Effective Dates: 5/29/2024 - Present

Identification Number:
GN 02401 TN 48
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Checks - General Information
Type:POMS Full Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM

Part GN – General

Chapter 024 – Checks

Subchapter 01 – Checks - General Information

Transmittal No. 48, 05/28/2024

Audience

PSC: BA, CA, CCRE, CS, DS, ICDS, IES, ILPDS, IPDS, ISRA, PETE, RECONR, SCPS, TSA, TST;
OCO-OEIO: BIES, BTE, CC, CCRE, CR, FCR, PETL, RECOVR, TYP;
OCO-ODO: BTE, CCE, CS, CST, CTE, CTE TE, DSE, PAS, PCS, PETE, PETL, RC, RCOVTA, RECOVR;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, DRT, DT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OFPO

Effective Date

05/29/2024

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 02401.901 Limited Payability Policy for Title II and Title XVI

Subsection A, B, C.3, 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. Added comments from eIRD comment and review request.

 

GN 02401.903 Allegations of Nonreceipt Not Filed Timely

Subsection B, C, D, 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. Added comments from eIRD comment and review request.

 

GN 02401.902 Nonreceipt Alleged Timely and Check in Limited Payability Status

Subsection C, D.3, 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. Added comments from eIRD comment and review request.

 

GN 02401.904 Field Office Processing of Limited Payability (LP) Alerts for Title XVI Cases

Subsection B, C, D, 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. Added comments from eIRD comment and review request.

GN 02401.901 Limited Payability Policy for Title II and Title XVI

A. General information and background regarding limited payability (LP)

Prior to October 1, 1989, there was no time limit on the negotiability of government checks. The Department of the Treasury (Treasury) retained copies of negotiated checks for 6 years and 9 months after the issue date, accepted nonreceipt claims for 6 years after the issue date, and if the endorsement was forged, held the presenting bank liable for return of the funds for 6 years after the issue date.

As of October 1, 1989, Public Law (P.L.) 100-86 and the Competitive Equality Banking Act of 1987 (CEBA), made a Treasury check valid up to 12 months from its issue date. After 12 months, a check is void and non-negotiable. If Treasury records do not show the check as “cashed” within one year from the issue date, Treasury returns the funds to SSA in the form of a Limited Payability (LP) credit in the 13th month after the issue date. Nonreceipt claims must be filed within 12 months from the issue date. Treasury has identified and cancelled all outstanding checks issued prior to October 1, 1989. Public Law (P.L.) 100-86 also limits the amount of time Treasury can reclaim funds paid on forged checks to 18 months.

NOTE: This law only applies to checks. It does not affect direct deposit payments.

 

If someone presents a check over 12 months old to a financial institution (FI) (which the FI may refer to as a stale dated check) and the FI honors it by mistake, the Federal Reserve Bank (FRB) will not reimburse the presenting FI. Following the holder in due course procedures, the FI must accept all checks less than 12 months. If someone cashes a check near the end of the month in which the check becomes 12 months old, and the banking system does not process it before the end of that month, the FRB will not honor reimbursement.

B. Limited Payability (LP) credit policy

Treasury identifies and records checks submitted to the government for payment. In the 12th month after issue, Treasury gathers information on checks not submitted for payment (determined to be “uncashed”). In the 13th month, Treasury furnishes SSA with LP credits. The credits contain identifying information and represent the funds for “uncashed” checks.

NOTE: Treasury sends SSA an LP credit when they have no record that the check was cashed. Treasury credits or reimburses the SSA Trust Fund or the General Fund with the amount of the “uncashed” check.

1. Title II process

Treasury sends SSA an LP credit file and the agency creates the PHUS EVENT 169 UNNEG CK on PHUS with a RCLRN of “B”, “C”, “N”, or “I”. The RCLRN codes indicate the type of action taken on the credit. For more information on the RCLRN codes, see SM 00545.300.

In addition to the LP file, the returned check program creates and sends an LP notice to the beneficiary or recipient. The LP notice can contain up to three check iterations that they may need to review.

2. Title XVI process

The Title XVI system receives the LP credit on a file sent from Treasury, posts it to the Unnegotiated Check Indicator (UCI) segment of the PMTH field on the SSR, and generates a K5 diary to the field office (FO). The UCI field in the PMTH segment on the SSR shows the status of the LP credit.

C. Title XVI Limited Payability (LP) alert process

1. Six-month alert

If a Title XVI check is uncashed 6 months after the issue date, the SSI system generates an L5 or L8 alert to the FO for investigation. For more information on the limited payability alert process, see GN 02401.904.

2. Twelve-month Treasury notification

If the Title XVI check is still uncashed 12 months after the issue date, the check is no longer valid. Treasury informs SSA that a credit is forthcoming, and the SSI system updates the UCI field on the SSR to show the status.

3. Thirteenth-month alert

In the 13th month after the issue date, Treasury will credit SSA with the funds. The Title XVI system generates a K5 alert to the FO for investigation, updates the UCI field on the SSR and sets a K5 diary.

D. Limited Payability (LP) exception policy

If an LP credit, correction, determination, or reversal does not process, the item rejects and generates an exception for investigation.

1. Title II LP exception process

When an initial LP action does not process, the item rejects to the processing center (PC) for investigation. The system generates two types of exceptions: RCCOLA RCLIMEX exceptions and LP REACT exceptions. The exception indicates only the first error condition. The PC technician must thoroughly review the exception and reenter the correct data, when possible, via the intranet SSA-4208 (Reclamation Data Input) form.

NOTE: Actions taken using the intranet SSA-4208 (Reclamation Data Input) form to correct the exception will not produce a notice. The PC technician must prepare a manual notice identifying the uncashed check(s), using the language shown in SM 00624.400E.

2. Title XVI LP exception process

The Title XVI system receives LP credits on daily files from Treasury. When an initial LP transaction does not process and post to the SSR, the item rejects for investigation. SSI systems processes the rejected transactions to exception files made available on a daily basis to the Division of Benefit Certification and Systems Analysis (DBCSA), Treasury Operations Branch (TOB). Treasury sends TOB a listing of all the excepted LP credits. TOB analyzes the SSR to determine why the transaction rejected and if the system posted the credit. If the credit is:

  • •

    on the record, the TOB technician purges the exception from the list; or

  • •

    not on the record, TOB updates the credit to the UCI field on the SSR. The update sends a K5 alert to the servicing FO and sets a K5 diary on the SSR. The FO will then process the credit using instructions in GN 02401.904B.

E. How to process returned benefit checks over one year old

If someone presents a check to SSA that is more than one year old and claims the check is uncashed, process the check in question per GN 02405.300. Additionally, review the available records of the individual named on the check to determine whether an LP credit exists on the record.

NOTE: For Title II, analyze the MBR and PHUS. For Title XVI, analyze the MSSICS Treasury Status Query and SSID.

  1. 1. 

    An LP credit is present

    If an LP credit does exist on the record, the technician must verify and process the LP credit if we have not already reissued the check. Follow the instructions in GN 02401.903D for Title II cases. Follow the instructions in GN 02401.903E for Title XVI cases.

  2. 2. 

    An LP credit is not present

    1. a. 

      If 13 months have not passed from the issue date of the check, Treasury will not have sent an LP credit yet.

    2. b. 

      If more than 13 months have passed from the issue date of the check and there is no LP credit on the record, follow the instructions in GN 02401.903F.

      NOTE: If, after reviewing all possible information, we lack documentation showing that we owe the beneficiary or recipient money based upon the presented check, send the notice found in NL 03001.025 (select choice 8).

F. References

  • •

    GN 02406.235 Holder in Due Course (Theft, Loss or Destruction of Check After Negotiation by the Original Payee)

  • •

    MSOM INTRANETMAMPSCDI 002.001 SSA-4208 Reclamation Data Input Forms – Overview (SSA4208)

  • •

    NL 00601.040 Postentitlement Notices

  • •

    NL 00603.001 General Notice Policy – Title II and Title XVI

  • •

    SM 00624.400 How the Returned Check Action (REACT) Program Processes Limited Payability Files

  • •

    SM 00624.405 How to Process PC Limited Payability Exceptions

  • •

    SM 01315.085 Stages of the Limited Payability Process

  • •

    SM 01315.100 How the System Issues Unnegotiated Check/Limited Payability Alerts

  • •

    SM 01315.101 The Limited Payability (K5) Diary

  • •

    SM 01601.835 Payment History - PMTH

GN 02401.902 Nonreceipt Alleged Timely and Check in Limited Payability Status

A. Procedure for nonreceipt allegations filed timely but not processed

Occasionally, situations arise where a beneficiary or recipient filed nonreceipt in a timely manner (i.e., within 12 months from the check’s issue date) but the nonreceipt claims process did not start. These situations may occur when a beneficiary or recipient alleged nonreceipt timely but the technician failed to input the nonreceipt into the SSA system or input an incorrect stop code.

EXAMPLE: A beneficiary or recipient follows up on the status of their initial nonreceipt claim and SSA records show a photocopy request (K-stop) was input instead of a nonreceipt (B-stop or C-stop).

See details:

GN 02406.140 Photocopy Requests

B. Procedure for nonreceipt allegations filed timely but check is in limited payability status

If the beneficiary or recipient alleges nonreceipt in a timely manner, SSA does not have to wait 13 months from the issue date of the check before taking actions to reconcile the issue. If the beneficiary or recipient is following up on their initial timely nonreceipt claim at any point after 12 months from the check’s issue date, take the following actions to determine the status of the check in question:

  • •

    If the check is uncashed and is due, replace it immediately,

  • •

    If the check is cashed, and SSA finds verification of a timely nonreceipt request on SSA's record, replace it immediately without the need for a handwriting analysis.

See GN 02401.903 for instructions on allegations of nonreceipt that are not filed timely and GN 02401.910 for instructions on handwriting analysis when it is needed for a limited payability case.

C. Procedure for verifying posting of a limited payability credit on SSA’s record

Treasury sends SSA a limited payability credit when they have no record that the beneficiary or recipient cashed the check. SSA then posts the credit to the record. When a beneficiary or recipient indicates that they have not received the check, the technician will verify the posting of the limited payability (LP) credit.

For instructions on how to proceed when credits are involved, see details in this subsection.

NOTE: A LP credit can only post to an SSA record at least 13 months after the check’s issue date.

See details:

  • •

    GN 02401.901.C Limited Payability (LP) Policy for Title II and Title XVI

  • •

    GN 02401.902.D Nonreceipt Alleged Timely and Check in Limited Payability Status

  • •

    GN 02401.903.D Allegations of Nonreceipt Not Timely Filed

D. Procedure for verifying the timely allegation of nonreceipt

The technician should take the following steps to verify the timely allegation of nonreceipt:

1. Analyze the beneficiary or recipient records

Analyze the Payment History Update System (PHUS) for Title II or the Modernized Supplemental Security Income Claims System (MSSICS) / Consolidated Claims Experience (CCE), Treasury Status Query, and Supplemental Security Income Detail (SSID) record for Title XVI to determine if the technician input a K-stop, L-stop, or M-stop in a timely manner for the check in question. For a description of the Treasury status query, see MS 00303.020.

2. Review any additional resources

Research other resources for an indication of a timely nonreceipt allegation, such as the:

  • •

    Modernized Development Worksheet (MDW);

  • •

    Special Message Field;

  • •

    Remarks field;

  • •

    Visitor Intake Process (VIP);

  • •

    Electronic View (Eview) folder;

  • •

    Development worksheets and development notes;

  • •

    Evidence Portal;

  • •

    WorkTrack;

  • •

    Workload Action Center (WAC);

  • •

    Claims File User Interface (CFUI); or

  • •

    Any paper files.

3. Review of record indicates allegation of timely nonreceipt

If there is an indication of a timely nonreceipt allegation after review of the record, SSA will immediately repay the check following instructions in GN 02401.902.E.

Do not request a handwriting analysis from the Question Document Branch (QDB) at Treasury. A handwriting analysis is only required when a nonreceipt was not filed timely and the check in question is part of an overpayment on the record, see GN 02401.910. Take the following actions to determine the status of the check:

  • •

    If the check is uncashed, AND 13 months have passed since the check’s issue date, access the TCIS to determine status of LP credit.

  • •

    If information is not available on TCIS, contact Treasury at (855)-868-0151 to determine why SSA did not receive the LP credit.

  • •

    After the LP credit posts to the record, follow GN 02401.903D (title II) and GN 02401.903E (title XVI) for additional processing.

  • •

    If the check was negotiated, the nonreceipt request was timely, 13 months have passed since the check’s issue date, AND SSA did not process the nonreceipt timely, determine if the beneficiary/recipient needs to be made whole. There will not be a limited payability credit available, as the check was cashed. Follow GN 02401.903D (Title II) and GN 02401.903E (Title XVI) for overpayments on the record that fall into this scenario.

4. No indication of timely nonreceipt allegation

If there is no indication of a timely nonreceipt allegation in SSA’s records, treat the nonreceipt allegation as one not filed timely. For instructions on how to handle allegations of nonreceipt not timely filed see GN 02401.903.

E. Timely allegation of nonreceipt when an overpayment is on the record

1. Procedure on how to repay the check if the check is not part of an existing overpayment on the record

If the LP check will be replaced because the timely nonreceipt allegation was not input or an incorrect stop code was input and the check is not part of an existing overpayment on the record, we will reissue the check following the process shown below.

a. Field Office (FO) processing:

  1. 1. 

    Title II cases:

    Sende a MDW to the PC of jurisdiction for processing.

  2. 2. 

    Title XVI cases:

    1. a. 

      If there is an LP credit on the SSR for the check, repay the check following instructions in GN 02401.903.E.

    2. b. 

      If there is no LP credit on the SSR, repay the check via Automatic One-Time Payment (A-TOP) via MSSICS Direct SSR Update, see MS 00303.007, MS 00303.002. Use the original payment date of the check. When preparing the A-TOP, input an NT-TAC on the resulting overpayment;

    3. c. 

      Annotate the REMARKS field on the Supplemental Security Record (SSR) with "LimPay Case; N/R for MOP MM/YYYY Timely Filed with wrong code or not input; replacement paid via A-TOP;" and,

    4. d. 

      Send a notice to the beneficiary, recipient, or representative payee with the explanation of when they will receive the payment due per NL 03001.025.

b. Processing Center (PC) Processing

  1. 1. 

    Title XVI Cases:

    Route case to FO for processing via MDW. FO will process using instructions in per GN 02401.902E.

  2. 2. 

    Title II Cases:

    1. a. 

      Reissue the check via Single Payment System (SPS) or MACADE, with the date of COM. For either method, add a corresponding PHUS 170 Event with an ETD of COM;

    2. b. 

      Annotate the special message (SPC MSG) field on the Master Beneficiary Record (MBR) "LimPay case; N/R for MOP MM/YYYY Timely Filed with wrong code or not input; replacement paid via SPS or MACADE;" and.

    3. c. 

      Send a notice to the beneficiary, recipient, or representative payee with the explanation of when they will receive the payment due per NL 03001.025.

2. Procedure on how to apply the check if it is part of an existing overpayment on the record

If the LP check is still due because the nonreceipt request was timely, but the technician failed to make the input or an incorrect stop code was input and the check is part of an existing overpayment on the record, follow the instructions below.

a. Check is part of an existing overpayment

If the technician determines the check is part of an existing overpayment on the record:

  1. 1. 

    Reduce or recover the overpayment on the record;

  2. 2. 

    Annotate the SP MSG for Title II or REMARKS field for Title XVI with "Limited Payability Check MM/DD/YYYY used to reduce or recover O/P; and

  3. 3. 

    Send a manual notice with the explanation of how we used the payment to reduce or recover the overpayment.

    NOTE: Do not submit this case for a handwriting analysis because the beneficiary, recipient, or representative payee reported the nonreceipt of payment timely.

b. Check is not due

If the check is not due and an overpayment is on the record, follow overpayment procedures found in GN 02201.000.

GN 02401.903 Allegations of Nonreceipt Not Filed Timely

A. Policy for nonreceipt allegations not timely filed

“Not timely” means alleging nonreceipt after 12 months from the issue date of a check. Public Law 100-86 mandates that an allegation of nonreceipt must be made within a 12-month time period from the issue date of the check before SSA can take an action to replace the check, if appropriate. If the nonreceipt allegation is not timely, and we have a limited payability (LP) credit on the record because the Treasury records indicate the check was uncashed, we should repay the check.

NOTE: It is only in this situation that we will accept an untimely allegation of nonreceipt (i.e., one made after the 12-month period) and replace the check since it remains uncashed.

B. Procedure for nonreceipt allegations not timely filed

The technician should take the following steps to verify the timeliness of the allegation:

1. Analyze the beneficiary or recipient’s record

Analyze the master beneficiary record (MBR) and Payment History Update System (PHUS) query for title II or the Modernized Supplemental Security Income Claims System (MSSICS) Treasury Status Query and Supplemental Security Income Detail (SSID) record for title XVI to determine if a LP credit is on the record.

NOTE: If 13 months have not passed from the issue date of the check, the LP credit will not be on the MBR or Supplemental Security Record (SSR).

2. Create diary and alerts

Set a diary and alert the case 7 workdays after the 13-month timeframe has passed.

3. Inform beneficiary or recipient of action

Inform the beneficiary or recipient of the date we will have the status of the LP credit in question (i.e., the date the diary is set to mature).

C. Procedure when the diary matures after the 13-month timeframe has passed

The technician should take the following steps to verify if the LP credit is on the record.

1. Analyze beneficiary or recipient record to verify if LP credit posted on the record

Analyze the MBR and PHUS for title II or the MSSICS Treasury Status Query and SSID for title XVI to determine whether an LP credit is on the record.

2. Title II diary matures

a. LP credit received and posted to record

If we receive the LP credit, the returned check program (REACT) creates and posts an EVENT 169 UNNEG CK on PHUS and creates a notice record, and sends it to the beneficiary for review. The Department of the Treasury (Treasury) informs us of the type of action taken on the credit by sending various codes, which REACT annotates to the Reclamation Reason (RCLRN) field on the PHUS record. The codes could be “B”, “C”, “N”, or “I.”

b. LP credit did not post to PHUS record

If we receive the LP credit and it did not post to the PHUS, the RCEDIT program generates two types of exceptions indicating the LP credit did not process. The RCCOLA RCCLIMEX is a surface edit exception RCEDIT creates before the REACT program processes the LP file. When REACT cannot process the LP credit, it produces an LP REACT exception.

c. LP credit did not post to MBR record

If the LP credit did not post to the MBR, the PC technician should check the Treasury Check Information System (TCIS) or call Treasury at (855) 868-0151 to determine the status of the credit. If Treasury sent the LP credit to SSA, the PC technician should alert their appropriate operations analyst to obtain assistance and guidance.

3. Title XVI diary matures

a. LP credit posted to record

If SSA received a title XVI LP credit, the title XVI system posts the LP credit to the Unnegotiated Check Indicator (UCI) segment of the Payment History (PMTH) field on the SSR and generates a K5 diary to the field office (FO) for investigation.

FO technician will review the UCI field in the PMTH segment on the SSR to verify the status of the limited payability credit.

b. LP credit did not post to record

If the LP credit did not post to the SSR, the FO technician should check TCIS or call Treasury at (855) 868-0151 to determine the status of the credit. If Treasury sent the LP credit to SSA, the FO technician should alert their appropriate regional analyst to obtain assistance and guidance.

See details:

D. Title II procedure when the credit is present after 13 months

The technician should take the following steps to verify and process an LP credit if it is present on the record.

1. Analyze the Treasury Check Information System (TCIS)

FO technician reviews the TCIS to obtain the status of the payment and if necessary, refers the case to a processing center (PC) via modernized development worksheet (MDW) for processing.

NOTE: Prior to releasing payment, the PC technician should refer to instructions in GN 02401.903D.2 through GN 02401.903D.7 in this section.

2. PC technician determines the payment status

PC technician reviews the MBR to determine the payment status of the beneficiary.

3. Beneficiary is now deceased

If the beneficiary is now deceased and check replacement is appropriate, make the payment as defined in GN 02301.030A.

4. Beneficiary is no longer entitled

If the beneficiary is no longer entitled, the PC technician should:

  • •

    Attempt to contact the beneficiary directly.

  • •

    If direct contact is unsuccessful, obtain a current address from the FO servicing the last known address. For notice language to use when the beneficiary is not entitled, see NL 03001.025.

5. Beneficiary has an overpayment present on the record

If there is an overpayment on the record, adjust any underpayment due to recover the overpayment. To determine if an adjustment of the underpayment is necessary, see item 2 in GN 02210.006.

6. Beneficiary entitled to benefits and no overpayment on record

PC technician places the following message in the special message field on MBR with the type of payment issued. Remember to use the payment date of the check for which the LP credit represents.

“Limited Payability Case MM/DD/YYYY paid via Single Payment System (SPS) Critical Payment System (CPS), Manual Adjustment, Credit, and Award Data Entry (MACADE), etc.”

7. Possible prior check replacement

If the record indicates that a credit may be due, the PC technician should take the following steps:

  • •

    Review the beneficiary’s record carefully to ensure the check is due.

    NOTE: Take extreme care to avoid replacing the check again and possibly causing an overpayment.

  • •

    Analyze and review the PHUS record.

  • •

    If the PHUS 169 event has an RCLRN code of C, do not replace the payment because we already reissued it. Also, review the special message field for LP check status.

For additional limited payability procedures, see SM 00624.400 through SM 00624.412, and for instructions on completing the intranet SSA-4208 Reclamation Data Input form, see MSOM INTRANETMAMPSCDI 002.001.

NOTE: Actions taken using the intranet SSA-4208 Reclamation Data Input form will not produce a notice. The PC technician must prepare a manual notice, if necessary following instructions outlined NL 00601.040.

8. PC technician reissues the check

Only issue the check if it is still due the beneficiary.

a. Analyze MBR to determine if payment is due

If the beneficiary is not in LAF C and payment is still due, verify that the payee’s address is correct prior to releasing the payment.

If the beneficiary is in LAF C, reissue the payment via the intranet SSA-4208 Reclamation Data Input form, which will properly annotate the PHUS record.

NOTE: Actions taken using the intranet SSA-4208 Reclamation Data Input form will not produce a notice. The PC technician must prepare a manual notice, if necessary.

See details:

b. Additional coding requirements depending upon the system used to issue the payment

PC technician should follow these specific processing instructions:

  • •

    If you use MADCAP, code the Form SSA-1257 (PHUS Data Change) with the AC field = “2” to post the 170 PHUS event to offset the payment.

  • •

    If you use CPS, code the form SSA-3263 (CPS Input Form) with a Type of Payment Code of C40 to suppress the notice and provide a means to identify these payments.

    Enter a Tax Code of “NR” and a First Remark of “REISSUE CHECK” in the Nature of Problem field.

  • •

    If you use SPS, code the Form SSA-1257 with the AC field = “2” to post the 170 PHUS event to offset the payment.

    NOTE: Be sure to use this for check replacement to non-beneficiaries.

See details:

9. Send notice

Send notice informing beneficiary that they are entitled to the payment per instructions in NL 03001.025.

E. Title XVI FO procedure when the credit is present after 13 months

FO personnel should refer to the following instructions.

1. Analyze the Treasury Check Information System (TCIS)

FO technician reviews the TCIS to obtain the status of the payment.

NOTE: Prior to releasing payment, the FO personnel should refer to instructions in GN 02401.903E.2. and GN 02401.903E.7. in this section.

2. Analyze and review Supplemental Security Record (SSR)

Analyze and review SSR to determine the codes posted in the Unnegotiated Check Indicator (UCI) LP fields.

If the UCI field is coded with an L, the system already reissued the payment if it was due or resolved the overpayment if caused by the check.

If an M is in the UCI field, the recipient:

  • •

    acknowledges receipt of check; or

  • •

    is unable to locate the check; or

  • •

    does not respond; or

  • •

    is deceased.

The FO technician should update the record if the recipient later inquires about the LP credit and if we determine the recipient was due the payment. For additional information regarding LP codes, see SM 01601.835C.9.

3. Recipient is now deceased

If the recipient is now deceased and check replacement is appropriate, make payment as defined in SI 02101.003.

4. Recipient is no longer entitled

Attempt to contact the recipient directly. If direct contact is unsuccessful, obtain a current address from the FO servicing the last known address. For notice language to use when the recipient is not entitled, for more information see NL 03001.025.

5. Recipient has an overpayment present on the record

If there is an overpayment on the record, adjust any underpayment due to recover any collectible overpayment per SI 02101.002A.

6. Recipient entitled to benefits and no overpayment on record

FO technician places the following message in the REMARKS field of the SSR with the type of payment issued. Remember to use the payment date of the check for which the LP credit represents.

“Limited Payability Case MM/DD/YYYY.”

7. Possible prior check replacement

Review the recipient’s record to ensure the check is due.

NOTE: Take extreme care to avoid replacing the check again and possibly causing an overpayment.

8. Reissue check

Only reissue the check if it is still due the recipient.

a. LP credit on SSR

When the LP credit is already posted to the SSR (UCI of I or M in PMTH segment), and the payment is still due, use the limited payability screens in MSSICS to release the payment via a one-time payment (OTP). For additional instructions on the completion of the screen, for more information see MSOM BUSSR 003.006.

b. Verify address

Review the OTP for current address or rep payee data prior to issuance.

c. Release payment

When MSSICS releases the payment, the system will reissue the payment if it is due or will resolve an overpayment created by the check.

9. Send notice

Send notice informing recipient that they are entitled to the payment per NL 03001.025.

F. Procedure when an LP credit is not present after 13 months

The technician should take the following steps when an LP credit is not present.

1. Analyze the Treasury Check Information System (TCIS)

The FO, RO, and PC technicians should access the TCIS to determine the check status.

2. TCIS indicates check was cashed

a. Check in question not part of existing overpayment

  • •

    If the check in question is not part of an existing overpayment already on the record, Treasury does not need to analyze the handwriting.

  • •

    Process the check according to GN 02405.300.

  • •

    Send the Limited Payability Notice for Beneficiary or Recipient Entitled or Not Entitled to Replacement Check in NL 03001.025.

b. Check in question is part of an overpayment

If the check in question is part of an existing overpayment on the record:

  • •

    obtain a photocopy either from TCIS, eVIEW or directly from Treasury via SSA system.

  • •

    forward photocopy and the signature request form to the beneficiary or recipient for review per GN 02401.910.

    IMPORTANT: Do not request photocopies for checks older than 6 years, 9 months from the present date.

  • •

    if the beneficiary or recipient indicates they did not sign the check on the signature request form, get a handwriting analysis from Treasury by following instructions in GN 02401.910C; or

  • •

    if the beneficiary or recipient indicates they did sign the check, no further action is necessary.

Example of no LP credit and check is part of overpayment:

The agency receives an untimely allegation of nonreceipt for a check not due the beneficiary or recipient because of a subsequent suspension or termination of his or her benefits. This check is part of an overpayment on the beneficiary or recipient’s record. We forward the claims package to Treasury for a handwriting analysis. Treasury determines that the check was forged. We adjust the overpayment amount on the beneficiary or recipient’s record by the amount of the check.

See details:

GN 02406.140-Photocopy Requests

3. TCIS indicates check was not cashed

When TCIS indicates the check was not cashed, contact Treasury at (855)-868-0151 to determine why they did not send an LP credit. After the LP credit posts to the record, follow instructions in GN 02401.903D for title II and GN 02401.903E for title XVI.

GN 02401.904 Field Office Processing of Limited Payability (LP) Alerts for Title XVI Cases

A. Title XVI system process

The title XVI system generates several alerts. When a title XVI check remains uncashed 6 months past the issue date, it is not an LP situation. The title XVI system generates an L5 alert to the FO for investigation. The FO should contact the recipient via phone to determine the status of the check. For more information on direct phone contact with the public, see GN 01070.315. If the title XVI check is still uncashed 12 months past the issue date, the Department of the Treasury (Treasury) sends SSA an LP credit in the 13th month past the issue date. The Title XVI system:

  • •

    posts the credit to the supplemental security record (SSR),

  • •

    generates a K5 alert to the FO, and

  • •

    sets a K5 diary.

See details:

  • •

    GN 02401.901 Limited Payability Policy for Title II and Title XVI

  • •

    SM 01315.085 Stages of the Limited Payability Process

  • •

    SM 01315.100 How the System Issues Unnegotiated Check/Limited Payability Alerts

  • •

    SM 01315.101 The Limited Payability (K5) Diary

B. Procedure for limited payability K5 alert

The FO will:

  • •

    Contact the recipient or payee and request any information the person has to verify they are the recipient or payee on our records (name, address, monthly benefit amount, SSN, etc.). (For more information on establishing identity, see GN 03340.015C.)

  • •

    Attempt to determine why the check remained uncashed for 12 months paying special attention to any unreported post eligibility changes that may affect eligibility or payment amount; (For more details on recipient reporting, see SI 02301.001.)

    NOTE: Because title XVI is a needs based program, title XVI checks should not ordinarily go uncashed for 12 months.

  • •

    Explain that our records indicate the check is uncashed; and

  • •

    Take the necessary action depending on the recipient's response and any unreported post eligibility changes.

    NOTE: An update to the SSR, payment of an underpayment, or adjusting an existing overpayment, could be required actions based on the person’s response. For post eligibility details, see SI 02301.001. For further instructions if the check is still due based on a recipient’s response see GN 02401.904C through GN 02401.904E in this section.

C. When the recipient indicates check was not cashed or does not know if the check was cashed

  • •

    When the recipient says they did not cash the check, follow the steps outlined in see GN 02401.903E.

    NOTE: When an LP credit is present on our records, Treasury has no record of a cashed check.

  • •

    When the recipient cannot remember if they cashed the check, take the following actions:

    • –

      reduce an overpayment, or

    • –

      pay the recipient.

See details:

GN 02401.903E Title XVI FO procedure when the credit is present after 13 months

D. When a recipient indicates check was cashed

When the recipient indicates they cashed the check:

  • •

    access the Payment History - Limited Payability (UPLP) screen in MSSICS Direct SSR Update; and

  • •

    select the payment in question and select “N” for the “Release Payment (Y/N)” field.

The system holds the payment and the credit stays on the record. The SSR Unnegotiated Check Indicator (UCI) field changes from a code of “I” to a code of “M.”

See details:

E. When we cannot locate an SSI recipient or payee

When we cannot locate an SSI recipient, or payee, update the SSR.

  • •

    select the UCI of "I" (payment unresolved); and

  • •

    select "N" in the release payment field on the Payment History -- Limited Pay UPLP screen.

The SSR UCI field will change from a code of ‘I” to a code of ‘M’.

See details:

MSOM BUSSR 003.006 Payment History - Limited Pay (UPLP)


GN 02401 TN 48 - Checks - General Information - 5/29/2024