Identification Number:
GN 02408 TN 57
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Stop Payments and Reclamations
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 024 – Checks
Subchapter 08 – Stop Payments and Reclamations
Transmittal No. 57, 07/02/2021

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

No changes have been made to the content. Action is to remove sensitive designation only.

Summary of Changes

GN 02408.615 Automated Electronic Funds Transfer (EFT) Reclamation Requests and Exclusions

Recently, there has been an concerted effort by our agency to apply stricter reinforcement to what policies can be marked as sensitive. Based off of the sensitive policy, AO 40410.030, a policy can only be marked as sensitive if it falls into one of the three categories:

  • Descriptions of internal security controls and override instructions in claims processes

  • Instructions which explain to employees what steps they must take to effectuate or redirect a payment or to override an internal control feature

  • Instructions designed to detect fraudulent documents and actions.

OFPO has determined that GN 02408.615 does not fall into one of these three categories, as the information provided in the policy does not affect claims processing, effectuation or redirection of a payment, override an internal control feature, nor does it provide instructions on detecting fraud.

GN 02408.615 Automated Electronic Funds Transfer (EFT) Reclamation Requests and Exclusions

A. Introduction

This section discusses automated reclamation requests generated for deceased beneficiaries and recipients who received Title II or Title XVI benefits through direct deposit to U.S. financial institutions (FIs).

The process for automated reclamation requests begins after the Social Security Administration (SSA) receives death information and terminates the record(s).

NOTE: If the payment went to a routing transit number (RTN) beginning with 5, 6, or 7, see the section on International Direct Deposit (IDD) reclamations in GN 02408.900.

B. Death Notification Entry (DNE) process

SSA generates a non-monetary entry called a Death Notification Entry (DNE) as soon as the verified death is posted to the Title II or Title XVI record. A reclamation request then orbits 20 days for Title II, or 30 days for Title XVI, awaiting possible payment returns from the FI. For more information on DNEs, see GN 02408.605.

NOTE: The term "orbit" is used to describe an item that sits on a static file that is reviewed daily by SSA systems to determine if an action is needed.

C. Process when the system sends an automated reclamation request (E-Stop) to the U. S. Department of the Treasury (Treasury)

1. Title II

The Title II system orbits the reclamation request to see if the FI returns the payment(s). If the FI has not returned the payment(s) within 20 days, SSA sends an automated reclamation request (E-stop) to Treasury. The automated reclamation request shows the date of death and the outstanding payment(s) after death. Any incorrect payment(s) that the FI already returned are not included. The Payment History Update System (PHUS) shows the E-stop information sent to Treasury.

IMPORTANT: The Title II system is limited to processing 50 reclamations through the automated system. If there were more than 50 payments issued after the death on a Title II record, an exception will be generated to the Program Service Center (PSC) technician for a manual action. Reclamation requests for all of the payments must be input manually. For example, if there are 75 payments that need to be reclaimed, it will take the technician a minimum of two days to process the actions. Day one, payments 1 through 50 may be processed, and on day two, payments 51 through 75 may be processed. See Manual EFT Reclamation Requests in GN 02408.620C.1. and Non-Entitlement Due to Death Report in GN 02408.660.

2. Title XVI

If the FI has not returned the payment(s) within 30 days after the DNE is sent to the FI, SSA sends an automated reclamation request (E-stop) to Treasury based on the death information and the payment and return information on the Supplemental Security Record (SSR). The automated reclamation request shows the date of death and the outstanding payments after death. Any incorrect payments that were returned before the death was posted to the SSR are not included. However, a reclamation request does go out even if the payments were returned within the 30 days after the DNE was sent to the FI. The Treasury Status Query (UPTQ) screen shows the E-stop information sent to Treasury (see MS 00303.020).

NOTE: For Title XVI, there is no limit on the number of reclamations that can be sent at one time.

D. Process for exclusions from the automated reclamation process

In the following situations, the system does not send an automated E-stop:

1. Title II or Title XVI payment went to a representative payee

A payment that went to the representative payee after the beneficiary’s death is a legally defined overpayment. We process the overpayment, giving due process. See GN 02201.001D, GN 02408.007, SI 02220.053, and GN 02201.000 regarding Title II and Title XVI overpayment policy.

REMINDER: Never input a manual reclamation request on a payment that went to a representative payee after a beneficiary’s death.

2. A spouse or parent on the same Title II record had direct deposit to the same account

SSA does not send an automated reclamation (E-stop) when a spouse or parent is paid on the same Title II record and has direct deposit to the same account. In addition, SSA does not send a DNE to the FI when a beneficiary and spouse share the same bank account, see GN 02408.605.

NOTE: Because of systems limitations, an automated reclamation will go out if the spouse or parent is only technically entitled (in LAF-AD or LAF-SD) on the same Title II record of the deceased beneficiary. However, do not initiate a manual reclamation when the spouse or parent is only technically entitled on the same record as the deceased beneficiary.

The Program Service Center (PSC) sends an overpayment notice with due process to collect the incorrect payment(s) from the spouse or parent who was a joint-account holder and entitled on the same Title II record for the month before the month of death. The PSC inputs the overpayment information into the Recovery of Overpayments, Accounting and Reporting (ROAR) system and the MBR Beneficiary Overpayment/Underpayment (OUPAY) Data Line. If the spouse or parent does not return the funds, the PSC takes the money out of benefit payments to the spouse or parent.

3. Beneficiary/Recipient dies on or after an early delivery payment date

When the regular payment date falls on a Saturday, Sunday, or a Federal holiday, the payment date becomes the last day before the regular payment date that is not a Saturday, Sunday, or Federal holiday. This payment date is defined as an early delivery payment date.

When a benefit delivered early is incorrect because entitlement terminated due to death, the incorrect benefit is not recovered if the death occurred after the payment was made (i.e., payment was issued and accepted, whether or not spent) but in the same month as the early payment.

Assume that the disqualifying event occurred after payment was made. This provision is applicable regardless of the method of payment (e.g., direct payment, representative payment, payment to a financial institution). If representative payment has been made, the representative payee must have expended the incorrect benefit on the beneficiary.

Assume that the death occurred after payment was made. There is no early payment if the check is not received or is returned. Payment of any increased benefits, underpayments, and/or lump-sum death payment is made without regard to the existence of such an incorrect, early payment on the record.

EXAMPLE: The beneficiary received her benefit check for December on Thursday morning, December 31, and cashed her check that afternoon. On returning to her apartment shortly after cashing her check, she died. Although a benefit is not due for the month of death, the beneficiary had already cashed the check for the December benefit. The December benefit is incorrect, but is not subject to recovery. (See GN 02201.007E)

4. IDD payment

No automated reclamation can be done for an IDD payment (the routing number begins with 5, 6, or 7) because Treasury has no authority over a foreign bank. The process for IDD reclamations begins at GN 02408.900.

5. Direct deposit was involved for either or both members of a Title XVI couple’s case

The system does not send an automated reclamation for a deceased recipient on a Title XVI couple’s record when either or both members receive payment via direct deposit. Treat this scenario as an overpayment to the surviving spouse. Do not initiate a manual reclamation. See GN 02408.650.

6. Prior month accrual (PMA) Payment

The system does not send an automated reclamation for a PMA payment issued after the death of the beneficiary. If this is an incorrect payment (not due to the beneficiary), input a manual reclamation per GN 02408.620.

7. More than 50 recurring Title II payments

When we send more than 50 recurring Title II EFT payments to the beneficiary after death, the system sends an alert to the PSC. The PSC must then do manual reclamation inputs for all the payments. The Title II system can process reclamation requests for up to 50 payments per day per beneficiary. There is no daily limit for Title XVI reclamations.

E. References

  • SM 01315.136 - When the SSI System Automatically Generates Stop-Payment Requests

  • SM 00545.295 - Nonreceipt, Stop-Payment and Photocopy Events

  • SM 01315.005 - Early SSI Payment Date Schedule

  • GN 02408.620 - Manual EFT Reclamation Requests


GN 02408 TN 57 - Stop Payments and Reclamations - 7/02/2021