Identification Number:
EM-21008
Intended Audience:All RCs/ARCs/ADs/FOs/TSCs/PSCs/OCO/OCO- CSTs/OHO/OARO
Originating Office:DCBFM OFPO
Title:Processing Programmatic Remittances through the Lockbox
Type:EM - Emergency Messages
Program:Title II (RSI); Title XVI (SSI)
Link To Reference:See References at the end of this EM.
 
Retention Date: July 13, 2021

      A. Purpose:

        This emergency message (EM) provides instructions on handling remittances processed through the Department of the Treasury lockbox services managed by US Bank.
      B. Background:

        On January 29, 2021, SSA implemented the use of a lockbox to add efficiencies in the agency’s processing of paper programmatic remittances. Lockbox banking is a service provided by the U. S. Department of the Treasury, Bureau of Fiscal Service (Treasury), and their financial agent, US Bank, for the receipt of programmatic payments from customers. Based upon receipt of monthly Recovery and Collection of Overpayment Process (RECOOP) bills, the customer will mail remittances to a designated P.O. Box, and US Bank will process and deposit funds directly into the Federal Reserve Bank.

        In early 2021, RECOOP notices were changed to redirect remittances to the US Bank lockbox, instead of the Mid-Atlantic Program Service Center (MATPSC). The US Bank lockbox address is:

    Social Security Administration
    P. O. Box 5480
    Portland, OR 97228-9816

    B. Lockbox Remittance Processing
        The lockbox service will process single checks with a single coupon and single checks with multiple coupons. These coupons are part of the RECOOP billing notices sent to debtors.

        Remittance data is captured, using high-speed scanning equipment, and transmitted to the agency daily. US Bank will image the front and back of the remittances, image the front and back of any associated remittance documents, and transmit the images to the Federal Reserve Bank of Cleveland (FRB Cleveland) for viewing and individual check download via Electronic Check Processing (ECP).

        ECP is a web-based, client facing application that acts as a data and image repository. ECP is used by Federal government agencies and their financial agents to view and research transactions.

    C. Returns from the Lockbox
        Any item that US Bank cannot process will be forwarded daily, via UPS overnight mail, to MATPSC. This includes the following items:

          · Payments without a coupon;

          · Unbalanced single check/multi-coupon payments;

          · Payments with multiple checks/single coupon;

          · Credit card payments;

          · Other

              § Foreign coin, checks with foreign banks or in foreign currency;

              § Unreadable or damaged items; and

          · All correspondence.
    US Bank will send these items to:
    Social Security Administration
    Remittance & Accounting Unit
    Attn: DMS Chief
    300 Spring Garden Street, 3rd floor
    Philadelphia, PA 19123
        Once received, MATPSC will follow current procedures located in GN 02403.000 to process the forwarded remittances.
    D. Post Transaction Record Updates
        US Bank will include an Individual Reference Number (IRN) in the daily file for all remittances processed by the Lockbox. This will assist in processing check returns and check adjustments. An IRN is a unique number generated by US Bank sent to Treasury’s central information repository. As a result, the IRN ‘LCK########’ will appear in the ‘Receipt Number’ field on the daily detail file and in the Receipt Number field of the REQD screen in DMS. The number will be the last 8 digits of the IRN.

        Direct all program-related and technical questions to your Regional Office (RO) support staff or Program Service Center (PSC) Operations Analysis (OA) staff. They may refer questions, concerns or problems to their Central Office contacts.


    Reference:
        GN 02403.000 Procedures for Handling Remittances and Premium Payments in the Field Office

        GN 02403.163 Processing Programmatic Remittances through the lockbox


    EM-21008 - Processing Programmatic Remittances through the Lockbox - 002/17/2021