS) record in the form of an EVNT-169 UNNEG CK (Unnegotiated check). See, Unnegotiated Check Events SM 00545.300.
2. Title XVI
a. When an SSI check is uncashed for six months, Treasury issues a code 38
SSA converts to a code “N” in the UCI field of payment history that produces an L5 or L8 alert to the field. The field investigates whether the recipient received the check. The field should contact the recipient via phone to determine the status of the check. If the recipient indicates they did not receive the check, input a nonreceipt (See SM 01315.085 for Stages of the Limited Payability Process).
b. If the check is not cashed within 12 months, Treasury issues a code 71
SSA converts to a code “T” in the UCI field of payment history) indicating that a credit is forthcoming for the check in question. (Treasury cancels the check in the 13th or 14th month and returns the credit to SSA in the 15th month)
When Treasury sends a code “L” to SSA, we convert it to an “I” in the UCI field of payment history. This indicates the credit has been received. A diary of K5 will be sent simultaneously with a K5 alert to the field office (FO). (See SM 01315.085B.) The supplemental security record (SSR) then produces an alert for FO investigation with the recipient. SSA technicians either input a UL (if the check was not received) or UM (if the check was received) into the system.