GN 02408: Stop Payments and Reclamations
TN 18 (11-08)
A. Background
SSA uses the F-stop to request that the Department of the Treasury (DT) investigate a Title II or Title XVI check that was issued, but is not due. Use the F-stop to determine the status of a check without issuing a replacement check. If the check is outstanding, DT returns a credit to SSA. If the check is cashed, SSA receives a claims package from DT.
B. Policy when F-Stops are appropriate
Use F-stops:
-
Primarily for checks.
EXCEPTION: An electronic funds transfer (EFT) payment that is also part of the Treasury Offset Program (TOP). See Treasury Offset Program (TOP) Involved GN 02408.405
For Title XVI death of the representative payee (checks), see GN 02408.005B.
For check payments issued to a representative payee after the death of a beneficiary, see GN 02408.007.
For stop-payment of checks issued when not due for reasons other than death.
In nonreceipt and stop-payment situations for Title XVI attorney fee checks.
When the Title XVI nonreceipt system automatically generates an F-stop on a courtesy disbursement check since the original check has been cashed.
In the same situation in Title II nonreceipt, the jurisdictional program service center must manually input the F-stops.
When status of a check is needed and SSA does not wish to generate a replacement payment.
When checks are issued under an incorrect SSN.
To enable DT to reclaim funds if forgery is involved.
When nonreceipt of a due check is alleged after the beneficiary's death.
For nonreceipt of checks issued to non-beneficiaries; e.g., attorney (BICs U, G1, V, AT, S, etc. — GN 02406.127) and garnishment/levy (BIC X).
To return funds to SSA when a check is outstanding.
When nonreceipt is alleged on a non-recurring check.
SEE ALSO:
GN 02406.200 - Failure to Receive a Courtesy Disbursement Or Replacement Check -- Title II
GN 02406.201 - Nonreceipt of Critical Payment System Check (CPS) -- Title II And XVI
GN 02406.202 - Nonreceipt of a Settlement Check -- Title II and Title XVI
GN 02406.205 - Nonreceipt of Underpayment Check/Type 2 and One-Time Payment/Type 4 Payment -- Field Office And Teleservice Center Instructions -- Title XVI
GN 02406.207 - Nonreceipt of Courtesy Disbursement or Replacement Check/ Type 9 Payment -- Field Office and Teleservice Center Instructions -- Title XVI
1. Check issued for an incorrect SSN
When a check is issued under an incorrect Social Security number and SSA/SSR records are corrected after the payment was made, take the following action(s):
a. Title II
FO/TSC – Send a modernized development worksheet (MDW) to the PC (F-stop required on mm/dd/yyyy Check Issued For Incorrect SSN--XXX-XX-XXXX).
PC - Input an F-stop by following processing instructions in MSOM RSDHI 002.005 (PESP), by using the SSA-4510 Stop Payment Request Input Form (MSOM INTRANETMAMPSCDI 004.003), and SM 00609.220.
b. Title XVI
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. See Stop-Payment MSOM BUSSR 003.017.
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) take the following action(s):
a. Title II
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 following processing instructions in MSOM RSDHI 002.005 (PESP) and MSOM FALCON 017.004 (TIDSFS).
b. Title XVI
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 Stop-Payment MSOM BUSSR 003.017.
3. "Due" payment after a beneficiary's/recipient's death
After the death of a beneficiary/recipient, allegations are sometimes made that indicate one or more due payments were not received before the date of death. Take the following action(s):
a. Title II
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, if applicable, see GN 02301.030 (Underpaid Person Is Deceased). 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 following processing instructions in SM 00609.220 (Stop-Payment Actions).
b. Title XVI
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 Stop-Payment MSOM BUSSR 003.017.
If applicable, complete underpayment development; see SI 02101.006 SSI Underpayment Due - Individual Deceased - Surviving Spouse Not Member of an Eligible Couple.
C. Process – Treasury
When DT receives an F-stop request and the check is outstanding, DT cancels the outstanding check and returns a credit to SSA. When the check is outstanding (disposition code “32”) but is cashed later, DT debits SSA and procedures for payment over-cancellation (see GN 02406.245) apply. When the check is already cashed at the time of the F-stop, DT transmits a disposition code “11” and sends a claims package to SSA. The disposition code appears on PHUS for Title II and the Treasury Status Query for Title XVI. The following describes possible scenarios:
1. When the check has been cashed
When an F-stop is input and the check has been cashed, DT sends a claims package (FMS-1133, FMS-3858, and check photocopy) to SSA. When the claimant protests the overpayment created when the check was cashed, and the claimant does not recognize the signature as his or her own, have the claimant complete the FMS-1133 (see GN 02406.160). Forward the FMS-1133 with the check photocopy to DT for a forgery determination.
2. When the check has not been cashed
When DT finds that the check has not been cashed, it credits the funds back to SSA. The F-stop ensures that DT can reclaim the funds from the FI if the check is cashed over a forged signature at a later date.
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, REACT automatically reissues the returned payment, even when not due, if the reason for return is “AD” (address). When the reason for return is “MS” (miscellaneous) or “DC” (duplicate check), REACT does not automatically reissue the payment.