TN 14 (04-00)

A. Introduction

The following instructions do not apply to checks with a foreign address. See GN 02406.505 -through GN 02406.540.

B. Procedure

Processing reports of missing checks depends upon when the report is received, the type of report (nonreceipt, loss, theft, or destruction), whether or not payment is due, and pertinent information obtained in the interview.

1. Examine a Current Query For Each Missing Check to Determine if a Payment Was Issued and Due and Why the Payment Was Not Received:

1. For title II, review the MBR and PHUS.

2. For title XVI, review the SSR.

2. If the check was issued and is NOT DUE

Refer to GN 02406.175B.7.

3. Report Received Prior to the Third Mail Delivery Day After Due Date - Payment is Due

1. Do not automatically advise calling back on the third mail delivery day after the check due date. Review current MBR, PHUS, SSR or Inquiry Response queries to determine whether a problem exists on the record that can be resolved at the time of the request.

2. If check was not received on the scheduled delivery date, explain that payments sometimes are delayed in the mail. Advise the beneficiary/recipient to recontact SSA if the check is not received on the third mail delivery day following the scheduled check delivery day.

3. If the check was received but subsequently lost, stolen, or destroyed before it could be cashed by the beneficiary or recipient, transmit the report immediately. (See
   GN 02406.125 for instructions.)

4. If it appears that a number of checks in a geographic area have not been received there is the possibility that a mass loss has occurred. Follow instructions in
   GN 02406.700.

5. If the check is smudged or mutilated, see GN 02406.230.

4. Report Received On Or After The Third Mail Delivery Day - Payment is Due

If the claimant reports a missing check on or after the third mail delivery day after the due date, obtain the necessary information and transmit the nonreceipt report immediately. See GN 02406.125 for instructions.

5. When to Accept a Report of Nonreceipt for Nonrecurring Checks

a. Title II

SSA will accept a nonreceipt report for any nonrecurring check (courtesy disbursement, replacement, CPS, PMA, and OCO A-) on the seventh calendar day after the run date shown on the PHUS query. For more information, see GN 02406.20, GN 02406.201.

Keep in mind the timing in connection with replacing a PMA check: if the PMA check is issued after the cutoff date, DT will not release the check/payment until the first of the following month. Be sure to advise the claimant that a check/payment issued in this period will not be delivered until the first of the next month. All PMAs are subject to this delay no matter what system is used to process the PMA.

b. Title XVI

• When a B-stop is transmitted on the original check, SSA will accept a nonreceipt report for a type 9 payment (courtesy disbursement check) 10 calendar days after the run date shown for the interim “01” on the Q query. For more information, see GN 02406.207. If the nonreceipt was input as a C-stop, it could take 3-5 weeks before a replacement is issued or a claims package is sent.

• Nonreceipt for type 2 and 4 payments (underpayment and AOTP, respectively) can be accepted 7 calendar days after the run date shown in the payment history. For more information, see GN 02406.205.

6. Original and Courtesy Disbursement or Replacement Checks Are Received

1. Ensure the person reporting nonreceipt understands that only one check is due for the benefit month and if both the original and a courtesy disbursement or replacement check are received, one must be returned. If both are cashed, a DCN overpayment exists.

2. Process returned title II checks according to instructions in GN 02405.010. Code the lower lefthand corner with the appropriate information (DC for duplicate checks) and return to the issuing RFC.

   Instructions for processing returned title XVI recurring, courtesy disbursement and replacement checks are located in SM 01315.011, SM 01315.012, and GN 02405.100.

7. Title XVI Recurring Check Cashed, Courtesy Check Returned

The following is a procedure to prevent the repeated reissuing of a type 2E underpayment check as described in the following example:

1. The FO/TSC transmits a B-stop for a missing recurring check. DT cancels the missing recurring check and a courtesy check is issued. These actions are reflected in PMTH segment on the SSR:

(Type 1 changed to 6 to indicate nonreceipt; S indicates check cancelled, credit back to SSA.)

2. Frequently, the recurring check is received and cashed and the recipient returns the courtesy check to the FO for forwarding to DT. If the courtesy check is received and processed by DT before the credit for the type 1 is “reversed,” a type 2 underpayment check will be issued:

3. To prevent this from happening, FOs should HOLD THE RETURNED COURTESY CHECK (clearly stamped “NOT NEGOTIABLE”) in the office safe and query the system weekly until the credit reversal is shown on the SSR. At that time, mail the check to the RFC. Other examples of nonreceipt posting and credit reversals are shown in
   SM 01315.250.

(No 2E check will be issued.)

IMPORTANT: A solution mentioned in nonreceipt training indicated that the recipient should endorse the check over to Social Security, then process the returned title XVI check as a refund which would set up an excess decision. Then when the endorsed check was returned to the RFC, SSA would be debited for the check (POC) and the POC and excess decision would cancel each other out. DO NOT DO THIS. The reason for this is that DT has no alternative but to treat this as a double check negotiation (both checks were signed) and to send out claims packages for the two checks. This creates an unnecessary workload for DT. It also creates an unnecessary workload for SSA when the PC/FO puts the claims packages into the “process.” This is because this is not a true DCN overpayment situation, no overpayment notice will be issued, and the claims packages will not be needed because a forgery determination is not necessary.

8. Change of Address, Change or Cancellation of Direct Deposit Reported

If the beneficiary or recipient reports a change of address not reflected on the SSA record or requests a change or cancellation of direct deposit, transmit the correct check delivery information on the same input with the nonreceipt data. Make a separate input to update the address and/or direct deposit data on the MBR/SSR.

9. Individual is No Longer in Current Pay

Nonreceipt procedures apply if a due check was issued even if the claimant is not in current pay status at the time of the nonreceipt report. For example, nonreceipt input is appropriate for title XVI records in PSY Sxx, M01 (force pay), T30, NO7, RN:1x2, etc., as long as PMTH shows that the check was issued and the record indicates it is still due; for title II, LAF codes of S, E, and T.

10. Reference for other types of title XVI nonreceipt/loss situations:

Interim Assistance Reimbursement (IAR) Payment - SM 01315.175.

Emergency Advance Payment or Immediate Payment issued by third-party draft -
SM 01325.040 (title XVI). Lost title II third-party drafts - see the Cash Clerk in the FO who must process manually (stop payment through the bank) and reissue if appropriate.

Manual One-time Payments - See SM 01315.168 and SM 01901.005. Contact DBCA via email at: ¦¦DBCA@HQ-EXCHANGE (or ¦¦DBCA) to confirm whether the check was issued if it is not posted on the SSR.

Special Voucher Payments (SM 01315.143).