Effective Dates: 06/25/2024 - Present Previous | Next

TN 120 (06-24)

GN 02406.180 Statutory Limitation on Processing Claims of Nonreceipt ( Credits and Limited Payability)

A. Paper check issued over 12 months ago

To process nonreceipt of a paper check issued more than 12 months ago, follow these procedures

  • •

    GN 02401.901 Limited Payability for Title II and Title XVI

  • •

    SM 01315.151 How to Handle a Nonreceipt Claim for a Paper Check Issued More Than Twelve Months Ago

B. Processing credits

1. Title II

If the beneficiary’s record reflects an uncashed payment within the past 12 months, SSA sends a notice to the beneficiary inquiring if the check was received and cashed. If the beneficiary does not respond or indicates a cashed payment, take no further action. If the beneficiary indicates the payment was not received and not cashed, SSA technicians will reissue payments or inquiry responses indicating payments were not received and cashed see, Beneficiary/Recipient Contacts SSA Concerning a Limited Payability Notice GN 02401.905.

Treasury cancels any check that has not been negotiated within 12 months after the issue date and returns the credit back to SSA in the13th month after issue date of the check. This credit appears on the Payment History Update System (PHUS) record in the form of an EVNT-169 UNNEG CK (Unnegotiated check). See, Unnegotiated Check Events SM 00545.300.

2. Title XVI

a. When an SSI check is uncashed for six months, Treasury issues a code 38

The SSA system converts code 38 to a code “N” in the Unnegotiated Check Indicator (UCI) field of the payment history (PMTH) segment on the Supplemental Security Income Record (SSR), and sends an L5 or L8 alert to the field office (FO). The FO investigates whether the recipient received the check by contacting the recipient via phone to determine the status of the check. If the recipient indicates the check was not received, the FO inputs a nonreceipt. (See SM 01315.085 for Stages of the Limited Payability Process).

b. If the check is not cashed within 12 months, Treasury issues a code 71

The SSA system converts code 71 to a code “T” in the U field of the PMTH indicating that a credit is forthcoming for the check in question. Treasury cancels any check that has not been negotiated within 12 months from the issue date and returns the credit to SSA in the 13th month.

In the 13th month, Treasury sends a code “L” and the SSA system post an “I” in the U field of the PMTH. This action indicates the credit has been received. A K5 diary post on the SSR simultaneously with a K5 alert to the FO. (See SM 01315.085B.) The FO calls the recipient to investigate the check status and input either a UL (if the check was not received) or UM (if the check was received). For more information on the different kinds of UCI codes, see SM 01315.095.

C. References

  • •

    GN 02401.905 Beneficiary or Recipient Contacts SSA Concerning a Limited Payability Notice

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    SM 00545.300 Unnegotiated Check Events

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    SM 01315.085 Stages of the Limited Payability Process

  • •

    SM 01315.095 Kinds of Unnegotiated Check Indicator (UCI) Codes

  • •

    SM 00624.400 How the Returned Check Action (REACT) Program Processes Limited Payability Files

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202406180
GN 02406.180 - Statutory Limitation on Processing Claims of Nonreceipt ( Credits and Limited Payability) - 06/25/2024
Batch run: 06/25/2024
Rev:06/25/2024