Effective March 22, 2008, SSI Systems began receiving an electronic file that contains Claims Disposition Notices (CDN) from the Department of the Treasury. CDNs inform SSA about a check claims’ status (i.e., forgery claims). The CDN file posts a forgery indicator in the PMTH Segment Display in Column F for checks on which a claim exists.

The SSI system examines the payment history (PMTH Column F) on the most recent Supplemental Security Record (SSR) to determine if there is a possible DCN within the prior two years. If the system detects a possible DCN within the prior two years, the following alert shows at the bottom of the Missing Recurring or Supplemental Check (UPMR) screen when first displayed:

ALERT: POSSIBLE DCN - SECOND PIN REQUIRED TO REPLACE NOW – PRESS PF1 FOR HELP

The DCN alert message at the bottom of the screen is not proof of DCN abuse. The system does not contain enough information to make a fully automated DCN abuse determination. Based on the limited information available, it can only alert you to the possibility of DCN abuse. The DCN decision is that of the interviewer, and, if applicable the second reviewer.

When the system displays the alert, investigate the possibility of DCN abuse before selecting the action. For more information on DCN abuse, see GN 02406.150.

The charts in this section describes actions to take when DCN abuse is present or not present.

When the DCN Alert message displays, an individual other than the person who input the first B-stop must complete a second review of the SSR. This review must be done on the same day as the original B-stop input.

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  The nonreceipt input doesn’t process, and

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  The office must process the nonreceipt by reentering the nonreceipt and second PIN another day.

After review of the record(s), the second reviewer takes one of the following actions:

SM 01601.835 Payment History - PMTH

GN 02406.150 When to Request Payment after Status C-Stop - Normal and Dire Need Situations

MSOM BUSSR 003.012. Missing Recurring or Supplemental Check (UPMR)

When an individual protests a DCN overpayment by asserting that they did not receive or did not cash both checks, it is appropriate to have that individual file a request for reconsideration . A claimant must request reconsideration within 60 days of the date of the notice of initial determination. If the claimant requests reconsideration within the first 30 days from the date of the overpayment notice, recovery will not begin. If the claimant requests reconsideration anytime from the 31st day until the 60th day, overpayment recovery may have begun but will be suspended until a forgery determination is received from the Department of the Treasury (Treasury). Any monies collected will NOT be returned at this point. Adjudication of a request for reconsideration filed after the 60 days must be supported by good cause and overpayment recovery will be suspended while awaiting a forgery determination from Treasury.

If claimant wishes to appeal the DCN overpayment but does not do so within the 60-day reconsideration period, nor is good cause established, SSA will send the FS-1133(s) to Treasury for a forgery determination. HOWEVER, OVERPAYMENT RECOVERY WILL CONTINUE. It is to SSA’s advantage to have Treasury determine whether forgery is a factor or not so the money can be reclaimed if appropriate. However, because the protest was neither timely nor met good cause, overpayment recovery will continue.

The following describes the forms needed and actions taken during the reconsideration process.

This section provides instructions for the FO, PC and TSC when the beneficiary or recipient protests an overpayment caused by negotiation of the original and courtesy disbursement or replacement check (within 60 days of overpayment notice).

The request for reconsideration cannot be processed outside of the allowable 60-day reconsideration period when the criteria for good cause is not met. However, it is to SSA’s advantage to have Treasury perform the forgery determination. If forgery is involved, Treasury will reclaim the money and return it to SSA. Therefore, the FS-1133 should be completed by the claimant and sent to Treasury for a forgery determination. Unlike an “official” reconsideration situation, overpayment recovery is NOT discontinued nor is there a requirement for the SSA-795 or SSA-561 (because this is not an official “reconsideration period”).

IMPORTANT: For Treasury to reclaim if forgery is involved Treasury MUST receive the completed claims package absolutely no later than 16 months after the issue date. Treasury must process the forgery claim and, if forgery is found, request reclamation from the bank before 18 months have passed since the issue date. It is important to get the claims package to Treasury as soon as possible to allow time for Treasury to resolve any obstacles, such as an illegible bank stamp on the back of the check (if this prevents reclamation, the check copy must be sent to the FRB for resolution).

Once Treasury receives a completed FS-1133 from the claimant, it conducts a forgery investigation to determine if the claimant signed the check, cashed the check, gave someone else permission to cash the check, or benefited from or participated in all or part of the proceeds of the original check. Treasury will consider all information in the file. In addition:

The FO or PC will take the following action when the claimant protests Treasury's forgery determination.

Although the MBR and SSR indicate if a DCN has occurred in the preceding 2 years, neither Title II nor Title XVI has a dedicated query/field to indicate that a forgery determination has been requested, decided, appealed, denied, etc. The presence of this information is important to determining misuse/a pattern of reporting nonreceipt as well as providing a diary of due process events. In order to supplement data carried on the MBR/SSR, enter the following information in remarks or the Special Message Field as follows.

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  Claimant protests the overpayment resulting from the DCN and the date of the check(s) involved (Example: “MM/DD/YYYY Protest O/P of 11/03/97 CK”);

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  Date the FS-1133 is sent to Treasury for a forgery determination (if known) (Example: “1133 Treasury MM/DD/YYYY”);

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  Treasury's decision on the forgery claim obtained from the claims disposition notice (Example: “MM/DD/YYYY No Forgery on 11/03/97 CK”);

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  Forgery claim denied and claimant protests the denial (Example: “MM/DD/YYYY protest Treasury denial”);

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  Beneficiary/recipient is true DCN abuser. Add the phrase, “DCN Abuse - Input as C-stop until mm/yy” in the “RMKS” field on the SSR and/or “SPMSG” field on the MBR. If additional DCN abuse occurs, the date should be changed to reflect the most recent occurrence of the abuse.

Remember that a Title II protest can be recorded, and overpayment recovery ceased (if appropriate) as soon as the objection to the DCN overpayment is made. The Title XVI protest should not be recorded, nor overpayment recovery ceased until the signed SSA-561 is received.

IMPORTANT: Double check negotiations should NOT be waived as they indicate an intention to commit fraud by falsely stating that the check was not received. Similarly, the $2000 waiver tolerance does not apply because the beneficiary or claimant is not “without fault.”

FORMAL PROTEST

The following claimant is filing a formal protest on the forgery determination made by your office.

CLAIMANT’S NAME   ­______________________________                                              

CLAIMANT’S CURRENT ADDRESS ____________________________                                         

SSN  _____________________________                                      

PROGRAM (check one): ____   SSI (Title XVI) or  _____  SSA (Title II) _____

CHECK NUMBER __________ CHECK SYMBOL  ____________                       

CHECK DATE__________ CHECK AMOUNT ____________

ADDITIONAL INFORMATION   __________________________                                    

CLAIMANT’S SIGNATURE ________________________________                                              

Please contact the person named below if you have any questions.

GN 03101.020 - Good Cause for Extending the Time Limit to File an Appeal

GN 03102.100 - The Reconsideration Process

GN 02406.001 - Glossary of Nonreceipt Terms

GN 02406.160 - Description and When to Use Department of the Treasury Forms FMS-1133 and FMS-3858

MSOM DMS 006.019 - Protest/Stop Recovery Request (FO) (DRPF)

MSOM DMS 006.020 - Protest/Stop Recovery Request (TSC) (DRPT)

MSOM MS 00304.008 Overpayment Decisions (UOPD)

NL 00703.119 - Reconsideration Affirms Overpayment Determination (Reconsideration Only Requested)—Refund Requested and Adjustment Proposed

SI 04020.000 - Reconsideration - SSI

The Department of the Treasury (Treasury) generates a claims package when SSA inputs a permanent stop on a missing check (e.g.., A-stop, B-stop, C-stop, F-stop, and G-stop). A claims package consists of the FMS-3858 (Claims Document), FS-1133 (Claim Against the United States for the Proceeds of a Government Check), and an image of the check. The claims package is available on the Treasury Check Information System (TCIS).

This section describes Treasury’s actions when you input a permanent stop for a missing check prior to negotiation.

When you input a permanent stop code of A, C, F, or G for a missing check, and then someone cashes the check in question, Treasury takes the following action regarding the claims package.

If someone cashes the original check and the courtesy disbursement (or replacement) checks, Treasury sends out claims packages for both checks. For more information on where Treasury sends the claims package, see GN 02406.410 C in this section.

If a claimant does not recognize their signature after reviewing a check image, the claimant may complete the FS-1133. The claimant must return the completed FS-1133 to the FO or PC for A-stop, F-stop, B-stop, and G-stop situations. The FO or PC photocopies the FS-1133 and forwards the original to Treasury. In C-stop situations, the claimant must return the completed FS-1133 directly to Treasury. When Treasury receives the completed FS-1133, Treasury reviews the completed FS-1133 and check image. Treasury takes the following actions:

The claims package can contain either the same address found on the check in question or the address used on SSA's nonreceipt input. If claimant denies receiving the claims package, follow instructions in GN 02406.220 concerning failure to receive form FS-1133 claims package.

If CCB sends out a claims package to the payee for a Title II check and it is returned to CCB as undeliverable (for address purposes), CCB will send the claims package to the PSC for Title II. The PSC will determine the correct address and forward the package to the payee.

For a Title XVI check, CCB returns undeliverable FS-1133's to the FO of jurisdiction. The FO will correct the address on the FMS-3858.

GN 02406.001 Glossary of Nonreceipt Terms

GN 02406.150 When to Request Payment after Status C-Stop - Normal and Dire Need Situations

GN 02406.245 Payment over Cancellation (POC)/Credit Reversal

GN 02406.125 Transmitting Reports of Nonreceipt, Loss, Theft, or Destruction--Title II and Title XVI-- Recurring Checks and PMA Checks--Normal and Dire Need Situations.

GN 02406.425 Treasury Case Action Codes of Claims Disposition Notices (CDN)