Effective Dates: 2/19/2025 - Present

Identification Number:
GN 02406 TN 129
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Failure to Receive a Check/Payment - Title II, Title XVI
Type:POMS Full Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM

Part GN – General

Chapter 024 – Checks

Subchapter 06 – Failure to Receive a Check/Payment - Title II, Title XVI

Transmittal No. 129, 02/19/2025

Audience

PSC: BA, CCRE, IEBA, PETE, SPIKE, TSA, TST;
OCO-OEIO: BET, BIES, BTE, CCRE, CR, EIE, FCR, PETL, RECOVR;
OCO-ODO: BET, BTE, CCE, CR, CST, CTE, CTE TE, DSE, PAS, PETE, PETL, RCOVTA, RECOVR;
OCO-OEO: CST, LCST;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OFPO

Effective Date

Upon Receipt

Background

This transmittal provides guidance for the nonreceipt process, payment status requests, and the C-stop process. We updated the instructions for clarity and made no change in policy.

Summary of Changes

GN 02406.135 Processing Reports of Nonreceipt, Loss, Theft, or Destruction of Payments -- Checks Due And Not Due

Throughout this section we replaced "non-receipt" with "nonreceipt" and capitalized "Title."

Subsection A - We changed the title to "Introduction" and added an introductory paragraph and a NOTE.

Subsection B - We changed the title to "Procedure for processing reports of nonreceipt." We added step action charts. The step action chart includes information found previously in section B7. We removed subsections B1 through B7 and created subsections C through H to house this information for clarity.

Subsection C - We created this subsection with title "When to accept a report of nonreceipt for nonrecurring checks." We added a step action chart .

Subsection D - We created this subsection with title "When person receives the original and courtesy disbursement or replacement check." We added the potential double check negotiation procedures.

Subsection E - We created this subsection with title "Title XVI recurring check cashed, courtesy check returned." We added procedures for preventing the repeated reissuing of a type 2E underpayment check. A note labeled "IMPORTANT" previously found in B7 is now edited and included in this section.

Subsection F - We created this subsection with title "Action when change of address, change of direct deposit or cancellation of direct deposit reported." We added the procedures for reports of address change and cancellation of direct deposit.

Subsection G - We created this subsection with title "Action when individual is no longer in current pay." We added the procedures for nonreceipt for individuals not in current pay.

Subsection H -We created this subsection with title "Action when check not posted to the SSR."

Subsection I - We created this subsection and added "References."

 

GN 02406.137 General Status Requests for Payments

Subsection B - We created an "IF THEN" chart to clarify guidance on follow-up and status requests from the Field Office, Teleservice Center and Regional Offices. We deleted obsolete information about the TFS-3864 and the old phone number and the obsolete reference to GN 02406.430.

 

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

Throughout this section we replaced "beneficiary or recipient" with claimant.

Subsection A - We reformatted the information in the first paragraph with bullets for clarity.

Subsection A.1. - We changed the title to "Reporter is uncertain if they received payment." We reformatted the information with bullets for clarity.

Subsection A.2 - We changed the title to "SSA is aware of double Check Negotiation (DCN) abuse by beneficiary, recipient, or representative payee" We removed subsections 3 and 4 and created subsections B and C to house this information for clarity.

Subsection B - We created this subsection with title "How to identify DCN abuse cases."We added information regarding action taken to identify double check negotiation abuse.

Subsection C - We created this subsection with title "Action to take when C-stop present." We added information about Treasury's procedures when a C-stop is present.

Subsection D - We added "IF THEN" charts to explain how to input a C-stop for Title II and Title XVI cases.

Subsection E - We added "STEP ACTION" charts to explain forwarding cases to FO via priority MDW.

Subsection F - We added a reference subsection.

GN 02406.135 Processing Reports of Nonreceipt, Loss, Theft, or Destruction of Payments -- Checks Due And Not Due

A. Introduction

Processing reports of missing checks depends upon when the report is received, the type of report (nonreceipt, loss, theft, or destruction), whether or not payment is due, and pertinent information obtained in the interview.

NOTE: The following instructions do not apply to checks with a foreign address. See GN 02406.505 -through GN 02406.540.

B. Procedure for processing reports of nonreceipt

1. Initial Actions

Take the actions indicated in the following chart when processing reports of nonreceipt, loss, theft or destruction.

 

STEP

ACTION

1

Examine a current query for each missing check. Determine if a payment was due and if we issued the payment.

For Title II, review the Master Beneficiary Record (MBR) and Payment History Update System (PHUS)

For Title XVI, review the SSR

NOTE: Review the Treasury Check Information System (TCIS)

Go to STEP 2

2

If the check was issued and not due refer to GN 02406.175A.7. STOP.

If the beneficiary, recipient or representative payee received the check and it was subsequently lost, stolen, or destroyed before they cashed the check, see GN 02406.135B.2 in this section. STOP

. If we received the report of nonreceipt prior to the third mail delivery day after the due date and payment is due, go to STEP 3

. If we received the report of nonreceipt on or after the third mail delivery day after the due date, obtain the necessary information and transmit the nonreceipt report immediately. Follow instructions in GN 02406.125 STOP.

3

Do not automatically advise calling back on the third mail delivery day after the check due date. Review current MBR, PHUS, SSR, or Inquiry Response queries to determine whether a problem exists on the record that can be resolved at the time of the request, go to STEP 4.

NOTE: If there was an address change see GN 02406.135F

If the check did not come on the scheduled delivery date, go to STEP 4.

4

Explain that payments sometimes are delayed in the mail. Advise the beneficiary, recipient, or representative payee to recontact SSA if they do not receive the check on the third mail delivery day following the scheduled check delivery day.

STOP.

2. Action for Lost, Stolen, Destroyed or Mutilated Checks

In the following scenarios take the appropriate action as indicated on the chart.

IF

THEN

the beneficiary, recipient, or representative payee received the check and it was subsequently lost, stolen, or destroyed before they cashed the check...

report immediately via the instructions in GN 02406.125.

it appears that a number of checks in a geographic area have not been received...

it is a possibility that mass loss has occurred. Process mass loss according to instructions found in GN 02406.700.

the check is smudged or mutilated…

merchant or financial institution (FI) can refuse to cash the smudged or mutilated check even if it is legible. Process smudged or mutilated checks based on the instructions found in GN 02406.230.

C. When to accept a report of nonreceipt for nonrecurring checks

The following chart displays necessary actions for reports of nonreceipt for nonrecurring checks.

IF

THEN

nonreceipt for nonrecurring Title II check reported...

SSA will accept a nonreceipt report for any nonrecurring check (courtesy disbursement, replacement, CPS, PMA, and OCO A-) on the seventh calendar day after the run date shown on the PHUS query. For more information, see GN 02406.201.

Keep in mind the timing in connection with replacing a PMA check: if the PMA check is issued after the cutoff date, Treasury will not release the payment until the first of the following month. Be sure to advise the beneficiary, recipient, or representative payee that a payment issued in this period will not be delivered until the first of the next month. All PMAs are subject to this delay no matter what system is used to process the PMA.

nonreceipt for nonrecurring Title XVI check reported...

When a B-stop is transmitted on the original check, SSA will accept a nonreceipt report for a type 9 payment (courtesy disbursement check) 10 calendar days after the run date shown for the interim 01 on the Q query. For more information, see GN 02406.207. If the nonreceipt was input as a C-stop, it could take 3-5 weeks before a replacement is issued or a claims package is sent.

Nonreceipt for type 2 and 4 payments (underpayment and AOTP, respectively) can be accepted 7 calendar days after the run date shown in the payment history. For more information, see GN 02406.205.

D. When a person receives the original and courtesy disbursement or replacement check

Ensure the beneficiary, recipient, or representative payee reporting the nonreceipt understands that only one check is due for the benefit month. If they received both the original and a courtesy disbursement or replacement check, they must return the original. If both are cashed, a DCN overpayment exists.

Process returned Title II checks according to instructions in GN 02405.010. Code the lower left-hand corner with the appropriate information (DC for duplicate checks) and return to the issuing RFC.

NOTE: Instructions for processing returned Title XVI recurring, courtesy disbursement and replacement checks are located in SM 01315.011, SM 01315.012, and GN 02405.100.

E. Title XVI recurring check cashed, courtesy check returned

The following is a procedure to prevent the repeated reissuing of a type 2E underpayment check as described in the following example.

EXAMPLE: The FO/TSC transmits a B-stop for a missing recurring check. Treasury cancels the missing recurring check and a courtesy check is issued. These actions are reflected in PMTH segment on the SSR.

 

 

 

 

 

10/01/97

9

N

 

484.00

10/01/97

6

N

S

484.00

(Type 1 changed to 6 to indicate nonreceipt; S indicates check cancelled, credit back to SSA.)

Frequently, the recurring check is received and cashed and the recipient returns the courtesy check to the FO for forwarding to Treasury. If the courtesy check is received and processed by Treasury before the credit for the type 1 is “reversed,” a type 2 underpayment check will be issued:

 

 

 

 

 

 

 

10/01/97

9

N

 

 

484.00

10/01/97

6

N

 

S

484.00

10/15/97

2

10/97

 

 

484.00

10/15/97

2E

 

 

 

484.00

 

 

 

 

 

 

10/01/97

9

N

 

 

484.00

10/01/97

6

N

U

 

484.00

(No 2E check will be issued.)

IMPORTANT: . The beneficiary, recipient, or representative payee must not endorse the check over to our agency. This creates an unnecessary workload for Treasury.

 

F. Action when change of address, change of direct deposit, or cancellation of direct deposit reported

If the beneficiary, recipient, or representative payee reports a change of address not reflected on the SSA master records or requests a change (or cancellation) of direct deposit, transmit the correct check delivery information on the same input with the nonreceipt data. Make a separate input to update the address or direct deposit data on the MBR for Title II or SSR for Title XVI.

NOTE: For more information on change of address see SM 03005.170.

 

G. Action when individual is no longer in current pay

Nonreceipt procedures found in this policy apply if a due check was issued even if the beneficiary, recipient, or representative payee is not in current pay status at the time of the nonreceipt report.

EXAMPLE: Nonreceipt input is appropriate for Title XVI records in PSY Sxx, M01 (force pay), T30, NO7, RN:1x2, etc., when the PMTH shows the check was issued and the record indicates it is still due. Nonreceipt input is appropriate for Title II records in LAF codes of S, E, and T, if the PHUS indicates a due check was issued.

 

H. Action when check not posted to SSR

Contact DBCA via email at: OBASA.TOB@ssa.gov to confirm whether the check was issued if it is not posted on the SSR.

I.  References

NL 00703.322 Reissuance of Lost Check

SM 01315.175 Nonreceipt for an Interim Assistance Reimbursement (IAR) Payment

SM 01325.040 (Title XVI) Systems Input When an SSI EAP/IP Third Party Draft Check Is Lost or Returned

SM 01315.168 How to Handle Nonreceipt of One-Time Payments

SM 01901.005 When to Use One Time Payments (OTPs)

SM 01315.143 How to Request a Special Voucher Payment

SM 01325.040 Systems Input When an SSI EAP/IP Third Party Draft Check Is Lost or Returned

SM 01315.168 How to Handle Nonreceipt of One-Time Payments

SM 01901.005 When to Use One Time Payments (OTPs)

GN 02406.137 General Status Requests for Payments

A. Introduction

This section provides instructions for Field Offices (FO), Teleservice Centers (TSC), Regional Offices (RO) and Processing Centers (PC) when general status requests for payment arise.

B. Procedure for Follow-up Request Process

Use the chart for guidance concerning follow-up and status requests.

 

IF

THEN

FO and TSC

For assistance with routine cases, call the Department of the Treasury’s (Treasury) general number (855–868–0151).

For problem cases, contact the Regional Office (RO) or Processing Center (PC).

RO Analysts and PC Operations Analysis Staff (OAS)

Call Treasury's general number. Do not call the Treasury analysts on their direct telephone numbers. This ensures every request receives attention.

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

A. Policy for requesting payment after status for C-STOP

When the beneficiary, recipient, or representative payee timely reports nonreceipt of a check, SSA will usually replace the payment with a courtesy disbursement check without waiting for the Department of the Treasury (Treasury) to determine the status of the original payment. With a C-Stop code, SSA instructs Treasury to issue a replacement check only after Treasury determines the status of the original check (i.e., if the check was cashed). SSA inputs a C-Stop when the beneficiary, recipient, or representative payee:

  • •

    is unsure if they received a payment; or

  • •

    has a history of abusing the nonreceipt reporting process.

The following policy explains the situations when payment after status (C-Stop) may apply.

1. Reporter is uncertain if they received payment

Input a C-Stop in the following scenarios when the beneficiary, recipient, or representative payee:

  • •

    is “uncertain” about having received several checks during the past year.

  • •

    cannot remember receiving a check for a date during the past year.

  • •

    requests our assistance to confirm payment of their check(s) without alleging nonreceipt.

2. SSA is aware of Double Check Negotiation (DCN) abuse by beneficiary, recipient, or representative payee

Technicians may use the C-Stop if, within the 2 years immediately preceding the claim for nonreceipt, a beneficiary, recipient, or representative payee :

  1. a. 

    Had a forgery claim denied and it is not under appeal; or

  2. b. 

    Negotiated both an original and a replacement check and has not claimed that either endorsement was forged; or

  3. c. 

    The following remark appears in the “RMKS” field on the Supplemental Security Record (SSR) or “SPMSG” field on the Master Beneficiary Record (MBR): “DCN Abuse - Input as C-Stop through mm/yyyy.”  Additional DCN abuse should not occur during this period; however, if it does, change the date to reflect the new 24-month period.

IMPORTANT: For further information on how to identify DCN abuse see GN 02406.150B.For procedures when dire need is alleged in this situation, see GN 02406.150C.

Example of how to process a DCN situation where SSA is aware that the person has misused the reporting system:

A beneficiary, recipient, or representative payee incurs a DCN in July 2024. Because they are known to abuse the DCN system, enter the warning statement in Remarks/Special Message field as, “DCN Abuse - Input as C-Stop through July 2026,". Any nonreceipt allegations made from July 2024 through July 2026 will be input as a C-Stop; beginning in August 2026, allegations can be input as a B-Stop.

B. How to identify DCN abuse cases

If the message: “DCN Abuse - Input as C-Stop through mm/yyyy” appears in the RMKS or SPMSG field, the case involves someone who has abused the nonreceipt reporting system with one or more true DCNs. Technicians should input any allegation of nonreceipt as a C-Stop until the 24-month period ends. For a DCN Abuse case, a DCN indicator or a denied forgery claim with no pending appeal will be on the record. Or no claim of forgery occurred on a DCN overpayment.

1. Identifying the DCN indicator on the record

Title II: Review the MBR. The NON REC field will show “DCN MM/YY.” (This does not always post to the MBR. However, this field will appear between the Schedule Payment (SPC PAY) field and the Hold-Check (HLD CHK) field.)

Title XVI: Review the SSR. If MSSICS has the message, “ALERT: POSSIBLE DCN - SECOND PIN REQUIRED TO REPLACE NOW - PRESS F1 FOR HELP” when transmitting nonreceipt, then review the SSR (see GN 02406.150A.3.b. and GN 02406.150A.3.c.).

2. Identifying if a forgery claim has been denied and no appeal is pending (see also GN 02406.150C)

Title II: Review the ROAR segment of the FACT query to see if DCN abuse is established due to a prior or current DCN overpayment. The ROAR record will reflect “TOE–DUPLICATE PAYMENT TREASURY.” ROAR will have a transaction code of 23 to indicate a protest of a DCN overpayment, then a 27 to indicate the reconsideration was denied (event status code is other than due process). No transaction code of 23 will show if the individual never protested.

Title XVI: Review the PMTH Field F for a Forgery Indicator code of C, F or W. If any of these codes are present for a payment issued within the past 24 months, process a C-Stop. See SM 01601.835C12F for forgery indicator values. Also, look in CMPH for TOPs (overpayments) with RSN: DC within the past 24 months, and identify the sequence. Review OPDD segment for the Sequence number(s) identified. If there is an overpayment collection or recovery decision (D, G, or K TAC) for at least one DCN overpayment within 24 months, and no Forgery Indicator of A, B, D, E or I is present for that overpayment, transmit a C-Stop; otherwise, a B-Stop.

3. Identifying when no claim of forgery was made on a DCN overpayment

Title II: There will be an overpayment on ROAR which reflects “TOE–DUPLICATE PAYMENT TREASURY.”

Title XVI: PMTH Field F for the payment in question should be blank when there is no forgery claim. Look in CMPH for TOPs (overpayments) with RSN: DC within the past 24 months, and identify the sequence numbers. Review OPDD segment for the sequence number(s) identified. If there is an overpayment collect or recovery decision (D, G, K TAC) for at least one DCN overpayment within 24 months, transmit a C-Stop; otherwise a B-Stop.

NOTE: DA TAC should NOT be considered a collection decision because it appears during due process.

C. Actions to take when C-stop present

If a C-Stop was input, inform the individual that SSA will not issue a replacement check until Treasury has determined the status of the original check. If no one has cashed the original check, Treasury issues a replacement check. If someone cashed the original check, the beneficiary, recipient, or representative payee may make a forgery claim (if check was issued 12 months ago or less).

NOTE: For further explanation of the forgery claim process see GN 02406.160 and GN 02406.310. If the claim does not involve forgery, Treasury sends the CDN information to SSA and notifies the beneficiary, recipient, or representative payee . The technician does not issue a settlement check.

D. Procedure on how to input a C-Stop

FO and PCs should transmit C-Stops when:

  • •

    a caller is “unsure” as to whether the beneficiary, recipient, or representative payee received a check or

  • •

    there is evidence of DCN abuse.

The TSC should also refer suspected abuse to the FO or PC for processing.

1. How to input a C-Stop for Title II cases

Determine if this is a dire need situation. (For an explanation of dire need, see RS 02801.010.).

IF

THEN

yes

see GN 02406.150E.

no

transmit nonreceipt by selecting NRT = 2, Payment After Status, C-Stop on the PEN2 screen. See instructions in MS 06303.029.

2. How to input a C-Stop for Title XVI cases

Determine if this is a dire need situation (For an explanation of dire need, see SI 02004.100).

IF

THEN

yes

see GN 02406.150E.

no

transmit nonreceipt by selecting “2 - REPLACE AFTER INVESTIGATION” on the “Missing Recurring or Supplemental Check” (UPMR) screen in MSSICS. See instructions in MS 00303.012.

For both Title II and Title XVI, if the nonreceipt allegation is received less than 15 days from the issue date of the check, the C-Stop will be held until 15 days have passed since the check was issued before SSA forwards the report to Treasury. This is to give sufficient time for the original check to be presented to Treasury for payment if it has been cashed.

E. Procedure when beneficiary, recipient, or representative payee alleges dire need

If a beneficiary, recipient, or representative payee wishes to see a copy of a check because they cannot remember whether they received it or not, the technician should input a C-Stop. Dire need DOES NOT apply in this situation. If a beneficiary, recipient, or representative payee is a known abuser of the nonreceipt reporting system and is alleging that their situation is dire need, they must meet the criteria below.

1. For Title II cases, if the person meets the criteria in RS 02801.001:

The 800# Answering Site will forward the case to the FO via PRIORITY MDW. The FO will then take the following steps:

STEP

ACTION

1

Issue an IP for up to $5,000.

2

Issue a CPS payment to pay the balance.

3

Refer the case to the PC via PRIORITY MDW to input the F-stop on the missing payment.

2. For Title XVI cases, if the person meets the criteria in SI 02004.100:

The TSC will forward the case to the FO via PRIORITY MDW. The FO will take the following steps:

STEP

ACTION

1

Issue an IP for up to $2,000 (The IP will be withheld from the next month's check).

NOTE: Do not issue an AOTP payment.

2

Input a C-Stop for the missing recurring check. Replacement of the original check will be dependent upon the status determined by Treasury.

F. References

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

GN 02406.310 Request for Reconsideration of DCN Overpayment or Forgery Determination

GN 02406.300 Original and Courtesy or Replacement Check Cashed – Double Check Negotiation (DCN) – Potential Overpayment

RS 02801.001 Critical Case Criteria and Exclusions

SI 02004.100B Immediate Payments (IPs)


GN 02406 TN 129 - Failure to Receive a Check/Payment - Title II, Title XVI - 2/19/2025