TN 25 (04-14)

A. Limited payability notice policy

1. Title II

When the REACT system successfully processes a limited payability (LP) credit or LP correction (LPC), the Payment History Update System creates a new EVENT 169 UNNEG CK. In most cases, REACT annotates the RCLRN field with an “N” and produces a notice file. SSA mails the automated notice to the beneficiary stating that our records show a particular check(s) remains uncashed.

The beneficiary has the option to circle the check(s) that they did not cash on the notice and mail the notice back to us. However, numerous beneficiaries prefer to call SSA or visit their local field office (FO) to request more information about the notice.

2. Title XVI

The supplemental security income (SSI) system does not send out a notice because SSI is a needs-based program. Contact the recipient directly whenever SSA receives a title XVI LP credit.

See details:

• SM 00630.369 Event 169 Unneg Check

• SM 01315.085 Stages of the LP Process

B. Beneficiary contacts SSA concerning LP notice

1. National 800 Number answering sites and FO respond to claimant inquiry

If the beneficiary contacts the National 800 number answering sites about an LP notice, the technician will only answer general questions. For more details, see SM 00624.410B.1.

If the beneficiary contacts the FO about an LP notice, the technician will review queries and follow instructions in SM 00624.410B.2.

2. PC responds to beneficiary inquiry

The PC technician takes the following steps to respond to LP notice inquiry:

• obtain an MBR and PHUS;

• ask the beneficiary to review their records to determine if they received and cashed the check(s) in question on the notice; and

• If the beneficiary:

  • did receive and cash the check, instruct him or her to disregard the letter;

  • did not receive and cash the check, instruct him or her to circle the date(s) of the check(s) not received or cashed, sign the notice and to use the self-addressed envelope enclosed and mail the notice back to the PC of jurisdiction; or

  • is unsure about cashing the check(s), instruct him or her to circle the date(s) of the check(s) in question, sign the notice, use the self-addressed envelope enclosed, and mail the notice back to the PC of jurisdiction. When the PC receives the completed notice and if Treasury and SSA records show the check is still uncashed, send payment to beneficiary.

C. Beneficiary completes notice correctly and returns notice to PC

When the beneficiary returns the correctly completed notice to the PC, the technician should process it per procedures in SM 00624.412.

D. Beneficiary returns incorrectly completed notice to PC

NOTE: The beneficiary must sign the LP notice before SSA releases a new payment.

When the PC technician receives the LP notice, take the following steps:

• Review the notice for completeness.

• If the beneficiary:

  • circles a check and returns the notice un-signed, return the notice to the beneficiary with a self-addressed envelope enclosed and a note asking him or her to sign the notice and mail it back to the PC;

  • does not circle a check on the signed notice, contact the beneficiary directly to resolve the discrepancy;

  • does not circle a check on the unsigned notice, file the notice in paperless. Take no action to repay the check;

  • indicates he or she is unsure if the check was cashed, the notice is signed, and the payment is still due, repay the check. (For more information, see GN 02401.905B.2.); or

  • indicates he or she is unsure if the check was not cashed and there is no signature on the notice, return the notice to the beneficiary with a self-addressed envelope enclosed and a note asking him or her to sign the notice and mail it back to the PC. Repay the check if the beneficiary returns the signed notice and the payment is still due.