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GN 02405.300: Limited Payability - Voiding Returned Benefit Checks More Than a Year Old

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  • Effective Dates: 04/25/2014 - Present
  • Effective Dates: 12/05/2017 - Present
  • TN 3 (09-96)
  • TN 8 (12-17)
  • GN 02405.300 Limited Payability - Voiding Returned Benefit Checks More Than a Year Old
  • A. Policy
  • A. Policy for voiding returned benefit checks more than 12 months old
  • Public Law 100-86, effective October 1, 1989, limits the negotiability of a Treasury issued check to twelve months after the issue date. The procedures in B. below apply to all benefit checks returned to the FO that are more than a year old. For more information on limited payability policy for Title II and Title XVI see GN 02401.901.
  • The Department of the Treasury (Treasury) considers a check void and non-negotiable if not cashed within one year from the issue date. Treasury returns these funds to SSA in the form of a Limited Payability (LP) credit in the 15th month after the issue date.
  • B. Procedure
  • The following procedures apply to all benefit checks returned to the Field Office (FO) that Treasury issued and are more than one year old. For more information on limited payability policy for Title II and Title XVI, see GN 02401.901.
  • Use the following procedure for endorsed and unendorsed returned benefit checks that were issued by the Treasury and are more than a year old.
  • B. Interviewer Procedure
  • Process endorsed and unendorsed benefit checks returned to the Field Office (FO) that Treasury issued and are more than one year old in accordance with the following table.
  • WHO DOES IT
  • STEP
  •  
  • Interviewer
  • STEP
  • 1
  • ACTION
  • Enter “NOT NEGOTIABLE” below the payee address on the returned check, but above the solid line.
  • NOTE: To determine the claim number for a check issued January 2004 and forward, access the Treasury Check Verification Query (TCVQ) screen. (See MSOM QUERIES 003.022 for instructions on how to access the TCVQ screen).
  • 1
  • Access the Treasury Check Information System (TCIS) or the Treasury Check Verification Query (TCVQ) screen to determine the claim number. (See MS QUERIES 003.022 for instructions on how to access the TCVQ screen).
  • Interviewer
  • Enter “NOT NEGOTIABLE” below the payee address on the returned check, but above the solid line.
  • 2
  • REMINDER: Do not write or stamp below the solid line, which extends the full length of the check. Doing so causes problems with Treasury's optical scanning equipment.
  • Enter the returned check into the automated system as an unendorsed returned benefit check with limited payability, with Code L as the reason for the return of the check.
  • REFERENCE: See MSOM DMS 003.006 and MSOM DMS 003.007 for how to obtain an automated receipt.
  • 2
  • Enter the returned check into the Debt Management System (DMS) as an unendorsed returned benefit check with limited payability, with Code L as the reason for the return of the check (see MS DMS 003.006).
  • Interviewer
  • 3
  • 3
  • Give/mail the automated receipt to the remitter.
  • Give or mail the automated receipt to the remitter. (see MS DMS 003.007).
  • Interviewer
  • 4
  • 4
  • Review the MBR and PHUS or the SSR to determine whether the payment was due, and then follow the instructions in SM 00624.420 for Title II, and SM 01315.011 for Title XVI.
  • Query the MBR/PHUS/SSR to determine whether or not the payment was due, and then follow the instructions in SM 00624.420 for title II, and SM 01315.011 for title XVI.
  • NOTE: If PHUS shows a stop payment action (EVENT 070), the LP credit (EVENT 169) will not appear.
  • 5
  • Give the check and the supporting MBR and PHUS, or SSR queries, to the remittance clerk.
  • Interviewer
  • C. Remittance Clerk Procedure
  • The remittance clerk must follow the procedures for endorsed and unendorsed benefit checks returned to the Field Office (FO) that Treasury issued and are more than one year old in accordance with the following table.
  • 5
  • Give the check and query to the remittance clerk.
  • STEP
  • Remittance Clerk
  • ACTION
  • 6
  • 1
  • Request the FO Daily Receipt Listing (FODRL) at the end of the day and associate the returned check along with the other remittances.
  • REFERENCE: See MSOM DMS 003.002, MSOM DMS 004.006, and MSOM DMS 004.009 for how to obtain the FODRL.
  • Request the Field Office Daily Receipt Listing (FODRL) at the end of the day and associate the returned check along with the other remittances. (See MS DMS 003.002, MS DMS 004.006, and MS DMS 004.009 for how to obtain the FODRL.)
  • Remittance Clerk
  • 2
  • 7
  • Ensure that the information on the FODRL matches the attached returned checks and other remittance items.
  • Ensure that the FODRL agrees with the attached returned checks and other remittance items.
  • 3
  • Remittance Clerk
  • Sign the FODRL on the Remittance Clerk line, and hand carry the FODRL, related remittances, and queries to the remittance supervisor.
  • D. Remittance Supervisor Procedure
  • 8
  • The remittance supervisor must follow the procedures in the following table when processing endorsed and unendorsed benefit checks returned to the Field Office (FO) that Treasury issued and are more than one year old.
  • Sign the FODRL on the Remittance Clerk line, and hand carry the FODRL and related remittances and queries to the remittance supervisor.
  • STEP
  • Remittance Supervisor
  • ACTION
  • 9
  • Review each line of the FODRL to ensure that each item is in complete agreement with the listed remittances.
  • 1
  • Review each line of the FODRL to ensure that each item matches the listed remittances.
  • Remittance Supervisor
  • 10
  • 2
  • Review any mailroom or reception area logs completed that day to ensure that any returned checks annotated on the logs are included on the FODRL.
  • REFERENCE: Remittance Handling in the FO Mailroom and Reception Area, GN 02403.004.
  • Remittance Supervisor
  • 3
  • 11
  • Resolve any discrepancies between the FODRL, reception area logs, and returned checks submitted by the remittance clerk and interviewers.
  • Resolve any discrepancies with the remittance clerk and/or interviewers.
  • 4
  • Remittance Supervisor
  • Take appropriate action for the other items on the FODRL as identified in GN 02403.021.
  • 12
  • 5
  • Take appropriate action for the other items on the FODRL as identified in GN 02403.021.
  • Sign and date the FODRL after completing all actions required for the listed items. Shred the limited payability checks for which there are LP credits (For Title II, EVENT 169 in the TRANS field on PHUS. For Title XVI, review the unnegotiated check indicator (UCI) code in the PMTH segment of the SSR to determine the status of Limited Payability Credit) and file the FODRL. Give the checks for which SSA is waiting LP credits to the Office Manager for safekeeping.
  • E. Office Manager Procedure
  • Remittance Supervisor
  • The office manager must follow the procedures in the following table when processing endorsed and unendorsed benefit checks returned to the Field Office (FO) that Treasury issued and are more than one year old.
  • 13
  • Sign and date the FODRL after completing all actions required for the listed items, shred the limited payability checks for which there are LP credits (EVENT 169 in the TRANS field on PHUS), and file the FODRL. Give the checks for which SSA is waiting for LP credits to the Office Manager for safekeeping.
  • STEP
  • ACTION
  • Office Manager
  • 14
  • 1
  • File returned checks being held waiting for LP credits in a secure location, and on a weekly basis query the MBR/PHUS/SSR to determine receipt of the credit. When the credit appears, shred the check.
  • File returned checks waiting for LP credits in a secure location, and on a weekly basis query the MBR, PHUS, and SSR to determine receipt of the credit. When the credit appears, shred the check.
  • NOTE: If the PHUS EVENT 169 is not present after 15 months from the check issue date have elapsed, follow procedures in SM 00624.420.
  • NOTE: If the LP credit is not present after 15 months from the check issue date have elapsed, follow procedures SM 00624.420 and GN 02401.903F.
  • C. References
  • * Unverified Alert Process, GN 02403.050
  • * Resolving Discrepancies with Remittances and FORTS — FO and PC Process, GN 02403.065
  • * Investigating Lost Remittances — FO Procedure, GN 02403.155
  • * FO/PC Processing of a Returned Check More Than One Year Old, SM 00624.420
  • F. References
  • * GN 02403.050 Unverified Alert Process – Remittances
  • * GN 02403.065 Resolving Discrepancies with Remittances and Field Office Remittance Transmittal (FORT) - FO and PC Procedure
  • * GN 02403.155 Investigating Lost Remittances - FO Procedure
  • * SM 00624.420 FO/PC Processing of a Returned Check More Than One Year Old
  • * SM 01315.095 Kinds of Unnegotiated Check Indicator (UCI) Codes
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