TN 13 (05-03)

A. Policy - Lost Remittances

Whenever the cost involved is the reason the individual refuses to comply with the request for a second refund (e.g., an individual, otherwise willing to remit the amount in cash, purchase a second money order or write a second check, objects to the cost of stopping payment on the original check or money order), SSA should consider adjustment of the second refund amount by the amount of additional cost to the individual as a title II or title XVI “write off”.

If the remitter questions paying the cost of a stop payment, require him/her to contact the issuing bank, as there may be no charge for the stop payment. If the cost of the stop payment order is equal to or exceeds the amount of the first check or money order, do not request a replacement from the individual. Adjust the overpayment balance using the instructions in GN 02403.160B. and GN 02403.160C., according to the appropriate trust fund.

IMPORTANT: If there is no overpayment on the record or a master record does not exist, ask the remitter to obtain a stop payment order and request a copy as proof of payment. Once a copy of the stop payment order is received, issue a third party draft (TPD) to the remitter for the cost of the stop payment. Use the office CAN, SOC 252K, and input the following comment: “L C Bank Fee for Lost Pay.”

The office issuing the draft is required to maintain all of the supporting documentation associated with the case. In addition, attach copies of the supporting documentation to the copy of the TPD issued. For Operating Procedures for Third Party Drafts, see AIMS, FMM 03.05.

B. Procedure - $45 or Less, Title XVI

Use these steps to “write off” those stop payment orders that are less than $45 and involve title XVI overpayments.

1. “Write off” the amount of the stop payment charge by posting to the individual's record an uncollectible decision for the amount of the stop payment.

   REFERENCE: See SM 01311.280 for how to post an uncollectible decision to the SSR.

2. Enter replacement refund into the automated system and provide MATPSC with a replacement FO Remittance Transmittal. Annotate the original FORT accordingly and attach the new automated FO receipt to it.

C. Procedure - $45 or Less, Title II

Use these steps to “write off” those stop payment orders that are less than $45 and involve title II overpayments.

1. Notify the MATPSC to write-off the stop payment charge.

   RESULT: The MATPSC will adjust the amount of the overpayment balance by the amount of the stop payment fee.

2. Follow procedures in GN 02403.160B.2.

D. Procedure - More Than $45, Title II or Title XVI

The following explains how to “write off” those stop payment orders that are more than $45 and are title II or title XVI.

1. Ask the servicing Assistant Regional Commissioner, PCO, (this responsibility can be delegated to the RSI Sections or RSI/SSI Branches) to approve the additional cost to the trust fund.

2. Is the additional cost approved?

   • If yes, give the claimant a written notice of the agreement and forward a copy to the servicing ARC/PCO. Follow instructions above (if the cost is less than $45) for the appropriate trust fund.

   • If no, notify the individual. If he/she still refuses to issue a new refund, obtain a statement from him/her setting forth his/her reasons for declining to make another refund and forward it to the ARC/PCO. Advise the individual that the PSC will notify him/her of its decision concerning the lost refund.

E. Reference

Investigating Lost Remittances, OS 00501.415