Effective Dates: 05/15/2024 - Present Previous | Next

TN 78 (05-24)

GN 02408.020 The F-stop Process

A. Background

Social Security Administration (SSA) uses the F-stop to determine the status of a check without issuing a replacement check. The F-stop is used when SSA issues a Title II or Title XVI check that is not due. When SSA transmits an F-stop, the Department of the Treasury (Treasury) will investigate the check in question. If the check is outstanding, Treasury returns a credit to SSA. If the check is cashed, Treasury sends a FS-1133 claims package to the beneficiary or recipient (FS-1133, FS-3858, and check photocopy). Treasury also makes the claims package available to SSA via the Treasury Check Information System (TCIS). If a replacement check is returned to the field office (FO), because they were able to negotiate the original check, the technician must verify TCIS to determine if a stop was placed on the original check after 12/5/2023. If the replacement check is more than 12 months old from the date of issue follow limited payability policies, see GN 02401.901.

B. Policy when F-stops are appropriate

Use F-stops:

  • •

    Primarily for checks.

    EXCEPTION: Use an F-stop for an electronic funds transfer (EFT) payment that is also part of the Treasury Offset Program (TOP), see GN 02408.405.

  • •

    For Title XVI checks involving the death of a representative payee, see GN 02408.005B.

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    For Title II check payments issued to a representative payee after the death of a beneficiary, see GN 02408.007.

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    For stop-payment of checks issued when not due for reasons other than death.

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    In nonreceipt and stop-payment situations for Title XVI attorney fee checks.

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    For Title XVI nonreceipts when the system automatically generates an F-stop on a courtesy disbursement check (original check cashed).

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    For Title II nonreceipts when the Payment Center (PC) automatically generates or manually enters an F-stop on a courtesy disbursement check (original check cashed).

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    When the status of a check is needed and SSA does not wish to generate a replacement payment.

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    When checks are issued under an incorrect Social Security number (SSN).

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    To enable Treasury to reclaim funds if forgery is involved.

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    When nonreceipt of a due check is alleged after the beneficiary's death.

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    For nonreceipt of checks issued to non-beneficiaries (ex. attorneys and garnishment/levy (BIC X)).

  • •

    To initiate the return of funds to SSA when a check is outstanding.

  • •

    When nonreceipt is alleged on a non-recurring check.

1. Check issued for an incorrect SSN

When a check issues under an incorrect SSN and the payment records are corrected after the issuance of the check, follow these instructions.

a. Title II

The field office (FO), teleservice center (TSC), or processing center (PC) must take the following actions.

 

Action

FO/TSC

Send a modernized development worksheet (MDW) to the PC (F-stop required on mm/dd/yyyy Payment - Check Issued For Incorrect SSN--XXX-XX-XXXX).

PC

Input an F-stop by using the Mid-America Program Service Center (MAMPSC) Data Input Web Application (SSA-4510), see MS 08204.003.

b. Title XVI

The TSC or FO must take the following actions.

 

Action

TSC

Forward an MDW to the FO of jurisdiction (F-stop required on mm/dd/yyyy Payment - Check Issued For Incorrect SSN--XXX-XX-XXXX).

FO

Process an F-stop against the incorrect SSN. Select stop-payment reason 2 = not eligible for payment. For more information see MS 00303.017.

2. Check is "not due" for reasons other than death

When a check is issued and is "not due" (e.g., there has been a change of representative payee or the representative payee or beneficiary is declared legally incompetent), follow these instructions.

a. Title II

FO, TSC, or PC must take the following actions:

​

Action

FO/TSC

Send an MDW to the PC (F-stop required on mm/dd/yyyy Payment - Check is "Not Due" for Reasons Other Than Death).

PC

 Input an F-stop by using the MAMPSC Data Input Web Application (SSA-4510), see MS 08204.003.

b. Title XVI

TSC or FO staff must take the following actions.

 

Action
TSC

Forward to the FO of jurisdiction to request an F-stop to be input.

FO

Input the F-stop. Select stop-payment reason 2 = not eligible for payment, see MS 00303.017.

3. "Due" payment after a beneficiary's or recipient's death

After the death of a beneficiary or recipient, SSA may receive allegations that one or more due payments were not received before the date of death, follow these instructions.

a. Title II

The TSC, FO, or PC must take the following actions.

 

ACTION

TSC

Forward an MDW to the PC of jurisdiction (F-stop required on mm/dd/yyyy Payment - "Due" Payment After a Beneficiary's Death).

FO

Complete underpayment development, see

  • •

    GN 02301.500 SSA-1724 Claim for Amounts Due in the Case of a Deceased Beneficiary or

Forward an MDW to the PC of jurisdiction (F-stop required on mm/dd/yyyy payment - "Due" Payment After a Beneficiary's Death).

PC

Input an F-stop by using the MAMPSC Data Input Web Application (SSA-4510).

b. Title XVI

The TSC or FO must take the following actions.

 

Action

TSC

Forward an MDW to the FO of jurisdiction (F-stop required on mm/dd/yyyy Payment -"Due" Payment After a Recipient's Death).

FO

Input the F-stop. Select stop-payment reason 2 = not eligible for payment, see MS 00303.017.

If applicable, complete underpayment development. For more information see SI 02101.006 SSI Underpayment Due - Individual Deceased - Surviving Spouse Not Member of an Eligible Couple.

C. Treasury process

When Treasury receives an F-stop request and the check is outstanding, Treasury cancels the outstanding check and returns a credit to SSA. Credit will appear on Title II/Title XVI queries and on the Treasury Check Information System (TCIS).

When the check is outstanding (disposition code “32”) and then subsequently cashed , Treasury debits SSA. Procedures for payment over-cancellation apply, see GN 02406.245.

When the check is already cashed at the time of the F-stop, Treasury transmits a disposition code “11”. Additionally. Treasury sends an FS-1133 claims package to the beneficiary or recipient and makes the package available on TCIS. The disposition code appears on PHUS for Title II and the Treasury Status Query for Title XVI.

This section describes possible scenarios.

1. When the check has been cashed

When an F-stop is already input and the check has been cashed, Treasury sends an FS-1133 claims package to the beneficiary or recipient (FS-1133, FS-3858, and check photocopy). When the beneficiary or recipient protests the overpayment created when the check was cashed and they do not recognize the signature as their own, have the beneficiary or recipient complete the FS-1133, see GN 02406.160. If the beneficiary or recipient returns the FS-1133 to the FO, scan the completed FS-1133 with the check photocopy into Evidence Portal and forward the completed FS-1133 with the check photocopy to Treasury for a forgery determination. For instructions on mailing the FS-1133, see GN 02406.160H.

2. When the check has not been cashed

When Treasury finds that the check has not been cashed or negotiated within 12 months after the issue date, it cancels the check and will credit the funds back to SSA. The F-stop ensures that Treasury can reclaim the funds from the Financial Institution (FI) if the check is cashed over a forged signature at a later date. For instructions concerning follow up see GN 02406.160C. Treasury gathers information on checks not submitted for payment (determined to be “uncashed”). After the 12th month determination, Treasury furnishes SSA with (Limited Payability) LP credits. The credits contain identifying information and represent the funds for “uncashed” checks. If the replacement check is more than 12 months old from the date of issue follow limited payability policies, see GN 02401.901.

3. When the check is returned

When the check is returned, a credit is posted to the MBR/SSR. The SSI system does not automatically reissue funds in non-entitlement situations. For Title II, the Return Check Action program (REACT) automatically reissues the returned payment, even when not due, if the reason for return is “AD” (address) (see GN 02408.020B.2. in this section). When the reason for return is “MS” (miscellaneous) or “DC” (duplicate check), REACT does not automatically reissue the payment.

D. References

GN 02406.200 Failure to Receive a Courtesy Disbursement or Replacement Check -- Title II (Normal, Dire Need, and Abuse Situations)

GN 02406.201 Nonreceipt of Title II Critical Payment System (CPS) Checks

GN 02406.202 Nonreceipt of a Settlement Check -- Title II and Title XVI

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

GN 02406.207 Nonreceipt of Courtesy Disbursement or Replacement Check/ Type 9 Payment -- Field Office and Teleservice Center Instructions -- Title XVI

 

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202408020
GN 02408.020 - The F-stop Process - 05/15/2024
Batch run: 10/25/2024
Rev:05/15/2024