Effective Dates: 01/09/2023 - Present Previous | Next

TN 101 (01-23)

GN 02406.205 Nonreceipt of Title XVI Underpayment Check/Type 2 and One-Time Payment/Type 4 Payment -- Field Office (FO) and Teleservice Center (TSC) Instructions

A. Underpayments, Automated and Manual One-Time payments

An underpayment (type 2) in the pay flag one field in the payment history (PMTH) section on the Supplemental Security Income Record (SSR) indicates the SSI system automatically computed and released an underpayment to the recipient. However, where the system cannot release the underpayment, the FO must issue a one-time payment.

A one-time payment (OTP) type 4 in the pay flag one field in the payment history (PMTH) section on the Supplemental Security Income Record (SSR) indicates SSA issued an automated one-time payment (AOTP) or manual one-time payment (MOTP). When the FO successfully processes an AOTP, it is annotated on the SSR.

When the Office of Benefit Accounting and Systems Analysis (OBASA)’s Payment Certification Branch (PCB) successfully process an MOTP, the payment, must be manually posted to the SSR after issuing the payment. A recipient receives an AOTP or MOTP payment within 7 calendar days after the systems processing date in PMTH for an AOTP or the date PCB certifies the payment to the U.S. Department of the Treasury (Treasury) for a MOTP.

NOTE: If the recipient reports nonreceipt of the underpayment, AOTP or MOTP at the FO within 7 calendar days from the systems run date, the technician must input an A-stop and issue an AOTP, unless abuse of the nonreceipt reporting system is a factor.

If the recipient reports nonreceipt to the teleservice (TSC),

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    input an A-stop and send a Modernized Development Worksheet (MDW) or

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    for the Supplemental Security Income (SSI) Claims System cases, complete a priority Development Worksheet requesting the FO to issue a replacement AOTP, unless abuse of the nonreceipt reporting system is a factor.

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    For more information on TSC nonreceipt processing, see TC 25001.040.

B. Non-receipt alleged and MOTP is not on SSR

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    TSC: Refer the inquiry to the servicing FO for action via the MDW or a Development Worksheet , as appropriate.

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    FO: If the recipient alleges a nonreceipt, but there is no evidence of a payment on the SSR, check the FO manual OTP control file to determine if we issued an MOTP but it was not posted to the SSR. (See SM 01901.420)

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    FO: If the OTP action never occurred, and is still appropriate, initiate an OTP immediately.

EXCEPTION: If the ineligible spouse or parent contacts the FO or TSC and alleges nonreceipt of an OTP, input the nonreceipt. The TSC will send an MDW to the FO for possible immediate payment action.

C. How to process nonreceipt allegations for underpayments (type 2), or manual and automated OTPs (type 4)

To process nonreceipt allegations of underpayment, manual and automated OTPs when double check negotiation (DCN) abuse is not involved, follow the instructions in the chart below:

Step

Action

1

Does the SSR query show that we issued the check?

If no, determine why and take appropriate action.

If yes, go to Step 2.

2

Is the check due?

If no, the TSC must refer the allegation to the FO via MDW or a priority Development Worksheet per TC 25001.040B requesting the input of an 1184 stop payment (F-stop).

NOTE: The FO can input an F-stop via the payment screens in SSI Claims System Direct SSR Update. STOP.

If yes, go to Step 3.

3

Have 7 days elapsed since the payment history run date for the Type 2 or 4 payment?

If no, check the Treasury Check Information System (TCIS) to determine the status of the check.

If TCIS shows issue outstanding (check not cashed), ask the recipient to call back after the seven days elapsed. STOP.

NOTE: Document the inquiry on a Report of Contact in the SSI Claims System to assist technicians in case there are follow-up inquiries.

If yes and TCIS shows check is reconciled (cashed), input an A-stop on the original check. Go to Step 4.

NOTE: See GN 02406.001 for a definition of the A-stop and when technicians should use it.

4

Is this a dire need situation (see criteria in SI 02004.100)?

If no, the TSC and FO must take the following actions:

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    The TSC must forward a priority MDW requesting the FO to issue AOTP for the full amount of the missing check.

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    The FO must issue an AOTP for the full or remaining amount of the missing check.

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    The SSI system will compute an overpayment and establish a B-3 Diary. After the system establishes the B-3 diary, iinput an MT-TAC to resolve the overpayment temporarily.

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    Enter “AOTP” for MM/DD/YYYY CK” in the SSR RMKS segment.

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    Diary the case for 3 weeks

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    Check the disposition code on the Treasury Status Query (UPTQ) in the SSI Claims Systems Direct SSR Update.

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    Go to Step 5.

If yes, the TSC must refer the case to the FO via MDW. The FO must:

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    Issue an Immediate Payment (IP) for the amount of the missing check up to $999;

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    Issue an AOTP for the full or remaining amount of the missing check (which serves as the replacement for the missing original check).

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    The SSI system will compute an overpayment and establish a B-3 Diary. After the system establishes the B-3 diary, input an MT-TAC to temporarily resolve the overpayment.

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    Enter “Dire need-$___IP issued; AOTP of $____also issued for MMDDYYYY CK” in the SSR RMKS segment.

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    Inform the recipient the IP is an advance against future payments.

Depending on systems cutoff dates, we will recover the full amount of the IP beginning with the first or second check issued after the IP.

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    Diary the case for 3 weeks and

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    Check the disposition code on the Treasury Status Query (UPTQ) in the SSI Claims Systems Direct SSR Update.

Go to Step 5.

5

Does the disposition code from the A-Stop indicate that someone cashed the original check?

If no, go to Step 11.

If yes, the FO will take the following actions:

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    Input an 1184 stop payment (F-stop) on the replacement A-OTP using the SSI Claims Systems Direct SSR Update.

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    Delete the MT-TAC.

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    Enter in Remarks portion of SSR, “Orig Ck for MMDDYYYY cashed; possible forgery.”

Go to Step 6.

6

Does the A-OTP replacement F-stop response indicate that someone cashed the check?

If no, go to Step 11.

If yes, the recipient is overpaid. Resolve the overpayment and release the overpayment letter.

Go to Step 7.

7

Does the recipient request reconsideration?

If no, pursue overpayment recovery. STOP.

If yes:

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    Print the FMS-1133 claims package from TCIS and have recipient complete

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    Have recipient complete an SSA-561-U2 (Request for Reconsideration) to protest the overpayment. Obtain the signed SSA-561-U2 before suspending overpayment recovery with an MT TAC. Refer to GN 02406.310B.1.b.

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    Send the completed FMS-1133 and photocopy of the check to Treasury. Keep the completed SSA-561 and claims package copy for our records.

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    Input the MT-TAC to suspend overpayment recovery (after receiving the completed SSA-561-U2) pending final Treasury forgery determination.

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    Establish a tickle file for 60 days.

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    Go to Step 8.

8

After 60 days, is there a code on the SSR under the Payment history forgery indicator (SM 01601.835C.12) in the PMTH segment indicating a forgery determination from Treasury?

If no, go to Step 9.

If yes, go to Step 10.

NOTE: Treasury performs “forgery determinations” on checks that are 12 months old or less (GN 02406.001). For checks older than 12 months (limited payability checks), Treasury will be requested to perform a handwriting analysis. (GN 02401.910)

9

If the SSR does not have a forgery indicator in the PMTH segment?

Check the TCIS for forgery information. Select the “Payment Listing” tab for the payment and view the claims history information. If there is no forgery information, contact Treasury’s call center at 855-868-0151 for status of the forgery claim.

10

Did the forgery determination indicate that someone forged the check?

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    If yes , ensure MT-TAC is on overpayment.

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    Go to Step 11.

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    If no , delete MT-TAC and begin recovery process. STOP .

NOTE: A notice of the forgery decision and recovery action must be issued to claimant prior to the first day of recovery action.

11

Did Treasury send a credit?

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    If yes, When Treasury sends a credit, the SSR will show an excess decision. Delete the MT- TAC to resolve the excess decision. STOP.

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    If no, Contact Treasury’s call center at 855-868-0151 to find out when the credit will be sent to SSA. If Treasury states the credit has already been sent to SSA, contact your Regional Office through your normal channels, e.g., vHelp. STOP.

NOTE: If the recipient does not protest the overpayment or if there was a reversed credit on the original type 2 or 4 payment and there was a removal of the MT-TAC, an overpayment will automatically be established and normal overpayment procedures apply.

D. Procedure when a recipient has a history of nonreceipt abuse

This section provides instructions for handling allegations of nonreceipt from a recipient who has a possible history of nonreceipt abuse. In this situation, we need to know the status of the missing check BEFORE Treasury issues the replacement check. Take the appropriate action using the instructions in the following chart.

For more information on the criteria for non-receipt abuse, see GN 02406.150.

Step

Action

1

Have seven days elapsed since the payment history run date?

  • •

    If no, ask the recipient to call back after 7 days have elapsed.

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    If yes, input an A-Stop on the missing check.

Go to Step 2.

2

Do not issue an AOTP at this point.

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    NOTE: Due to a recipient’s possible history of double check negotiation (DCN) abuse, we need to know if the recipient cashed the check.

Go to Step 3.

3

Is this situation dire need (see criteria in SI 02004.100)?

If yes, go to Step 4.

If no, go to Step 5.

4

When the recipient alleges dire need

TSC

The TSC must forward case to FO via priority MDW.

FO

The FO must issue an IP for up to $999 and enter “Dire need $______IP issued:’ in SSR RMKS segment.

Explain to the recipient that the IP is an advance against future payments.

Go to Step 5.

Depending on systems cutoff dates, the full amount of the IP will be recovered from the first or second check issued after the IP is made.

5

Diary for three weeks and check the disposition code on the Treasury Status Query (UPTQ) in SSI Claims System.

If Treasury sends a disposition code 32 (outstanding check cancelled; agency credit to follow) to the UPTQ:

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    Issue an AOTP for the full amount of the missing check.

    NOTE: Before issuing the AOTP, check the PMTH field to make sure the system has not already reissued the check

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    Enter “AOTP for MM/DD/YYYY CK’ in remarks on the SSR. STOP.

    NOTE: The AOTP will create an overpayment.

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    Diary the case for 60 days to ensure the credit is posted.

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    After the credit posts to the SSR, delete the overpayment .

If Treasury sends a status code 11 (check paid, photocopy to follow) to the UPTQ:

Do not issue an AOTP. Go to Step 6.

6

Does recipient allege forgery?

If yes:

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    Have recipient complete the FMS-1133 claims package.

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    Forward the FMS-1133 and check photocopy to Treasury.

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    Keep the completed claims package copy for our records.

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    Establish a tickle file for 60 days.

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    Go to Step 7.

If no:

No additional benefits are due; no further action necessary. STOP.

7

After 60 days, is there a code on the SSR under the Payment history forgery indicator (SM 01601.835C.12) in the PMTH segment indicating a forgery determination from Treasury?

If no, go to Step 8.

If yes, go to Step 9.

8

Does the SSR have a forgery indicator in the PMTH segment?

  • •

    If yes, Check the TCIS for forgery information. Select the payment history tab for the payment and view the claims history information.

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    If no, contact Treasury’s call center at 855-868-0151 for status of the forgery claim.

9

Was the check forged?

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    If yes, issue an AOTP for the full amount of the missing check.

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    NOTE: Before issuing the AOTP, check the PMTH field to make sure the system has not already reissued the check. STOP.

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    If no, no additional benefits are due the recipient.

E. References

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    GN 02401.910 Handwriting Analysis and Checks Older than 12 Months

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    GN 02406.160 When to Use Forms FMS-1133 and FMS-3858.

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    MS 00303.003 Payment Menu (UPMN)

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    MS 00303.011 Payment History – Missing Payments (UPPH)

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    MS 00303.017 Stop Payment (UPST)

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    MS 00303.020 Treasury Status Query (UPTQ)

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    MS 00304.008 Overpayment Decisions (UOPD)

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    SM 01311.220 Bankruptcy and Referral to Another Agency - MJ, MO, MS and MT TAC

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    SM 01315.166 How to Handle Nonreceipt for Type 2 (Daily Payment/Underpayment) and Type 4 (One-Time Payment) Payment

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    SM 01315.168 How to Handle Nonreceipt of One-Time Payments

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    SM 01315.200C. How to Respond to Treasury Process Messages

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    SM 01601.835 Payment History - PMTH

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    SM 01901.005 When to Use One Time Payments (OTPs)

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    TC 25001.040 Processing Nonreceipt of Payment Reports

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202406205
GN 02406.205 - Nonreceipt of Title XVI Underpayment Check/Type 2 and One-Time Payment/Type 4 Payment -- Field Office (FO) and Teleservice Center (TSC) Instructions - 01/09/2023
Batch run: 11/20/2024
Rev:01/09/2023