Identification Number:
GN 02402 TN 142
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Direct Deposit - Title II and Title XVI
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 024 – Checks
Subchapter 02 – Direct Deposit - Title II and Title XVI
Transmittal No. 142, 07/03/2019

Audience

PSC: BA, CA, CCRE, CS, DS, ICDS, IES, ILPDS, IPDS, ISRA, PETE, RECONR, SCPS, TSA, TST;
OCO-OEIO: BIES, BTE, CCRE, CR, CTE, FCR, PETL, RECOVR;
OCO-ODO: BTE, CCE, CR, CST, CTE, EHI, LCC, LSC, PAS, PCS, PETL, RC, RCOVTA, RECONR, 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

International Direct Deposit (IDD) service is a joint effort between our agency and the Federal Reserve Bank of Kansas City (FRBKC). We reviewed and revised the instructions for Rejected Canadian IDD Payments, Returned IDD Payments, and Allegations of Nonreceipt of IDD to provide current and accurate instructions for employees.

Summary of Changes

GN 02402.240 Rejected Canadian International Direct Deposit (IDD) Payments

Title, we added International Direct Deposit followed by the acronym per plain language guidelines.

Subsection A, we added subsection and title. We updated the third paragraph because OEIO does not receive a reject list via fax. Now, they receive an email from the Federal Reserve to access their site and retrieve the intercept listing.

Subsection B, we added subsection and title. We updated language on the last paragraph to explain that OEIO personnel now ask for a copy of the check when a payment rejects.

 

GN 02402.245 Returned International Direct Deposit (IDD) Payments

Title, we added IDD acronym

Subsection B, we eliminated the third bullet because the FBU’s no longer receive copies of account statements. We eliminated the fourth bullet because there are no longer redirects.

Subsection C, we eliminated the second, fifth and sixth bullets because the process is no longer valid.

 

GN 02402.250 Allegations of Nonreceipt of International Direct Deposit (IDD)

Title, we added IDD acronym.

Subsection C, we deleted a duplicate step 9 from the chart. We deleted fax # on step 11 and replaced it with new language per new procedures. On step 13, we changed the sensitive case staff to show translation and priority work unit.

Subsection D, we added new section to provide DIO office codes with their email addresses.

Subsection E, we corrected the link for the SSA-1711 form.

 

GN 02402.240 Rejected Canadian International Direct Deposit (IDD) Payments

A. Background for rejected Canadian IDD payments

A payment for an account in Canada that does not arrive at the endpoint of the Financial Institution (FI) may have been rejected and returned by the processor bank.

Before sending any payments to the endpoint FIs, the processor bank for Canada matches SSA's payment files (one for Canadian dollar accounts and one for U.S. dollar accounts) against a file of bank routing numbers and depositor account number formats provided by the FIs.

If a payment contains an invalid bank number, an invalid depositor account number (DAN), or a DAN for the wrong currency, the processor bank removes the payment from the file, returns the payment to the Federal Reserve Bank of Kansas City (FRBKC), and sends FRBKC a reject listing. FRBKC sends an email to the Office of Earnings and International Operations (OEIO) and to the Office of Payment and Recovery Policy (OPRP). After the scheduled payment date, FRBKC returns the payment to SSA.

B. The most common reasons for rejected Canadian IDD payments (other than typing errors) are:

  • The account is coded for the wrong currency. There are three ways to code direct deposit for different accounts in Canada: Canadian dollar accounts, U.S. dollar accounts at most banks, and U.S. dollar accounts at Royal Bank of Canada. See GN 02402.300D., GN 02402.300E., and GN 02402.300F.

  • The institution number contains an extra zero at the front. All institution numbers must be coded with only 3 digits. FRBKC's system reads the first 3 digits of the DAN field as the institution number and formats the record accordingly before passing it to the processor bank in Canada. An extra zero before the institution number for a payment that should go to Canadian Imperial Bank of Commerce (010), for example, will be read as a payment for Bank of Montreal (001). An extra zero before the institution number for a Bank of Montreal payment will mean that the institution number will be read as 000, an invalid institution number.

  • The institution number is not coded as the first part of the DAN. When the institution number is missing, FRBKC's system reads the first 3 digits of the account number as the institution number and the remainder of the digits as the account number. If the DAN field contains only 7 digits, the institution number is almost certainly missing. On a Canadian check, the institution number follows the branch number, with a dash between the two numbers. The dash should not be coded.

  • A “C” is coded as the first character of the DAN. If you receive coded Canadian IDD information containing a “C” at the beginning of the DAN, it is meant to be an indication that you should choose “Checking” as the type of account when keying the information. The “C” should not be keyed in the DAN field, even though it is shown at the beginning of the DAN on the MBR. When the DAN is coded incorrectly, the contractor bank receives an invalid institution number that begins with “C” instead of a numeric character. If you are passing information to another person for keying, it is better to show only the correct DAN information and write “checking,” instead of coding a “C.” Outdated forms should not be used for coding information for keying.

  • The beneficiary did not give the interviewer all the numbers from the bottom of the check. Many Canadian banks include all or a portion of the transit (branch) number at the beginning of the account number. The beneficiary reads the transit number and the institution number, and then encounters the transit number again. Knowing the actual account number, the beneficiary skips over the transit number and reads only the actual account number. If you know that the account number for a certain Canadian bank usually contains more digits than the beneficiary is telling you, you should ask if there are any numbers between the institution number and the “account number.”

  • A dash is coded after the institution number, making the account number longer than allowed. The Canadian banking system allows up to 12 characters for the account number. If the account number already contains 12 characters and a dash is keyed after the institution number, the account number is read as 13 characters. FRBKC sends the processor bank only the first 12 characters after the 3-digit institution number. Any remaining characters are dropped. To avoid this problem, it is better to code without inserting an extra dash.

  • The check serial number is included in the DAN coding. The number of the check is coded at the bottom of the check, along with the routing and account number information. If the interviewer suspects the beneficiary has given the check number over the phone, the interviewer can ask for the number of the check at top right.

Coding instructions for Canadian IDD are at GN 02402.300. To improve the accuracy of coding for Canadian IDD, OEIO personnel request the SSA-1199 CN along with a copy of the check, especially if the payment rejects.

GN 02402.245 Returned International Direct Deposit (IDD) Payments

A. Policy

Payments that either cannot be credited to the designated bank account or are returned by the financial institution (FI) because the individual is not due the payment are returned to the SSA trust funds.

A foreign FI that cannot credit a payment to the designated account should return the payment to the processor bank that services the Federal Reserve Bank of Kansas City (FRBKC) in that country.

B. Process

1. Processor FI

When a payment cannot be credited to the designated account, the processor FI:

  • Credits the returned payment to the special clearing account maintained for FRBKC;

  • Sends FRBKC an account statement and complete information about the returned payment.

C. Procedure - FBU

When an IDD payment for Germany, Ireland, Italy, Norway, Portugal, Spain, Sweden, or the United Kingdom is returned because of an incorrect bank or branch number, do the following:

  • Determine the correct information by referring to the bank routing numbers guide or documentation in the FBU, or by contacting the beneficiary or the beneficiary's FI.

  • Advise the beneficiary that the payment may be delayed a few days.

  • Make corrective input to avoid further unprocessable transactions.

D. References

GN 02402.250 Allegations of Nonreceipt of International Direct Deposit (IDD) payments

A. Reasons for Nonreceipt allegations

Because of internal controls included in the various stages of the International Direct Deposit (IDD) process, it is unlikely that IDD payments will be lost. In most instances, one of the following will have occurred:

  • The payment was not issued.

  • The payment was intercepted (see GN 02402.235).

  • The payment was rejected by the processor bank because of invalid bank data. (See GN 02402.240 for common errors in coding Canadian IDD.)

  • The RTN and/or DAN is not accurate.

  • The payment was received at the beneficiary's FI but has not been credited to the account.

  • The payment was credited by the FI earlier or later than expected.

  • The account to which the payment was sent via IDD is in the wrong currency for IDD to that country, which caused the payment to be rejected and returned by the processor FI or the beneficiary's FI.

  • For Canada, the RTN prefix may have been coded for a wrong currency. For a Canadian dollar account, it should be 51; for a U.S. dollar account, it should be 62. See GN 02402.300C.4.a. for a list of some ways to tell when the account is a U.S. dollar account at certain Canadian FIs.

  • If the missing payment is a PMA payment, it may have been sent after the End of COM and will be paid in the following month. (See GN 02402.225A.2.)

  • The payment to a beneficiary with a rep payee may have been rejected because the FIs in that country do not allow an account title such as “John Smith for Mary Smith.”

  • The beneficiary may have intended to have direct deposit to a U.S. bank, but presented a deposit slip as evidence of the bank data. Internal bank routing numbers on U.S. deposit slips mainly begin with 5, 6, or 7. Payments may then be sent to a country for which the two-digit country code is the same as the first two digits on the deposit slip.

NOTE: IDD payments to most countries are made in local currency, not U.S. dollars. Therefore, a payment amount for a beneficiary in one of those countries will appear different from the information on PHUS.

B. IDD Nonreceipt Process

IDD nonreceipt is a two-step process. The person who receives the report first makes a nonreceipt input to document the report. But this input does not result in any action. SSA's system accepts the input, but the Department of the Treasury (DT) cannot process the resulting report. The coding on the PHUS looks as if DT is investigating, but no investigation occurs when either the current RTN or the RTN to which the payment was issued begins with 5, 6, or 7. Therefore, for all IDD payments to Australia, Canada, Greece, Panama, or a country included in a multi-country contract, a nonreceipt form SSA 1711 (GN 02402.250C.) needs to go to FRBKC to request a trace action. For nonreceipt of IDD payments to all other IDD countries, the FBU contacts the processor bank.

C. Nonreceipt Procedure

When a report of nonreceipt of a direct deposit payment for a beneficiary outside the U.S. is received in a border FO, a TSC, Office of Earnings and International Operations (OEIO), an FBU, or a consular office, follow these steps.

Step

Action

1

Verify payment and account information. Determine whether:

  • the payment was issued,

  • the RTN and DAN are correct, and

  • the account is in the correct currency for that country. (See GN 02402.200 for the reference for that country.)

2

Obtain the name and address of the bank, as well as the bank code and bank account number. Go to STEP 3.

3

Take the appropriate action as indicated:

If you are in a claims taking component unfamiliar with the correct coding for the required country go to STEP 4;

If you are a claims taking FBU go to STEP 5;

If you are a non claims taking FBU go to STEP 6;

4

Obtain complete bank information and send a request to OEIO to make the input. STOP.

5

If the account information is incorrect, go to STEP 7. Inform the beneficiary that the payment will be returned to SSA and reissued to the correct account.

NOTE: The estimated time is three to four weeks from the payment date for SSA to receive the return payment, reissue, and deposit the payment into the correct account. Add an additional three weeks, if we received a return and the payment reissued to an incorrect account (See step 8).

6

Send the nonreceipt information and correct bank data to the Regional Foreign Benefits Officer's (RFBO's) office for input. Non-claims taking units follow the RFBO's instructions for processing nonreceipt. STOP.

7

Determine whether the RTN to which the payment was issued begins with either 5, 6, or 7.

  • If the payment was issued by check or to an RTN that does not begin with 5, 6, or 7, follow procedures in GN 02406.000 for nonreceipt of U.S. check or direct deposit. STOP.

  • If the payment was issued to an RTN that was not for the country where the beneficiary holds an account, ask if the beneficiary wanted payments to go to a U.S. bank. If yes, ask for the correct information for the U.S. account and input the action. (Don’t accept information from a deposit slip.). STOP.

  • If the payment was issued to an account at an FI with an RTN beginning with 5, 6, or 7, go to STEP 8.

8

Determine if either FRBKC intercepted the payment (GN 02402.235) or the processor bank rejected the payment (GN 02402.245). If PHUS shows the payment as returned, assume that the payment was intercepted or rejected. For either of these situations, take corrective action as necessary to correct the bank data. Go to STEP 9.

NOTE: An ENR or NOC IDD sent through ITS.gov and posted to the MBR will not start payments for a record in suspense. Explain that the intercepted or rejected payment will be returned to SSA and reissued about 10 business days after the payment date. (If it has already been returned and reissued to the incorrect bank data, estimate three weeks from the date the PMA payment was sent from SSA, for it to reject again and be returned to SSA.) Estimate that the beneficiary will receive the payment about two weeks after the date the payment is returned and reissued to the correct bank data. (For more about PMA payment dates, see GN 02402.225A.)

9

Determine whether the account to which the payment was sent is for the correct type of currency for IDD to that country. (See GN 02402.220D. for the reference for specific information about IDD to the country where the payment was sent.)

  • If the account to which the payment was sent is for the correct type of currency for IDD to that country, obtain and input correct information. Inform the beneficiary that the payment will be returned to SSA and reissued to the correct account information you have obtained and input. Go to STEP 11.

  • For Canada, follow GN 02402.300D., GN 02402.300E., or GN 02402.300F., to code the correct Canadian or U.S. dollar account information. STOP.

  • For all others, obtain and input direct deposit information for the correct currency account. If a beneficiary does not have an account in the correct IDD currency, ask if the beneficiary would like to open an account in the correct currency for IDD to that country or have direct deposit in U.S. dollars to an account at a U.S. FI. If the beneficiary wants direct deposit to another account, make the input. If not, cancel the direct deposit and explain that payments will be sent by check. STOP.

  • If the account to which the payment was sent is in the correct currency for IDD to that country, and the bank information was correctly coded, make sure the beneficiary has contacted the FI to inquire about a late posting. STOP.

  • If the payment was issued to an account in the correct currency and the FI alleges not receiving the payment and the payment was sent to an account in France, Germany, Ireland, Italy, Mexico, Norway, Portugal, Spain, Sweden, or United Kingdom, go to STEP 9.

  • If the payment was issued to an account in the correct currency and the beneficiary states that the FI alleges not receiving the payment and the payment was not sent to France, Germany, Ireland, Italy, Mexico, Norway, Portugal, Spain, Sweden, or United Kingdom, go to STEP 10.

If you are in OEIO, ask the FBU to ask the processor bank to trace the payment. If the processor bank is unable to trace the payment, contact FRBKC for assistance. Go to STEP 10.

NOTE: If you are in an FO, a TSC, or a PC other than OEIO, send a request to OEIO.

10

Send a nonreceipt form SSA 1711 (GN 02402.250C.) to the Federal Reserve Bank of Kansas City (FRBKC) for assistance. If you are in a border FO or a TSC, send an administrative message or MDW to OEIO “Attn.: Nonreceipt 555,” as follows:

“International Direct Deposit nonreceipt for (country name) for (beneficiary's name, Social Security claim number, BIC, RTN/DAN, payment date, payment amount). Please contact Federal Reserve Bank of Kansas City.”

NOTE: OEIO will send an SSA-1711 to FRBKC.

FRBKC and the processor FI will trace missing payments through the foreign direct deposit system. Payments will be located and either credited to the account or returned.

Go to STEP 11.

11

If the nonreceipt allegation is not resolved in 14 days, send a MDW to the Division of International Operations (DIO). For instructions on how to complete and send an MDW, see TC 29001.030.

If dire need alleged, send a M2M email to DIO. For DIO office codes and email addresses, see Exhibit D.

12

If the payment was deposited into an incorrect account belonging to someone else and is no longer available, go to STEP 13 and also follow GN 02406.020.

13 If the beneficiary alleges dire need or if a public relations problem exists, issue a Critical Payment System (CPS) check. If you do not have access to CPS, request the payment through OEIO by a fax to the Translation and Priority Work Unit (TPWU), 410-965-8020. You may also issue an Immediate Payment for dire need or a public relations problem, if the claimant can get to an FO to pick up the check. NOTE: DT's systems cannot process CPS payments through international direct deposit. Also, only OEIO can process a CPS payment by check to a foreign address if the address on the MBR is not the correct mailing address and the new address must be included in the CPS request.

D. Exhibit – DIO office codes and email addresses

Module

Terminal Digit

Office Code

Email Address

Mod 1

00-24

Q88

OCO.OEIO.DIO.MOD.01@ssa.gov

Mod 2

25-49

Q86

OCO.OEIO.DIO.MOD.02@ssa.gov

Mod 3

50-74

Q91

OCO.OEIO.DIO.MOD.03@ssa.gov

Mod 4

75-99

Q87

OCO.OEIO.DIO.MOD.04@ssa.gov

E. Exhibit – Nonreceipt Form SSA-1711

The Nonreceipt Form SSA-1711 is used to send a nonreceipt request to Federal Reserve Bank of Kansas City when SSA receives a report of nonreceipt for a payment to Australia, Canada, Greece, Panama or a country included in a multi-country contract. Click the following link to access the SSA-1711.

F. References


GN 02402 TN 142 - Direct Deposit - Title II and Title XVI - 7/03/2019