Identification Number:
GN 02406 TN 49
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Failure to Receive a Check/Payment - Title II, Title XVI
Type:POMS Transmittals
Program:Title II (RSI); Title XVI (SSI)
Link To Reference:
 
PROGRAM OPERATIONS MANUAL SYSTEM
Part 02 – General
Chapter 024 – Checks
Subchapter 06 - Failure to Receive a Check/Payment - Title II, Title XVI
Transmittal No. 49, 06/2018

Audience

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

Originating Component

OFPO

Effective Date

Upon Receipt

Background

The Office of Financial Policy and Operations (OFPO), Office of Payment and Recovery Policy (OPRP) conducted editorial review of the procedures to reflect current best practices. Please see the summary of changes.

Summary of Changes

GN 02406.260 FMS-1199 (Schedule of Courtesy Check Disbursements) -- Possible Duplicate Payment

This section discuss the procedures on how to process the Regional Financial Center (RFC) FMS-1199 form for possible duplicate payments for Title II & Title XVI cases. We revised the headings and made editorial changes throughout the sections for clarity.


GN 02406.505 Nonreceipt of a check Outside the United States

This section discuss the procedures on how to process a non-receipt claim for beneficiaries living outside and who returned to the United States. We reworded the section to eliminate the use of passive voice. In addition, we updated the Office of International Operations (OIO) to the Office of Earnings and International Operations (OEIO). We made updates to the title.

Subsection B - We changed the format and created an “action chart”. We updated the Office of International Operations (OIO) to the Office of Earnings and International Operations (OEIO).



GN 02406.260 FMS-1199 (Schedule of Courtesy Check Disbursements) — Possible Duplicate Payment

A. General information about the FMS 1199 (Schedule of Courtesy Check Disbursements)

The FMS-1199 Form is a multi-purpose Regional Financial Center (RFC) document used to initiate the process of debiting the agency for incorrect credits and reversing credits for cancelled checks.

The following examples are scenarios of reasons the Processing Center’s (PC) may receive FMS-1199s:

  • When the RFC fails to locate the Courtesy Check Disbursement items although a check cancels. The Department of the Treasury (Treasury) issues a replacement check based on the nonreceipt procedures.

  • Treasury reverses erroneous cancelled check issuances and notifies the RFC responsible for the cancellation. The RFC prepares an FMS – 1199 form and submits it to the Debt Management Branch; the Accounting Technicians receives this information and completes the SF-224 Form (Statement of Transactions) for courtesy check disbursements.

There is a possibility that duplicate payments exist for items appearing on the FMS-1199 form. Treasury issues a replacement check when the original payment is cancelled. However, the PC may also issue another check for the original cancelled check.

B. Procedure for processing the FMS 1199 in Title II cases

PC personnel will send a photocopy of the Form FMS-1199 to the Check, Customer Service Representatives (CSR), Benefit Earnings Technician (BET), or Disability Service Examiner (DSE) for processing as follows:

  1. Examine the beneficiary’s Master Beneficiary Record (MBR) and Payment History Update System (PHUS) records for indications of original check status such as “held,” “returned,” or “cancelled.” If any of these indications exist, annotate the MBR with the remark “VOID--FMS-1199 RECEIVED FOR CANCELLED CK--(MO/YR).”

    Any PC action resulting in a beneficiary’s held, returned, and cancelled check action is erroneous due to Treasury's reversal of the check cancellation (reflected by Form FMS-1199).

  2. Submit cases with the erroneous actions to the Benefit Authorizer (BA), via Form SSA-559 (Transmittal Slip for Claims Folder), and indicate pertinent data. When incorrect actions are nonexistent, return folder to files.

C. Process for processing the FMS- 1199 in Title XVI cases

The Division of Benefit Accounting and Systems Requirements (DBASR) compiles documents to include into the SF-224 for Agency Location Code 28-04-0004 SSI. They send copies of this form to Treasury Operations Branch (TOB) for review or processing. The analysts in TOB reviews the Supplemental Security Record (SSR) and the Treasury Status Query Control Record for check status information and any subsequent actions related to that payment month. After reviewing and collecting the information, TOB updates the SSR or initiates field contact for case resolution.

GN 02406.505 Nonreceipt of a check Outside the United States

A. Nonreceipt reported by or on behalf of a beneficiary residing outside the United States

When handling a nonreceipt report for beneficiaries residing abroad or third parties acting on their behalf, be mindful of the following:

  • The way a payment is made to the beneficiary; and

  • The original date when beneficiary receives his or her payment in their country or area.

The U.S. Department of State delivers most checks to beneficiaries in foreign countries by Army Post Office (APO) and Fleet Post Office (FPO) facilities. The checks for APO and FPO are mailed directly to the APO and FPO facilities. They are not sent through the consulates.

However, SSA sends checks directly to beneficiaries residing in Canada and Mexico.

B. Processing reports of nonreceipts from outside the United States

Follow these steps when processing reports of nonreceipt by a beneficiary residing outside the United States.

Step

Action

1

Obtain the required information from the beneficiary who reports the nonreceipt:

  • claim number,

  • payee name,

  • payment date,

  • payment amount, and

  • Signature.

If the beneficiary reports a non-receipt claim by telephone, establish the identity of the caller. For more information on establishing the identity of the caller, see GN 03001.012.

Once you obtain the required information, go to step 2.

If you do not have, the required information go to step 3.

2

Input the nonreceipt. For more information on inputting nonrecipt reports, see GN 02406.515.

STOP.

3

Forward the report of nonreceipt to the Office of Earnings and International Operations (OEIO), P.O. Box 17769, Baltimore, Maryland, 21235-7769.

NOTE: Canadian border offices may make direct contact with beneficiaries in Canada.

C. Processing reports of nonreceipt by a third party

Follow these steps when processing a report of nonreceipt by a third party outside of the United States.

Step

Action

1

Explain the payment delivery procedure. For more information on payment delivery, see GN 02407.005.

2

Tell the payee to contact the nearest American Consular office if the check is not received within a reasonable period after the scheduled time the check is usually received by the payee.

3

Send a Modernized Development Worksheet (MDW) to OEIO. OEIO will take appropriate action to ensure that we issue a check if due.

Do not issue a critical payment when a foreign address is involved.

Note: Field Offices (FOs) should forward critical payment cases with foreign addresses to OEIO, and follow the Manager-to-Manager (M2M) process in GN 01070.228.A.5 Modes of Requesting Assistance.

Additionally, do not issue an immediate payment when a foreign address is involved if you are not located in a FO in Canada or Mexico. Only border FOs in Mexico and Canada can issue an immediate payment (IP). For more information on the guidelines for immediate payments issued in Canadian and Mexican border field offices, see SM 00635.001H.


GN 02406 TN 49 - Failure to Receive a Check/Payment - Title II, Title XVI - 06/06/2018