There may be instances where, upon completion of all development, evidence for a final
determination shows a claimant receiving preliminary payments is not entitled to benefits.
In these cases, action must be taken to stop the preliminary payments being paid through
CPS and to process the disallowance.
Enter the disallowance through MCS if the action can be processed to completion by
DO input (DOFA Case). Since MCS is interfaced with the CPS, the MCS disallowance will
stop the CPS payments and alert the PC to the CPS involvement.
If the disallowance cannot be processed to completion by DO input, and less than three
payments have been issued by CPS, enter a stop-payment transaction into the CPS. (When
the TPT is C03, the CPS automatically stops payment after three checks have been paid.)
Also, prepare an SSA-3428-U2 (Determination of Disallowance) per instructions in SM
Advise the claimant in writing (the MCS notice should be suppressed) that based on
the evidence received, the allegation of his or her entitlement is now questionable.
Therefore, the preliminary payment requirements are no longer met and the preliminary
payments are being stopped. Also include in the notice that further notification will
be received shortly from the processing center.
No notification of the overpayment will be sent to the claimant at this time (see
Forward the SSA-1877, SSA-795, and copy of the notice to the claimant attached to
the top of the claim to the appropriate special PC address for critical cases. Also,
forward both copies of the SSA-5015-U2 if the 553 listing was not entered through