Effective Dates: 4/21/2025 - Present

Identification Number:
GN 02408 TN 90
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Stop Payments and Reclamations
Type:POMS Full 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. 90, 04/21/2025

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

The POMS sections in this transmittal are part of a three year cycle review performed by OFPO/OPRP. We are incorporating comments from a full Intercomponent Review.

Summary of Changes

GN 02408.630 SSA Contacts Last Withdrawers

Subsection B.6, we updated the language to add the process of using the Treasury Online Forms Request (TOFR) application.

 

GN 02408.645 Debiting the FI’s Account for EFT Reclamations

Subsection A, we added a background title to the subsection. We added a note to state when Treasury began to automatically process final debits against the FI’s federal reserve accounts for all reclamations not completed or closed by the end of the 3 year reclamation time limit.

Subsection D, we added a note indicating that some rejects require a MACADE input instead of an SSA-4208.

Subsection E, we added a reference section.

 

GN 02408.665 Financial Institution (FI) Returns Incorrect Payments to SSA

We replaced the references made to DT with Treasury.

Subsection C, we added a reference to the abandon reclamation request policy for EFT.

 

GN 02408.630 SSA Contacts Last Withdrawers

A. Background on last withdrawers

Federal regulations under 31 CFR 210.11(b)(3)(i) clarify the reporting requirements for financial institutions (FIs) in the automated reclamation process. To qualify for limited liability, an FI must report the name, last known address, and phone number of any person who have withdrawn, or had authorization to withdraw funds subject to reclamations. We must attempt to contact the last withdrawers to request a refund of any funds due the agency.

B. Process for Title II last withdrawers

The Title II process is as follows:

  1. 1. 

    Treasury uploads the Form FMS-133 (Notice of Reclamation (NOR)) via fax into our paperless repository. Technicians in the processing center (PC) of jurisdiction review the NOR and code the SSA-4208 (Reclamation Data Input Form) for any funds recovered, and mail a notice (the E3595 or overpayment notice) to the last withdrawer requesting repayment of any outstanding funds withdrawn from the account. For instructions on how to code the SSA-4208 or process the FMS-133 NOR, see SM 00609.855 and GN 02408.626B.2.

  2. 2. 

    To determine which notice to mail:

    • •

      If the payment after death is not an overpayment per GN 02201.001E through GN 02201.001F and GN 02205.003C.3., see the E3595 notice information on recovery from an individual who withdrew funds from a deceased beneficiary’s bank account after death in NL 00703.595.

    • •

      If the individual is receiving benefits, and the payment after death is an overpayment per GN 02201.001B.2., see the information on notification of a Title II overpayment in GN 02201.009.

  3. 3. 

    Upon release of the E3595 or overpayment notice, prepare a 45-day diary for returning the funds.

  4. 4. 

    If the last withdrawer refunds part of the money, the PC notifies Treasury of the amount collected and codes the SSA-4208 for the refunded amount. If an individual refunds an improper Electronic Funds Transfer (EFT) Payment, see GN 02408.670. Any funds still outstanding and still due to SSA are debited from the FI’s federal reserve account via the FMS-135 (Request for Debit of the FI’s Account). See GN 02408.626B.2.

  5. 5. 

    If the last withdrawer refunds all of the money, the PC codes the SSA-4208 for the refunded amount. See also information on when an individual refunds an improper EFT payment in GN 02408.670.

  6. 6. 

    If the last withdrawer does not respond within 45 days, input a reclaim request using the Treasury Online Forms Request (TOFR) application. The TOFR application is available nationally on the KCNET's MAMPSC Data Input Page.

    Treasury debits the FI’s federal reserve account and returns an FMS-135 to SSA when the debit is completed.

  7. 7. 

    It is important for the PC to let Treasury know of the additional amount collected, in order to avoid collecting funds twice. See the instructions on dual recovery in GN 02408.720.

NOTE: Do not use Manual Adjustment Credit and Award Process (MADCAP) or Recovery of Overpayments, Accounting and Reporting (ROAR) to reduce or clear the special payment amount (SPA) or beneficiary overpayment or underpayment data (O/U PAY) because they do not post the credit to the appropriate payment and do not clear the Accounts Receivable System (ARS).

C. Process for Title XVI last withdrawers

The Title XVI process is as follows:

  1. 1. 

    Treasury uploads the FMS-133 NOR form into the Treasury Check Information System (TCIS) for an electronic copy to be available for retrieval by the Office of Benefit Accounting and Systems Analysis (OBASA) Treasury Operations Branch (TOB) daily.

  2. 2. 

    OBASA reviews the FMS-133 retrieved from TCIS and analyzes the Supplemental Security Record (SSR).

    • •

      If the recipient is deceased and money is not due SSA, OBASA will process an abandonment of reclamation to stop recovery efforts.

    • •

      If the recipient is alive or the NOR is invalid due to an incorrect date of death and money is not due SSA, OBASA will process an abandonment of reclamation to stop recovery efforts.

    • •

      If the recipient is deceased and money is due SSA, OBASA will post any remitted funds returned on the FMS-133 NOR to the SSR, establish a 180-day diary, and email the FMS-133 NOR file to the field office (FO) of jurisdiction to contact the last withdrawer.

  3. 3. 

    After receiving the email from OBASA, FO technicians will mail either an e3595 or an overpayment notice to the last withdrawers to request repayment of any outstanding funds withdrawn from the account. For an example of the notice, refer to NL 00703.595.

  4. 4. 

    To determine which notice should be mailed:

    • •

      For an example of the notice if the payment after death is not an overpayment, see NL 00703.595.

    • •

      If the individual is receiving benefits, and the payment after death is an overpayment, see instructions on notifying individuals of Title XVI overpayments in SI 02220.010.

  5. 5. 

    Upon release of the E3595 or overpayment notice, the FO technicians create a 45-day diary for return of funds.

    • •

      If the last withdrawer returns only part of the funds owed within the 45 days, the FO technician emails OBASA at OBASA.TOB@ssa.gov with the amount collected and enters the remittance in the Debt Management System (DMS) if not already posted to the SSR. For information on the field office remittance input, see GN 02403.003 and MSOM DMS 003.006. Do not waive any outstanding overpayment/payment(s) after death. Treasury will debit any funds still outstanding and still due to SSA from the FI’s federal reserve account via the FMS-135.

    • •

      If the last withdrawer refunds all the money, the FO technician emails OBASA at OBASA.TOB@ssa.gov with the amount collected and enters the remittance in DMS if not already posted on the SSR. For information on how to complete an SSA 3969-U2 (SSI Remittance Register), see OS 00515.020. See also the information on when an individual refunds an incorrect EFT payment in GN 02408.670. Once the payment posts to the Overpayment Refund Data (OPRR) field of the SSR, the FO must request abandonment of reclamation from Treasury via SSA-1714 (Abandon Reclamation Request); see GN 02408.800.

    • •

      If the last withdrawer does not refund any money owed within 45 days, the FO should take no additional action. After the 180-day OBASA diary matures, OBASA will complete the FMS-133 NOR, stamp “RECLAIM” in the top-middle portion of the form, and forward the completed form to Treasury.

  6. 6. 

    If any funds are still due, Treasury processes the FMS-133 NOR and debits the 45-day limited liability amount from the FI’s federal reserve account, returning the credit to OBASA via an FMS-135.

  7. 7. 

    OBASA posts any additional money collected on the FMS-135 to the SSR.

  8. 8. 

    OBASA reviews DMS and the SSR for any credits posted to avoid collecting funds twice.

NOTE: It is important for FO technicians to inform OBASA of any additional amounts collected to avoid collecting the funds twice. See information on dual recovery in GN 02408.720.

D. References

  • •

    GN 02201.001 What is a Title II Overpayment

  • •

    GN 02201.009 Notification of a Title II Overpayment

  • •

    GN 02210.221 How to Process Death Cases – DCR/DS Actions

  • •

    GN 02403.003 The Field Office Remittance Input

  • •

    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

  • •

    GN 02408.670 Incorrect EFT Payment is Refunded by an Individual

  • •

    GN 02408.720 Dual Recovery

  • •

    NL 00703.595 Recovery From Individual Who Withdrew Funds From a Deceased Beneficiary’s Bank Account After Death

  • •

    OS 00515.020 How to Complete an SSA-3969-U2, SSI Remittance Register

  • •

    MSOM DMS 003.006 Field Office Remittance Input (RFOR)

  • •

    SM 00609.855 How to Complete Form SSA-4208 for FALCON Transactions – General

GN 02408.645 Debiting the Financial Institution (FI) Account for EFT Reclamations

A. Background

Effective January 2, 2008, the Department of the Treasury (Treasury) 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 Treasury's Philadelphia and Kansas City Regional Financial Centers. Items older than three years are rejected and not processed.

NOTE: In 2017 Treasury began to automatically process final debits against the FI’s federal reserve accounts for all reclamations not completed/closed by the end of the 3 year reclamation time limit.

B. Process when determining the amount to be debited

Treasury determines the amount to be debited from the FI reserve account at the Federal Reserve Bank (FRB).

1. FI has returned full amount of incorrect payments

When the FI has returned the full amount of the incorrect payments issued after death, Treasury closes the case and does not instruct FRB to debit any funds from the FI reserve account.

2. FI has limited its liability

When the FI has limited its liability but has not returned the full amount of all outstanding payments, Treasury does the following:

  • •

    Totals the amount already paid by the FI or survivors;

  • •

    Title II only – Passes to SSA the name and address of the last withdrawers, so we can attempt to collect as much as possible of the outstanding total;

  • •

    Adds the amount SSA has collected from the withdrawers to the total amount returned by the FI;

  • •

    Subtracts the combined total from the amount of the FI liability; and

  • •

    Computes the remainder as the amount to be debited.

3. FI has not limited its liability

When the FI has neither returned all incorrect payments nor limited its liability, the amount to be debited from the FI reserve account at FRB is the outstanding total as shown on the Notice of Reclamation.

C. Process when FRB debits the FI account

After determining the amount to be debited, Treasury sends a Request for Debit (FMS-135) to the FI servicing the FRB. FRB does the following:

  • •

    Takes the money from the FI reserve account (or its correspondent’s reserve account) at FRB;

  • •

    Notifies the FI of the action; and

  • •

    Returns the reclaimed funds to Treasury.

D. Process when Treasury returns the funds to SSA

Treasury returns the funds to SSA, unless they receive a protest from the FI that needs investigation. Treasury forwards the FMS-135 to SSA for action.

1. Title II

Technicians must post the amount of the credit on the FS-135 to the Payment History Update System (PHUS) by completing an input on the SSA-4208. The input on the SSA-4208 reduces the amount of the incorrect payment on the Special Payment Amount (SPA). If posting does not take place, a reject goes to the PC. The PC must then resolve the reject and key the return using the SSA-4208. For SSA-4208 processing instructions, see GN 02408.626C and SM 00609.865.

NOTE: Some rejects require a MACADE input instead of an SSA-4208.

2. Title XVI

The funds are automatically posted. Treasury sends the Division of Benefit Certification and Systems Analysis (DBCSA) an FMS-135 to notify SSA of the reclamation. If the funds have not posted, DBCSA codes a 3969 and gives it to ODIO for input. The information posts to the SSR OPRR field as a refund or an S posts to Payflag 3 for the check in PMTH.

E. References

  • •

    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

  • •

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

GN 02408.665 Financial Institution (FI) Returns Incorrect Payments to SSA

A. Introduction

When the FI returns an improper payment after death to the Department of the Treasury (Treasury), Treasury passes the payment to our agency.

B. Process for Title XVI

1. Treasury Status Query (UPTQ) does not reflect return

When the FI returns a payment in response to a Title XVI reclamation, UPTQ may or may not reflect the return, depending on how the return was processed by Treasury. However, the return is posted to the Supplemental Security Income Record (SSR) in either PMTH or OPRR. For Treasury Status Query information, see MSOM BUSSR 003.020.

2. Division of Benefit Certification and Systems Analysis (DBCSA) action

The returned funds are not automatically posted to the SSR. Treasury sends an FMS-133 to DBCSA in Central Office. DBCSA codes a 3969 and sends it to the Office of Disability and International Operations (ODIO) for keying. When the return is not applied to the record in a timely manner, another attempt may be made to reclaim the money, resulting in dual recovery.

3. SSR shows returned funds

When a Title XVI payment after death is returned and posted, the amount of the returned funds is shown either in the OPRR (overpayment refund) TR1 field on the SSR as a “TU” or “TB” or in payflag 1 of PMTH as a:

  • •

    slash (/) (recurring payment returned by Treasury only),

  • •

    S (regular daily payment [underpayment] returned by FO only),

  • •

    T (special supplemental payment returned by Treasury only), or

  • •

    U (OTP returned by Treasury only).

For additional codes, see SM 01601.835.

C. Process for Title II

When a Title II payment after death is returned through Treasury, the information is usually automatically posted to the Payment History Update System/Master Beneficiary Record (PHUS/MBR). The following changes are shown on the beneficiary’s record:

  • •

    EVENT 009 RET CHECK is posted to PHUS, showing the payment date, amount, and date of return.

  • •

    The BSPA on the MBR and PHUS is reduced by the amount of the payment.

When a returned payment recovers an incorrect payment, notify Treasury to abandon reclamation if the FMS-133/135 is not received. For information on how to process an EFT abandon reclamation request, see GN 02408.800.

Input an SSA-4208 to update the Accounts Receivable System (ARS) with the amount of the refund.

When the returned payment does not automatically post, an exception is sent to the PC. The PC makes a manual input to post the return. When the payment is not posted promptly, it is possible for another reclamation request to be sent, causing a dual recovery.

D. References


GN 02408 TN 90 - Stop Payments and Reclamations - 4/21/2025