Identification Number:
GN 02406 TN 64
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 VIII (SVB),Title II (RSI)
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 024 – Checks
Subchapter 06 – Failure to Receive a Check/Payment - Title II, Title XVI
Transmittal No. 64, 08/21/2019

Audience

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

Originating Component

OFPO

Effective Date

Upon Receipt

Background

 

The Office of Financial Policy and Operations, Office of Payment and Recovery Policy conducted editorial review of the procedures to reflect current best practices. Additionally, we expand on the background to reduce vagueness and present a complete picture of the recovery process.

Summary of Changes

GN 02406.012 B-Stop Fraud Indicator Reports

Title

  • Changed title of the section from B-Stop Fraud Indicator Reports to Potential Fraud Report and ENR (Automated Enrollment) Detail Listing. The new title list the files actual names. Just referencing them as B-stop reports was vague

Subsection A – Background of Title II and Title XVI TeleTrace Reports

  • Updated the title of this subsection to Background information on the Potential Fraud Report and ENR (Automated Enrollment) Detail Listing

  • Added an introductory paragraph with information explaining more details on Treasury’s role in the TeleTrace process.

  • Added a new paragraph that explains how and why the reports were created, to help identify and recover potentially fraudulent cases.

Subsection B - Title II Potential Fraud and ENR Detail Listing Reports

  • Moved the word ‘Reports’ in the heading to accurately reflect the names of the two reports, should be Title II Potential Fraud Report and ENR Detail Listing.

  • Updated grammar and reference links to policies.

Subsection C - Title XVI Potential Fraud and ENR Detail Listing Reports * Updated reference link to policy.

  • Moved the word ‘Reports’ in the heading to accurately reflect the names of the two reports, and be consistent. Should be Title XVI Potential Fraud Report and ENR Detail Listing.

Subsection D - Handling Title II and Title XVI ENR Detail Listings

  • Updated the title of this subsection for consistency and simplification.

GN 02406.012 Potential Fraud Report and Automated Enrollment (ENR) Detail Listing

A. Background

The Department of the Treasury (Treasury) Philadelphia Financial Center (PFC) TeleTrace Unit investigates each allegation of direct deposit nonreceipt. These actions occur after SSA inputs a B-stop on a missing payment and sends the B-stop automatically to Treasury overnight (see GN 02406.011). Following the investigation PFC closes each case using a specific closure code (see GN 02406.015C).

TeleTrace cases that the TeleTrace Unit cannot fully resolve are closed as ‘Referred to SSA’ and are sent back to SSA (via the Processing Centers (PCs) or the Field Offices (FOs)) for further investigation. PCs and FOs receive monthly TeleTrace reports containing the unresolved Title II and Title XVI nonreceipt cases; these cases typically involve payments deposited into an incorrect account where the funds are no longer available for recovery. PFC makes the Potential Fraud Report and ENR Detail Listing available to identify cases where fraud is the alleged cause of the non-receipt. TeleTrace reports also notify SSA technicians of future actions to take and potential responses to provide the beneficiaries, recipients, or rep payees. See GN 02406.015 for TeleTrace referrals.

To assist in identifying cases that may be potentially fraudulent or where fraud is the alleged cause of the nonreceipt Treasury started to utilize a new TeleTrace closure code, ‘Potential Fraud’. A case can be closed as Potential Fraud based on the TeleTrace Unit’s investigation or if the initial B-stop input by SSA is annotated with a “Y” in the FRAUD ALLEGED NONRECEIPT TYPE B ONLY field for each potentially fraudulent allegation of nonreceipt.

Treasury also made two new reports available: The Potential Fraud Report and ENR Detail Listing.

The Potential Fraud Report identifies all cases that have been closed by the TeleTrace Unit with a code of ‘Potential Fraud’.

The ENR Detail Listing identifies cases where the source of the bank data change was a financial institution (FI). This type of change is known as an Automated Enrollment or ENR (see GN 02402.106 and SM 00510.117 for Automated Enrollment information).

B. Title II Potential Fraud Report and ENR Detail Listing

The PFC, emails the Potential Fraud Report and the ENR Detail Listing Report to the PCs for processing;

The Potential Fraud Report is a MicrosoftAccess Database file that is sent to the Southeastern Payment Service Center (SEPSC). SEPSC receives the files from Treasury, runs them through our local program and places each PC’s data on to SSA’s Mainframe. SESPC then sends an email to OAS in each PC with the file name. Every PC is responsible for retrieving their files from the Mainframe and loading into Paperless. When the technician receives the Action Control Record (ACR), he/she reviews the Master Beneficiary Record (MBR), Payment History Update System (PHUS), and the TeleTrace results, found on the 'Claims Details' tab in the Treasurt Check Informaiton System (TCIS) to determine additional necessary actions based on processing instructions in the following:

  • GN 02406.015B - TeleTrace Referrals

  • GN 02406.020B - Recovery of a Misdirected Direct Deposit Payment Deposited to an Incorrect Account

  • GN 02406.012D - Potential Fraud Report and ENR (Automated Enrollment) Detail Listing

The ENR Detail Listing is an excel file that outlines the status of EFT Claims Form., the PFC sends the ENR Detail Listing to the PC and the PC sends it to the technicians as an ACR (see GN 02406.012D for information on the EFT Claims From and how to resolve the claim based on the ‘ENR Status’).

 

C. Title XVI Potential Fraud Report and ENR Detail Listing

The distribution of Title XVI Potential Fraud Reports and the ENR Detail Listing mirrors the existing SSI TeleTrace Referral process. For more information on the TeleTrace Referral process, see GN 02406.015.

  1. 1. 

    The procedure for processing the Potential Fraud Reports is:

    1. a. 

      The Office of Payment and Recovery Policy (OPRP) downloads the Title XVI Potential Fraud Detail Reports from TCIS;

    2. b. 

      OPRP uploads the reports into the TeleTrace Automated Email Web Application;

    3. c. 

      The web application automatically emails all potential fraud data to the FOs based on the annotation in DOORS with the title ‘SSA Potential Fraud Detail Report.’ Upon receipt, the FO downloads the potential fraud file and confirms receipt of the email; and

    4. d. 

      Technicians review the Supplemental Security Record (SSR) and the TeleTrace results (Claims Details tab in TCIS) to determine additional necessary actions based on processing instructions in:

      • GN 02406.015B - TeleTrace Referrals

      • GN 02406.020B - Recovery of a Misdirected Direct Deposit Payment Deposited to an Incorrect Account

      • GN 02406.012D - Handling Title II and Title XVI ENR Detail Listings

  2. 2. 

    Processing the ENR Detail Listing

    The procedure for processing the ENR Detail Listing is as follows:

    1. a. 

      OPRP downloads the SSI ENR Detail Report from TCIS.

    2. b. 

      OPRP uploads the reports into the ENR / EFT Potential Fraud Web Application.

    3. c. 

      The web application automatically emails all ENR detail data to the FOs with the title ‘ENR Detail Report’.

    4. d. 

      Upon receipt, FO technicians review the “Status” on the ENR Detail Report and refer to the ENR disposition chart in GN 02406.012D.

D. Process for handling ENR Detail Listing statuses

1. ENR Disposition Chart

When the technician selects the “fraud alleged” option on the nonreceipt screens, Treasury receives a unique fraud alleged identifier overnight. Treasury contacts the FI and attempts to recover the redirected payment. If Treasury is unable to recover the full amount of the redirected payment for an ENR transaction (e.g. the redirected funds are no longer in the account), Treasury sends the beneficiary, recipient, or rep payee an EFT Claim Form. The information the beneficiary, recipient, or rep payee provides on the EFT Claim Form certifies nonreceipt of direct deposit (DD) or Direct Express (DE) funds and allows Treasury to debit the FI’s Federal Reserve account.

When a beneficiary, recipient, or rep payee completes and returns the EFT Claim Form to Treasury, Treasury will make a determination whether to hold the FI liable for the redirected payment. If the beneficiary, recipient, or rep payee does not complete or return the EFT Claim Form, the associated party may be found at fault for the overpayment. Section E provides instruction on how to post this type of overpayment. Treasury utilizes ENR Status Codes to respond to each nonreceipt claim involving redirected payments. These status codes are also available in TCIS at the bottom of the Claims Details Screen. The following chart explains the ENR Status Code, actions needed, and the explanation you provide to the beneficiary, recipient, or rep payee.

 

ENR Disposition Chart

ENR Status

Description

Action

How to handle inquiries:

Payment Returned

 

(ENR Match and TeleTrace (TT) Status Payment Returned)

Treasury has returned the redirected payment in full.

If there is an overpayment on the record due to a duplicate payment, reduce or recover the overpayment with the returned funds.

TII - If the beneficiary requires repayment, issue the funds to the beneficiary using the DR or RC Special Entry in MACADE.

TXVI – OBASA posts remittances for partial payments to the OPRR segment and updates the credit for a full remittance to the appropriate payment in the PMTH segment. OBASA TOB) posts remittances for partial payments to the OPRR segment field with a DOC of 534, and updates the credit for a full remittance to the appropriate payment in the PMTH segment.

If he or she received a replacement payment:
Explain that we have updated the record and there is no further action for him or her to take.

If he or she did not receive replacement payment:
Explain that he or she should receive the payment within ten business days.

Comerica (seen in TCIS Claim Data tab only; not scanned into Paperless)

(ENR Match and RTN is Comerica, enrollment was erroneously established.)

Treasury has contacted Comerica for return of the redirected payment

Field Office and National 800 Number Network Technicians Only:

Check the Direct Express R14/R16 Application for the status. Refer to the R14/R16 Results section of the R14/R16 DirectXpress User Guide for instructions..

Refer to EM-14048 SEN – Section D (R14/R16 Result Scenarios) for instructions.

Claim Form Sent

 

(Full payment not returned from FI)

The ENR Status Date shown in TCIS or the paperless alert shows the date Treasury sent the EFT Claim Form to the beneficiary, recipient, or rep payee.

No action is required at this time. Create a diary to control this case for 60 days, after 60 days check for an ENR Status change.


He or she states that he or she has an EFT Claim Form. Instruct him or her to complete the form within 30 days and to return to the address shown on the bottom of page 1 of the EFT Claim Form.

 

Undeliverable Resent referral

 

(Form returned Undeliverable and new address is on the MBR or SSR)

Treasury resent the EFT Claim Form to beneficiary, recipient, or rep payee. The TCIS Resent Date shows the date Treasury resent the form. He or she has 30 days to return the form.

No action is required at this time. Create a diary to control this case for 60 days, after 60 days check for an ENR Status change.


He or she states that he or she has an EFT Claims Form. Instruct him or her to complete the form within 30 days and to return to the address shown on the bottom of page 1 of the EFT Claim Form.

 

Undeliverable NOT resent

 

(Form returned undeliverable and NO new address is on the MBR or SSR)

Treasury sent the EFT Claim Form to the beneficiary, recipient, or rep payee. The Post Office has returned the form to Treasury because of an invalid address. Treasury does not resend the form.

Check for recent updates to the address.

If the address is updated:

  • Print The EFT Claim Form from TCIS and send to his or her new address.

  • If TCIS ENR Status shows “Reprint Date: MM/DD/YYYY” for the claims form, an SSA technician may have already resent the form. Verify before reprinting.

If the address has not been recently updated:

  • Develop for current address per GN 02605.055

  • If unable to contact beneficiary, recipient, or rep payee to update address continue to follow GN 02605.055 Section B

Phone Call Requests
Verify the Title II and Title XVI address on the record.

If the address is correct:

  • Print the EFT Claims Form from TCIS and send to his or her address.

  • Explain that he or she should receive the form within ten business days.

  • Instruct him or her to complete the form within 30 days and return to the address shown on the bottom of page 1 of the EFT Claim Form.

    •  


      If the address is incorrect:

      IMPORTANT: If there is a DDFP block on the record, follow GN 02402.023.

      If there is no DDFP block on the record:

  • Verify his or her identity and change the address.

  • Print the EFT Claims Form from TCIS and send to his or her new address.

  • Explain that he or she should receive the form within ten business days.

  • Instruct him or her to complete the form within 30 days and return to the address shown on the bottom of page 1 of the EFT Claim Form.


In-Office Requests

Verify the Title II or Title XVI address on the record.

If the address is correct:

  • Print the EFT Claims Form from TCIS and have him or her complete the form.

  • Mail the form to the address shown on the bottom of page 1 of the EFT Claim Form.


If the address is incorrect:

 

  • Verify his or identity and change the address.

  • Print the EFT Claim Form from TCIS and have him or her complete the form.

  • Mail the form to the address shown on the bottom of page 1 of the EFT Claims Form.

Incomplete Resent

 

(Form returned incomplete)

The beneficiary, recipient, or rep payee submitted an incomplete EFT Claim Form.
The TCIS Resent Date shows the date Treasury resent the EFT Claim Form. The form should be returned within 30 days. Treasury sends a Denial Notice and a new EFT Claim Form to the beneficiary, recipient, or rep payee.

No action is required at this time. Create a diary to control this case for 60 days, after 60 days check for an ENR Status change.



Customer states that he or she has a Denial Notice. Treasury sends the Denial Notice because he or she submitted an incomplete EFT Claim Form. Instruct him or her to complete the form within 30 days and to return to the address shown on the bottom of page 1 of the EFT Claims Form.

No Response

 

(No response)

Beneficiary, recipient, or rep payee has not returned the
EFT Claim Form within 60 days.

Upload Treasury response into NDRed or import the Claims Details Screen into paperless

If there is an overpayment on the record or one needs to be established due to a duplicate payment, begin recovery of the overpayment. (See section E).

NOTE: The claimant is still entitled to due process and normal overpayment recovery procedures.


-Customer did not return the EFT Claim Form and therefore may be overpaid.
-Explain that we can provide the EFT Claims Form.
-If the claimant states that he or she will complete the form, print the EFT Claims Form from TCIS and mail or hand him or her, the form.
TII - Place the overpayment in protest status of “E” (explanation).

TXVI - Stop overpayment collection with an MO TAC. (See the instructions on bankruptcy and referral to another agency - MJ, MO, MS and MT TAC in SM 01311.220). This creates a BZ diary that will mature in 180 days

Approved - Debit Notice Sent

 

(Claim form is returned complete and Treasury has the authority to debit the FI)

Treasury received EFT Claims Form and submitted it to the Financial Institution (FI).
NOTE: The FI has 30 days to respond.

No action is required at this time. Create a diary to control this case for 60 days, after 60 days check for an ENR Status change.


Treasury has received his or her EFT Claims Form and Treasury will make a determination within 30 days.

Denied - Payee received payment

 

(The beneficiary, recipient, or rep payee returned the completed EFT Claims Form)

Treasury received EFT Claims Form and determined the beneficiary, recipient, or rep payee received the payment. Treasury sends a Denial Notice.

Upload Treasury response into NDRed or import the Claims Details Screen into paperless

If there is an overpayment on the record or one needs to be established due to a duplicate payment, begin recovery of the overpayment. (See GN 02406.012E).

Explain that Treasury determined that he or she deposited his or her funds into the correct account and that he or she received the payment. Explain that he or she should contact Treasury regarding the Denial Notice. Explain that to appeal the decision he or she needs to send written request to Treasury with the payee’s Social Security number, date of the payment in question and any additional information to support his or her claim to:

US Department of the Treasury

PO Box 603

Bensalem, PA 19020

Denied - Benefited from Payment

 

(The beneficiary, recipient, or rep payee returned the completed EFT Claims Form)

Treasury received EFT Claims Form and determined the beneficiary, recipient, or rep payee benefited from the payment. Treasury sends a denial notice.

Upload Treasury response into NDRed or import the Claims Details Screen into paperless

If there is an overpayment on the record or one needs to be established due to a duplicate payment, begin recovery of the overpayment. (See section E).

Explain that Treasury determined that he or she deposited his or her funds into the correct account and that he or she benefited from the payment. Explain that he or she should contact Treasury regarding the Denial Notice. Explain that he or she received the payment. Explain that he or she should contact Treasury regarding the Denial Notice. Explain that to appeal the decision he or she needs to send written request to Treasury with the payee’s Social Security number, date of the payment in question and any additional information to support his or her claim to:

US Department of the Treasury

PO Box 603

Bensalem, PA 19020

Denied - Someone Else Benefited

 

(The beneficiary, recipient, or rep payee returned the completed EFT Claims Form)

Treasury received EFT Claims Form and determined the beneficiary, recipient, or rep payee authorized someone to use their personal information to receive the payment. Treasury sends a denial notice.

Upload Treasury response into NDRed or import the Claims Details Screen into paperless

If there is an overpayment on the record or one needs to be established due to a duplicate payment, begin recovery of the overpayment. (See section E).

Explain that Treasury determined that he or she deposited his or her funds into the correct account and an authorized person benefited from the payment. Explain that he or she should contact Treasury regarding the Denial Notice.

Explain that he or she received the payment. Explain that he or she should contact Treasury regarding the Denial Notice. Explain that to appeal the decision he or she needs to send written request to Treasury with the payee’s Social Security number, date of the payment in question and any additional information to support his or her claim to:

US Department of the Treasury

PO Box 603

Bensalem, PA 19020

Appeal – Pending

 

(The beneficiary, recipient, or rep payee submitted an appeal)

Treasury received EFT Claims form and denied the original claim.
The beneficiary, recipient, or rep payee has submitted an appeal through Treasury.

Upload Treasury status to NDRed.

If there is an overpayment on the record due to a duplicate payment and SSA has begun recovery, then:

Title II - place the overpayment in protest status of “E” (explanation).

Title II - place the overpayment in protest status of “E” (explanation).

Title XVI – Stop overpayment collection with an MO TAC. (See the instructions on bankruptcy and referral to another agency – MJ, MO, MS, and MT TAC in SM 01311.220). This creates a BZ diary that will mature in 180 days.

Treasury has received his or her appeal. We will take no further action on collection of the debt until Treasury makes a determination on the appeal.

Appeal – Denied

 

(Appeal submitted, reviewed and denied.)

Treasury received the appeal and made a determination to deny the claim.

Upload Treasury status to NDRed.

If there is an overpayment on the record due to a duplicate payment, the overpayment recovery process begins. (See section E).

Explain that Treasury has received his or her appeal and denied the claim based on proof that he or she benefited from the payment. Explain that he or she will receive a notice from SSA to explain next steps.

 

 

2. FI debit action chart

Treasury utilizes the FI debit process to recover nonreceipt claims proven as redirected payments. The following chart explains the ENR Status of the FI debit process and the potential actions and explanations to provide the beneficiary, recipient, or rep payee.

 

Financial Institution Debit Process

ENR Status

Description

Action

How to handle inquiries:
Explain the following

FI Debit

(FI Responds authorizing debit)

SSA receives credit from FI

For actions necessary

Title XVI (see Section F.1)
Title II (see Section F.2)

 

If he or she received a replacement payment:

Explain that we have updated the record and there is no further action for him or her to take.

If he or she did not receive replacement payment:

Explain that he or she should receive the payment within ten business days.

Auto Debit

(FI does not respond within 30 days)

SA receives credit from FI

For actions necessary

Title XVI (see Section F.1)
Title II (see Section F.2)

 

If he or she received a replacement payment:

Explain that we have updated the record and there is no further action for him or her to take.

If he or she did not receive replacement payment:

Explain that he or she should receive the payment within ten business days.

FI Protest – Denied

(Protest is denied)

SA receives credit from FI

For actions necessary

Title XVI (see Section F.1)
Title II (see Section F.2)

 

If he or she received a replacement payment:

Explain that we have updated the record and there is no further action for him or her to take.

If he or she did not receive replacement payment:

Explain that he or she should receive the payment within ten business days.

FI Protest

(FI Responds with protest)

SSA is awaiting Treasury response on FI protest.

No action is required at this time.

We are awaiting a Treasury response.

FI Protest – Approved

(Protest approved)

Treasury received FI protest and determined that the beneficiary, recipient, or rep payee benefited from the payment. Treasury sends a denial notice.

Treasury determined that he or she benefited from the payment.
Upload Treasury status to NDRed.
If there is an overpayment on the record due to a duplicate payment, the overpayment recovery process begins (see section E).

Explain that Treasury determined that he or she deposited his or her funds into the correct account and that he or she benefited from the payment. Explain that he or she should contact Treasury regarding the Denial Notice.

 

E. Overpayment instructions

When the beneficiary, recipient, or rep payee fials to complete or return the EFT Claims Form follow the following instructions below for posting an overpayment to the record:

1. Field Office procedures for Title XVI

  • Prepare and mail a manual overpayment notice. Ensure that appeal rights are included in the notice.

  • Change the MO TAC, following instructions in SM 01311.225 to begin overpayment recovery

    NOTE: If the Title XVI record is in current pay (i.e., the SSR shows payment status C01), follow the C01 instructions in section B.2 of SM 01311.225 to change the decision on the UOPD screen from 15 = REFERRAL TO OIG to 3 = RECOVERY BY CHECK ADJUSTMENT, and send to the SSR. If the overpayment has no notice date posted, you must also input the notice date using the MSSICS UOSD Screen. (MS BUSSR 004.006 Update Sequence Data (UOSD). If the Title XVI record is in non-pay status, follow instructions in B.3 of SM 01311.225. If a termination of the Title XVI record occurs, follow instructions in section B.1 of SM 01311.225.

2. Processing Center procedures for Title II

  • Delete the non-entitled debtor overpayment.

  • Establish the overpayment on the beneficiary’s ROAR.

  • Prepare and mail a manual overpayment notice. Ensure that appeal rights are included in the notice.

 

F. Instructions for Processing Financial Institution (FI) Credits

 

1. Title XVI instructions

When Treasury debits a FI, SSA receives a credit, Central Office (OBASA TOB) posts remittances for partial payments to the OPRR segment field with a DOC of 534, and updates the credit for a full remittance to the appropriate payment in the PMTH segment field of the SSR. Review the PMTH and OPRR segment of the SSR to determine if there is an applied credit.

  • The system reduces the overpayment balance to zero if the credit (returned payment) covers the full overpayment amount.

  • If the credit (returned payment) does not fully recover the overpayment (i.e., the financial institution returned a partial payment), reduce the overpayment by the credit amount or the partial payment remittance found in the OPRR. The partial payment posts to the OPRR with a DOC code of 534. You may have to balance the overpayment on the SSR.

  • For any remaining overpayment balance resulting from the A-OTP

    • Do not send the overpayment notice.

    • Stop overpayment collection with an MO TAC. (See the instructions on bankruptcy and referral to another agency - MJ, MO, MS and MT TAC in SM 01311.220). This creates a BZ diary that will mature in 180 days.

  • If the six-month diary matures before you receive guidance, the system automatically sets the diary for another 180 days. Let the diary pend until Central Office provides final instructions.

 

2. Title II instructions

When the FI returns the redirected payment to Treasury, Treasury will fax an “ENR Recovery Debit Detail Report” into Paperless.

This report will have the following TOEL combination:

TOEL 1: CHECK

TOEL 2: DIRDEP

TOEL 3: FRAUD

TOEL 4: FIDEBIT

 

Take the following actions to process the ENR Recovery Detail report:

  1. 1. 

    Review the ENR Recovery Debit Detail Report to determine the amount of the returned credit.

  2. 2. 

    Apply the credit to the overpayment with the subscript of X (via DMS RRRE screen).

  3. 3. 

    Annotate DMS remarks with the information from the ENR Debit Detail Report.

  4. 4. 

    On the next day, review the record and confirm the reduction of the overpayment.

  5. 5. 

    Post a Special Message to the MBR: “FI DEBIT RECEIVED FOR FRAUD REDIRECTED PAYMENT – OVERPAYMENT WAS RECOVERED OR REDUCED IN THE AMOUNT OF $$$.$$.”

NOTE: If the FO receives a case involving Title II, they should contact the PC via MDW or RQFA.

 


GN 02406 TN 64 - Failure to Receive a Check/Payment - Title II, Title XVI - 8/21/2019