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VB 01503.400: Check Returned For Miscellaneous Reasons (S07)

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  • Effective Dates: 07/07/2014 - Present
  • Effective Dates: 04/11/2018 - Present
  • BASIC (01-02)
  • VB 01503.400 Check Returned For Miscellaneous Reasons (S07)
  • A. Introduction
  • SVB checks returned for reasons that are unclear or for reasons other than address or a representative payee problem may result in an S07 suspension.
  • B. Process
  • The system will automatically generate an S07 suspension when notified of a returned check and the reason for the return is coded:
  • * “miscellaneous” (MS); or,
  • * “death of claimant” (DT) and an entry is not present in the date of death field and none is being posted along with the returned check input.
  • The system is notified of these returned checks by either a:
  • * MSSICS transmission using a Returned Check Reason Code (UPRS) Screen (as described in MSOM BUSSR 003.005); or
  • * returned check report from TD.
  • As explained in SI 02301.245B.2., S07 is an exception to systems Goldberg/Kelly processing and the suspension will be effective with the first month that payments can be stopped based on the monthly recurring payment tape cutoff. Because the system does not issue notices in SVB claims, and returned check alerts and diaries are not generated when the reason for check return is coded as “miscellaneous” (as explained in SM 01315.070 and SM 01315.075, respectively), systems-generated S07 suspensions on SVB records may go undetected and the SVB beneficiary will not be notified of the suspension.
  • It is conceivable that SSA will not become aware of an ongoing S07 situation in SVB claims, and after the record has remained in S07 for 12 consecutive months, SVB entitlement will automatically terminate.
  • C. Procedure -- General
  • SSA may become aware of the S07 status after the suspense action has been systems-generated (e.g., through a nonreceipt allegation, report of death, an unrelated action, etc.). Regardless of how SSA learns of the S07 suspension, develop and document the reason the check was returned.
  • EXCEPTION: Do not develop for the reason the check was returned if SVB terminates after 12 consecutive months of suspense, as explained in VB 01505.005.
  • D. Procedure — Development and Documentation
  • 1. FSP, FO
  • 1. FBU, FO
  • Contact the SVB recipient (or representative payee) and obtain an explanation of why the SVB check was returned. If an event occurred or is being reported (such as death of the SVB recipient or change of address), process the report in accordance with VB 01501.010D.1. If he or she cannot provide an explanation of the returned check, but it is established that he or she is entitled to the check, prepare documentation of this and fax and then mail to the CPS having SVB jurisdiction.
  • 2. CPS
  • Process the event per VB 01501.010D.2. If no event is being reported and there is no explanation for the returned check, reinstate benefits for only those months the recipient meets the SVB qualification requirements and is was residing outside the United States.
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