When a returned check notification from the Treasury Department (TD) is coded “AD”
(Address), the system will suspend payment S06 the first month possible based on the
recurring cutoff date (on active records) unless a new address has been posted to the SSR after the check date shown in the payment
history. (If a new address has been posted, the system will automatically reissue
the returned benefit check to the new address.) In addition to suspending benefits,
a “returned check alert” is generated to advise the servicing office reflected on
the SSR (i.e., the CPS having SVB jurisdiction) of the need to develop address information.
S06 suspensions are also systems-generated, and benefits will be suspended beginning
the first month possible based on the recurring cutoff, when a returned check is transmitted
via the Payment Menu in the Direct SSR update. In these situations the system assumes
that the office of input realizes that the transmission will result in an S06 suspension
and will not generate a “returned check alert.”
IMPORTANT: Systems generated S06 actions on SVB records will NOT automatically generate
a Notice of Planned Action (SSA-L8155) as is done on SSI records per SI 02301.240B.2. All notices on SVB claims must be manually prepared.