Identification Number:
GN 02408 TN 60
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Stop Payments and Reclamations
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 024 – Checks
Subchapter 08 – Stop Payments and Reclamations
Transmittal No. 60, 04/12/2022

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

As part of the OFPO three year review process, a review of GN 02408.626 has been completed.

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

Sections A, B, and C have been expanded and re-organized to reflect additional information on the Fiscal Service forms for technicians.

 

 

GN 02408.626 Processing the Notice of Reclamation (FS-133) and the Request for Debit of the Financial Institution's (FI) Account (FS-135) for Title II Electronic Funds Transfer (EFT) Payments by the Program Service Centers

A. General

The Department of the Treasury (Treasury) uses the Notice of Reclamation, (FS-133), to notify the Social Security Administration (SSA) of beneficiary payments returned to Treasury as a result of a reclamation request. Treasury uses the Request for Debit of the Financial Institution's Account, (FS-135), to notify SSA when Treasury debits a FI's Federal Reserve Account. Treasury uses the FS-133 and FS-135 to document recovery of funds from the FI that require action by SSA to post the funds to the payment records. The FS-133 also provides SSA with the information necessary to contact the last withdrawer when funds paid after death are unrecoverable by the FI (see GN 02408.630).

Treasury imposes a three (3) year time limit for Federal agencies to submit final debits requests (i.e., ACH reclaims) of a FI's Federal Reserve account via the FS-135, Request for Debit. An ACH reclamation 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 FS-133, Notice of Reclamation, to submit ACH reclaims via the FS-135 to Treasury's Philadelphia and Kansas City Regional Financial Centers. Items will reject and will not process if they are older than three years.

Treasury may send the FS-133 or the FS-135 to the Paperless System for action. Cases involving title II reclamations should be controlled for technicians to retrieve the documents from the Treasury Check Information System's (TCIS) Dashboard if the document is not available in Paperless.

B. Processing the FS-133

The second page of the FS-133 form has three sections. The top section provides information on the amount of funds returned from the FI either by check or request for electronic debit. The middle section provides information from the FI regarding the reclamation, including last withdrawer information if provided by the FI, and the bottom section provides the FI's certification information regarding the reclamation request.

1. The first section on the second page of the FS-133 can reflect if the FI has returned all of the funds, a partial amount, or if no funds have been returned. How Treasury completes the form determines what action the technician will need to take.

a. When all of the funds have been returned (i.e., To Be Recovered By Agency block on FS-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 00609.865C and SM 00609.820. The SSA-4208 can be input via the MAMPSC Data Input Page . .

b. 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 to reduce the SPA and clear ARS. See how to complete form SSA-4208 for Electronic Fund Transfer Reclamation SM 00609.865C. The SSA-4208 can be input via the MAMPSC Data Input Page see SM 00609.850.

Attempt to recover the outstanding balance from the last withdrawer's address found on the back middle section of the FS-133. See GN 02408.630.

If the FS-133 does not list the names of the withdrawer for a sole-owner account, request a reclamation via the Treasury Online Forms Requester (TOFR) on the MAMPSC Data Input Page. Send the material to the development hold file (DHF) for 60 days to control for the FS-135 response. If no FS-135 is received in 60 days, review TCIS's Dashboard for the FS-135 or debit action. If there is no FS-135 or debit action available, contact Treasury per GN 02408.635.

REMINDER: Technicians should use the SSA-4208 to process a credit from the FS-133 and FS-135. Only use MADCAP/ROAR to reduce or clear the SPA/BOUD if the prior SSA-4208 input was coded incorrectly or there were missing E-stops.

For international reclamations, technicians can use the SSA-4208 to process a credit from the FS-133 and FS-135 for cases that Alien Taxation does not apply. The SSA-4208 can also be used for international reclamations to process a write-off or to clear ARS. If the initial SSA-4208 input was coded incorrectly, or if there was a missing E-stop, the use of the OR sic maybe warranted. For partial recovery or no recovery of International Reclamations, see GN 02408.945.

NOTE: All international reclamations should be forwarded to PC8.

2. The middle section of the FS-133 provides various information from the FI regarding the reclamation.

a. If the FI provides a correction to the date of death information:

Take the appropriate actions to develop for accurate date of death information, and if applicable, abandon the reclamation, see GN 02408.800.

b. If the FI provides last withdrawer information:

Follow the instructions found in GN 02408.630.

c. If the FI protests the reclamation under the 120-day rule:

Follow instructions found in GN 02408.610.C.3. In most PCs 120-day protests are handled solely by the OAS analyst.

The bottom section provides the FI's certification information regarding the reclamation request.

C. Processing the FS-135

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

See How to Complete Form SSA-4208 for Electronic Fund Transfer Reclamations SM 00609.865C. The SSA-4208 can be input via the MAMPSC Data Input Page see SM 00609.850.

If we do not recover any portion of the outstanding credit, input a second SSA-4208 action to write-off the ARS control on the remaining outstanding payments.

REMINDER: Technicians should use the SSA-4208 to process a credit from the FS-133 and FS-135. Only use MADCAP/ROAR to reduce or clear the SPA/BOUD if the prior SSA-4208 input was coded incorrectly or there were missing E-stops.

For international reclamations, technicians can use the SSA-4208 to process a credit from the FS-133 and FS-135 for cases that Alien Taxation does not apply. The SSA-4208 can also be used for international reclamations to process a write-off or to clear ARS. If the initial SSA-4208 input was coded incorrectly, or if there was a missing E-stop, the use of the OR sic maybe warranted. For partial recovery or no recovery of International Reclamations, see GN 02408.945.

NOTE: All international reclamations should be forwarded to PC8.

D. Processing the FS-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 FS-133 into the PC paperless system.

SSA receives the FS-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 withdrawer and make a refund agreement.

When the USSS and SSA both secure refund agreements, accept and process the better one. Take no action on the FS-133 when the terms of the agreement are honored.

When the terms of the agreement are not honored or no agreement is made, the FS-133 is stamped “RECLAIM” and returned to the appropriate Fiscal Financial Center 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 FS-133 with more than $5,000 in incorrect payments unavailable to reclaim:

  1. 1. 

    The technician refers the case to OIG via the Allegation Referral Intake System (ARIS) process prior to contacting the last withdrawer, after applying any credits from the FS-133 and a balance of more than $5,000 remains.

  2. 2. 

    Diary control the case for 30 days. The technician recontacts OIG directly when no response is received after 30 days.

  3. 3. 

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


GN 02408 TN 60 - Stop Payments and Reclamations - 4/12/2022