Effective Dates: 5/15/2024 - Present

Identification Number:
GN 02408 TN 78
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. 78, 05/15/2024

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 Office of Financial Policy and Operations (OFPO) has updated the following policies to reflect the recent Department of the Treasury Code of Federal Regulation changes regarding the Limited Payability Credit (LPC) and Payment Over Cancellation (POC) processes.

Summary of Changes

GN 02408.002 Glossary of Stop-Payment and Reclamation Terms for Checks and EFT Payments

The glossary definition 'F-Stop' was updated per Treasury regulations and to direct the policy reader to the updated policy: GN 02401.901 - Limited Payability Policy for Title II and Title XVI (ssa.gov). We added comments and changes based on the eIRD review from stakeholders.

 

GN 02408.020 The F-stop Process

Subsection C.2, was updated per Treasury regulations. We made updates to the language to reflect the EM 23074 regarding Limited Payability and the F-Stop Process. We added comments and changes based on the eIRD review from stakeholders.

 

GN 02408.007 Title II Paper Check Payment Issued to a Representative Payee after the Death of a Beneficiary

Subsection B.1 and B.2, were updated per Treasury regulations and gender neutral/ inclusive language. We made updates to the language to reflect the issue date-15th month to 13th month after the issue date. We also changed language from he/she to them/them. We added comments and changes based on the eIRD review from stakeholders.

 

 

GN 02408.002 Glossary of Stop-Payment and Reclamation Terms for Checks and EFT Payments

This glossary lists, explains, or defines stop-payment and reclamation terms, phrases, and unusual words used throughout GN 02408.001 -- GN 02408.950.

Term

Definition or Explanation of Term

Abandon Reclamation

Reversal of a reclamation request when the reclamation request is an error or when no further reclamation action is needed because SSA has recovered the outstanding amount.

Available Check Cancellation (ACC)

An ACC is a canceled unendorsed check the Department of the Treasury (Treasury) has in its possession. Treasury credits these funds to the Social Security Administration (SSA).

Due to the functionality of the Treasury Check Information System (TCIS),

  • •

    Treasury also posts an ACC when SSA inputs an Electronic Funds Transfer (EFT) nonreceipt.

  • •

    Treasury creates a "false" replacement check in TCIS and cancels the check immediately.

  • •

    Treasury never issues a replacement or courtesy disbursement check for a direct deposit non receipt input.
Automated Clearing House (ACH) The ACH network is a funds delivery system that distributes and settles credits and debits electronically. The government uses the ACH network to make benefit and salary payments electronically via direct deposit.

Canceled

Treasury uses the term canceled to mean:

  1. 1. 

    Claimant, post office, or SSA field office returned an unendorsed check,

  2. 2. 

    Financial institution returned a direct deposit payment, or

  3. 3. 

    Treasury credited a payment back to SSA when SSA placed the non-entitlement or stop payment action on a check still outstanding at the time of input.
Check Claims Branch (CCB) A Treasury component located in Philadelphia, PA. The CCB
  • •

    Adjudicates and settles check claims for and against the U.S.,

  • •

    Receives and responds to all claims inquiries requesting financial information about government checks,

  • •

    Processes requests and maintains the status of checks,

  • •

    Provides check photocopies, and

  • •

    Makes forgery or handwriting determinations based on the date of the check, see GN 02401.910.

Check

Refers to an SSA/SSI payment issued by Treasury via paper check

Claims Package

 Treasury
  • •

    Generates the claims package because of a permanent stop (e.g., A-Stop, B-Stop, C-Stop, etc.) input on a particular check. It consists of the FS-3858 (Claims Document), FS-1133 (Claim Against the United States For the Proceeds of a Government Check), and check image.

  • •

    Sends claims packages generated by A, B, F and G-stops to the PC for Title II and to the FOs through the Divisions of Benefit Certification and Systems Analysis (DBCSA) for Title XVI.

  • •

    Mails claims packages generated by C-stop directly to the claimant.

The claims package is available for printing in TCIS. The FO and PC can print the package one time. After one print, the FO may contact the Regional Office through normal communication (vHelp) or Treasury at 855-866-0151 to get a claims package. The PC should contact their OAS Staff if a second print is required. The claims package is available for print until Treasury receives the completed FS-1133.

Credit

A credit represents the returned funds Treasury sent to SSA for:

  • •

    Uncashed checks,

  • •

    Returned checks or EFT payments,

  • •

    1184 stop payment actions, or

  • •

    Reclamations.
Department of the Treasury (Treasury) An executive department and Treasury of the United States Federal Government. Congress established the Department of the Treasury to manage government revenue.

Disposition Codes

Also known as process message. See definition under Process Message.
Division of Benefit Certification & Systems Analysis (DBCSA)

DBCSA is:

  • •

    A section within SSA that handles any Title XVI exceptions received from the data transmitted between SSA and Treasury.

  • •

    The central point for the receipt and distribution of Title XVI claims packages.

  • •

    Responsible for the daily and monthly certification of payments released to Title II, Title XVI, and Title VIII claimants.

Due or Entitled

When a check or EFT payment is due and payable to a beneficiary, recipient, or his or her estate.
Electronic Funds Transfer (EFT Payment) An electronic payment transmitted to a beneficiary's or recipient’s debit card (Direct Express) or bank account (direct deposit). It is NOT a paper check mailed to the bank.

Erroneous Death Termination

Occurs when incorrect death data is transmitted to a Title II or Title XVI record.

E-stop

Stop-code used for non-entitlement of a check or EFT payment due to the death of the recipient or beneficiary. Also known as a reclamation request.
Financial Institution (FI) Financial Institution. For information on acceptable FIs, see GN 02402.030.

Bureau of the Fiscal Service (Fiscal Service)

Fiscal Service is a bureau within Treasury that

  • •

    Is responsible for overseeing the disbursement of Federal payments, reconciliation and claims processing of all Treasury checks.

  • •

    Oversees the Government’s cash flow, collects Federal revenues, and

  • •

    Provides centralized debt collections services and Government-wide accounting and reporting.

The Check Claims Branch (CCB) and the Questioned Document Branch (QDB) are part of Fiscal Service.

FS-133 (Form)

Notice of Reclamation sent to FIs by Treasury because of an E-stop input. See GN 02408.626 and https://fiscal.treasury.gov/files/reference-guidance/green-book/greenbook-chapter5.pdf Section 3.B. page 5.12.

FS-135 (Form)

Used to notify SSA when Treasury debits a financial institution’s (FI) Federal Reserve Account for the reclamation amount . Debit of the FI’s Account that documents the debit by Fiscal Service of the banks Federal Reserve Account for the reclamation liability amount. See GN 02408.626.
Federal Reserve Bank (FRB) The depository bank acts as Treasury’s banker and clearinghouse in the payment of Treasury checks forwarded from the financial institution. This is the central bank of the U.S.

F-stop

 We use an F-stop to report nonreceipt for non-entitlement situations other than death of the beneficiary, recipient or representative payee. If a replacement check is returned to the field office (FO), because they were able to negotiate the original check, the technician must verify TCIS to determine if a stop was placed on the original check after 12/5/2023. If the replacement check is more than 12 months old from the date of issue, follow the limited payability policies, see GN 02401.901.
  1. 1. 

    Nonreceipt of check(s) issued to non-beneficiaries.

  2. 2. 

    Nonreceipt of check(s) issued for Title XVI attorney fees.

For additional F-stop uses, see GN 02408.003.
Incorrect Payment Incorrect payment is any payment issued after death to which the beneficiary or recipient was not entitled. An incorrect payment is different from an overpayment. (For additional information on incorrect payments, see GN 02201.001E.)
The Electronic Payments Association (NACHA) The trade association which sets automated payment standards that govern the ACH system for financial institutions nationwide

Not Due or Not Entitled

When a check or EFT payment is not due to the beneficiary or recipient of an estate.

Original Check

An initial check payment printed on U.S. Treasury paper stock. Term used for the regular recurring Title II, Title XVI, and payment cycling monthly check that is issued on the regular monthly delivery date for that type of check. It can also apply to one time payments (OTP) type-2 underpayment, type-3 supplemental, or type-4 OTP.

Payment Over Cancellation (POC)

 

 

 A POC is the reversal of a previous credit given to SSA by Treasury. This situation occurs when the original check is outstanding at the time Treasury initially processes the nonreceipt allegation, and someone cashes the check before Treasury can cancel it. For additional information on payment over cancellation credit reversal, see GN 02406.245.

Presenting Financial Institution (FI) or Bank

The term used to identify the FI where a benefit check was cashed. The FI then presents the check to the Federal Reserve Bank (FRB) for reimbursement from the Trust Fund for Title II payments or from the General Fund for Title XVI payments.
Process Message The process message, also known as a disposition code, represents a reply from Treasury indicating the action taken in response to SSA input. It posts to the PHUS database for Title II cases and the Treasury Status Query (UPTQ) for Title XVI cases. (For additional information on Treasury Regional Financial Center (RFC) and Computer Services Division (CSD) disposition codes, see SM 00609.610. For information on the UPTQ, see MSOM BUSSR 003.020.)

Questioned Documents Branch (QDB)

 The QDB are handwriting experts in a division at Fiscal Service. They examine signature specimens to resolve nonreceipt claims and process Limited Payability handwriting analysis requests.

Reclamation

Treasury process to recover funds directly from a Financial Institution (FI) for erroneous payments issued after the death of the beneficiary or recipient or for checks cashed over a forged signature as determined by Treasury.

Representative Payee

The representative payee is the person or organization SSA selects to receive payment on behalf of a beneficiary or recipient in situations where the beneficiary or recipient cannot manage or direct the management of his or her benefits.
Regional Financial Center (RFC)

The RFC is a Treasury component that

  • •

    Houses direct deposit information,

  • •

    Performs the initial Treasury processing of nonreceipt reports,

  • •

    Issues courtesy disbursements and replacement checks,

  • •

    Performs the final processing of all certified benefit payments,

  • •

    Manually processes all direct deposit reclamations, and

  • •

    Processes all returned checks.

RFRB

The RFRB is the Richmond Federal Reserve Bank, also called the Richmond Fed and Federal Reserve Bank of Richmond.

Single Payment System

Used to automate attorney fee payments and other Title II payments that cannot be made through the current Title II system (e.g., non-beneficiaries or payments to beneficiaries over $29,999.99). See SM 00834.001.

Stop

Stop Action

Stop Reason

 We use Stop, Stop Action, and Stop Reason to indicate that Treasury has processed a nonreceipt or stop payment action (such as an F-Stop.) Refer to nonreceipt type codes in SM 00609.110, SM 00609.210, SM 01315.166, or SM 01315.181. NOTE: Treasury defines any input received from SSA as a “stop action."

Stop Payment Action (1184 Action)

 Stop payment action (1184 action) indicates SSA requested Treasury to return funds that are not due the beneficiary or recipient. With the exception of death cases, users should prepare an 1184 action in check cases only.
Treasury Check Operations Reengineering Effort (T-CORE) A system located at FRB Richmond that processes payment transmittal and declination and reclamation data. The T-CORE Declinations System handles U.S. Treasury check offsets and limited pay information provided by Bureau of the Fiscal Service, processes transmittal status reports, and intercepts U.S. Treasury checks negotiated under forged endorsements because the payee died and subsequent benefit payments were issued, or the check is stale dated. See GN 02408.006 and https://tfm.fiscal.treasury.gov/v1/p4/c700.html

Treasury Offset Program (TOP)

A centralized, government-wide delinquent debt matching and payment offset program administered by the Treasury. This program enables Treasury to collect delinquent debts owed to SSA by offsetting Federal payments due to a debtor. TOP credits SSA with the amount collected and SSA automatically updates its records with the most recent TOP-related information. See GN 02201.029 and GN 02408.405.

Treasury Receivable Accounting and Collection System (TRACS)

TRACS is a debt recovery and accounting system that provides SSA with information about the entire accounting history of a nonreceipt case (e.g.., credits, limited payability credits, debits, reclamations, refunds).
Unavailable Check An unavailable check is a check that is not in possession of the Treasury and the payee or claimant reports it as lost or not received.

Unavailable Check Cancellation (UCC)

Action taken by Treasury when SSA inputs an SF-1184 stop-payment action, the payment is outstanding (i.e.., not cashed or returned), and the check is not physically at the RFC.
Unavailable Check Cancellation (UCC) Credit A UCC credit represents funds returned to SSA by Treasury for an outstanding check (i.e.., not cashed or returned) that has been canceled. This occurs when SSA inputs a nonreceipt or 1184 stop payment action and the payment is outstanding. Treasury returns the credit to SSA who posts the amount to the appropriate record.

W-Stop

Title II stop code used only for death of the Representative Payee. The W-stop transmits to Treasury and posts to PHUS as an E-stop.
References: 

 

  • •

    GN 02406.001 Glossary of Nonreceipt Terms

  • •

    GN 02406.004 Nonreceipt Desk Charts for Teleservice Center, Title II and Title XVI Field Offices

GN 02408.007 Title II Paper Check Payment Issued to a Representative Payee after the Death of a Beneficiary

A. Background

Any payment issued to a representative payee after the death of a beneficiary is an overpayment that becomes the responsibility of the payee. A paper check payment issued to a representative payee after the death of a beneficiary is automatically posted to the Master Beneficiary Record (MBR) of the deceased beneficiary as an overpayment when the beneficiary’s death termination is input, even though the paper check may be unnegotiated.

B. Policy

After the overpayment is posted to the MBR, the representative payee is sent a notice. The following provides policy for handling specific scenarios.

1. Representative payee contacts SSA concerning overpayment notice

If the representative payee indicates:

  • •

    the check has not been cashed, but they no longer have the paper check in their possession (e.g. the check has been lost or destroyed), input an F-stop to obtain credit for the check. The F-stop ensures the unnegotiated check is not referred to the Treasury Offset Program/External Collection Operation (TOP/ECO) when the check remains unnegotiated.

  • •

    the check has not been cashed, and they still have the paper check in their possession, follow GN 02405.006 to ensure proper cancellation/return of the check to credit SSA’s records. If the check is not returned, input an F-stop.

  • •

    they cashed the check, the representative payee is responsible for the overpayment. If fraud is suspected, see GN 04111.025 for referral to OIG.

2. Representative payee fails to contact SSA

If the representative payee fails to contact us concerning the overpayment or does not return the check during the due process period, we will attempt to collect the overpayment via direct benefit withholding if they are entitled on our records. When the representative payee for a Title II benefit is not entitled on our records and has an eligible debt, the payee is loaded into the Non-Entitled Debtors (NED) database. We will attempt to recover the overpayment from representative payees by sending a billing notice and then using the TOP/ECO collection tools including Tax Refund Offset, Administrative Offset, Credit Bureau Reporting, Administrative Wage Garnishment, and Federal Salary Offset.

NOTE: When a check remains unnegotiated after 12 months from the check’s issue date and no F-stop is input, we receive a limited payability credit from the Department of the Treasury for the unnegotiated check in the 13th month after the check’s issue date (for limited payability information, see GN 02401.901).

The PC will apply the limited payability credit to the representative payee’s overpayment on the MBR by coding the SSA-4208, Reclamation Data Input form, with the RTC-B to change the RCLRN to B. This coding instructs the system to reduce the overpayment amount. If the payment center (PC) is unable to process the SSA-4208/exception, a MADCAP action is necessary to reduce the overpayment manually.

3. For additional information

  • •

    GN 02201.001 – Overpayments-General

  • •

    GN 02201.009 – Notification of Overpayment.

  • •

    GN 02201.000 – General Information Title II, Title XVI, and Title XVIII Overpayments - Part I

  • •

    GN 02210.001 – Adjustment of Overpayments

  • •

    SM 00610.040 – External Collection Operation (ECO)

  • •

    SM 00609.885 – How to Complete Form SSA-4208 for Limited Payability Determination (LPD)

  • •

    GN 02230.035 – Overview of Non-Entitled Debtors

C. Procedure for an F-stop input

Reminder: An F-stop can only be input within 12 months from the check’s issue date; otherwise, REACT will create an exception.

Input an F-stop on a paper check issued to a representative payee after the death of a beneficiary to obtain credit for the check:

  • •

    FO/TSC: Send an Modernized Development Worksheet (MDW) to the servicing PC to request that an F-stop be input. Provide the SSN, BIC, payment date, payment amount and reason for the F-stop input.

  • •

    PC: Input F-stop via RSDHI using PESP (MSOM RSDHI 002.005) input screens or by using the SSA-4510 Stop Payment Request Input Form (MSOM INTRANETMAMPSCDI 004.003) screen.

D. Process after F-stop is input

After the F-stop is input, Treasury will return a disposition to SSA.

A disposition of:

  • •

    “32” (check is outstanding) will result in a “00” credit being returned to SSA from Treasury. A REACT alert will be created when no SPA field is on the MBR. The PSC will apply the “00” credit to the BOUD, reducing the overpayment.

  • •

    “11” (check cashed) will result in a claims package being mailed to the PSC by Treasury. If the representative payee protests the overpayment due to nonreceipt/forgery, the representative payee will review and complete the claims package. Treasury will process a forgery determination on the check. See GN 02406.160 for more information on Treasury’s claims package.

E. References

  • •

    GN 02201.029, The Treasury Offset Program (TOP)

  • •

    GN 02201.030, Collection of Title II Overpayments by Tax Refund Offset (TRO)

  • •

    GN 02201.031, Collection of Title II Overpayments by Administrative Offset

  • •

    GN 02201.032, Reporting Title II Overpayment Debts to Credit Bureaus

  • •

    GN 02201.043, Collection of Title II/Title XVI Overpayments by Federal Salary Offset (FSO)

  • •

    GN 02230.040, Non-Entitled Debtors (NED) – Representative Payee Who Received Overpayments After the Death of Title II Beneficiaries

  • •

    GN 02408.025, Manual F-Stop Process – Titles II and XVI

GN 02408.020 The F-stop Process

A. Background

Social Security Administration (SSA) uses the F-stop to determine the status of a check without issuing a replacement check. The F-stop is used when SSA issues a Title II or Title XVI check that is not due. When SSA transmits an F-stop, the Department of the Treasury (Treasury) will investigate the check in question. If the check is outstanding, Treasury returns a credit to SSA. If the check is cashed, Treasury sends a FS-1133 claims package to the beneficiary or recipient (FS-1133, FS-3858, and check photocopy). Treasury also makes the claims package available to SSA via the Treasury Check Information System (TCIS). If a replacement check is returned to the field office (FO), because they were able to negotiate the original check, the technician must verify TCIS to determine if a stop was placed on the original check after 12/5/2023. If the replacement check is more than 12 months old from the date of issue follow limited payability policies, see GN 02401.901.

B. Policy when F-stops are appropriate

Use F-stops:

  • •

    Primarily for checks.

    EXCEPTION: Use an F-stop for an electronic funds transfer (EFT) payment that is also part of the Treasury Offset Program (TOP), see GN 02408.405.

  • •

    For Title XVI checks involving the death of a representative payee, see GN 02408.005B.

  • •

    For Title II check payments issued to a representative payee after the death of a beneficiary, see GN 02408.007.

  • •

    For stop-payment of checks issued when not due for reasons other than death.

  • •

    In nonreceipt and stop-payment situations for Title XVI attorney fee checks.

  • •

    For Title XVI nonreceipts when the system automatically generates an F-stop on a courtesy disbursement check (original check cashed).

  • •

    For Title II nonreceipts when the Payment Center (PC) automatically generates or manually enters an F-stop on a courtesy disbursement check (original check cashed).

  • •

    When the status of a check is needed and SSA does not wish to generate a replacement payment.

  • •

    When checks are issued under an incorrect Social Security number (SSN).

  • •

    To enable Treasury to reclaim funds if forgery is involved.

  • •

    When nonreceipt of a due check is alleged after the beneficiary's death.

  • •

    For nonreceipt of checks issued to non-beneficiaries (ex. attorneys and garnishment/levy (BIC X)).

  • •

    To initiate the return of funds to SSA when a check is outstanding.

  • •

    When nonreceipt is alleged on a non-recurring check.

1. Check issued for an incorrect SSN

When a check issues under an incorrect SSN and the payment records are corrected after the issuance of the check, follow these instructions.

a. Title II

The field office (FO), teleservice center (TSC), or processing center (PC) must take the following actions.

 

Action

FO/TSC

Send a modernized development worksheet (MDW) to the PC (F-stop required on mm/dd/yyyy Payment - Check Issued For Incorrect SSN--XXX-XX-XXXX).

PC

Input an F-stop by using the Mid-America Program Service Center (MAMPSC) Data Input Web Application (SSA-4510), see MS 08204.003.

b. Title XVI

The TSC or FO must take the following actions.

 

Action

TSC

Forward an MDW to the FO of jurisdiction (F-stop required on mm/dd/yyyy Payment - Check Issued For Incorrect SSN--XXX-XX-XXXX).

FO

Process an F-stop against the incorrect SSN. Select stop-payment reason 2 = not eligible for payment. For more information see MS 00303.017.

2. Check is "not due" for reasons other than death

When a check is issued and is "not due" (e.g., there has been a change of representative payee or the representative payee or beneficiary is declared legally incompetent), follow these instructions.

a. Title II

FO, TSC, or PC must take the following actions:

​

Action

FO/TSC

Send an MDW to the PC (F-stop required on mm/dd/yyyy Payment - Check is "Not Due" for Reasons Other Than Death).

PC

 Input an F-stop by using the MAMPSC Data Input Web Application (SSA-4510), see MS 08204.003.

b. Title XVI

TSC or FO staff must take the following actions.

 

Action
TSC

Forward to the FO of jurisdiction to request an F-stop to be input.

FO

Input the F-stop. Select stop-payment reason 2 = not eligible for payment, see MS 00303.017.

3. "Due" payment after a beneficiary's or recipient's death

After the death of a beneficiary or recipient, SSA may receive allegations that one or more due payments were not received before the date of death, follow these instructions.

a. Title II

The TSC, FO, or PC must take the following actions.

 

ACTION

TSC

Forward an MDW to the PC of jurisdiction (F-stop required on mm/dd/yyyy Payment - "Due" Payment After a Beneficiary's Death).
FO

Complete underpayment development, see

  • •

    GN 02301.500 SSA-1724 Claim for Amounts Due in the Case of a Deceased Beneficiary or

Forward an MDW to the PC of jurisdiction (F-stop required on mm/dd/yyyy payment - "Due" Payment After a Beneficiary's Death).

PC

Input an F-stop by using the MAMPSC Data Input Web Application (SSA-4510).

b. Title XVI

The TSC or FO must take the following actions.

 

Action

TSC

Forward an MDW to the FO of jurisdiction (F-stop required on mm/dd/yyyy Payment -"Due" Payment After a Recipient's Death).

FO

Input the F-stop. Select stop-payment reason 2 = not eligible for payment, see MS 00303.017.

If applicable, complete underpayment development. For more information see SI 02101.006 SSI Underpayment Due - Individual Deceased - Surviving Spouse Not Member of an Eligible Couple.

C. Treasury process

When Treasury receives an F-stop request and the check is outstanding, Treasury cancels the outstanding check and returns a credit to SSA. Credit will appear on Title II/Title XVI queries and on the Treasury Check Information System (TCIS).

When the check is outstanding (disposition code “32”) and then subsequently cashed , Treasury debits SSA. Procedures for payment over-cancellation apply, see GN 02406.245.

When the check is already cashed at the time of the F-stop, Treasury transmits a disposition code “11”. Additionally. Treasury sends an FS-1133 claims package to the beneficiary or recipient and makes the package available on TCIS. The disposition code appears on PHUS for Title II and the Treasury Status Query for Title XVI.

This section describes possible scenarios.

1. When the check has been cashed

When an F-stop is already input and the check has been cashed, Treasury sends an FS-1133 claims package to the beneficiary or recipient (FS-1133, FS-3858, and check photocopy). When the beneficiary or recipient protests the overpayment created when the check was cashed and they do not recognize the signature as their own, have the beneficiary or recipient complete the FS-1133, see GN 02406.160. If the beneficiary or recipient returns the FS-1133 to the FO, scan the completed FS-1133 with the check photocopy into Evidence Portal and forward the completed FS-1133 with the check photocopy to Treasury for a forgery determination. For instructions on mailing the FS-1133, see GN 02406.160H.

2. When the check has not been cashed

When Treasury finds that the check has not been cashed or negotiated within 12 months after the issue date, it cancels the check and will credit the funds back to SSA. The F-stop ensures that Treasury can reclaim the funds from the Financial Institution (FI) if the check is cashed over a forged signature at a later date. For instructions concerning follow up see GN 02406.160C. Treasury gathers information on checks not submitted for payment (determined to be “uncashed”). After the 12th month determination, Treasury furnishes SSA with (Limited Payability) LP credits. The credits contain identifying information and represent the funds for “uncashed” checks. If the replacement check is more than 12 months old from the date of issue follow limited payability policies, see GN 02401.901.

3. When the check is returned

When the check is returned, a credit is posted to the MBR/SSR. The SSI system does not automatically reissue funds in non-entitlement situations. For Title II, the Return Check Action program (REACT) automatically reissues the returned payment, even when not due, if the reason for return is “AD” (address) (see GN 02408.020B.2. in this section). When the reason for return is “MS” (miscellaneous) or “DC” (duplicate check), REACT does not automatically reissue the payment.

D. References

GN 02406.200 Failure to Receive a Courtesy Disbursement or Replacement Check -- Title II (Normal, Dire Need, and Abuse Situations)

GN 02406.201 Nonreceipt of Title II Critical Payment System (CPS) Checks

GN 02406.202 Nonreceipt of a Settlement Check -- Title II and Title XVI

GN 02406.205 Nonreceipt of Title XVI Underpayment Check/Type 2 and One-Time Payment/Type 4 Payment -- Field Office (FO) and Teleservice Center (TSC) Instructions

GN 02406.207 Nonreceipt of Courtesy Disbursement or Replacement Check/ Type 9 Payment -- Field Office and Teleservice Center Instructions -- Title XVI

 


GN 02408 TN 78 - Stop Payments and Reclamations - 5/15/2024