Identification Number:
GN 02408 TN 24
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Stop Payments and Reclamations
Type:POMS Transmittals
Program:Title II (RSI)
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 024 – Checks
Subchapter 08 – Stop Payments and Reclamations
Transmittal No. 24, 01/24/2019

Audience

PSC: BA, CCRE, CS, DS, IES, ILPDS, IPDS, PETE, RECONR, SCPS, TSA, TST;
OCO-OEIO: BIES, BTE, CCRE, CR, FCR, PETL, RECOVR;
OCO-ODO: BTE, CCE, CR, CST, CTE, CTE TE, DSE, PAS, PETE, PETL, RCOVTA, RECOVR;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OFPO

Effective Date

Upon Receipt

Background

This is a Quick Action Transmittal. During a Financial Statement Audit performed by the Office of Information Security (OIS), it was reported that several links in external facing POMS, point to sites internal to SSA. Although the internal sites are not accessible via the links in the external site, showing any part of internal URLs is deemed a security risk and could be a target for hacking.

 

Summary of Changes

GN 02408.626 Processing the Notice of Reclamation (FMS-133) and the Request for Debit of the FI’s Account (FMS-135) for Title II EFT Payments

Subsection E.1, we removed the URL and hyperlinked the e8551 Fraud Entry Form title.

 

GN 02408.920 International Direct Deposit (IDD) Payment Reclamation Forms and the International Treasury Services Application (ITS.gov)

Subsection B, we removed the URL and hyperlinked the SSA-1712-CN form.

GN 02408.626 Processing the Notice of Reclamation (FMS-133) and the Request for Debit of the FI’s Account (FMS-135) for Title II EFT Payments

A. General

The FMS-133 is used to notify SSA of beneficiary payments returned to Treasury as a result of a reclamation request. The FMS-135 is used to notify SSA when Treasury debits a financial institution’s (FI) Federal Reserve Account. Both of these forms are used to document funds that have been recovered from the FI and require action by SSA to post the funds to the payment records. The FMS-133 also provides SSA with the information needed to contact the last withdrawer when all of the funds paid after death are unrecoverable by the FI (see SSA Contacts Last Withdrawer GN 02408.630).

Effective January 2, 2008, the Department of the Treasury (DT) imposed a three (3) year time limit for Federal agencies to submit final debits (i.e., ACH reclaims) of a Financial Institution's (FI) Federal Reserve account via the FMS-135, Request for Debit. An ACH reclaim represents a debit against an FI for certain liability on payments disbursed after the death of a beneficiary. Agencies have three years from the date of the FMS-133, Notice of Reclamation, to submit ACH reclaims via the FMS-135 to DT's Philadelphia, Kansas City and San Francisco Regional Financial Centers. Items older than three years are rejected and not processed.

FMS faxes the FMS-133 and FMS-135 into the PC paperless system for action.

B. Processing the FMS-133

1. When all of the funds have been returned (i.e., To Be Recovered By Agency block on FMS-133 equals $0.00):

Code the SSA-4208 to reduce the special payment amount (SPA) and clear the Accounts Receivable System (ARS).

See How to Complete Form SSA-4208 for Electronic Fund Transfer Reclamations SM 00609.865.

2. When part of the funds or no funds have been returned (i.e., To Be Recovered By Agency block contains a dollar amount):

  • Code the SSA-4208 for the total amount refunded.

    See How to Complete Form SSA-4208 for Electronic Fund Transfer Reclamations SM 00609.865C.

  • Attempt to recover the outstanding balance from the last withdrawer’s address found on the back of the FMS-133. See SSA Contacts Withdrawers GN 02408.630.

NOTE: If the FMS-133 does not list the names of the withdrawers for a sole-owner account, stamp “RECLAIM” on the top-middle portion of the FMS-133. Do not stamp over any information DT needs to reclaim the outstanding amount. Return the FMS-133 to Treasury for debit of the FI’s Federal Reserve Account.

REMINDER: Do not use MADCAP/ROAR to reduce or clear the SPA/BOUD because they do not post the credit to the appropriate payment and do not clear ARS.

C. Processing the FMS-135

Code the SSA-4208 with the amount reclaimed on the FMS-135 to reduce the SPA and clear ARS.

See How to Complete Form SSA-4208 for Electronic Fund Transfer Reclamations SM 00609.865.

NOTE: If any portion of the outstanding credit is not recovered, input a second SSA-4208 to write-off the ARS control on the remaining outstanding payments.

REMINDER: Do not use MADCAP/ROAR to reduce or clear the SPA/BOUD because they do not post the credit to the appropriate payment and do not clear ARS.

D. Processing the FMS-133 when the United States Secret Service (USSS) is involved

When a reclamation request contains at least seven payments with an outstanding dollar amount over $15,000.00, Treasury forwards a copy of the reclamation request to the USSS for review and forwards the FMS-133 into the PC paperless system.

SSA receives the FMS-133 with language stating:

“Forward to USSS (date) - Agency should not attempt collection until response received from USSS”

The USSS attempts to contact the last withdrawers and make a refund agreement.

When the USSS and SSA both secure refund agreements, accept and process the better one . No action is taken on the FMS-133 when the terms of the agreement are honored.

When the terms of the agreement are not honored or no agreement is made, the FMS-133 is stamped “RECLAIM” and returned to the appropriate RFC for final debit.

E. Office of the Inspector General (OIG) referrals

OIG generally investigates fraud cases that meet the prosecutive acceptance guidelines for federal judicial district where the fraud occurred.

When SSA receives an FMS-133 with more than $5,000 in incorrect payments unavailable to reclaim:

  1. 1. 

    The CCRE's or TST's in the module components refers the case to OIG via the e8551 Fraud Entry Form process prior to contacting the last withdrawer.

  2. 2. 

    Diary control the case for 30 days. CCRE's or TST's in the module components recontacts OIG directly when no response is received after 30 days.

  3. 3. 

    Process the FMS-133 per GN 02408.626B.2. when OIG does not open a case.

GN 02408.920 International Direct Deposit (IDD) Payment Reclamation Forms and the International Treasury Services Application (ITS.gov)

A. When the Office of Earnings and International Operations (OEIO) uses forms SSA-1712 CN and SSA-1712

OEIO uses the SSA-1712-CN (Notice of Reclamation – Canada Pmt Made in CAD) to reclaim incorrect Canadian dollar (CAD) payments sent to Canadian financial institutions (FI). OEIO uses the SSA-1712 (Notice of Reclamation) to reclaim incorrect U.S. dollar (USD) payments sent to Canadian FIs. OEIO uses both forms when payments were CAD and USD. These forms and others are available on OEIO’s website, in the International Direct Deposit (IDD) Resource Kit and in this section.

B. Exhibit of SSA-1712 CN (Notice of Reclamation – Canada Pmt Made

To view the form, go to SSA-1712-CN.

C. Exhibit of Form SSA-1712 (Notice of Reclamation)

To view the form, go to SSA-1712.

D. When OEIO uses Form SSA-1713 (Statement of Reclamation Action)

OEIO includes the SSA-1713 whenever OEIO sends a reclamation request directly to a foreign FI. The FI then uses the form to respond to OEIO. This form and others are available on OEIO’s website, in the International Direct Deposit (IDD) Resource Kit, and in this section.

E. Exhibit of the Form SSA-1713

To view the form, go to SSA-1713.

 

F. When technicians use ITS.gov for IDD reclamation requests

The Kansas City Financial Institution (KFC) processes reclamation requests for certain countries when the outstanding amount is $100 or more. Technicians must enter all reclamation requests for KFC through the International Treasury Services application (ITS.gov). Instructions for entering reclamations are available on the ITS.gov help file. KFC processes reclamation requests for the countries listed in the following chart:

Country Name

Country Code

Geo Code

Anguilla

70

A

Antigua & Barbuda

70

B

Australia

61

Austria

71

A

Bahama Islands

70

D

Barbados

70

F

Belgium

71

B

British Virgin Islands

70

G

Canada – CAD

51

Canada – USD

62

Cayman Islands

70

H

Cyprus

71

D

Denmark

71

F

Dominican Republic

Estonia

70

66

J

F

Finland

France

Germany

71

56

52

G

Greece

65

Grenada

70

K

Haiti

70

L

Hong Kong

71

H

Hungary

Iceland

Ireland

66

66

54

E

L

Israel

Italy

71

55

R

Jamaica

Latvia

Lithuania

Luxembourg

70

66

66

66

M

G

H

M

Malta

Monaco

71

71

J

E

Netherlands

71

K

Netherlands Antilles

70

N

New Zealand

Norway

71

53

L

Poland

Portugal

San Marino

Slovakia

Slovenia

70

60

71

66

66

E

 

C

D

V

South Africa

Spain

71

58

M

St. Kitts and Nevis

70

T

St. Lucia

70

S

St. Vincent and the Grenadines

Sweden

70

 

57

P

Switzerland

71

N

Trinidad and Tobago

United Kingdom

70

50

R

NOTE: 

Errors will generate in the ITS.gov application if a technician inputs reclamations through ITS.gov for any unlisted country. For payments sent to banks in Poland, reclamation requests can go to either the FBU in Warsaw, Poland, or KFC. This is because Poland is part of a multi-country contract.


GN 02408 TN 24 - Stop Payments and Reclamations - 1/24/2019