Identification Number:
GN 02408 TN 34
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. 34, 07/23/2019

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 Payment and Recovery Policy (OPRP) is completing a three year review of all OPRP owned policies. We reviewed and revised the instructions for GN 02408.002 Glossary of Stop-Payment and Reclamation Terms for Checks and EFT Payments to match existing policies, to follow plain language guidelines, and to update of hyperlinks.

 

Summary of Changes

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

This policy provides a definitions of terms used in GN 02408.000 (GN 02408.001-GN 02408.950). We updated definitions of various terms to align with GN 02406.001, Treasury definitions, other existing policies and to follow plain language guidelines. We also updated all references to the U.S. Department of Treasury from DT to Treasury and updated hyperlinks.

 

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.

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) non-receipt.

  • 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 FMS-3858 (Claims Document), FMS-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 FMS-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.

FMS-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.

FMS-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 non-receipt for non-entitlement situations other than death of the beneficiary or recipient.
  1. 1. 

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

  2. 2. 

    Non-receipt 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 non-receipt 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 non-receipt 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 non-receipt 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 non-receipt or stop payment action (such as an F-Stop.) Refer to non-receipt 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 FMS, 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 non-receipt 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 non-receipt 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 Non-receipt Terms

  • GN 02406.004 Non-receipt Desk Charts for Teleservice Center, Title II and Title XVI Field Offices


GN 02408 TN 34 - Stop Payments and Reclamations - 7/23/2019