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

A. Introduction

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.

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

B. Procedure for processing reports of nonreceipt

1. Initial Actions

Take the actions indicated in the following chart when processing reports of nonreceipt, loss, theft or destruction.

STEP	ACTION
1	Examine a current query for each missing check. Determine if a payment was due and if we issued the payment. For Title II, review the Master Beneficiary Record (MBR) and Payment History Update System (PHUS) For Title XVI, review the SSR NOTE: Review the Treasury Check Information System (TCIS) Go to STEP 2
2	If the check was issued and not due refer to GN 02406.175A.7. STOP. If the beneficiary, recipient or representative payee received the check and it was subsequently lost, stolen, or destroyed before they cashed the check, see GN 02406.135B.2 in this section. STOP . If we received the report of nonreceipt prior to the third mail delivery day after the due date and payment is due, go to STEP 3 . If we received the report of nonreceipt on or after the third mail delivery day after the due date, obtain the necessary information and transmit the nonreceipt report immediately. Follow instructions in GN 02406.125 STOP.
3	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, go to STEP 4. NOTE: If there was an address change see GN 02406.135F If the check did not come on the scheduled delivery date, go to STEP 4.
4	Explain that payments sometimes are delayed in the mail. Advise the beneficiary, recipient, or representative payee to recontact SSA if they do not receive the check on the third mail delivery day following the scheduled check delivery day. STOP.

2. Action for Lost, Stolen, Destroyed or Mutilated Checks

In the following scenarios take the appropriate action as indicated on the chart.

IF	THEN
the beneficiary, recipient, or representative payee received the check and it was subsequently lost, stolen, or destroyed before they cashed the check...	report immediately via the instructions in GN 02406.125.
it appears that a number of checks in a geographic area have not been received...	it is a possibility that mass loss has occurred. Process mass loss according to instructions found in GN 02406.700.
the check is smudged or mutilated…	merchant or financial institution (FI) can refuse to cash the smudged or mutilated check even if it is legible. Process smudged or mutilated checks based on the instructions found in GN 02406.230.

C. When to accept a report of nonreceipt for nonrecurring checks

The following chart displays necessary actions for reports of nonreceipt for nonrecurring checks.

IF	THEN
nonreceipt for nonrecurring Title II check reported...	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 02406.201. Keep in mind the timing in connection with replacing a PMA check: if the PMA check is issued after the cutoff date, Treasury will not release the payment until the first of the following month. Be sure to advise the beneficiary, recipient, or representative payee that a 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.
nonreceipt for nonrecurring Title XVI check reported...	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.

IF

THEN

nonreceipt for nonrecurring Title II check reported...

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 02406.201.

Keep in mind the timing in connection with replacing a PMA check: if the PMA check is issued after the cutoff date, Treasury will not release the payment until the first of the following month. Be sure to advise the beneficiary, recipient, or representative payee that a 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.

nonreceipt for nonrecurring Title XVI check reported...

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.

D. When a person receives the original and courtesy disbursement or replacement check

Ensure the beneficiary, recipient, or representative payee reporting the nonreceipt understands that only one check is due for the benefit month. If they received both the original and a courtesy disbursement or replacement check, they must return the original. If both are cashed, a DCN overpayment exists.

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

NOTE: 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.

E. 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.

EXAMPLE: The FO/TSC transmits a B-stop for a missing recurring check. Treasury 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.)

Frequently, the recurring check is received and cashed and the recipient returns the courtesy check to the FO for forwarding to Treasury. If the courtesy check is received and processed by Treasury 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

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

(No 2E check will be issued.)

IMPORTANT: . The beneficiary, recipient, or representative payee must not endorse the check over to our agency. This creates an unnecessary workload for Treasury.

F. Action when change of address, change of direct deposit, or cancellation of direct deposit reported

If the beneficiary, recipient, or representative payee reports a change of address not reflected on the SSA master records 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 or direct deposit data on the MBR for Title II or SSR for Title XVI.

NOTE: For more information on change of address see SM 03005.170.

G. Action when individual is no longer in current pay

Nonreceipt procedures found in this policy apply if a due check was issued even if the beneficiary, recipient, or representative payee is not in current pay status at the time of the nonreceipt report.

EXAMPLE: Nonreceipt input is appropriate for Title XVI records in PSY Sxx, M01 (force pay), T30, NO7, RN:1x2, etc., when the PMTH shows the check was issued and the record indicates it is still due. Nonreceipt input is appropriate for Title II records in LAF codes of S, E, and T, if the PHUS indicates a due check was issued.

H. Action when check not posted to SSR

Contact DBCA via email at: OBASA.TOB@ssa.gov to confirm whether the check was issued if it is not posted on the SSR.

I. References

NL 00703.322 Reissuance of Lost Check

SM 01315.175 Nonreceipt for an Interim Assistance Reimbursement (IAR) Payment

SM 01325.040 (Title XVI) Systems Input When an SSI EAP/IP Third Party Draft Check Is Lost or Returned

SM 01315.168 How to Handle Nonreceipt of One-Time Payments

SM 01901.005 When to Use One Time Payments (OTPs)

SM 01315.143 How to Request a Special Voucher Payment

SM 01325.040 Systems Input When an SSI EAP/IP Third Party Draft Check Is Lost or Returned