Identification Number:
GN 02402 TN 144
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. 144, 08/16/2019

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). Per revised enrollment instructions received by Treasury, we updated the requirements for the countries of Palestine and Chile.

Summary of Changes

GN 02402.406 Coding Palestine Bank Data on the Master Beneficiary Record (MBR)

Title, we added MBR acronym

Subsection D, we updated the currency used to process IDD payments for Palestine.

Subsection F, we removed SWIFT language since it no longer applies. WE updated the currency on step 3 of the chart.

 

GN 02402.407 Coding Chile Bank Data on the Master Beneficiary Record (MBR)

Subsection F, we updated the RTN number on step 4 of the chart.

Subsection G, we updated the RTN number.

GN 02402.406 Coding Palestine Bank Data on the Master Beneficiary Record (MBR)

A. Background for coding Palestine bank data

This section describes how to code bank data for international direct deposit (IDD) of Title II benefits to a financial institution (FI) in Palestine. We store IDD bank data on the MBR in the same fields used for United States (U.S.) direct deposit.

Special coding identifies the bank data as a Palestine direct deposit. This allows us to route benefit payments through the Federal Reserve Bank of Kansas City (FRBKC) and the processor bank in Palestine to the beneficiary's local FI.

Forward IDD requests received in a U.S. domestic (non-border) field office (FO) to the Office of Earnings and International Operations (OEIO), Division of International Operations (DIO) to process.

For detailed instructions on IDD requests and forwarding information, see:

  • GN 02402.201 Background and Policy for Direct Deposit Outside the U.S.

  • GN 02402.205 Direct Deposit Enrollment Outside the U.S.

  • GN 01010.255 Adjudication of Foreign Claims

  • GN 01702.310C Routing of Claims for U.S. Benefits Involving Totalization

B. How we receive IDD bank data

We receive requests to input bank data by mail, phone, or fax in the following formats:

  • Blank check;

  • SSA-1199-OP70 International Direct Deposit Signup Form for Palestine; or

  • Any document containing required banking information.

If you receive information with discrepancies, see:

C. Multi-country contract

The processing FI in Palestine has a “68” at the beginning of the routing transit number (RTN).

The first letter of the Depositor Account Number (DAN) field has the letter “V” assigned for Palestine.

D. Overview of IDD for Palestine

IDD payments sent to Palestine must be in Israeli Shekel (ILS) accounts at local FIs. The beneficiary must provide complete information to DIO or the federal benefits unit (FBU) for input. DIO faxes incomplete forms to the FBU that serves Palestine. The FBU contacts the beneficiary or FI for the additional information.

E. Description of Palestine IDD bank data

The data to code Palestine IDD originates from banks determined by the FRBKC. The bank data on the MBR consists of 27 characters including the country code “V” designated for Palestine.

F. Procedure to code Palestine bank data

The FRBKC relies on us to provide complete bank data to ensure correct posting of payments to a customer’s account. If the information is incomplete, the FRBKC rejects the payment and returns the funds to us. When you use one of our systems to establish or change IDD bank data for Palestine (e.g. Modernized Claims System (MCS), Manual Adjustment Credit and Award Data Entry (MACADE)), you must go to ITS.gov to enter:

  • account ownership;

  • account type;

  • beneficiary address;

  • beneficiary identification (9 digit ID number)

  • country;

  • enrollment status;

  • first and last name of beneficiary;

  • International Bank Account Number (IBAN)

  • payee indicator;

1. Process initial award

You must update ITS.gov with the bank account information before you process the initial award to ensure the beneficiary receives payment. If the complete bank account information is not in ITS.gov when the payment processes, the payment rejects and returns to us.

2. Add or update bank data using our systems

When you add or update IDD bank data using one of our systems (e.g. Post Entitlement Online System (POS), MACADE), you must:

  • update ITS.gov on the same day;

  • enter all POS direct deposit changes according to normal procedures;

  • use procedures outlined in the chart in this section when processing within four business days of the current operational month (COM) cutoff date.

Step

Action

1

Are you coding an initial claim?

If yes, go to step 3.

If no, go to step 2.

2

Is the beneficiary's address on the MBR in a foreign country (PCOC = 8)? If no, STOP.

REASON: The MBR does not accept the IDD information unless the address is in a foreign country.

If yes, go to step 3.

3

Is the beneficiary's account an ILS account in Palestine?

If no, STOP.

REASON: Beneficiaries in Palestine can only receive IDD

payments in ILS accounts.

4

The RTN is 680000132 for all IDD to Palestine contains:

  • Multi-country prefix of “68” for Palestine.

  • U.S. check digit code for all IDD accounts in Palestine end with a “2.”)

No need to obtain the check digit code from Title II Interactive Comps.

5

Code the account type:

  • “S” savings, or

  • “C” checking.

If no indicated account type, use a “C” for checking account.

6

Code depositor account number (DAN):

  • “V” for Palestine;

  • Code 16 digits of the 21-digit account number.

7

You must enter all bank information into ITS.gov on the same business day as listed in GN 02402.406F.

You must access ITS.gov or ask a co-worker to update the required information into ITS.gov.

REMINDER: When information is not available, FRBKC rejects the payment and returns it to us.

G. Example of coding Palestine direct deposit

The customer provides us with a signup form for Palestine with the account number: PS92PALS000000000400123456702

  • The first character of IBAN is “PS,” which represent the International Organization for Standardization (ISO) country code.

  • The third and fourth characters are the IBAN check digit. Never code the IBAN country code or check digit to the MBR.

  • The next 4 characters of the IBAN represents the bank code.

  • The last 21 digits of the IBAN represent the account number.

1. Derive the RTN

The technician enters the information for the RTN.

  • Code RTN as 680000132 ;

  • Code the account type as “C” for checking or “S” for savings. If no account type indicated, use “C” for checking.

2. Derive the DAN

The technician codes the DAN:

  • Start with country code “V” designated for Palestine; and

  • Code the 16 digits of the 21-digit account number “000000000 4001234

3. Technician obtains the bank data

  • Checking

  • DAN: V0000000004001234

a. POS coding reflects the bank data

  • DIRECT DEPOSIT ROUTING TRANSIT NUMBER: 680000132

  • ACCOUNT TYPE (C/S): C

  • DEPOSITOR ACCOUNT NUMBER: V0000000004001234

  • CANCEL DIRECT DEPOSIT (Y):

  • DIRECT EXPRESS (Y):

b. The MBR reflects the bank data

  • RTN 680000132

  • DAN CV0000000004001234

GN 02402.407 Coding Chile Bank Data on the Master Beneficiary Record (MBR)

A. Background for coding Chile bank data

This section describes how to code bank data for international direct deposit (IDD) of Title II benefits to a financial institution (FI) in Chile.

We store IDD bank data on the MBR in the same fields used for U.S. direct deposit. Special coding identifies the bank data as a Chile direct deposit. This allows us to route benefit payments through the Federal Reserve Bank of Kansas City (FRBKC) and the processor bank in Chile to the beneficiary's local FI.

If you receive an IDD request in a U.S. domestic (i.e., non-border) field office (FO), forward all appropriate information to the Office of Earnings and International Operations, (OEIO), Division of International Operations (DIO) to process.

For detail on IDD requests and forwarding information, see:

  • GN 02402.201 Background and Policy for Direct Deposit Outside the U.S.

  • GN 02402.205 Direct Deposit Enrollment Outside the U.S.

  • GN 01010.255 Adjudication of Foreign Claims

  • GN 01702.310C Routing of Claims for U.S. Benefits Involving Totalization

B. How we receive IDD bank data

We receive requests to input bank data by mail, phone, or fax in the following formats:

  • Blank check;

  • SSA-1199-OP78 International Direct Deposit Signup Form for Chile; or

  • Any document that contains required banking information.

If you receive information with discrepancies, see the following instructions:

C. Multi-country contract

The processing FI in Chile have a prefix of “26” at the beginning of the Routing and Transit Number (RTN).

The first letter of the Depositor Account Number (DAN) field has the letter “U” assigned for Chile.

D. Overview of IDD for Chile

IDD payments sent to Chile must be in Chile Peso (CLP) accounts at local FIs. The beneficiary must provide complete information to DIO or the Federal Benefits Unit (FBU) for input.

DIO faxes incomplete forms to the FBU that serves Chile. The FBU contacts the beneficiary or FI for the additional information.

E. Description of IDD bank data for Chile

The FRBKC relies on us to provide the complete bank data to ensure correct posting of payments to a customer’s account.

If the information is incomplete, the FRBKC rejects the payment and returns the funds to us. The bank data on the MBR reflects 27 characters including the country code of U.

F. Policy to code bank data for Chile

The FRBKC relies on us to provide the complete bank data to ensure correct posting of payments to a customer’s account.

If the information is incomplete, the FRBKC rejects the payment and returns the funds to us.

When you use our system to establish or change IDD bank data for Chile (e.g. Modernized Claims System (MCS), Manual Adjustment Credit and Award Data Entry (MACADE)), you must go to ITS.gov to enter:

  • account ownership;

  • account type;

  • account number;

  • beneficiary address;

  • beneficiary ID (Enter the 9 digit alpha numeric character Rol Unico Tributario; tax number);

  • beneficiary phone number;

  • country;

  • enrollment status;

  • first and last name of the beneficiary;

  • payee indicator;

  • Society for Worldwide Internet Financial Telecommunication-Business Identifier Code (SWIFT-BIC).

1. Obtain Swift-BIC code from the FI

The SWIFT code contains a minimum of 8 characters and a maximum of 11 characters:

  • first four characters - bank code (alpha only);

  • next two characters - ISO 3166-1 alpha 2 country code (alpha only);

  • next two characters - location code (alpha and numeric) (passive participants have "1" in the second character); and

  • last three characters - branch code, optional ('XXX' for primary office) (alpha and numeric).

2. Process initial award

Prior to processing an initial award, you must update ITS.gov with the bank account information to ensure that the beneficiary receives his or her payment.

If the complete bank account information is not in ITS.gov when the payment processes, the payment rejects and returns to us.

3. Add or update bank data using our systems

When you add or update IDD bank data using our system (e.g. Post Entitlement Online System (POS), MACADE), you must:

  • update ITS.gov on the same day;

  • enter all POS direct deposit changes according to normal procedures;

  • use the chart in this section when you process within four business days of the current operational month (COM) cutoff date.

Step

Action

1

Are you coding an initial claim?

If yes, go to step 3.

If no, go to step 2.

2

Is the beneficiary's address on the MBR in a foreign country (PCOC = 8)?

If no, STOP. REASON: The MBR does not accept the IDD information unless the address is in a foreign country.

If yes, go to step 3.

3

Is the beneficiary's account a CLP account in Chile? If no, STOP. REASON: Beneficiaries in Chile can only receive IDD payments in CLP accounts.

If yes, go to step 4 .

4

The RTN is 260000129 RTN for Chile. It contains the:

  • Multi-country prefix of “26” for Chile IDD

  • U.S. check digit code of “9” for all IDD accounts in Chile (at the end of the RTN)

No need to obtain the check digit code from Title II Interactive Comps.

5

Code the account type:

  • “S” for savings, or

  • “C” for checking.

If the beneficiary does not indicate an account type, use a “C” for checking account.

6

To code the Depositor Account Number (DAN) for Chile, code:

  • U” designated for Chile

  • 16 digits of the 20-digit account number

7

You must take action on the same business day to enter all the information into ITS.gov as listed in the introduction of GN 02402.407F in this section.

You must access ITS.gov or ask a co-worker to update the required information into ITS.gov.

FRBKC rejects the payment and returns it to us when we do not send all required information.

G. Example of coding direct deposit for Chile

The customer provides us with a signup form for Chile containing the account number “12345678901234567890.”

1. Derive the RTN

Enter the information for the RTN.

  • Code the RTN of 260000129.

  • Code the type of account as a “C” for checking or an “S” for savings. If no account type indicated, use a “C” for checking.

2. Derive the DAN

Code the DAN for Chile.

  • Start with the country code of “U” designated for Chile; and

  • Code 16 digits of the 20-digit account number “1234567890123456”.

a. You must obtain the following

  • RTN: 260000129

  • Checking

  • DAN: U1234567890123456

b. The POS coding reflects this information

  • DIRECT DEPOSIT ROUTING TRANSIT NUMBER: 260000129

  • ACCOUNT TYPE (C/S): C

  • DEPOSITOR ACCOUNT NUMBER: U1234567890123456

  • CANCEL DIRECT DEPOSIT (Y):

  • DIRECT EXPRESS (Y):

c. The MBR reflects this information

  • RTN-260000129

  • DAN-CU1234567890123456

H. References

  • GN 00203.020 Identity of Claimants

  • GN 01010.255 Adjudication of Foreign Claims

  • GN 01702.310C Routing of Claims for U.S. Benefits Involving Totalization

  • GN 02402.025 Direct Deposit Post Entitlement Interview

  • GN 02402.201 Background and Policy for Direct Deposit Outside the U.S.

  • GN 02402.205 Direct Deposit Enrollment Outside the U.S.

  • ITS.gov International Treasury Services (U.S. Treasury system)


GN 02402 TN 144 - Direct Deposit - Title II and Title XVI - 8/16/2019