Identification Number:
GN 02406 TN 80
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Failure to Receive a Check/Payment - Title II, Title XVI
Type:POMS Transmittals
Program:All Programs
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. 80, 12/02/2020

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

Per instructions from the Office of Benefit Accounting and Systems Analysis (OBASA), the name of the Division of Benefit Certification and Accounting (DBCA) has been updated to read Division of Benefit Certification and Systems Analysis (DBCSA). The email address has been updated to read OBASA.TOB@ssa.gov.

 

Summary of Changes

GN 02406.135 Processing Reports of Nonreceipt, Loss, Theft, or Destruction of Payments -- Checks Due And Not Due

Subsection B, We replaced the Division of Benefit Certification and Accounting (DBCA) to read Division of Benefit Certification and Systems Analysis (DBCSA). We updated the rmail address and added a fax number.

 

GN 02406.205 Nonreceipt of Title XVI Underpayment Check/Type 2 and One-Time Payment/Type 4 Payment -- Field Office (FO) and Teleservice Center (TSC) Instructions

Subsection A, We added the Payment Certification Branch (PCB).

GN 02406.135 Processing Reports of Nonreceipt, Loss, Theft, or Destruction of Payments -- Checks Due And Not Due

A. Introduction

The following instructions do not apply to checks with a foreign address. See GN 02406.505 -through GN 02406.540.

B. Procedure

Processing reports of missing checks depends upon when the report is received, the type of report (nonreceipt, loss, theft, or destruction), whether or not payment is due, and pertinent information obtained in the interview.

1. Examine a Current Query For Each Missing Check to Determine if a Payment Was Issued and Due and Why the Payment Was Not Received:

  1. a. 

    For title II, review the MBR and PHUS.

  2. b. 

    For title XVI, review the SSR.

2. If the check was issued and is NOT DUE

3. Report Received Prior to the Third Mail Delivery Day After Due Date - Payment is Due

  1. a. 

    Do not automatically advise calling back on the third mail delivery day after the check due date. Review current MBR, PHUS, SSR or Inquiry Response queries to determine whether a problem exists on the record that can be resolved at the time of the request.

  2. b. 

    If check was not received on the scheduled delivery date, explain that payments sometimes are delayed in the mail. Advise the beneficiary/recipient to recontact SSA if the check is not received on the third mail delivery day following the scheduled check delivery day.

  3. c. 

    If the check was received but subsequently lost, stolen, or destroyed before it could be cashed by the beneficiary or recipient, transmit the report immediately. (See
    GN 02406.125 for instructions.)

  4. d. 

    If it appears that a number of checks in a geographic area have not been received there is the possibility that a mass loss has occurred. Follow instructions in
    GN 02406.700.

  5. e. 

    If the check is smudged or mutilated, see GN 02406.230.

4. Report Received On Or After The Third Mail Delivery Day - Payment is Due

If the claimant reports a missing check on or after the third mail delivery day after the due date, obtain the necessary information and transmit the nonreceipt report immediately. See GN 02406.125 for instructions.

5. When to Accept a Report of Nonreceipt for Nonrecurring Checks

a. Title II

SSA will accept a nonreceipt report for any nonrecurring check (courtesy disbursement, replacement, CPS, PMA, and OCO A-) on the seventh calendar day after the run date shown on the PHUS query. For more information, see GN 02406.20, GN 02406.201.

Keep in mind the timing in connection with replacing a PMA check: if the PMA check is issued after the cutoff date, DT will not release the check/payment until the first of the following month. Be sure to advise the claimant that a check/payment issued in this period will not be delivered until the first of the next month. All PMAs are subject to this delay no matter what system is used to process the PMA.

b. Title XVI

  • When a B-stop is transmitted on the original check, SSA will accept a nonreceipt report for a type 9 payment (courtesy disbursement check) 10 calendar days after the run date shown for the interim “01” on the Q query. For more information, see GN 02406.207. If the nonreceipt was input as a C-stop, it could take 3-5 weeks before a replacement is issued or a claims package is sent.

  • Nonreceipt for type 2 and 4 payments (underpayment and AOTP, respectively) can be accepted 7 calendar days after the run date shown in the payment history. For more information, see GN 02406.205.

6. Original and Courtesy Disbursement or Replacement Checks Are Received

  1. a. 

    Ensure the person reporting nonreceipt understands that only one check is due for the benefit month and if both the original and a courtesy disbursement or replacement check are received, one must be returned. If both are cashed, a DCN overpayment exists.

  2. b. 

    Process returned title II checks according to instructions in GN 02405.010. Code the lower lefthand corner with the appropriate information (DC for duplicate checks) and return to the issuing RFC.

    Instructions for processing returned title XVI recurring, courtesy disbursement and replacement checks are located in SM 01315.011, SM 01315.012, and GN 02405.100.

7. Title XVI Recurring Check Cashed, Courtesy Check Returned

The following is a procedure to prevent the repeated reissuing of a type 2E underpayment check as described in the following example:

  1. a. 

    The FO/TSC transmits a B-stop for a missing recurring check. DT cancels the missing recurring check and a courtesy check is issued. These actions are reflected in PMTH segment on the SSR:

10/01/97 9 N 484.00
10/01/97 6 N S 484.00

(Type 1 changed to 6 to indicate nonreceipt; S indicates check cancelled, credit back to SSA.)

  1. b. 

    Frequently, the recurring check is received and cashed and the recipient returns the courtesy check to the FO for forwarding to DT. If the courtesy check is received and processed by DT before the credit for the type 1 is “reversed,” a type 2 underpayment check will be issued:

10/01/97 9 N 484.00
10/01/97 6 N S 484.00
10/15/97 2 10/97 484.00
10/15/97 2E 484.00
  1. c. 

    To prevent this from happening, FOs should HOLD THE RETURNED COURTESY CHECK (clearly stamped “NOT NEGOTIABLE”) in the office safe and query the system weekly until the credit reversal is shown on the SSR. At that time, mail the check to the RFC. Other examples of nonreceipt posting and credit reversals are shown in
    SM 01315.250.

10/01/97 9 N 484.00
10/01/97 6 N U 484.00

(No 2E check will be issued.)

IMPORTANT: A solution mentioned in nonreceipt training indicated that the recipient should endorse the check over to Social Security, then process the returned title XVI check as a refund which would set up an excess decision. Then when the endorsed check was returned to the RFC, SSA would be debited for the check (POC) and the POC and excess decision would cancel each other out. DO NOT DO THIS. The reason for this is that DT has no alternative but to treat this as a double check negotiation (both checks were signed) and to send out claims packages for the two checks. This creates an unnecessary workload for DT. It also creates an unnecessary workload for SSA when the PC/FO puts the claims packages into the “process.” This is because this is not a true DCN overpayment situation, no overpayment notice will be issued, and the claims packages will not be needed because a forgery determination is not necessary.

8. Change of Address, Change or Cancellation of Direct Deposit Reported

If the beneficiary or recipient reports a change of address not reflected on the SSA record or requests a change or cancellation of direct deposit, transmit the correct check delivery information on the same input with the nonreceipt data. Make a separate input to update the address and/or direct deposit data on the MBR/SSR.

9. Individual is No Longer in Current Pay

Nonreceipt procedures apply if a due check was issued even if the claimant is not in current pay status at the time of the nonreceipt report. For example, nonreceipt input is appropriate for title XVI records in PSY Sxx, M01 (force pay), T30, NO7, RN:1x2, etc., as long as PMTH shows that the check was issued and the record indicates it is still due; for title II, LAF codes of S, E, and T.

10. Reference for other types of title XVI nonreceipt/loss situations:

Interim Assistance Reimbursement (IAR) Payment - SM 01315.175.

Emergency Advance Payment or Immediate Payment issued by third-party draft -
SM 01325.040 (title XVI). Lost title II third-party drafts - see the Cash Clerk in the FO who must process manually (stop payment through the bank) and reissue if appropriate.

Manual One-time Payments - See SM 01315.168 and SM 01901.005. Contact the Division of Benefit Certification and Systems Analysis (DBCSA) via email at: OBASA.TOB@ssa.gov or electronic fax at 833-955-2293 to confirm whether the check was issued if it is not posted on the SSR.

Special Voucher Payments (SM 01315.143).

GN 02406.205 Nonreceipt of Title XVI Underpayment Check/Type 2 and One-Time Payment/Type 4 Payment -- Field Office (FO) and Teleservice Center (TSC) Instructions

A. Underpayments, Automated and Manual One-Time payments

An underpayment (type 2) in the pay flag one field in the payment history (PMTH) section on the Supplemental Security Income Record (SSR) indicates the SSI system automatically computed and released an underpayment to the recipient. However, where the system cannot release the underpayment, the FO must issue a one-time payment.

A one-time payment (OTP) type 4 in the pay flag one field in the payment history (PMTH) section on the Supplemental Security Income Record (SSR) indicates SSA issued an automated one-time payment (AOTP) or manual one-time payment (MOTP). When the FO successfully processes an AOTP, it is annotated on the SSR.

When the Office of Benefit Accounting and Systems Analysis (OBASA)’s Payment Certification Branch (PCB) successfully process an MOTP, the payment, must be manually posted to the SSR after issuing the payment. A recipient receives an AOTP or MOTP payment within 7 calendar days after the systems processing date in PMTH for an AOTP or the date OBASA certifies the payment to the U.S. Department of the Treasury (Treasury) for a MOTP.

NOTE: If the recipient reports nonreceipt of the underpayment, AOTP or MOTP at the FO within 7 calendar days from the systems run date, the technician must input an A-stop and issue an AOTP, unless abuse of the nonreceipt reporting system is a factor.

If the recipient reports nonreceipt to the teleservice (TSC),

  • input an A-stop and send a Modernized Development Worksheet (MDW) or

  • for the Supplemental Security Income (SSI) Claims System cases, complete a priority DW01 requesting the FO to issue a replacement AOTP, unless abuse of the nonreceipt reporting system is a factor.

  • For more information on TSC nonreceipt processing, see TC 25001.040.

B. Non-receipt alleged and MOTP is not on SSR

  • TSC: Refer the inquiry to the servicing FO for action via the MDW or Modernized Supplemental Security Income Claims System (MSSICS) Development Worksheet (DW01), as appropriate.

  • FO: If the recipient alleges a nonreceipt, but there is no evidence of a payment on the SSR, check the FO manual OTP control file to determine if we issued an MOTP but it was not posted to the SSR. (See SM 01901.420)

  • FO: If the OTP action never occurred, and is still appropriate, initiate an OTP immediately.

EXCEPTION: If the ineligible spouse or parent contacts the FO or TSC and alleges nonreceipt of an OTP, input the nonreceipt. The TSC will send an MDW to the FO for possible immediate payment action.

C. How to process nonreceipt allegations for underpayments (type 2), or manual and automated OTPs (type 4)

To process nonreceipt allegations of underpayment, manual and automated OTPs when double check negotiation (DCN) abuse is not involved, follow the instructions in the chart below:

Step

Action

1

Does the SSR query show that we issued the check?

If no, determine why and take appropriate action.

If yes, go to Step 2.

2

Is the check due?

If no, the TSC must refer the allegation to the FO via MDW or priority DW01 per TC 25001.040B requesting the input of an 1184 stop payment (F-stop).

NOTE: The FO can input an F-stop via the payment screens in SSI Claims System Direct SSR Update. STOP.

If yes, go to Step 3.

3

Have 7 days elapsed since the payment history run date for the Type 2 or 4 payment?

If no, check the Treasury Check Information System (TCIS) to determine the status of the check.

If TCIS shows issue outstanding (check not cashed), ask the recipient to call back after the seven days elapsed. STOP.

NOTE: Document the inquiry on a Report of Contact in the SSI Claims System to assist technicians in case there are follow-up inquiries.

If yes and TCIS shows check is reconciled (cashed), input an A-stop on the original check. Go to Step 4.

NOTE: See GN 02406.001 for a definition of the A-stop and when technicians should use it.

4

Is this a dire need situation (see criteria in SI 02004.100)?

If no, the TSC and FO must take the following actions:

  • The TSC must forward a priority MDW requesting the FO to issue AOTP for the full amount of the missing check.

  • The FO must issue an AOTP for the full or remaining amount of the missing check.

  • The SSI system will compute an overpayment and establish a B-3 Diary. After the system establishes the B-3 diary, iinput an MT-TAC to resolve the overpayment temporarily.

  • Enter “AOTP” for MM/DD/YYYY CK” in the SSR RMKS segment.

  • Diary the case for 3 weeks

  • Check the disposition code on the Treasury Status Query (UPTQ) in the SSI Claims Systems Direct SSR Update.

  • Go to Step 5.

If yes, the TSC must refer the case to the FO via MDW. The FO must:

  • Issue an Immediate Payment (IP) for the amount of the missing check up to $999;

  • Issue an AOTP for the full or remaining amount of the missing check (which serves as the replacement for the missing original check).

  • The SSI system will compute an overpayment and establish a B-3 Diary. After the system establishes the B-3 diary, input an MT-TAC to temporarily resolve the overpayment.

  • Enter “Dire need-$___IP issued; AOTP of $____also issued for MMDDYYYY CK” in the SSR RMKS segment.

  • Inform the recipient the IP is an advance against future payments.

Depending on systems cutoff dates, we will recover the full amount of the IP beginning with the first or second check issued after the IP.

  • Diary the case for 3 weeks and

  • Check the disposition code on the Treasury Status Query (UPTQ) in the SSI Claims Systems Direct SSR Update.

Go to Step 5.

5

Does the disposition code from the A-Stop indicate that someone cashed the original check?

If no, go to Step 11.

If yes, the FO will take the following actions:

  • Input an 1184 stop payment (F-stop) on the replacement A-OTP using the SSI Claims Systems Direct SSR Update.

  • Delete the MT-TAC.

  • Enter in Remarks portion of SSR, “Orig Ck for MMDDYYYY cashed; possible forgery.”

Go to Step 6.

6

Does the A-OTP replacement F-stop response indicate that someone cashed the check?

If no, go to Step 11.

If yes, the recipient is overpaid. Resolve the overpayment and release the overpayment letter.

Go to Step 7.

7

Does the recipient request reconsideration?

If no, pursue overpayment recovery. STOP.

If yes:

  • Print the FMS-1133 claims package from TCIS and have recipient complete

  • Have recipient complete an SSA-561-U2 (Request for Reconsideration) to protest the overpayment. Obtain the signed SSA-561-U2 before suspending overpayment recovery with an MT TAC. Refer to GN 02406.310B.1.b.

  • Send the completed FMS-1133 and photocopy of the check to Treasury. Keep the completed SSA-561 and claims package copy for our records.

  • Input the MT-TAC to suspend overpayment recovery (after receiving the completed SSA-561-U2) pending final Treasury forgery determination.

  • Establish a tickle file for 60 days.

  • Go to Step 8.

8

After 60 days, is there a code on the SSR under the Payment history forgery indicator (SM 01601.835C.12) in the PMTH segment indicating a forgery determination from Treasury?

If no, go to Step 9.

If yes, go to Step 10.

NOTE: Treasury performs “forgery determinations” on checks that are 12 months old or less (GN 02406.001). For checks older than 12 months (limited payability checks), Treasury will be requested to perform a handwriting analysis. (GN 02401.910)

9

If the SSR does not have a forgery indicator in the PMTH segment?

Check the TCIS for forgery information. Select the “Payment Listing” tab for the payment and view the claims history information. If there is no forgery information, contact Treasury’s call center at 855-868-0151 for status of the forgery claim.

10

Did the forgery determination indicate that someone forged the check?

  • If yes , ensure MT-TAC is on overpayment.

  • Go to Step 11.

  • If no , delete MT-TAC and begin recovery process. STOP .

NOTE: A notice of the forgery decision and recovery action must be issued to claimant prior to the first day of recovery action.

11

Did Treasury send a credit?

  • If yes, When Treasury sends a credit, the SSR will show an excess decision. Delete the MT- TAC to resolve the excess decision. STOP.

  • If no, Contact Treasury’s call center at 855-868-0151 to find out when the credit will be sent to SSA. If Treasury states the credit has already been sent to SSA, contact your Regional Office through your normal channels, e.g., vHelp. STOP.

NOTE: If the recipient does not protest the overpayment or if there was a reversed credit on the original type 2 or 4 payment and there was a removal of the MT-TAC, an overpayment will automatically be established and normal overpayment procedures apply.

D. Procedure when a recipient has a history of nonreceipt abuse

This section provides instructions for handling allegations of nonreceipt from a recipient who has a possible history of nonreceipt abuse. In this situation, we need to know the status of the missing check BEFORE Treasury issues the replacement check. Take the appropriate action using the instructions in the following chart.

For more information on the criteria for non-receipt abuse, see GN 02406.150.

Step

Action

1

Have seven days elapsed since the payment history run date?

  • If no, ask the recipient to call back after 7 days have elapsed.

  • If yes, input an A-Stop on the missing check.

Go to Step 2.

2

Do not issue an AOTP at this point.

  • NOTE: Due to a recipient’s possible history of double check negotiation (DCN) abuse, we need to know if the recipient cashed the check.

Go to Step 3.

3

Is this situation dire need (see criteria in SI 02004.100)?

If yes, go to Step 4.

If no, go to Step 5.

4

When the recipient alleges dire need

TSC

The TSC must forward case to FO via priority MDW.

FO

The FO must issue an IP for up to $999 and enter “Dire need $______IP issued:’ in SSR RMKS segment.

Explain to the recipient that the IP is an advance against future payments.

Go to Step 5.

Depending on systems cutoff dates, the full amount of the IP will be recovered from the first or second check issued after the IP is made.

5

Diary for three weeks and check the disposition code on the Treasury Status Query (UPTQ) in SSI Claims System.

If Treasury sends a disposition code 32 (outstanding check cancelled; agency credit to follow) to the UPTQ:

  • Issue an AOTP for the full amount of the missing check.

    NOTE: Before issuing the AOTP, check the PMTH field to make sure the system has not already reissued the check

  • Enter “AOTP for MM/DD/YYYY CK’ in remarks on the SSR. STOP.

    NOTE: The AOTP will create an overpayment.

  • Diary the case for 60 days to ensure the credit is posted.

  • After the credit posts to the SSR, delete the overpayment .

If Treasury sends a status code 11 (check paid, photocopy to follow) to the UPTQ:

Do not issue an AOTP. Go to Step 6.

6

Does recipient allege forgery?

If yes:

  • Have recipient complete the FMS-1133 claims package.

  • Forward the FMS-1133 and check photocopy to Treasury.

  • Keep the completed claims package copy for our records.

  • Establish a tickle file for 60 days.

  • Go to Step 7.

If no:

No additional benefits are due; no further action necessary. STOP.

7

After 60 days, is there a code on the SSR under the Payment history forgery indicator (SM 01601.835C.12) in the PMTH segment indicating a forgery determination from Treasury?

If no, go to Step 8.

If yes, go to Step 9.

8

Does the SSR have a forgery indicator in the PMTH segment?

  • If yes, Check the TCIS for forgery information. Select the payment history tab for the payment and view the claims history information.

  • If no, contact Treasury’s call center at 855-868-0151 for status of the forgery claim.

9

Was the check forged?

  • If yes, issue an AOTP for the full amount of the missing check.

  • NOTE: Before issuing the AOTP, check the PMTH field to make sure the system has not already reissued the check. STOP.

  • If no, no additional benefits are due the recipient.

E. References


GN 02406 TN 80 - Failure to Receive a Check/Payment - Title II, Title XVI - 12/02/2020