The system will automatically generate an S07 suspension when notified of a returned
check and the reason for the return is coded:
“miscellaneous” (MS); or,
“death of claimant” (DT) and an entry is not present in the date of death field and none is being posted along
with the returned check input.
The system is notified of these returned checks by either a:
MSSICS transmission using a Returned Check Reason Code (UPRS) Screen (as described
in MSOM BUSSR 003.005); or
returned check report from TD.
As explained in SI 02301.245B.2., S07 is an exception to systems Goldberg/Kelly processing
and the suspension will be effective with the first month that payments can be stopped
based on the monthly recurring payment tape cutoff. Because the system does not issue
notices in SVB claims, and returned check alerts and diaries are not generated when
the reason for check return is coded as “miscellaneous” (as explained in SM 01315.070
and SM 01315.075, respectively), systems-generated S07 suspensions on SVB records
may go undetected and the SVB beneficiary will not be notified of the suspension.
It is conceivable that SSA will not become aware of an ongoing S07 situation in SVB
claims, and after the record has remained in S07 for 12 consecutive months, SVB entitlement
will automatically terminate.