A Guide to Federal Government ACH Payments

A Guide to

Federal Government

ACH Payments

On-Line

A Guide to Federal Government ACH Payments

Table of content

Green Book

A Guide to Federal Government ACH Payments

Introduction

Welcome to the Green Book — a comprehensive guide for financial institutions that receive

ACH payments from the federal government.

Today, most federal payments are made via the Automated Clearing House (ACH). With

very few exceptions, federal government ACH transactions continue to be subject to the

same rules as private industry ACH payments. As a result, the Green Book continues to get

smaller in size and is designed to deal primarily with exceptions or issues unique to federal

government operations.

Federal agency contact information is included, and since so much information is available

via the Internet, website addresses are included where appropriate. The Green Book

continues to be available on the Internet and chapters can be printed as Portable Display

Format (PDF) documents. We no longer print and mail hard copies. So, we encourage you

to visit the website for updates and news relevant to federal government ACH transactions.

Title 31 CFR part 210 provides the basis for most of the information contained in the Green

Book. However, there are other regulations that impact federal government ACH payments.

The following table summarizes the relevant regulations:

Regulation

Governs

31 CFR part 210

Federal Government Participation in the Automated Clearing House

31 CFR part 208

Management of Federal Agency Disbursements

31 CFR part 370

Electronic Transactions and Funds Transfers Relating to United

States Securities

We still occasionally get asked, “Why green?” It is simple. The first publication issued in

1975 dealing with the Direct Deposit of federal government payments, when the

ACH network was in its infancy, had a green cover. More than 45 years later, the world of

federal government payments has changed, but the Green Book is still green! We hope you

incorporate the Green Book into your daily operations and visit us frequently.

Department of the Treasury

Bureau of the Fiscal Service

January 2021

Table of Contents

Green Book

III

A Guide to Federal Government ACH Payments

Table of Contents

Chapters

Revised on

1. Enrollment

January 2023

2. ACH Payment Processing

January 2023

3. Non-Receipt Claims

January 2023

4. Returns

January 2023

5. Reclamations

January 2023

6. Notification of Change

January 2023

7. Contacts

January 2023

8. Glossary

January 2023

9. Forms

January 2023

Online Book Location:

https://www.fiscal.treasury.gov/fsreports/ref/greenBook/greenbook_home.htm

1-1

A Guide to Federal Government ACH Payments

Enrollment for

Federal Payments

Overview

In this chapter…

A: Automated Enrollment (ENR) ............................................................................................................... 1-4

Go Direct Online Enrollment Option for Financial Institutions ................................................................ 1-4

Social Security Administration (SSA) Payment Cycling .............................................................................. 1-4

B: Simplified Enrollment ............................................................................................................................. 1-5

Telephone Enrollment .............................................................................................................................................. 1-5

Paper Form Enrollment ........................................................................................................................................... 1-5

Enrollment Methods for Specific Payments ..................................................................................................... 1-5

Financial institutions can play a key role in assisting recipients of federal payments to enroll in

Direct Deposit with their paying agency. This chapter is a guide to the various enrollment methods

available for both consumer and corporate recipients.

There are several enrollment options:

Enroll customers in lobby, batch and submit ENR enrollments through ACH from the financial

institution.

Financial institution can enroll on the Go Direct® website to enter enrollments for customers.

Financial institution can call the U.S. Treasury Electronic Payment Solution Center (EPSC) at

1-800-333-1795 for immediate enrollment of customers.

Enrollment using Bureau of the Fiscal Service (Fiscal Service) Direct Deposit Sign-Up Form FS

Form 1200 for Social Security benefits or disability payments, Supplemental Security Income

payments, Railroad Retirement Board annuities, and Office of Personnel Management (OPM)

Civil Service annuities and Direct Deposit Sign Up Form FS Form 1199A for other federal

payments, or the ACH Vendor/Miscellaneous Payment Enrollment Form SF 3881 for corporate

vendor payments.

Errors in the Direct Deposit enrollment process are the primary cause of misdirected payments.

Financial institutions will be held liable for providing incorrect enrollment information and should,

therefore, carefully review all Direct Deposit enrollment procedures.

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A Guide to Federal Government ACH Payments

1. Enrollment

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Allotments, Federal Salary, and Federal Employment Related Payments ........................................... 1-7

When Should Direct Deposit Begin Once It Has Been Initiated? ............................................................. 1-8

IRS Tax Refunds .......................................................................................................................................................... 1-8

Railroad Retirement Board ..................................................................................................................................... 1-9

Social Security Administration .............................................................................................................................. 1-9

Office of Personnel Management ......................................................................................................................... 1-9

TreasuryDirect (Bureau of the Fiscal Service) ..............................................................................................1-10

Simplified Enrollment for Series H/HH Savings Bond Interest Payments (Bureau of the Fiscal

Service) .........................................................................................................................................................................1-10

Department of Veterans Affairs Direct Deposit ............................................................................................1-10

C: Paper Enrollment Methods ................................................................................................................. 1-11

Fiscal Service Direct Deposit Sign-Up Form (FS Form 1200) .................................................................1-11

Direct Deposit Sign-Up Form (FS Form 1200) ..............................................................................................1-11

How to Complete the FS Form 1200 .................................................................................................................1-11

Federal Benefit Recipient Information ............................................................................................................1-12

Bank or Credit Union Information

.....................................................................................................................1-1

Type of Payment .......................................................................................................................................................1-12

SSA – Single Payee Example .................................................................................................................................1-14

SSA– Representative Payee Example................................................................................................................1-15

D: Direct Deposit Sign-Up Form (FS Form 1199A) .......................................................................... 1-16

How to Complete the FS Form 1199A ..............................................................................................................1-16

Section 1- To be completed by the payee ........................................................................................................1-16

Name of the Person(s) Entitled to Payment (Box B) ..................................................................................... 1-16

Claim or Payroll ID Number (Box C) .................................................................................................................... 1-16

Claim/Payroll ID Table ............................................................................................................................................... 1-17

Depositor Account Number (Box E) ...................................................................................................................... 1-17

Type of Payment (Box F) ............................................................................................................................................ 1-18

Payee/Joint Payee Certification (Box F) ............................................................................................................. 1-18

Joint Account Holders’ Certification (Optional) ............................................................................................... 1-18

When Using Witnesses ................................................................................................................................................ 1-18

wer-of-Attorney ........................................................................................................................................................ 1-18

Section 2 - To Be Completed by the Payee or the Financial Institution ..............................................1-18

Section 3 - To Be Completed by the Financial Institution ........................................................................1-19

What Actions Should Take Place Before Filing the FS Form 1199A? ...................................................1-19

Important Information for New Direct Deposit Recipients .....................................................................1-19

How Are Forms Distributed? ...............................................................................................................................1-20

What to do if Direct Deposit does not begin ..................................................................................................1-20

FS Form 1199A Example .......................................................................................................................................1-21

E: Federal Financial EDI (FEDI) Payments/Vendor Payments .................................................... 1-22

Overview ......................................................................................................................................................................1-22

Delivery of Remittance (Addenda) Information ..........................................................................................1-22

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A Guide to Federal Government ACH Payments

1. Enrollment

Green Book

Enrollment .................................................................................................................................................................. 1-22

Enrollment Checklist ............................................................................................................................................... 1-23

How to Complete the SF 3881 ............................................................................................................................. 1-23

Agency Information...................................................................................................................................................... 1-23

Payee/Company Information .................................................................................................................................. 1-23

Financial Institution Information .......................................................................................................................... 1-23

Form Distribution ......................................................................................................................................................... 1-24

Pointers for Completing the SF 3881 Form ................................................................................................... 1-24

F: Enrollment Guidance ............................................................................................................................. 1-24

ENR (Automated Enrollment) Entry Detail Record .................................................................................... 1-27

ENR Addenda Record .............................................................................................................................................. 1-27

Representative Payee ............................................................................................................................................. 1-28

Return Reason Codes .............................................................................................................................................. 1-28

ENR Tips and Information Checklist ................................................................................................................. 1-29

General Questions/Information: ............................................................................................................................. 1-29

Benefit Recipient Information ................................................................................................................................. 1-29

Information Needed for Direct Deposit Enrollment ...................................................................................... 1-30

Helpful Numbers and Websites ............................................................................................................................... 1-30

Federal Agency Addresses and Phone Numbers.......................................................................................... 1-31

G: Termination of Enrollment ................................................................................................................. 1-36

Termination by the Recipient .............................................................................................................................. 1-36

Courtesy Notice ......................................................................................................................................................... 1-36

Termination by the Financial Institution ........................................................................................................ 1-37

Recipient Notice to the Federal Agency ........................................................................................................... 1-37

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A Guide to Federal Government ACH Payments

A: Automated Enrollment (ENR)

ENR is a convenient method for financial institutions to use the ACH network to transmit Direct

Deposit enrollment information to federal agencies for benefit payments. An ENR entry is a non-

monetary entry sent through the ACH by any Receiving Depository Financial Institution (RDFI) to a

federal government benefit agency participating in the ENR program.

ENR is the enrollment method preferred by participating federal benefit agencies. The ENR reduces

errors in the enrollment process and may expedite delivery of Direct Deposit payments as

compared to paper enrollment methods.

An ENR should be used when the recipient is requesting to initiate direct deposit for their federal

benefits. This may include, but is not limited to a first-time sign-up for Direct Deposit, a change to

an existing Direct Deposit enrollment (e.g. new bank account number) with the current financial

institution, or a change from one financial institution to another new financial institution.

Enrollments received and accepted by the paying agency at least 10 business days prior to the

benefit recipient’s next scheduled payment date will generally allow the recipient’s next month’s

payment by Direct Deposit.

To change financial institution data for an existing Direct Deposit enrollment within a financial

institution where an authorization exists, a Standard Entry Code (COR) entry, commonly known as

a Notification of Change (NOC), may be used. (Refer to Chapter 6 for more information on NOCs.)

Go Direct Online Enrollment Option for Financial Institutions

In addition to the Automated ENR option, financial Institutions can also choose to take advantage of

enrollment via the Go Direct w

ebsite. The Go Direct campaign was a national marketing and public

education campaign sponsored by the U.S. Department of the Treasury, Bureau of the Fiscal Service

and the Federal Reserve System that increased the use of Direct Deposit for federal benefit check

recipients. Although the Go Direct campaign has officially concluded, financial institutions can

continue to utilize the enrollment website. Please review the Go Direct Reference Guide for

Financial Institutions and Corporations for more details.

Enrollments submitted through the Go Direct enrollment site will be validated and submitted to the

respective paying agencies by the Electronic Payment Solutions Center (EPSC). The U.S. Treasury

EPSC is operated in a secure Federal Reserve site. Financial Institution customers whose

enrollments cannot be verified or processed will be contacted by the U.S. Treasury Electronic

Payment Solutions Center via letter delivered by USPS.

All reject or return item processing for these items is handled by the Operations and Research

Division of the EPSC. Financial institutions electing to submit enrollments electronically through Go

Direct are relieved of the obligation of processing ENR return items.

Social Security Administration (SSA) Payment Cycling

The payment date for newly enrolled Social Security beneficiaries is either the second, third, or

fourth Wednesday of the month. These additional payment days alleviate the workload peaks for

SSA, Fiscal Service, and financial and business communities.

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However, in instances where the beneficiary receives both Social Security benefit or disability

payments and Supplemental Security Income (SSI) payments, the payments are issued on the

standard 1st and 3rd schedule.

B: Simplified Enrollment

There are a variety of ways for federal payment recipients to enroll for Direct Deposit without

visiting a financial institution.

Telephone Enrollment

Federal benefit recipients can be enrolled by calling the U.S. Treasury Electronic Payment Solution

Center at 1-800-333-1795, by visiting the Go Direct w

ebsite, or by completing Fiscal Service Direct

Deposit Sign-Up Form FS Form 1200. The U.S. Treasury Electronic Payment Solution Center hours

of operation are 8:00 a.m. - 8:00 p.m. Eastern Time (ET), Monday through Friday, excluding federal

holidays.

Financial institution representatives can also assist their recipients who wish to enroll by phone.

owever, when doing so, the benefit recipient - or their representative - must be present when the

phone call is made. U.S. Treasury Electronic Payment Solutions Center personnel will ask to speak

to the recipient or their representative and obtain approval for the 3rd party banking

representative to provide their enrollment information. Financial institutions that elect to capture

enrollment information on paper or through other means and process after hours or in a back-

office environment may not use U.S. Treasury Electronic Payment Solutions Center telephone

enrollment on behalf of their customer.

Paper Form Enrollment

Recipients who elect to complete Fiscal Service paper Form FS 1200 should complete it on their

own or with the assistance of a financial Institution representative for the Routing Transit Numbers

(RTN) and account number and mail to:

U.S. Treasury Electronic Payment Solution Center

P.O. Box 650527

Dallas, Texas 75265-0527

The table below shows the Simplified Enrollment procedures for specific payment types.

Enrollment Methods for Specific Payments

Payment Type Recipient

Allotments

Federal Salary

Federal Employment-

Related Payments (i.e.,

Travel Reimbursement,

Uniform Allowance, etc.)

Completes an approved form at their federal agency personnel

office (e.g., FS Form 2231, FastStart Direct Deposit). Some federal

employees are able to make changes to Direct Deposit information

via telephone using Employee Express.

Recipients should contact their servicing personnel office for more

information.

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A Guide to Federal Government ACH Payments

Payment Type Recipient

IRS Tax Refunds Completes the financial institution information section of the IRS

Form 1040 during tax preparation.

For paper filing completes a U.S. Individual Income Tax

Declaration (IRS Form 8453). For electronic filing via IRS e-file

completes an 8453-OL.

Recipients should contact the IRS at 1-800-829-1040 or visit

www.irs.gov

or more details.

Office of Personnel

Management (OPM)

Form

Note: OPM does not allow

ENR enrollments for

representative payees.

Financial institutions can enroll their customers or recipients can

enroll individually by calling the U.S. Treasury Electronic Payment

Solution Center at 1-800- 333-1795 (English) / 1-800-333-1792

(Spanish), by visiting www.GoDirect.gov, or

by completing FS

Form 1200. The U.S. Treasury Electronic Payment Solution Center

hours of operation are 8:00 am - 8:00 pm ET, Monday through

Friday, excluding federal holidays.

Additionally, Financial Institutions a

nd/or recipients can call OPM

at 1-888-767-6738 or 202-606-0500 in the Washington, DC area

or visit www.opm.gov/retire f

or details.

Railroad Retirement Board

(RRB)

Financial institutions can enroll their customers and/or recipients

can enroll individually by calling 1-800- 333-1795 (English)/ 1-

800-333-1792 (Spanish), or by visiting www.GoDirect.gov,

completing FS Form 1200. The U.S. Treasury Electronic Payment

Solution Center hours of operation are 8:00 a.m. - 8:00 p.m. ET,

Monday through Friday, excluding federal holidays.

Additionally, f

inancial institutions and/or recipients can contact

RRB’s toll-free telephone number at 1-877-772-5772.

Social Security (SSA) and

Supplemental Security

Income (SSI)

Financial institutions can enroll their customers and/or recipients

can enroll individually by calling the U.S. Treasury Electronic

Payment Solution Center at 1-800- 333-1795 (English)/ 1-800-

333-1792 (Spanish), by visiting www.GoDirect.gov, or

completing FS Form 1200. The U.S. Treasury Electronic Payment

Solution Center hours of operation are 8:00 a.m. - 8:00 p.m. ET,

Monday through Friday, excluding federal holidays.

Additionally, f

inancial institutions and/or recipients can enroll by

contacting the SSA at 1-800-SSA-1213 (1-800-772-1213).

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Payment Type Recipient

Bureau of the Fiscal Service

TreasuryDirect

Recipient is automatically enrolled in the TreasuryDirect account

for purchasing Treasury bills, notes, and bonds. Investors use

Form PD F 5182, New Account Request, to establish a

TreasuryDirect account and to provide Direct Deposit information.

Investors use Form PD F 5178, Transaction Request, to change

Direct Deposit information.

Recipients should contact a designated TreasuryDirect Servicing

Office or visit www.treasurydirect.gov

or forms and other

information.

Vendor/Misc. The ACH Vendor/Miscellaneous Payment Enrollment Form (SF

3881) is an optional three-part form that federal agencies may use

to enroll their vendors in the Financial Electronic Data

Interchange (FEDI) program.

Recipients should contact the federal agency they are providing

goods or services to for more information.

Veterans Compensation and

Pension

Note: VA does not allow ENR

enrollments for

representative payees.

Financial institutions can enroll their customers and/or recipients

can enroll individually by calling 1-800- 333-1795 (English)/ 1-

800-333-1792 (Spanish), or by visiting www.GoDirect.gov, or b

ompleting FS Form 1200. The U.S. Treasury Electronic Payment

Solution Center hours of operation are 8:00 a.m. - 8:00 p.m. E

Mond

ay through Friday, excluding federal holidays.

Recipients can also contact the VA National Direct Deposit EFT

line at 1-800-827-1000 or visit www.benefits.va.gov/benefits

further details.

Veterans Education

Note: VA does not allow ENR

enrollments for

representative payees.

Enrolls at the same time recipient applies for benefits at the VA or

at any time after recipient begins receiving benefits. Recipients

already receiving benefits should contact the VA Education Direct

Deposit EFT line at 1-888-442-4551.

Veterans Life Insurance

Note: VA does not allow ENR

enrollments for

representative payees.

Enrolls at the same time recipient applies for benefits at the VA or

at any time after recipient begins receiving benefits.

Recipients should contact the VA Insurance office at 1-800-669-

8477 or visit www.insurance.va.gov f

or further details.

Allotments, Federal Salary, and Federal Employment Related Payments

Current federal employees can complete an approved form at their agency personnel office, or

servicing pay office. This form may be a FS Form 1199A (Direct Deposit Sign Up), a FS Form 2231

(FastStart Direct Deposit Sign Up), or a similar form used by the employee’s agency. The Direct

Deposit payments may be for federal salaries, allotments, or for employment related payments for

travel reimbursement or uniform allowance.

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A Guide to Federal Government ACH Payments

When Should Direct Deposit Begin Once It Has Been Initiated?

Use the table below to determine when Direct Deposit should begin once the enrollment form is

forwarded to the federal agency.

IF the payment type is... THEN Direct Deposit should begin within...

Federal salary

Military civilian pay

Military active duty Allotments

2-3 pay periods

Military retirement/annuity

60-90 days

etails of Each Payment Type

IRS Tax Refunds

The Internal Revenue Service (IRS) offers the Direct Deposit of IRS Form 1040 tax refunds for both

paper and electronically filed returns.

For IRS Form 1040 paper returns, taxpayers receiving refunds and electing Direct Deposit simply

complete the financial institution information section of the form and mail the form to the IRS.

For electronically filed returns using an authorized IRS e-file provider, the taxpayer will complete a

U.S. Individual Income Tax Declaration for Electronic Filing (IRS Form 8453) for refunds by Direct

Deposit. This form authorizes the tax preparer to transmit the return and allows the choice of

having the refund deposited into a checking or savings account.

Taxpayers preparing returns on a personal computer using commercial tax preparation software or

the IRS Free Online Filing and transmitting the information via the internet to the IRS complete

Form 8453-OL, U.S. Individual Income Tax Declaration for On-Line Filing. This form allows the

taxpayer to choose Direct Deposit for the refund. The financial institution will not receive copies of

these forms.

The financial institution should be aware of the following:

Enrollment in Direct Deposit for an income tax refund is not a permanent election by the

taxpayer. Taxpayers must elect Direct Deposit each filing year.

Payments must be returned when they cannot be properly posted by the financial institution.

NOCs cannot be used to correct any information. In the instance where a Direct Deposit IRS tax

refund is unpostable and returned, taxpayers will receive a check in place of a Direct Deposit

payment.

The financial institution’s responsibility is to post the Direct Deposit payment to the account

indicated on the ACH record. If the funds are posted to a valid account that turns out to be

incorrect, the financial institution is not liable to the government for the return of the funds. If the

taxpayer or the taxpayer’s agent gave the incorrect account information, neither Fiscal Service

nor the IRS will assist the taxpayer with recovering the funds. The taxpayer is free to pursue civil

action. If, however, the IRS made the error, it will make the taxpayer whole.

For further information, contact the IRS at 1-800-829-1040; contact the local IRS District Office, or

visit www.irs.gov.

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For IRS tax refund status, the recipient should go to www.irs.gov and select “Get Your Refund

Status.”

Railroad Retirement Board

Financial institutions can enroll their customers and/or recipients can enroll individually by:

Calling the U.S. Treasury Electronic Payment Solution Center at 1-800-333-1795 (English)/1-

800-333-1792 (Spanish), or by visiting the Go Direct w

ebsite, or by completing FS Form 1200.

The call center hours of operation are 8:00 a.m. - 8:00 p.m. ET, Monday through Friday,

excluding federal holidays, or

Calling the Railroad Retirement Board at 1-877-772-5772, or

Sending a written request to enroll in Direct Deposit to the local Railroad Retirement Board

field office. The letter should include the recipient’s name and the following:

A: Account Number,

B: Account type (checking or savings), and

C: RTN of the financial institution.

Social Security Administration

Financial institutions can enroll their customers and/or recipients can enroll individually by calling

the U.S. Treasury Electronic Payment Solution Center at 1-800- 333-1795 (English)/ 1-800-333-

1792 (Spanish), or by visiting the Go Direct w

ebsite, or by completing FS Form 1200. The U.S.

Treasury Electronic Payment Solution Center hours of operation are 8:00 a.m. - 8:00 p.m. ET,

Monday through Friday, excluding federal holidays.

The financial institution may make the call on behalf of the recipient and may provide the

nrollment information; however, SSA will request to speak to the recipient to verify their identity.

Recipients who already are receiving Social Security and SSI benefits by check may also enroll in

Direct Deposit by calling 1-800-SSA-1213 (1-800-772-1213).

SSA’s toll-free telephone service is available from 7:00 a.m. to 7:00 p.m. ET, Monday through Friday.

Due to the high volume of calls, the best times to telephone are in the early morning and during the

latter parts of the week and month.

Office of Personnel Management

Financial institutions can enroll their customers or recipients can enroll individually by calling the

U.S. Treasury Electronic Payment Solution Center at 1-800- 333-1795 (English)/ 1-800-333-1792

(Spanish), by visiting the Go Direct w

ebsite, or by completing FS Form 1200. The U.S. Treasury

Electronic Payment Solution Center hours of operation are 8:00 a.m. - 8:00 p.m. ET, Monday

through Friday, excluding federal holidays.

Additiona

lly, new retirees, annuitants, and survivor annuitants may enroll in Direct Deposit by

calling the toll-free customer service number at 1-888-767-6378. Those in the Washington, DC

area are encouraged to call 202-606-0500. Recipients may also visit www.opm.gov/retire f

instructions on how to change their payment address on-line.

Note: T

he Office of Personnel Management does not allow ENR enrollments for representative payees.

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A Guide to Federal Government ACH Payments

TreasuryDirect (Bureau of the Fiscal Service)

TreasuryDirect is a book-entry securities system in which investors’ accounts of book-entry

Treasury marketable securities are maintained. TreasuryDirect is designed for investors who

purchase Treasury securities and intend to hold them until maturity. Investors can establish a

TreasuryDirect account and hold all their bills, notes, and bonds in one TreasuryDirect account

showing the same ownership for all their securities, or they can establish multiple accounts

reflecting different ownership. Investors will receive a TreasuryDirect Statement of Account when

they open a new account, when changes are made to the account, upon request, or if they have not

received one during the calendar year.

TreasuryDirect principal and interest payments are made electronically by Direct Deposit to a

checking or savings account at a financial institution designated by the investor. When establishing

a TreasuryDirect account, investors will complete Form PDF 5182, New Account Request, and will

include Direct Deposit information. Investors are not required to fill out an FS Form 1199A.

Investors can also establish an account when they complete Form PDF 5381, Treasury Bill, Note &

Bond Tender to purchase a security. Investors use Form PDF 5178, Transaction Request, to change

Direct Deposit information for the TreasuryDirect account. Financial institutions may be asked by

customers to furnish the account number, routing transit number, account type, and/or the

financial institution’s name. The investor should contact a designated TreasuryDirect Servicing

Office or visit the TreasuryDirect

ebsite for forms and other information.

Simplified Enrollment for Series H/HH Savings Bond Interest Payments

(Bureau of the Fiscal Service)

Series H/HH savings bonds are current income securities that pay interest semiannually. Interest

on bonds issued since October 1989 to the present must be paid by Direct Deposit. Unless a

recipient claims that it will cause a hardship, interest on bonds issued prior to October 1989 must

also be paid by Direct Deposit.

To enroll in Direct Deposit or to change their enrollment, recipients may:

Download PDF 5396 from the TreasuryDirect website, complete and mail the form as instructed,

Send a letter to the T

reasury Retail Securities Services, P.O. Box 9150, Minneapolis, MN 55480-9150. The

letter should include the following:

Recipient’s name,

Social Security number,

Account number,

Account type (checking or savings), and

RTN number of the financial institution.

Department of Veterans Affairs Direct Deposit

Veterans Compensation and Pension, and Vocational Rehabilitation and Employment recipients

already receiving benefits may enroll in Direct Deposit by calling 1-800-827-1000. Compensation

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and Pension Beneficiaries may also enroll in Direct Deposit through VA’s eBenefits self-service

portal (www.ebenefits.va.gov/ebenefits).

VA Education recipients already receiving benefits may enroll in Direct Deposit by calling 1-888-

442-4551.

New VA benefits recipients should provide Direct Deposit information at the time of application.

Recipients of VA benefits may also enroll by submitting VA Form 24-0296 (Direct Deposit

Enrollment) and mailing it to the Station of Jurisdiction over the claim. To locate the Station of

Jurisdiction over the claim, visit http://www.benefits.va.gov/benefits/offices.asp.

Veterans Life Insurance recipients may enroll in Direct Deposit by calling 1-800-669-8477. A

Direct Deposit enrollment form and further details are also available by visiting

www.insurance.va.gov or

by writing to:

VAROIC – DD

P.O. Box 7208

Philadelphia, PA 19101-7208

New recipients should provide Direct Deposit information at the time of application.

Note: The Department of Veterans Affairs does not allow ENR enrollments for representative payees.

C: Paper Enrollment Methods

Fiscal Service Direct Deposit Sign-Up Form (FS Form 1200)

The table below identifies those agencies and payment types where the FS Form 1200 is the proper

form to use, in situations when a paper enrollment is needed:

Agency I Payment Type

Recipient

Social Security Administration

and

• Social Security

• Supplemental Security Income

Recipients should complete Fiscal Service FS Form

1200. Send completed form to:

U.S. Treasury Electronic Payment Solution Center

P.O. Box 650527

Dallas, TX 75265-0527

Office of Personnel Management

and

• Annuity

• Retirement Annuity or Survivor Annuity

Railroad Retirement Board

and

• Railroad Retirement Annuity Benefit

• Railroad Retirement

Unemployment/Sickness

Direct Deposit Sign-Up Form (FS Form 1200)

The Direct Deposit Sign-Up Form (FS Form 1200) is available in Chapter 9, Forms.

How to Complete the FS Form 1200

Payee must complete boxes A, B, C, D, E, and F.

Clearly print all information. Provide name(s) and address exactly as they appear on the federal

benefit recipient’s benefit check.

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A Guide to Federal Government ACH Payments

Federal Benefit Recipient Information

Name of person entitled to government benefits (beneficiary).

If there is more than one person named on the check, such as a parent and a minor child, this will be

the name of the minor child.

Representative Payee? Check appropriate box Yes or No.

If yes, enter Name of Representative Payee.

A representative payee is a person or institution that is legally entitled to receive payments on behalf

of a beneficiary who has been deemed incapable of handing their own financial affairs. When a

representative payee is present, both names will appear on the benefit check. Minor children receiving

federal benefits should always have a representative payee. An example of a representative check

payee is Mary Smith for Jane R. Doe.

Provide name(s) and address exactly as they appear on the most recent benefit check.

Social Security Number (SSN) of persons entitled to government benefits (beneficiary). If the

benefits are for a minor child, this will be the child’s SSN. This is never the representative payee’s

SSN.

Daytime Telephone Number of the person to contact if there are questions regarding the

enrollment information provided on the form.

Bank or Credit Union Information

Depositor’s account title must include the name of the person authorized to receive the payment,

(e.g. representative payee if applicable), and an account type (either Checking or Savings).

The 9-digit routing number is a 9-digit number used to denote which financial institution will

receive the deposit.

Account Numbers may be up to 17 characters long. It may contain both numeric 0-9 and alphabetic

characters A to Z.

Type of Payment

(check only one box)

The a

ppropriate box should be checked. Refer to the examples that follow to determine how to

identify the appropriate payment type

Note: You must use a separate form for each payment type or individual that is being enrolled.

For payment types not listed on the FS Form 1200 please refer to the next section, Direct Deposit

Sign-up Form (FS Form 1199A) for instruction on submitting enrollments for other payment types.

Either a claim number or check number is required.

Claim number is an identifying number assigned by the paying agency to the benefit recipient. In many

cases, this is the SSN the benefits are drawn upon followed by a series of letters or letters and numbers.

For some agencies this may be a unique number that does not use the SSN. Claim numbers can

typically be found on award letters issued by the paying agency, correspondence sent by the agency, or

year-end tax statements.

Check number is the 12-digit check number of the recipient’s most recent benefit payment.

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The check number is located in the upper right-hand corner of the check. It is formatted as 4-digits a

space and then 8-digits. (example: 2053 87654321)

Dollar amount of most recent benefit payment is required.

When Us

ing Witnesses

When witnesses are used, they should sign to the right of the mark “X” and print the word

“Witness” above their signature.

Power-of-A

ttorney

A person appointed as a power-of-attorney cannot sign the FS Form 1200 for the payee. The FS

Form 1200 can only be signed by the designated recipient or a representative payee. Questions

regarding this item should be directed to the appropriate federal agency.

Agency I Payment Type

Recipient

Federal Housing Administration

Debentures (Fiscal Service)

The Federal Housing Administration (FHA) issues these

debentures in settlement of defaulted mortgages. For more

information, recipients should contact Housing and Urban

Development at (202) 708- 3423, or write to:

HUD

451 7th Street, SW

Washington, DC 20410

Attn: multi-family or single-family claims

Series H/HH Savings Bond

Interest Payments (Fiscal

Service)

Completes PD F 5396. Recipients should visit the

TreasuryDirect website to download the form or contact:

Bureau of the Fiscal Service

Treasury Retail Securities Services

P.O. Box 9150

Minneapolis, MN 55480-9150

Note: Only send completed FS Form 1199A forms to the federal agency responsible for issuing the

payment. The U.S. Treasury Electronic Payment Solution Center is unable to process the FS Form

1199A form and will be forced to reject them.

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A Guide to Federal Government ACH Payments

SSA – Single Payee Example

Example 1:

Social Security

Administration

Single Payee

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SSA– Representative Payee Example

Example 2:

Social Security

Administration

Representative

Payee

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A Guide to Federal Government ACH Payments

D: Direct Deposit Sign-Up Form (FS Form 1199A)

A Direct Deposit Sign-Up Form (FS Form 1199A) is available in Chapter 9, Forms.

How to Complete the FS Form 1199A

Section 1- To be completed by the payee

The financial institution should verify that all information on this portion of the form is correct.

The financial institution needs to be aware of the following special items:

Name of the Person(s) Entitled to Payment (Box B)

This will be the name of the payee. Refer to the appropriate federal agency examples to determine

what information to enter for recurring benefit payments.

Claim or Payroll ID Number (Box C)

Claim numbers may be found on documents provided by the recipient’s paying agency(s) such as:

award letters, yearly tax statements, or general correspondence.

Claim Number Prefix

A claim number prefix is one or more letters preceding the claim number. These characters indicate

the type of claim for which benefits are being paid. For an explanation of the meaning of a prefix,

contact the federal agency authorizing the payment.

Claim Number

A claim number identifies the recipient’s records at the federal agency that authorizes the payment.

Claim Number Suffix

A claim number suffix is one or more characters (letters or numbers) following a claim number.

These characters indicate the payment type or the payee’s relationship to the individual who the

benefits are being drawn. For a full explanation of a suffix, contact the federal agency authorizing

the payment.

Example:

VA Compensation, Pension and Education. .123-45-6789 00

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Claim/Payroll ID Table

The table below highlights what to enter on the FS Form 1199A for the Claim or Payroll ID Number

(BOX C) for the various payment types.

Payment Type Prefix Claim Number Suffix

Allotments (Savings and

Discretionary)

Leave Blank

SSN or Payroll ID Number

Leave Blank

Black Lung

(Department of Labor)

Leave Blank

SSN

2 characters

following the SSN

Central Intelligence Agency

/Annuity

Leave Blank

SSN

Leave Blank

Federal Employee

Workers’ Compensation

(Department of Labor)

Leave Blank

Case number assigned by

the federal agency

Leave Blank

Federal Salary/Military

Civilian Pay

Leave Blank

SSN or Payroll ID Number

Leave Blank

Longshore and Harbor

Workers’ Compensation

(Department of Labor)

Leave Blank

File number assigned by

the federal agency

Leave Blank

Military Active Duty and

Allotments

Leave Blank

SSN

Leave Blank

Military Retirement and

Annuity

Leave Blank

SSN

Leave Blank

Miner’s Benefit

(Department of Labor)

Leave Blank

SSN

Leave Blank

Savings Bond Agency’s Fee

(Fiscal Service)

Leave Blank

Issuing or paying agency

code assigned to the

financial institution

1- or 2-digit number

following the SSN

Series H/HH Savings Bond

Interest Payments (Fiscal

Service)

Leave Blank

SSN

Leave Blank

Veterans Compensation,

Pension or Education

Leave Blank

8-digit or 9-digit SSN

Always a 2-digit

number

Veterans Life Insurance

1 to 2 letters

4- to 8-digit number

None or a 2-digit

number

Depositor Account Number (Box E)

•

If account numbers are not used, then insert name or other identification in the box.

•

Use only letters A-Z and digits 0-9

•

Up to 17 characters

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A Guide to Federal Government ACH Payments

Type of Payment (Box F)

The appropriate box should be checked

If payment type is not included in the list, then check “Other” and enter the payment type in the

blank.

For military payments, enter the name of the military branch in the blank next to the payment type

checked.

Payee/Joint Payee Certification (Box F)

IF...

THEN...

there is only one payee, who could be a

representative payee*

only the payee signature is required

joint payees complete the form

both must sign the form

the payee’s signature is made be a mark “X”

it must be witnessed by two persons who sign and

date the form.

* See Glossary, Chapter 8

Joint Account Holders’ Certification (Optional)

Federal agencies do not require signatures in this block; however, some financial institutions do.

If the signature is made by a mark “X”, it must be witnessed by two persons who sign and date the

form.

When Using Witnesses

When witnesses are used, they should sign to the right of the mark “X” and print the word

“Witness” above their signature.

Power-of-Attorney

A person appointed as a power-of-attorney by the court cannot sign the FS Form 1199A for the

payee. The FS Form 1199A can only be signed by the designated recipient or a representative

payee. Questions regarding this item should be directed to the appropriate federal agency.

Section 2 - To Be Completed by the Payee or the Financial Institution

The financial institution should verify that the name and address of the federal agency that

authorized the payment is used.

For a listing of addresses, refer to Chapter 7, Contacts.

Note: Do not send enrollment forms to Fiscal Service. Fiscal Service does not process enrollment forms

except for its own employees.

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Section 3 - To Be Completed by the Financial Institution

ENTER the...

•

financial institution’s name and address

•

financial institution’s routing number

•

depositor’s account title

(this title must include the name of the person authorized to receive the payment)

•

financial institution representative’s name, signature, telephone number, and current date.

What Actions Should Take Place Before Filing the FS Form 1199A?

This checklist can be used to verify that all information entered on the enrollment form is complete

and accurate.

❑

Name of person(s) entitled to payment*

❑

Claim or payroll ID table*

❑

Type of depositor account

❑

Account number

❑

Type of payment

❑

Proper signatures

❑

Federal agency name and address*

❑

Name and address of financial institution

❑

RTN and check digit

❑

Depositor account title*

Make sure it includes the name of the person authorized to receive the payment

Note: Make sure the federal agency that authorizes the payment is entered, not the Fiscal Service.

Note: Items marked with an asterisk (*) are where most errors occur.

Important Information for New Direct Deposit Recipients

The financial institution should inform the recipient that they will continue to receive checks or

deposits at their current payment address of record until the Direct Deposit enrollment is

processed.

The financial institution should inform the recipient on how to verify receipt of a Direct Deposit

payment.

The financial institution should inform the recipient to notify the federal agency of any address

changes after Direct Deposit begins, since important information about the payment will be sent

to the individual’s home address.

The financial institution should inform the recipient that it is important to notify both the federal

agency and the financial institution if the recipient or beneficiary dies or becomes legally

incapacitated. (Legal Incapacity is defined as a legal declaration that an individual is unable to

anage his/her affairs properly)

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A Guide to Federal Government ACH Payments

The financial institution should inform the recipient that if they change financial institutions, the

old account should not be closed until Direct Deposit begins into the new account. Make sure the

recipient understands that changing financial institutions requires filling out a new Direct

Deposit enrollment.

How Are Forms Distributed?

Government Agency Copy

Delivered by the employee to the federal agency that authorizes the payment.

Financial Institution Copy

Held by the financial institution

There is no official retention period for the FS Form 1199A. It is recommended that financial institutions

retain this form at least until receipt of the first payment.

Payee(s) Copy

Held by the recipient.

What to do if Direct Deposit does not begin

Follow these steps if Direct Deposit does not begin within the specified time period.

Ask recipient if the enrollment authorization has been revoked.

If yes, no further action is required.

If no, and Direct Deposit is still desired, go to Step 2.

Make a copy of the completed enrollment form from the financial institution’s file copy.

Note: Verify that all the information on the form is correct.

Send a copy of the form and a letter stating that the recipient still wants to receive Direct

Deposit to the federal agency that authorizes the payment.

Remind recipient(s) that checks will continue to be sent to their home address of record until

Direct Deposit begins.

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FS Form 1199A Example

Example 1:

Social Security

Administration

Single Payee

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A Guide to Federal Government ACH Payments

E: Federal Financial EDI (FEDI) Payments/Vendor Payments

Overview

Federal payments made using Financial Electronic Data Interchange (FEDI), the electronic transfer

of funds and payment-related information. The federal government uses FEDI for payments it

makes to businesses, which provide goods and services to federal agencies, and other payment

recipients.

Provisions of the Debt Collection Improvement Act of 1996 require that the majority of federal

payments be made by Electronic Funds Transfer (EFT). These payments include corporate

payments to companies providing goods or services to the federal government. This requirement

impacts every federal government vendor regardless of the size of the company or the goods or

services provided.

The federal government currently uses the two Nacha corporate payment formats for vendor

payments. These formats are:

•

CCD+ for single invoice payments. Contains one optional 80-character addenda record for

transmitting the invoice information.

•

CTX for single or multiple payments. Allows for 9,999 optional addends records, each carrying

80-characters, for the consolidation of multiple invoices in one payment.

Delivery of Remittance (Addenda) Information

The Nacha Operating Rules & Guidelines address the delivery of remittance information contained

in the addenda record. At the recipient’s request, financial institutions must provide the remittance

information by the opening of business on the second banking day following the settlement date of

the entry. This impacts all financial institutions processing ACH payments. The remittance

information may be provided via a paper report, fax, e-mail, electronic transmission, or any other

means negotiated between the recipient and the financial institution.

To perform this key role, it is imperative that the financial institution work closely with its

corporate customers who may have business relationships with the federal government. The

following issues should be discussed with your corporate customers:

•

How to deliver the remittance information to the customer,

•

When to deliver the remittance information to the customer,

•

What specific information to provide to the customer, and

•

What fees, if any, are associated with this service.

Enrollment

The ACH Vendor/Miscellaneous Payment Enrollment Form (SF 3881) is an optional three-part

form that federal agencies may use to enroll their vendors in the FEDI program. Federal agencies

will stock the form and provide the form to vendors to initiate the enrollment process. Federal

agencies will discuss with the vendor the ACH payment format (CCD+ or CTX) to be used to

transmit the payment. They will also work with the vendor to determine the remittance

information (e.g., the invoice number, discount terms) to be included in the addenda record.

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The ACH Vendor/Miscellaneous Payment Enrollment Form (SF 3881) is available in Chapter 9,

Forms.

Enrollment Checklist

Use this checklist to assist the financial institution in enrolling a vendor in the FEDI program.

❑

Verify that the ACH format selected in the Agency Information section on the SF 3881 can be

accepted and processed by the financial institution Agree on HOW and WHEN remittance

information (e.g., invoice number) provided by the federal agency in the addenda record

will be passed to the vendor once it is received by the financial institution.

Not

e: The agreement is reached by analyzing recipient requirements and comparing those

requirements against the level of support the institution can provide.

❑

Provide an example of how the addenda information will appear; or,

Explain what type(s) of information to look for when the addenda information is received.

Not

e: The vendor must be able to understand the information to properly identify the

payment.

❑

Complete the financial institution Information section of the SF 3881.

How to Complete the SF 3881

Agency Information

The Agency Information section of the form is completed by the federal agency.

Payee/Company Information

The Payee/Company Information of the form is completed by the vendor or the financial

institution.

Financial Institution Information

The Financial Institution Information section of the form can be completed by the financial

institution as follows:

•

the name and address of the financial institution,

•

the name and telephone number of the ACH contact,

•

the RTN used to receive ACH payments,

•

the depositor account title,

•

the depositor account number, lockbox number (if applicable),

•

an “X” in the appropriate type of account box, and

•

the signature, title, and telephone number of the financial institution representative.

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A Guide to Federal Government ACH Payments

Form Distribution

The vendor will return the original SF 3881 to the federal agency. The financial institution and

the vendor each keep one copy of the form.

Pointers for Completing the SF 3881 Form

Additional Pointers:

•

The federal agency initiates the SF 3881 form to enroll its vendors to receive payment by

electronic funds transfer (EFT),

•

A vendor must complete a separate enrollment form (SF 3881) for each agency with which it

does business,

•

In the Agency Information Section, the term “AGENCY IDENTIFIER” means the acronym by

which the agency is known. For example, the “AGENCY IDENTIFIER” for the Bureau of the Fiscal

Service is Fiscal Service,

•

In the Payee/Company Information Section, it should be noted that the “TAXPAYER ID NO.” may

be used by the government to collect and report on any delinquent amounts arising out of the

offeror’s relationship with the government (31 U.S.C. 7701(c)(3)),

•

The financial institution and the vendor should each keep a copy of the completed form, and

•

The vendor should return the completed SF 3881 to the agency that initiated the form.

F: Enrollment Guidance

This section of the Green Book is a helpful tool for financial institutions who are trying to understand

the differences between the Nacha Operating Rules and the rules specifically for federal government

payments. Use this guidance in conjunction with the ACH Standard Entry Class Code ENR to enroll

recipients of federal benefit payments for Direct Deposit. It can be used to for the following payments:

Social Security; SSI; Veterans compensation and pension, education MGIB, education/selected reserve,

life insurance and vocational rehabilitation and employment benefits; Civil Service retirement and

survivor annuity; Railroad Retirement annuity and unemployment/sickness.

The ACH Standard Entry Class Code ENR is an enrollment process that allows financial institutions

to use the ACH to enroll beneficiaries for the receipt of future Direct Deposit payments.

Enrollments received and accepted by the paying agency at least 10 business days prior to the

customer’s next scheduled payment date will generally allow the recipient’s next month’s payment

by Direct Deposit.

The ENR Standard Entry Class is a no

n-monetary transaction. It must contain at least one

addendum record and may contain as many as 9,999 addenda records. There are two conditions

that must exist for multiple addenda to be included with one ENR.

All Direct Deposit enrollments must be for the same federal agency benefit program. For

example, enrollments for Veterans benefits cannot be combined with Social Security benefits.

Third-party processors that transmit ENR entries on behalf of financial institutions must make a

discrete batch transmission for each financial institution. Addenda records pertaining to one

financial institution should not be included under the same ENR entry as addenda records

pertaining to another financial institution’s Direct Deposit enrollments.

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An ENR should be used when the recipient is requesting to initiate Direct Deposit for their federal

benefits. This may include but is not limited to a first-time sign-up for Direct Deposit, a change to

an existing Direct Deposit enrollment, or a change to a new financial institution. It is not to be used

in place of the Notification of Change (NOC) process to change the routing or account numbers for

existing records. Financial institutions should remind customers of the importance of reporting

address changes to the benefit program agency.

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A Guide to Federal Government ACH Payments

Approved OMB No. 0960-0564

Required Enrollment Information

The following information is required for the enrollment of a recipient in Direct Deposit using the Standard Entry Class

Code ENR. This information will be transmitted in the entry detail and the addenda record of an ENR transaction. This

page may be duplicated and used for data collection. DO NOT mail this sheet to the agency. All information collected must

refer to the individual who receives the federal benefit payment.

Information obtained from the customer (payment recipient) for inclusion in the entry detail record.

Type of payment:

(Social Security; SSI; Veterans compensation and pension, education MGIB, education/selected

reserve, life insurance and vocational rehabilitation and employment benefits; Civil Service

retirement and survivor annuity; Railroad Retirement annuity and unemployment/sickness)

Information obtained from the customer regarding the payment recipient for inclusion in the Addenda record.

Benefit Recipient’s Social Security Number (SSN) SSN ___ ___ ___ ___ ___ ___ ___ ___ ___

(Do not include hyphens in the addenda record.)

The recipient’s own SSN may or may not be the SSN on which the benefits are drawn. However, the individual recipient’s SSN will always

be included on the addenda record. In cases such as minor children the SSN will always be the Child’s SSN and not that of the adult

account holder named on the financial institution’s records.

Benefit Recipient’s Name

___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___

Last name (up to 15 positions) First Name (up to 7 positions)

Last name: This is the recipient’s last name excluding any suffixes such as Jr., Sr. II, III, etc. If the last name is hyphenated, the fully

hyphenated name up to 17 characters is submitted.

If the last name is comprised of two or more ‘parts’, generally, the first part is sent as the last name (i.e. Mary Jane S Public Doe). The last

name would be submitted as “PUBLIC” and the Doe would be excluded.

First name: This is the recipient’s first name excluding any prefixes such as Dr., Mrs., Miss, etc.

Middle initials are not submitted in this field. Middle initials are dropped. However, fully spelled out middle names are included as part of

the first name (i.e. Mary J Doe would be submitted as Mary, whereas, Mary Jane Doe would be submitted as Mary Jane.

The ‘parsed’ name will always be

submitted exactly as the parsed section appears on the recipient’s benefit check. Therefore, incorrectly

spelled or spaced items will be submitted as they appear on the check and not as they should be legally spelled. Example: Janie Ann Doe

is trying to enroll; however, her check is printed Jane E A Doe. The enrollment would be submitted as “Jane” and “Doe”.

Representative Payee indication NO (0)(Zero) Yes (1)

(See section on Representative Payee, page 1-33.)

Information obtained at the financial institution.

Depository F

inancial Institution routing number RTN Check Digit

Depositor Account Number __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __

(Up to 17 positions)

Transaction Type: Checking (Type Code 22) Savings (Type Code 32)

For questions about submitting

ENRs for a specific benefit payment,

please call the corresponding federal

program agency:

Federal Agency Telephone No.

Social Security Administration (for Social Security benefit

or disability and SSI payments)

(215) 597-1134

Office of Personnel Management (Civil Service annuity) (202) 606-0540

Railroad Retirement Board (RRB annuity) (312) 751-4704

Department of Veterans Affairs (VA benefits) (918) 687-2532

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ENR (Automated Enrollment) Entry Detail Record

Field

10 11 12 13

Data

Element

Name

Record Type

Code

Transaction

Code

Receiving DFI

Identification

Check Digit

DFI Account

Number

Amount

Identification

Number

No. of

Addenda

Records

Receiving

Company

Name/ID

Reserved

Discretionary

Data

Field

Incursion

Requirement

N/A

Contents ‘6’ (numeric)*

(TTTTAAAA)

(numeric)

(blanks)** (all zeros) (blanks) (numeric)

(alphanumeric)

(blanks)** (blanks)** (numeric) (numeric)

Length

10 15

Position 01-01 02-03 04-11

12-12

13-29 30-39 40-54 55-58 59-74 76-76 77-78 79-79 80-94

*For U.S. Government use either 23 or 33 in Field 2 ** leave blank for Alphanumeric fields 5, 7,10,11

Program Payment

Field 3

Receiving DFI Routing and

Transit Number (RTN)

Field 4 Check

Digit (9

digit of

DFI RTN)

Field 9

Receiving Company Name/ID

The following program payments are

eligible for the enrollment service

Use the following DFI Identification

number for the corresponding program

payment

Use the following number for the

corresponding program payment

Use the following codes for the

corresponding program for which the

recipient is enrolling for Direct Deposit

Social Security

65506004

SOCIALbSECURITYb

Supplemental Social Security

65506004

SUPPbSECURITYbbb

Veterans Compensation and Pension

11173699

VAbCOMP/PENSION

Veterans Education MGIB

11173699

VAbEDUCATNbMGIB

Veterans Education/Selected Reserve

11173699

VAbECUDbMGIB/SR

Veterans Life Insurance

11173699

VAbLIFEbINSUR

Veterans Vocational Rehabilitation

and Employment Benefits

11173699

VAbVOCbREHABbEMP

Civil Service Retirement/Annuity 11173699

CIVILbSERVbCSAbb

Civil Service Survivor/Annuity

11173699

CIVILbSERVbCSFbb

Railroad Retirement Annuity

11173699(*)

1 (*)

RAILROADbRETbBDb

Railroad Unemployment/Sickness

11173699(*)

1 (*)

RAILROADbUISIbbb

Dependents Education Assistance

Program

11173699

VAbDEPbEDUbASST

Reserve Education Assistance

Program

11173699

VAbEDUCTNbREAP

Post 911 GI Bill

11173699

VAbEDUbPOSTb9/11

ENR Addenda Record

NOTE: In the codes, the letter “b”

indicates a blank space

Field

Data Element

Name

Record Type

Code

Addenda Type

Code

Payment Related Information

Addenda Sequence

Number

Entry Detail

Sequence Number

Field Inclusion

Requirement

M M R M M

Contents

‘7’

‘05’

‘22*12200004*3*123987654321*777777777*DOE*JOHN*0\’

(numeric)

Length

Position 01-01 02-03

04-83

84-87 88-94

Field 3 - Payment Related Information

The

following uses sample information to illustrate the required information to be included in the Addenda record to effect the ENR for Direct Deposit. The standard for

submission

ENR records is for all alphabetic characters anywhere in the file to be submitted in UPPER CASE. Failure to do so may result in the submission to be returned by the paying

agency. Refer

to the next page for Return Reasons Codes.

Checking

Account

32 = Savings

Account

12200004

123987654321

777777777

DOE

JOHN

0= No Rep. Payee

1= Rep. Payee

Contents

Delimiter

‘05’

Check

Digit

Receiver’s Acct. No. at

the

FinancialInstitution

(up to 17 positions)

Receiver’s Own

Social Security

No.

Receiver’s

Surname

(up to 15)

Receiver’s

First Name

(up to 7)

Representative

Payee Indicator

Terminator

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Representative Payee

A representative payee is a person or institution that is legally entitled to receive payments on

behalf of a beneficiary who has been deemed incapable of handling his/her financial affairs. When a

representative payee is present, both names will appear on the benefit check. Minor children

receiving federal benefits should always have a representative payee. Some examples of

representative check payee styles are:

Mary Smith for Jane R. Doe

Harry D. Doe, Guardian for John Q. Public

Admin Sunnyvale Nursing Home for Mary T. Resident

Questions regarding the styling of representative payee names by a particular agency should be

directed to that specific agency.

In processing an enrollment, it is important for the processing financial institution and enrolling

benefit agency to know that the enrollment originated from the proper authority. In cases where

there is a representative payee, a “1” will be entered as the last data element in Field 3 of the

addenda. In instances where there is no representative payee, a “0” (zero) will be entered into this

position.

The federal government requires that the title of accounts receiving direct deposit payments bear

the name of the payment recipient. Accounts established for representative payee payments reflect

fiduciary interest of the representative payee on behalf of the beneficiary. (Example of an account

title: John Doe for Mary Smith.) This same regulation applies to institutional representative payees.

The Department of Veterans Affairs and the Office of Personnel Management do not allow

ENR enrollments for representative payees.

Note: SSA’s Guide for Representative Payees

a helpful guide which covers account titling

requirements for their representative payees.

Return Reason Codes

A federal agency may return an ENR entry to the financial institution as unprocessable, one of the

following codes will be indicated on the return:

R40 Non-Participant in ENR Program

The federal program agency is not a participant in the ENR automated enrollment program.

R41 Invalid Transaction Code

An incorrect or inappropriate transaction code is used in Field 3 of the Addenda record.

R42 Routing Number/Check Digit Error

The RTN and/or the Check Digit included in Field 3 of the Addenda record is incorrect.

R43 Invalid DFI Account Number

The receiver’s account number at the DFI is either missing, exceeds 17 positions, or contains invalid

characters.

R44 Invalid Individual ID Number

The receiver’s SSN provided in Field 3 of the Addenda record does not match a corresponding SSN

in the benefit agency’s records.

R45 Invalid Individual Name

The name of the receiver provided in Field 3 of the Addenda record either does not match a

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corresponding name in the benefit agency’s records or fails to include at least one alphanumeric

character.

R46 Invalid Representative Payee Indicator

The representative payee indicator code included in Field 3 of the Addenda record has been

omitted or it is not consistent with the benefit agency’s records.

R47 Duplicate Enrollment

The federal agency has received duplicate ENR entries from the same DFI.

For more complete information concerning return reason codes and their interpretation, refer to

the current Nacha Operating Rules & Guidelines.

Note: At least one paying agency requires that any alphabetic data in an ENR record must be

submitted in all UPPER CASE. Therefore, the de facto standard for submission of ENR records is for all

alphabetic characters located anywhere in the file to be submitted in UPPER CASE. Failure to do so

may result in the submission to be returned as an R44/R45 item even though all the information is

correct.

ENR Tips and Information Checklist

General Questions/Information:

Are you currently receiving Direct Deposit?

•

If yes, then an ENR should be used when the recipient is requesting to initiate direct deposit

for their federal benefits. This may include but is not limited to a first-time sign-up for Direct

Deposit, a change to an existing Direct Deposit enrollment, or a change to a new financial

institution.

•

If no, do you have, or have you opened a checking or savings account?

Is the federal benefit check in the customer’s name only? If no, determine whether there is a

representative payee relationship or not.

The benefit recipient or representative payee must be present in order to sign up for direct

deposit. If by phone, the recipient or representative payee must be available to give permission.

Benefit Recipient Information

Benefit recipient - the person who receives the federal benefit payment.

Representative payee - the benefit comes in their name on behalf of someone else.

“In C/O” - the benefit comes to the benefit recipient “in care of” someone else. This does not

mean the person the check is “in care of” is the representative payee. The benefit recipient must

be present to enroll.

If the customer has Power of Attorney for the benefit recipient, he/she must go to the local office

of the paying agency to sign up for direct deposit. If the benefit recipient is not present, the

customer will need to take all legal documents with them to a regional office of the paying

agency. The paying agency does not accept enrollments based solely on a Power of Attorney.

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A Guide to Federal Government ACH Payments

If the customer is the guardian of the benefit recipient and his/her name is on the benefit check

as guardian for the benefit recipient, then the financial institution would treat them as a

representative payee. If his/her name is not on the benefit check, he/she must go to the local

paying agency office with all legal documents.

Information Needed for Direct Deposit Enrollment

The following information is needed to enroll Social Security benefits or disability payments,

Supplemental Security Income payments, Railroad Retirement Board annuities, Veteran’s

Compensation and Pension, and OPM Civil Service annuities for direct deposit through the U.S.

Treasury Electronic Payment Solution Center:

The SSN of the benefit recipient,

The routing and account number of the checking or savings account, and

The benefit recipient’s claim number or check number of the most recent federal benefit

check received and the payment amount.

The federal benefit check numbers are located in the top right-hand corner of the federal benefit

check. The check numbers are 12 digits long (beginning with four digits, then a space, and eight

more digits). All 12 numbers must be entered with no spaces and no dashes.

The claim number must be entered with no spaces or dashes. All numbers and letters must be

entered side by side.

Helpful Numbers and Websites

For Social Security benefit or disability, SSI, VA, RRB annuity, and OPM civil service annuity

enrollments please enroll through either:

Go Direct web enrollment: www.GoDirect.gov

Or call the U.S. Treasury Electronic Payment Solution Center at 1-800-333-1795

(English)/1-800-333-1792 (Spanish), 8:00 a.m. – 8:00 p.m. ET, Monday – Friday, excluding

federal holidays.

Department of Defense (DOD) or Black Lung payments cannot be set up through ENR. Contact

Information:

•

Veterans Affairs benefits 1-800-827-1000

•

DOD www.dfas.mil

•

Black Lung www.dol.gov/owcp/dcmwc

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ederal Agency Addresses and Phone Numbers

Federal agency addresses and phone numbers are listed below, including the locations where

completed FS Form 1199A should be delivered. If a telephone number is not listed and further

assistance is needed, please contact the Fiscal Service.

Note: As with any listing of this type, contact information will frequently change. Should you find out-

of-date information, please let us know by email at: payments@fiscal.treasury.gov.

Air Force

Active Duty/Reserves

Recipient should deliver the completed FS Form 1199A to their payroll office.

Questions: (303) 676-7213

Air National Guard

Recipient should deliver the completed FS Form 1199A to their payroll office.

Retirement/Annuity

DFAS-CL

U.S. Military Retirement and Annuitant Pay

1240 E. Ninth Street

Cleveland, Ohio 44199-2055

Retirement / Annuity: 1 (800) 321-1080

Allotments: (216) 522-5553

Army

Active Duty/Reserves/National Guard

Recipient must mail or deliver the completed FS Form 1199A to their payroll office.

Questions: (317) 510-2800

Retirement/Annuity

DFAS-CL

U.S. Military Retirement and Annuitant Pay

1240 E. Ninth Street

Cleveland, Ohio 44199-205

Retirement / Annuity: 1 (800) 321-1080

Fiscal Service

Federal Housing Administration Debenture Payments

Special Investments Branch

Warehouse and Operations Center, Dock 1

257 Bosley Industrial Park Drive

Parkersburg, WV 26101

Questions: (304) 480-5299

Savings Bond Agent’s Fee Payments

Bureau of the Fiscal Service

Treasury Retail Securities Services

P.O. Box 9150

Minneapolis, MN 55480-9150

(844) 284-2676

Series H/HH Savings Bond Interest Payments

Current Income Bond Branch

Bureau of the Fiscal Service

Warehouse and Operations Center, Dock 1

257 Bosley Industrial Park Drive

Parkersburg, WV 26101

Questions: (304) 480-6112

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Fiscal Service

(continued)

State and Local Government Payments

Bureau of the Fiscal Service

Warehouse and Operations Center, Dock 1

257 Bosley Industrial Park Drive

Parkersburg, WV 26101

Questions: (304) 480-5299

Central

Intelligence

Agency

Send completed forms to...

Central Intelligence Agency

Washington, DC 20505

Attn: Compensation Division Office of Finance

Coast Guard Active Duty/Reserves

Mail or have the recipient deliver the completed FS Form 1199A form to their payroll office.

Retirement

Coast Guard (RPD)

Commanding Officers USGC-PPC

Pay and Personnel Office

444 SE Quincy Street

Topeka, KS 66683

Department

of Labor

Black Lung

Send all completed FS Form 1199As

to ...

Questions?

Contact your district office below.

U.S. Department of Labor

ESA/OWCP/DCMWC

select district office address below

Johnstown, PA

319 Washington Street, 2nd Floor

(800) 347-3754

Johnstown, PA 15901

(814) 533-4323

Greensburg, PA

1225 S. Main Street, Suite 405

Greensburg, PA 15601

(800) 347-3753

(724) 836-7230

Wilkes-Barre, PA

100 N. Wilkes-Barre Blvd.

Room 300 A

(800) 347-3755

(570) 826-6457

Wilkes-Barre, PA 187002

Charleston, WV

Charleston Federal Center, Suite 110

500 Quarrier Street

(800) 347-3749

(304) 347-7100

Charleston, WV 25301

Parkersburg, WV

425 Juliana Street, Suite 3116

(800) 347-3751

Parkersburg, WV 26101

(304) 420-6385

Pikeville, KY

164 Main Street, Suite 508

Pikeville, KY 41501

(800) 366-4599

(606) 432-0116

Mount Sterling, KY 402 Campbell Way

Mount Sterling, KY 40353

(800) 366-4628

(859) 498-9700

Columbus, OH

1160 Dublin Road, Suite 300

Columbus, OH 43215

(800) 347-3771

(614) 469-5227

Denver, CO 1999 Broadway, Suite 690 (800) 366-4612

P.O. Box 46550

Denver, CO 80201-6550

(720) 264-3100

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A Guide to Federal Government ACH Payments

Department

of Labor

(continued)

Unknown District

U.S. Department of Labor

Black Lung Program

P.O. Box 37227

Washington, DC 20013

(800) 638-7072

Department

of Labor

Division of Energy Employees Occupational Illness Compensation

Send all completed FS Form U.S. Department of Labor

1199As to ... Division of Energy Employees

Occupational Illness Compensation

Questions? P.O. Box 8306

Contact (866) 888-3322 London, KY 40742-8306

Department

of Labor

Federal Employee Workers’ Compensation

Send all completed FS Form

1199As to ...

Questions?

Contact (202) 693-0040

U.S. Department of Labor

Division of Federal Employees’ Compensation

P.O. Box 8311

London, KY 40742-8311

Department

of Labor

Longshore and Harbor Workers’ Compensation

Send all completed FS Form

1199As to ...

Questions?

Contact (202) 693-0925

U.S. Department of Labor

ESA/OWCP/DLHWC

Frances Perkins Building

Room C4315

200 Constitution Avenue, NW

Washington, DC 20210

Department

of Veterans

Affairs

Mail the completed FS Form 1199A form to the office that maintains the veteran’s records:

ALABAMA

Alabama VA Regional Office

345 Perry Hill Road

Montgomery, AL 36104

Questions: 1 (800) 827-1000

COLORADO

Denver VA Regional Office

155 Van Gordon Street

Lakewood, CO 80228

ALASKA Anchorage VA Regional Office

2925 DeBarr Road

Anchorage, AK 99508-2989

CONNECTICUT Hartford VA Regional Office

450 Main Street

Hartford, CT 06103

ARIZONA Arizona VA Regional Office

3225 N. Central Avenue

Phoenix, AZ 85012

DELAWARE Wilmington VA Regional Office

1601 Kirkwood Highway

Wilmington, DE 19805

ARKANSAS North Little Rock VA Regional

Office

345 Perry Hill Road

Montgomery, AL 36104

DISTRICT OF

COLUMBIA

Washington DC VA Regional

Office

1120 Vermont Avenue, NW

Washington, DC 20421

CALIFORNIA

Los Angeles VA Regional Office Federal

Building

1100 Wilshire Boulevard Los

Angeles, CA 90024

FLORIDA St. Petersburg VA Regional Office

9500 Bay Pines Boulevard

Bay Pines, FL 33708

San Diego VA Regional Office

8810 Rio San Diego Drive San

Diego, CA 92018

GEORGIA Atlanta VA Regional Office

1700 Clairmont Road

Decatur, GA 30033

Oakland VA Regional Office

Oakland Federal Building 1301

Clay Street, Room 1300N Oakland,

CA 94612

HAWAII Honolulu VA Regional Office

459 Patterson Road, E-Wing

Honolulu, HI 96819-1522

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Department

of Veterans

Affairs

(continued)

IDAHO

Boise VA Regional Office

805 W. Franklin Street

Boise, ID 83702

MONTANA

Fort Harrison Medical &

Regional Center

William Street off Highway

Fort Harrison, MT 59636

ILLINOIS Chicago VA Regional Office

536 S. Clark Street

Chicago, IL 60605-1523

NEBRASKA Lincoln VA Regional Office

5631 S. 48th Street

Lincoln, NE 68516

INDIANA Indianapolis VA Regional Off.

75 NB. Pennsylvania Street

Indianapolis, IN 46204

Questions: (317) 226-7860

NEVADA Reno VA Regional Office

1201 Terminal Way

Reno, NV 89520

IOWA Des Moines VA Regional Office

210 Walnut Street

Des Moines, IA 50309

NEW

HAMPSHIRE

Manchester VA Regional Office

Norris Cotton Federal Building

275 Chestnut Street

Manchester, NH 03101

KANSAS Wichita VA Regional Office

5500 E. Kellogg

Wichita, KS 67211

NEW JERSEY New Jersey VA Regional Office

20 Washington Place

Newark, NJ 07102

KENTUCKY Louisville VA Regional Office

545 S. Third Street

Louisville, KY 40202

NEW MEXICO Albuquerque VA Regional Office

Davis Chavez Federal Building

500 Gold Avenue, SW

Albuquerque, NM 87102

LOUISIANA New Orleans VA Regional Office

701 Loyola Avenue

New Orleans, LA 70113

NEW YORK Buffalo VA Regional Office

Federal Building

111 W. Hurron Street

Buffalo, NY 14202

MAINE Togus Center

One VA Center

Togus, ME 04330

New York VA Regional Office

245 W. Houston Street

New York, NY 10014

MARYLAND Baltimore VA Regional Office

31 Hopkins Plaza

Baltimore, MD 21201

NORTH

CAROLINA

Winston-Salem VA Regional

Office

Federal Building

251 N. Main Street

Winston-Salem, NC 27155

MASSACHUSETTS

Boston VA Regional Office

J.F. Kennedy Federal Building

Government Center

Boston, MA 02114

NORTH DAKOTA Fargo VA Medical/Regional

Office Center

2101 Elm Street

Fargo, ND 58102

Questions: (701) 232-3421

MICHIGAN Detroit VA Regional Office

Patrick V. McNamara Federal

Building

477 Michigan Avenue

Detroit, MI 48226

OHIO Cleveland VA Regional Office

Anthony J. Celebrezze

Federal Building

1240 E. Ninth Street

Cleveland, OH 44119

MINNESOTA

St. Paul VA Regional Office

One Federal Drive, Fort Snelling

St. Paul, MN 55111-4050

OKLAHOMA Muskogee VA Regional Office

Federal Building

125 S. Main Street

Muskogee, OK 74401

MISSISSIPPI Jackson VA Regional Office

1600 E. Woodrow Wilson Ave.

Jackson, MS 39216

OREGON Portland VA Regional Office

Federal Building

1220 SW 3rd Avenue

Portland, OR 97204

Questions: (503) 326-2511

MISSOURI St. Louis VA Regional Office

Federal Building

400 S. 18th Street

St. Louis, MO 63103

PENNSYLVANIA

Philadelphia VA Center

5000 Wissahickon Avenue

Philadelphia, PA 19101

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A Guide to Federal Government ACH Payments

Department

of Veterans

Affairs

(continued)

Federal

Salary

The employee should mail or deliver the completed FS Form 1199A form to their payroll

office.

Marine Corps Active Duty/Reserves

Director

DFAS – Kansas City Center (AF-FA)

Kansas City, MO 64197-0001

Questions: (303) 676-7213

Retirement/Annuity

DFAS – CL

U.S. Military Retirement and Annuitant Pay

1240 E. Ninth Street

Cleveland, OH 44199-2055

Questions: 1 (800) 321-1080

Navy Active Duty/Reserves

Mail or have the recipient deliver the

completed FS Form 1199A form to their

payroll office.

Questions: 1 (800) 255-0974

Retirement/Annuity

DFAS – CL

U.S. Military Retirement and Annuitant Pay

1240 E. Ninth Street

Cleveland, OH 44199-2055

Questions: 1 (800) 321-1080

PENNSYLVANIA

Pittsburgh VA Regional Office

1000 Liberty Avenue

Pittsburgh, PA 15222

WEST VIRGINIA

Huntington VA Regional Office

640 Fourth Avenue

Huntington, WV 25701

RHODE ISLAND Providence VA Regional Office

380 Westminster Mall

Westminster, RI 02903

WISCONSIN Milwaukee VA Regional Office

5000 W. National Avenue

Milwaukee, WI 53295

SOUTH

CAROLINA

Columbia VA Regional Office

1801 Assembly Street

Columbia, SC 29201

WYOMING Cheyenne VA Medical/Regional

Center

2360 E. Pershing Boulevard

Cheyenne, WY 82001

SOUTH

DAKOTA

Sioux Falls VA Center

P.O. Box 5046

2501 W. 22nd Street

Sioux Falls, SD 57117

GUAM

Guam Vet Center

222 Chanlan Santo Papast

Reflection Center, Suite 102

Agana, GU 96910

Questions: (705) 475-7161

TENNESSEE Nashville VA Regional Office

110 9th Avenue, South

Nashville, TN 37203

PHILIPPINES

Manila Regional Office

1131 Roxas Boulevard, Ermita

0930 Manila, PL 96440

Questions: (011) (632) 528-

2500

TEXAS Houston VA Regional Office

6900 Almeda Road

Houston, TX 77030

PUERTO RICO San Juan VA Center

150 Carlos Chardon Avenue

Hato Rey, PR 00918

Waco VA Regional Office

One Veterans Plaza

701 Clay Avenue

Waco, TX 76799

VIRGINIA see District of Columbia

UTAH Salt Lake City VA Regional Office

550 Foothill Drive

Salt Lake City, UT 84158

VIRGIN ISLANDS St. Croix Vet Center

Box 12, R.R. 02,

Village Mail, #113Affairs

Saint Croix, VI 00850

Questions: 1 (809) 778-5553

VERMONT White River Junction VA Medical

& Regional Office Center

215 N. Main Street

White River Junction, VT 05009

Saint Thomas Vet Center

Buccaneer Mall

Saint Thomas, VI 00801

Questions: 1 (809) 774-6674

WASHINGTON Seattle VA Regional Office

Federal Building

915 Second Avenue

Seattle, WA 98174

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1-37

Office of

Personnel

Management

(Civil Service

Annuity)

Send completed forms to . . .

Questions: (202) 606-0500

Office of Personnel Management

Change-of-address Section-ROC

Retirement and Insurance Group

P.O. Box 440

Boyers, PA 16017-0440

Railroad

Retirement

Board

Send completed forms to …

the local Railroad Retirement Board

as listed in the telephone directory;

or,

Questions:

(312) 751-4500 or (312) 751-4707

If you cannot obtain the address of the local office,

mail to:

U.S. Railroad Retirement Board

P.O. Box 10792

844 N. Rush Street

Chicago, IL 60611

Attn: Direct Deposit Coordinator ORSP

Social

Security

Administration

Send completed forms to . . .

• the local Social Security District Office, or

• the address Social Security has specified to your financial institution.

G: Termination of Enrollment

The ACH Enrollment authorization may be revoked by the recipient or, under certain

circumstances, by the financial institution. If a recipient revokes his/her ACH enrollment, they must

provide a new ACH enrollment in order ACH payments.

Termination by the Recipient

The recipient may revoke the enrollment authorization at any time by notifying the federal agency,

or by authorizing a new enrollment with another financial institution.

Social Security or Supplemental Security Income recipients should call 1-800-SSA-1213 or write

their local Social Security District Office to revoke the enrollment authorization.

Railroad Retirement Board annuitants may either write or call the local Railroad Retirement Board

Field Office to revoke the enrollment authorization.

Series H/HH savings bond owners who are required to receive interest payments by Direct Deposit

may revoke the enrollment authorization. However, this will result in suspension of payments.

Payments will resume when the recipient authorizes a new enrollment.

OPM Annuitants may either write the Office of Personnel Management, call 1-888-767-6738 to

revoke the enrollment authorization, or visit www.opm.gov/retire t

o terminate and make changes

on-line.

The e

nrollment authorization will be terminated due to the recipient’s or beneficiary’s death or

legal incapacity.

Courtesy Notice

The recipient or beneficiary is not required to inform the financial institution if he/she revokes or

transfers their enrollment authorization. As a courtesy, the recipient should be encouraged to

inform the financial institution of any changes.

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A Guide to Federal Government ACH Payments

Termination by the Financial Institution

Financial institutions may close an account to which benefit payments are currently being sent

thereby revoking the enrollment authorization by providing a 30-day written notice to the recipient

prior to closing the account. In cases involving fraud, accounts may be closed immediately. The

financial institution cannot revoke the enrollment authorization by notifying the federal agency and

not the recipient.

The 30-day written notice should remind the recipient to make other arrangements for the

handling of their payments. The financial institution must credit to the recipient’s account any

payments received during the 30-day notice period. The financial institution must also immediately

return to the federal government all payments received after the 30-day notice period. A financial

institution that closes an account without properly terminating the enrollment must make the

funds available to the recipient until proper notice is provided.

Recipient Notice to the Federal Agency

The recipient or beneficiary must immediately advise the federal agency if the enrollment

authorization is revoked by the financial institution.

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A Guide to Federal Government ACH Payments

ACH Payment

Processing

Overview

In this chapter…

A: Financial Organization Master File (FOMF) ..................................................................................... 2-3

Purpose .......................................................................................................................................................................... 2-3

Financial Institution Responsibility .................................................................................................................... 2-3

Changes to Financial Institution Name and Mailing Address ......................................................................2-3

Changes to Routing Transit Numbers .....................................................................................................................2-3

Updating ACH Customer Directory (ACD): ...........................................................................................................2-3

New Depository Institutions ........................................................................................................................................ 2-4

B: Federal Government ACH Processing ................................................................................................ 2-4

General Flow ................................................................................................................................................................ 2-4

Prenotification ............................................................................................................................................................. 2-4

Payment Formats ....................................................................................................................................................... 2-4

Account Requirements ............................................................................................................................................. 2-4

Misdirected Payments .............................................................................................................................................. 2-5

Notice of Misdirected Payment ............................................................................................................................. 2-6

Availability of Funds ................................................................................................................................................. 2-6

C: Federal ACH Payment Schedule ...................................

........................................................................ 2-7

D: Identifying Treasury Disbursed Payments ...................................................................................... 2-7

Consumer Payments ................................................................................................................................................. 2-7

Consumer Payment Formats .......................................................................................................................................2-7

Standard Entry Class Code ...........................................................................................................................................2-7

Social Security Administration Use of Prearranged Payment and Deposit (PPD+) ...........................2-7

Payment Types ..................................................................................................................................................................2-8

Identifying the Paying Agency/Payment Type ............................................................................................... 2-8

Identifying the Payee ................................................................................................................................................ 2-8

This chapter provides information about how federal government ACH payments are processed. It

also contains valuable information on payment dates and information to assist in identifying

Treasury disbursed payments.

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A Guide to Federal Government ACH Payments

2. ACH Payment Processing

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Company entry description for IRS Advance Child Tax Credit Payments ............................................ 2-9

E: Identifying Non-Treasury Disbursed Payments ........................................................................... 2-09

Identifying the Paying Agency/Payment Type ............................................................................................. 2-09

Identifying the Payee .............................................................................................................................................. 2-09

F: Garnishment of Federal Beneﬁts .............................................................................................. 2-10

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A Guide to Federal Government ACH Payments

A: Financial Organization Master File (FOMF)

The Financial Organization Master File (FOMF) is a Department of the Treasury master list of

financial institutions receiving federal government ACH payments. It contains RTNs, a single

financial institution name and mailing address for each RTN.

The FOMF is derived from the Federal Reserve Bank’s (FRB) ACH Customer Directory (ACD), which

contains the RTNs and related information of all valid ACH participants. The FOMF is updated on a

monthly basis using information from the most current ACD file.

Purpose

The Fiscal Service relies on the FOMF data to validate RTNs used to originate payments and to send

financial institutions the following:

•

reclamation notices,

•

trace inquiries, and

•

marketing materials.

Financial Institution Responsibility

Changes to Financial Institution Name and Mailing Address

Financial institutions are responsible for keeping their name and mailing address for each RTN up

to date with the FRB. Any changes to RTN data should be provided to the FRB as soon as possible so

that the ACD and FOMF contain current data. If the financial institution fails to notify the FRB, it

may be held liable for information (e.g., reclamation notices) mailed to obsolete addresses.

Changes to Routing Transit Numbers

If a financial institution changes RTNs (e.g., due to merger), it must notify the FRB ACH department

as soon as possible to have the old RTN rescinded in ACD and have all future ACH transactions

reflect the financial institution’s active ACH routing number. Updates to the ACD will update the

FOMF. Additionally, financial institutions should send a Notification of Change (NOC) to each

originating federal agency from which it receives payments impacted by the routing number

changes.

The following steps should be taken in updating the ACD routing number data:

•

Confirm that no activity is being received on the obsolete RTN prior to deletion.

•

Allow at least three months after the update to the ACD before deleting an obsolete RTN.

•

Delete an obsolete RTN only after all activity has been transferred to the surviving RTN.

Updating ACH Customer Directory (ACD):

If an institution wants to update the information that appears on the file, they should submit a new

“Part 1 - Agreement to Terms and General Participant Information” of the FedACH Participation

Agreement to the FRB.

If you have any questions in reference to updating data, you should contact the FedACH and Check

Services Customer Support team.

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2-4

New Depository Institutions

Because the FOMF is updated monthly, a new depository institution may not receive government

ACH transactions for up to 30 days after being entered into the FRB ACD.

B: Federal Government ACH Processing

General Flow

Federal government ACH payments are initiated by the authorizing federal agency to a government

disbursing office. These include the Department of Defense disbursing offices, and Fiscal Service.

The FRB is the federal government’s ACH Operator.

Prenotification

The federal government prenotification process is handled in accordance with Nacha Operating

Rules & Guidelines. Social Security Administration originates prenotifications for Social Security

benefits for Direct Deposit enrollments and changes.

Payment Formats

Federal government ACH payments are originated in the Prearranged Payment and Deposit (PPD)

with or without addenda, Corporate Credit or Debit (CCD) with or without addenda, Corporate

Trade Exchange (CTX) formats, or International ACH Transaction (IAT). Refer to the Nacha

Operating Rules & Guidelines for details on payment record formats.

Account Requirements

All federal government benefit payment enrollments must be established for a deposit account at

the financial institution that is in the name of the recipient or beneficiary with the following

exceptions:

•

Where an authorized payment agent (representative payee) has been selected, a representative

payee is an individual or organization appointed by SSA to receive Social Security and/or SSI

benefits for someone who cannot manage or direct someone else to manage his or her money.

The main responsibilities of a payee are to use the benefits to pay for the current and

foreseeable needs of the beneficiary and properly save any benefits not needed to meet current

needs. A payee must also keep records of expenses.

•

Where the payment is to be deposited into an investment account established through a

securities broker or dealer registered with the Securities and Exchange Commission, or an

investment account established through an investment company registered under the

Investment Company Act of 1940 or its transfer agent, the payment may be deposited into an

account designated by the broker or dealer, investment company, or transfer agent.

•

Where a federal payment is disbursed to a resident of a nursing facility, as defined in 42 U.S.C.

1396r, the payment may be deposited into a resident trust or patient fund account established

by the nursing facility so long as it meets the requirements under federal law relating to the

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A Guide to Federal Government ACH Payments

protection of such funds. For more information on these requirements, please visit the ACH

regulations website.

•

Where a federal payment is disbursed to a member of a religious order who has taken a vow of

poverty, the payment may be deposited to an account established by the religious order. The

phrase ‘member of a religious order who has taken a vow of poverty’ is defined as it would be by

the Internal Revenue Service for federal tax purposes.

•

Where a federal payment is to be deposited to an account accessed by the recipient through a

prepaid card that meets the following requirements:

(A)

The account is held at an insured financial institution,

(B)

The account is set up to meet the requirements for pass-through deposit or share insurance

such that the funds accessible through the card are insured for the benefit of the recipient

by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance

Fund in accordance with applicable law (12 CFR part 330 or 12 CFR part 745),

(C)

The account is not attached to a line of credit or loan agreement under which repayment

from the account is triggered upon delivery of the federal payments, and

(D)

The issuer of the card complies with all the requirements and provides the holder of the

card with all the consumer protections, that apply to a payroll card account under the

rules implementing the Electronic Fund Transfer Act, as amended.

No person or entity may issue a prepaid card that receives federal payments in violation of these

requirements, and no financial institution may maintain an account for or on behalf of an issuer

of a prepaid card that receives federal payments if the issuer violates these requirements. If

Fiscal Service becomes aware that a prepaid card product that accepts federal government

payments does not meet these requirements, it will research the card product and report any

violations of these requirements to the institution’s primarily regulator.

•

Where Treasury has granted a waiver.

Misdirected Payments

. The RDFI decides to manually post the misdirected payment to the correct account and originates

an NOC entry with the correct account and/or RTN information. Please note that the financial

institution does this at its own risk and may be liable to the issuing agency if the financial

institution post the misdirect payment to an incorrect account and there is a resulting loss by the

agency. Please see Chapter 6, Notification of Change, for more information. If the financial

institution cannot credit the misdirected payment to the correct account, the financial institution

may return the payment to the agency with an appropriate reason code. Please see Chapter 4,

Returns, for more information.

It is important to note that a financial institution is not required to manually verify that the name on

the ACH entry matches the name on the account at the time the payment is posted. An RDFI is only

liable for posting the payment to the account in the ACH credit entry.

2. ACH Payment Processing

Green Book

A Guide to Federal Government ACH Payments

2-6

Notice of Misdirected Payment

In accordance with 31 CFR part 210, an RDFI that becomes aware that an agency has misdirected

an ACH credit entry to the wrong account must promptly notify the agency. A financial institution

may become aware of a misdirected payment through the following ways:

•

The account holder notifies the financial institution of the misdirected payment,

•

A non-receipt claim being investigated by Fiscal Service,

•

A financial institution that manually posts their ACH credits notices that a payment is being

credited to the wrong account. (It is important to note that an institution is not required to

match names when posting a federal government ACH entry; however, if it routinely posts

entries manually and notices that an entry is being directed to the wrong account, it is required

to notify the agency.), and

•

A call from the federal agency that disbursed the payment.

If a financial institution becomes aware of a misdirected payment, it can notify the agency in the

following ways and meet the requirements of 31 CFR part 210:

•

The RDFI decides to manually post the misdirected payment to the correct account and

originates an NOC entry with the correct account and/or RTN information. Please note that the

financial institution does this at its own risk and may be liable to the issuing agency if the

financial institution is incorrect and there is a resulting loss by the agency,

•

Return the original ACH credit entry to the agency with the appropriate return reason code,

•

Contact the agency by phone or by letter. Please see Chapter 7, Contacts, and

•

Any other means deemed acceptable by the agency that disbursed the ACH credit payment.

Availability of Funds

In accordance with Nacha Operating Rules & Guidelines, any non-Same Day ACH credit payment

must be made available for withdrawal by the Receiver no later than 9:00 a.m., Receiving

Depository Financial Institution (RDFI) local time, on the settlement date (provided the entries are

made available to the RDFI by its ACH operator no later than 5:00 p.m. on the banking day prior to

the settlement date).

On J

anuary 03, 2022, the Fiscal Service accepted the Nacha rule changes that allow for Same Day

ACH transactions, and effective March 22, 2022, Fiscal Service amended 31 CFR Part 210, to

address changes made by Nacha through the 2021 Nacha Operating Rules & Guidelines book,

including supplements thereto.

Same Day ACH rules have established three windows for all financial institutions to submit Same

Day ACH payments: 10:30 a.m., 2:30 p.m., and 4:45 p.m. ET. Fiscal Service only uses the second and

third windows for same day ACH transactions. Funds from Same Day ACH credits processed in the

second processing window will be made available by 5:00 p.m. RDFI’s local time, while funds from

Same Day ACH credits processed in the third window are settled at 6:00 p.m. ET. The amount of a

third window Same Day ACH credit must be available to the receiver’s account no later than the end

of the RDFI’s processing day (RDFI’s local time). Such funds are not required to be

available for

withdrawal on the settlement date. There is a $1,000,000 per payment limit for Same Day ACH that

applies to all Fiscal Service payment customers.

2. ACH Payment Processing

Green Book

2-7

A Guide to Federal Government ACH Payments

Non-Treasury Disbursed Organizations, who do not submit their payments through the Fiscal

Service, are currently prohibited from authorizing any Same Day ACH credits for payments. Only

agencies that disburse through the Fiscal Service will be permitted to request Same Day ACH

payments. Fiscal Service began to process Same Day ACH credits (for payments) in April 2018. The

Fiscal Service began to accept Same Day ACH credits and debits for tax collections beginning in

September 2017.

C: Federal ACH Payment Schedule

Fiscal Service publishes the federal ACH Payment Schedule annually on the Fiscal Service website.

This listing provides the actual payment date for recurring federal payments. The payment date

equals the ACH settlement date. RDFIs are liable for provisional payments made in advance of

settlement date and may use their own discretion posting provisional payments to accounts

D: Identifying Treasury Disbursed Payments

Consumer Payments

Consumer Payment Formats

Consumer payments are designated for deposit into an individual’s account. They are identified by

the Standard Entry Class (SEC) code to be used for consumer entries which is found in the

Company/Batch Header Record (Field 6) of the payment file data. (Note: If the correct format is not

used, the payment should be returned.)

Standard Entry Class Code

The Prearranged Payment and Deposit (PPD) is the SEC code used for identifying federal agency

consumer payments. The payment entries may be accompanied by a PPD addenda record (PPD+)

which further identifies the reason for the payment.

Social Security Administration Use of Prearranged Payment and Deposit (PPD+)

For Direct Deposit of Representative Fee Payments and Direct Deposit of Representative

Payees/Organizational Representative Payees

The Social Security Administration (SSA) issues fee payments either by check or direct deposit to

individuals who have represented Social Security claimants and/or act as a representative payee.

SSA has begun to use the PPD+ format for ACH payments to representatives that include adequate

payment-related information that can be passed onto them to identify and credit the payment to

the correct person/account. The information is included in 9 + rtn of the Addenda Record (Payment

Related Information) and is based on ANSI X12 (American National Standards Institute coding for

Electronic Data Interchange) syntax.

Fiscal Service encourages RDFIs to pass through to their account holders, as quickly as possible,

pertinent information from both the Entry Detail Record and the Addenda Record when a payment

is received. The representative needs this addenda information to reconcile their client account

records. The method of providing this information to the account holder is at the discretion of the

financial institution and its customer.

2. ACH Payment Processing

Green Book

A Guide to Federal Government ACH Payments

2-8

ayment Types

Types of payments that utilize the PPD standard entry class category include the following:

•

benefit,

•

annuity,

•

travel,

•

salary,

•

allotment,

•

IRS tax refund,

•

IRS (Advance Child Tax Credit), and

•

public debt payments.

Identifying the Paying Agency/Payment Type

Field 7 “Company Entry Description” (Company/Batch Header Record)

The first 2 positions are the Garnishment Exempt Indicator. The ~ symbol indicates a blank space. See section F for

additional details on the Garnishment Exempt Indicator.

Paying Agency/Payment Type Field Contents

Fiscal Service/TreasuryDirect

Marketable Securities / Savings Bonds

Government Series Security Payments

‘~~MISC PAY’

‘~~SLG_PMT ‘

Department of Treasury

Internal Revenue Service – Tax Refund

Internal Revenue Service (Economic Impact Payment

Internal Revenue Service (Advance Child Tax Credit)

‘

~~TAX REF ‘

‘~~TAXEIP#_’ (# = 1, 2, or 3)

‘~~CHILDCTC’

Central Intelligence Agency

CIA Annuity CIARDSANNU

Department of Veterans Affairs

Compensation and Pension

Insurance

Education

‘XXVA_BENEF’

‘XXVA INSUR’

‘XXVA _ _ _ _ _ _’ (Various values like ‘EDUC’, ‘CH35’, ‘1607’, etc.)

Federal Pay

Federal Salary

Federal Travel Payments

Federal Annuity

Federal Vendor/Misc

‘~~FED SAL ‘

‘~~FED TVL

‘~~FED ANNU’

‘~~MISC PAY’

Office of Personnel Management

Civil Service Retirement (Annuity) ‘XXCIV SERV’

Railroad Retirement Board

Railroad Retirement/Annuity

Unemployment/Sickness

‘XXRR RET ‘

‘XXRR UISI ‘

Social Security Administration

Social Security

Supplemental Security Income

‘XXSOC SEC ‘

’XXSUPP SEC’

Department of Defense

Marine Corps Salary

Current Use

‘~~

MCTF PAY’

Department of Defense

ir Force Military Pay

Army Military Pay

Future Use: N

ew descriptions to be implemented with the future

transition of payments from Dept of Defense to Treasury.

‘~~AIRF PAY’

‘~~ARMY PAY’

‘~~NAVY PAY’

2. ACH Payment Processing

Green Book

2-9

A Guide to Federal Government ACH Payments

Navy Military Pay

DoD Retired Pay

DoD Civilian Pay

DoD Vendor / Misc Pay

DoD Travel

‘~~RET PAY ‘

‘~~CIV PAY ‘

‘~~DOD MISC’

‘~~DOD TVL ‘

E: Identifying Non-Treasury Disbursed Payments

Identifying the Paying Agency/Payment Type

Field 7 “Company Entry Description” (Company/Batch Header Record)

Paying Agency/Payment Type Field Contents

Air Force

Active Duty

Active Duty Allotments

Annuity

Retirement

Retirement Pay Allotments

AF_PAY_J_ _

AF_MP_ALLT

AF_RET_PAY

AF_RP_ALLT

Army

Active Duty

Annuity

Reserve

Retirement

ARMYACTIVE

ARMY_BEN_ _

ARMY_RC_ _ _

ARMY_RET_ _

Navy

Active Duty

Active Duty Allotments

Annuity

Retirement

Retirement Pay Allotments

Reserve Drill Pay

NAVY_ACT_ _

NAVY_ALT_ _

NAVY_ANN_ _

NAVY_RET_ _

NAVY_RPA_ _

NAVY_RDP_ _

Identifying the Payee

Field 7 Contents (Entry Detail Record)

IF the payment type is …

THEN the Individual ID

Number field contents

identify the payee by…

IF the payment type is … THEN Field 7 contents

identify the payee by…

Air Force

Active Duty

Active Duty Allotment

Annuity

Individual's SSN

Reserve

Retirement

Retirement Pay Allotment

Individual's SSN

Army

Active Duty

Annuity

Individual's SSN

Reserve

Retirement

Individual's SSN

Marine Corps

Active Duty

Active Duty Allotment

Annuity

Letters "KR"

Individual's SSN

Reserve

Retirement

Retirement Pay Allotment

Individual's SSN

Navy

Active Duty

Active Duty Allotment

Annuity

Individual's SSN

Reserve

Retirement

Retirement Pay Allotment

Individual's SSN

2. ACH Payment Processing

Green Book

A Guide to Federal Government ACH Payments

2-10

F: Garnishment of Federal Beneﬁts

Garnishment is the execution, levy, attachment, or other legal process involving a written

instruction issued by a court, a state or state agency, a municipality or municipal corporation or a

state child support enforcement agency. This includes a lien arising by operation of law for overdue

child support or an order to freeze the assets in an account, to impact a garnishment against a

debtor.

Financial institutions are subject to the requirements of title 31 of the Code of Federal Regulations,

part 212 (31 CFR part 212) which requires financial institutions to take certain actions upon

receipt of garnishment orders.

Fiscal Service has published the document “Guidelines for Garnishments of Accounts Containing

Federal Benefit Payments” that financial institutions can reference when a garnishment order is

received for an account into which federal benefit payments have been directly deposited.

Financial institutions that receive a garnishment order are required to determine the sum of

rotected federal benefits deposited to the account during a two month period, and ensure that the

account holder has access to an amount equal to that sum or to the current balance of the account,

whichever is lower.

Title 31 CFR part 212 applies to the following federal programs:

•

Social Security and Supplemental Security Income benefits administered by the Social Security

Administration;

•

Veterans benefits administered by the Department of Veterans Affairs;

•

Federal Railroad retirement unemployment and sickness benefits administered by the

Railroad Retirement Board; and

•

Civil Service Retirement System and Federal Employee Retirement System benefits

administered by the Office of Personnel Management.

To assist financial institutions, Fiscal Service is encoding an “XX” in Positions 54-55 of the

“Company Entry Description” field of the Batch Header Record for ACH/PPD and ACH/CCD

payments that are designated as federal benefit payments that are exempt from garnishment. This

encoding allows financial institutions to determine whether a federal direct deposit payment is an

exempt federal benefit payment. Financial institutions may rely on the presence of an “XX”

encoded in Positions 54-55 of the “Company Entry Description” Field to identify a federal

benefit payment exempt from garnishment.

EXAMPLES:

Company Entry Description (Positions 54-63)

Benefit Payment Type

Prior to the Garnishment Rule With the Garnishment Rule

Social Security SOC SEC XXSOC SEC

Supplemental Security Income SUPP SEC XXSUPP SEC

Railroad Retirement

RR RET

XXRR RET

Because it is possible that a commercial payment could also have an “XX” encoded in Positions 54-

55, financial institutions must verify that the payment is a federal payment. This can be confirmed

2. ACH Payment Processing

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2-11

A Guide to Federal Government ACH Payments

either by searching for a “2” in the “Originator Status Code” Field in the Batch Header Record

(Position 79) OR by reviewing the description of the payment in the ACH Batch Header Record

Company Entry Description to ensure that the payment is one of the exempt federal benefit types

shown in the Fiscal Service publication “Guidelines for Garnishments of Accounts Containing

Federal Benefit Payments”.

3-1

A Guide to Federal Government ACH Payments

Non-Receipt Claims

Overview

In this chapter…

A: General Information on ACH Non-Receipt Claims ......................................................................... 3-2

RDFI of a Direct Deposit Federal Payment ....................................................................................................... 3-2

B: Initiating a Formal Claim of ACH Non-Receipt ................................................................................ 3-3

C: Non-Receipt Process ................................................................................................................................ 3-3

Legal References Supporting Treasury Non-Receipt Investigation ........................................................ 3-4

ACH Non-Receipt Claims Process ......................................................................................................................... 3-4

Payment Trace Requests: Manual Non-Receipt Claims Process .............................................................. 3-5

This chapter describes the role(s) of the financial institution in resolving a claim of non-receipt for a

federal payment.

3-2

A Guide to Federal Government ACH Payments

3. Non-Receipt Claims

Green Book

A: General Information on ACH Non-Receipt Claims

It is imperative that Receiving Depository Financial Institutions (RDFI) review procedures for

posting payments and funds availability to ensure compliance with 31 CFR part 210 and Nacha

Operating Rules (See Chapter 2, Availability of Funds, for specific information about federal ACH

funds availability). Any RDFI can be held liable for ACH payments not processed timely or correctly.

If the federal government sustains a loss as a result of the financial institution’s improper handling

of an entry, the financial institution is liable to the federal government for the loss, up to the amount

of the entry.

It is extremely important that all RDFI personnel, especially branch, teller, and customer service

representatives are properly trained to locate payments, specifically those which are “memo

posted” or post prior to the settlement date. Close to 75 percent of “missing” federal payments are

at the RDFI when the recipient calls to inquire. Thorough research will limit misinformation and

subsequent unnecessary non-receipt claims and simultaneously increase confidence in Direct

Deposit as a payment method.

If the RDFI determines that it did not receive a payment, the benefit recipient may contact the

issuing agency to open a claim of non-receipt. The issuing agency in turn notifies the Fiscal Service.

Fiscal Service will initiate contact with the RDFI in an attempt to locate or resolve a claim of non-

receipt.

Note: Some federal payments may be reduced, in whole or in part, to pay a delinquent debt owed by

the payee to a federal or state agency. For more information about the Treasury Offset Program, visit

https://www.fiscal.treasury.gov/top/.

RDFI of a Direct Deposit Federal Payment

Role in response to customer inquiry on the status

The RDFI should make every reasonable attempt to locate a payment prior to redirecting a

recipient to the authorizing federal agency. RDFI employees should have an understanding of the

various posting techniques utilized to assist customers who are concerned with the status of their

direct deposit. RDFIs should be aware of the following situations that often result in unnecessary

non-receipt claims:

Determine if the payment was posted late,

•

RDFI should be able to explain why there was a delay.

Determine if the payment was memo posted,

•

RDFI customer service personnel may sometimes be unaware of, or do not check for

“memo posted” items. “Memo-posting” is a temporary credit applied to a payee’s

account during the day. Memo-posted transactions are finalized in the RDFIs end of day

processing.

Determine if the payment was posted early,

•

Due to volume and processing considerations the RDFI may receive ACH payment files a

few days prior to their settlement dates. “Early posting” occurs when an RDFI posts a

payment to a recipient’s account prior to the settlement date.

Determine if a third-party processor is used and confirm funds availability through

the processor,

3. Non-Receipt Claims

Green Book

3-3

A Guide to Federal Government ACH Payments

•

RDFI should confirm if the funds were made available to the recipient.

Determine if the payment was an exception item,

•

The RDFI should be aware that a payment may have been posted incorrectly, manually

posted, or returned due to incorrect account information.

In some instances, the RDFI may never receive a payment for the recipient.

Determine if the recipient has:

•

Changed financial institutions,

•

Revoked the Direct Deposit authorization,

•

Verified entitlement with the authorizing federal agency, and

•

A delinquent debt owed to a federal or state agency, which may have been submitted to

Fiscal Service for collection.

Note: The RDFI should process a NOC entry if they are responsible for the change information. The

RDFI may request the benefit recipient to update their information with the issuing agency if the

customer has a closed account, new account, etc.

Title 31 CFR 210.8(b)(2) specifically addresses the liability placed on RDFIs for the correct

preparation of ENRs and NOCs.

B: Initiating a Formal Claim of ACH Non-Receipt

If all efforts to locate the payment(s) have failed, the RDFI should instruct the recipient to file a non-

receipt claim directly with the authorizing federal agency. The table below lists federal agencies by

types of payments.

Type of Payment

Action

Federal Salary and allotments (including

military and civilian pay)

Military Active Duty allotments

Advise recipient to contact their payroll office.

Note: Coast Guard Active Duty and Allotments (785) 339-3506.

Military Retirement/Annuity/Allotments Advise recipient to contact the appropriate military branch.

Refer to Contacts, Chapter 7.

Travel Payments

TreasuryDirect

Advise recipient to contact their finance/ travel office

Refer to Contacts, Chapter 7

Vendor, Miscellaneous, and All Other

Payment Types

Advise recipient to contact the federal agency that authorized

the payment. Refer to Contacts, Chapter 7.

C: No

n-Receipt Process

Upon notification from the recipient that a payment has not been received, the authorizing federal

agency will notify the Fiscal Service. Fiscal Service will research the claim by either the ACH Non-

Receipt claim process, or by using the traditional FS Form 150.1, Trace Request Form, to determine

the status of the claim.

3. Non-Receipt Claims

Green Book

3-4

A Guide to Federal Government ACH Payments

Legal References Supporting Treasury Non-Receipt Investigation

12 USC 3413(k)(2): Disclosure Necessary for Proper Administration of Programs of

Certain Government Authorities

12 USC 3413 (k)(2) of the Right to Financial Privacy Act provides: “Nothing in this title shall apply

to the disclosure by the financial institution of information contained in the financial records of any

customer to any government authority that certifies, disburses, or collects payments, where the

disclosure of such information is necessary and such information is used solely for the purpose of

... the investigation or recovery of an improper federal payment...”

Title 31 CFR part 210.3(c): Federal Government Participation in the Automated Clearing

House (ACH)

Specifically, Title 31 CFR part 210.3(c) provides: “Any person or entity that originates or receives a

government entry agrees to be bound by this part and to comply with all instructions and

procedures issued by the Service under this part including the Treasury Financial Manual and the

Green Book.” This regulatory provision also points out that the Green Book is available on the Fiscal

Service website.

Green Book, Chapter 4 Returns

The Green Book chapter on Returns states that: Unpostable payments must be returned so that

they are received by the government disbursing office ODFI no later than the opening of business

on the second banking day following the settlement date of the original entry. Under no

circumstances should a financial institution hold payments indefinitely in a suspense account, or by

any other means, nor should payments otherwise be held if any of the conditions apply on when to

return a payment. Holding payments may constitute a breach of the financial institution’s warranty

for the handling of federal government ACH payments under regulations codified in 31 CFR part

210.

ACH Non-Receipt Claims Process

Fiscal Service has partnered with several federal agencies to research Direct Deposit ACH non-

receipt claims. Fiscal Service representatives will contact the RDFI directly by telephone, email, or

facsimile to resolve claims of non-receipt. Fiscal Service has access to all the payment information

and will seek assistance in identifying the following checklist of items:

Verification of payment status (posted, funds held, returned, etc.),

Question: Did the item in question post to the account number provided on the date of

payment?

Verification that the intended payee received the payment,

Question: Does the payee’s name appear on the account?

Situations where the recipient’s name is not on the account (If it is determined that an item

has posted to an improper account Fiscal Service will make a request for the return of those

funds subject to availability),

Question: C

an you provide the date the funds were returned, and the reason code used? Do you

require an R06 (Returned per ODFI Request) letter from Treasury to return these funds?

Situations where the recipient did not receive the payment on settlement date, and

Question: Were the funds posted early or late, can the RDFI provide a reasonable explanation as

to why?

3. Non-Receipt Claims

Green Book

3-5

A Guide to Federal Government ACH Payments

Payments posted manually, due to account closure or invalid account information.

RDFIs should originate a Notification of Change (NOC) entry if corrections are needed for future

payments. See Chapter 6, Notification of Change, and the Nacha Operating Rules & Guidelines for

detailed instructions.

Note: Fiscal Service may also request the name, mailing address and telephone number of the

improper recipient under the authority of 12 USC 3413(k) (Right to Financial Privacy Act of 1978).

When the reason for non-receipt has been determined, Fiscal Service will mail the recipient a letter

informing him/her of the resolution.

Keep in mind that RDFIs can be held liable for ACH payments not processed timely or correctly. If

the federal government sustains a loss because of a financial institution’s improper handling of an

entry, the financial institution is liable to the federal government for the loss, up to the amount of

the entry.

Payment Trace Requests: Manual Non-Receipt Claims Process

A sample FS Form 150.1, Payment Trace Request Form, is available in Chapter 9, Forms.

The FS Form 150.1 is used to trace all payments other than benefit payments. Upon receipt of a FS

Form 150.1, the RDFI should follow these steps:

Verify the status of the payment in question, by making all attempts to locate the payment at

the RDFI,

Credit the payment immediately if the payment was not previously credited or returned,

Return the payment by ACH if it cannot be credited for any reason,

Complete the FINANCIAL INSTITUTION ACTION section within three (3) business days of

receipt of the form by the RDFI,

Return the DISBURSING OFFICE COPY to the government disbursing office identified on the

form, and

The RDFI must respond to Fiscal Service within three business days by completing and returning

he FS Form 150.1 to Fiscal Service as indicated on the form. Fiscal Service will verify acceptance of

the return.

•

If no reply is received, Fiscal Service will contact the financial institution and will pursue the

case until it is resolved. If Fiscal Service still receives no reply, a letter will be sent to the

President of the RDFI.

•

The authorizing federal agency may also contact the RDFI to resolve payment problems.

Keep in mind that the RDFIs can be held liable for ACH payments not processed timely or correctly.

If the federal government sustains a loss as a result of a financial institution’s improper handling of

an entry, the financial institution is liable to the federal government for the loss, up to the amount of

the entry.

4-1

A Guide to Federal Government ACH Payments

Returns

Overview

This chapter describes the return process for federal payments.

In this chapter…

A: General Information on Returns ......................................................................................................... 4-2

Return Reason Codes (ACH Credits) ................................................................................................................... 4-2

Death Notification Entry .......................................................................................................................................... 4-3

Effect of Returning a Payment ............................................................................................................................... 4-4

Notice of Misdirected Payment ............................................................................................................................. 4-4

Manual Posting of Payments .................................................................................................................................. 4-4

No Holding of Payments in Suspense Accounts ............................................................................................. 4-4

Recipients Without Current Accounts ................................................................................................................ 4-4

B: Returning Payments Through the ACH.............................................................................................. 4-5

ACH Correct Preparation of Returns .................................................................................................................. 4-5

Claim Number Structure Table ............................................................................................................................. 4-5

C: Returning Partial Payments in Response to Notices of Reclamation ...................................... 4-6

D: Dishonored Returns ................................................................................................................................ 4-7

Most Common Errors ................................................................................................................................................ 4-7

E: Payments Returned in Error; Obtaining a Refund due from the Government

..................... 4-8

at to do if a Payment was Returned in Error ............................................................................................ 4-8

Additional Information on TreasuryDirect Payments made in Error/Duplicate .............................. 4-9

SSA Program Service Centers ................................................................................................................................ 4-9

What to do if there are Duplicate Returns ...................................................................................................... 4-10

Restoring Funds ........................................................................................................................................................ 4-10

4-2

A Guide to Federal Government ACH Payments

4. Returns

Green Book

A: General Information on Returns

All ACH Payments must be returned in accordance with Nacha Operating Rules & Guidelines. An

ACH payment must be returned if:

•

An enrollment has been terminated and a new enrollment for the same recipient has not been

completed,

•

The financial institution receives a benefit payment after it has actual or constructive

knowledge of the death or legal incapacity of a recipient, including a representative payee,

•

The financial institution is honoring a Death Notification Entry (DNE) or other notification of

death from a federal agency,

•

The account has been closed by the recipient, or the financial institution has closed an account

to which benefit payments are being delivered after giving the recipient 30 days written notice

(except where fraud is suspected; then the account may be closed immediately),

•

There is no current account for the recipient, and

•

For any other reason the financial institution is unable to credit the payment to the account.

Return Reason Codes (ACH Credits)

The government can accept all Nacha-approved return reason codes. Following is a list of some of

the more common return reason codes that RDFIs use to return government credits:

• R02 Account Closed

• R03 No Account/Unable to Locate Account

• R04 Invalid Account Number Structure

• R06 Returned per ODFI’s Request

• R14 Representative Payee Deceased or Unable to Continue in that Capacity

• R15

Beneficiary or Account Hold (Other Than a Representative Payee) Deceased

• R

Account Frozen/Entry Returned Per OFAC Instruction

• R17

File Record Edit Criteria (Specify)/Entry with Invalid Account Number Initiated Under

Questionable Circumstances/Return of Improperly-Initiated Reversal

• R20

Non-Transaction Account

If you must return a federal payment for any reason not listed, use reason code “R20” on the return.

RDFIs that learn of the death of a recipient of benefit payments from a source other than the agency

are encouraged to use reason code R15 (Beneficiary or Account Holder Deceased) or R14

(Representative Payee Deceased) to notify government agencies of the death. By using these return

4. Returns

Green Book

4-3

A Guide to Federal Government ACH Payments

codes, the RDFI will satisfy both the requirement to return post-death payments that it receives

after actual or constructive knowledge of the death, and the requirement to notify the agency of the

death of the recipient.

RDFIs are able (but not required) to use Return Reason Code R17 – (File Record Edit Criteria /

Entry with Invalid Account Number Initiated Under Questionable Circumstances / Return of

Improperly-Initiated Reversal) to indicate that the RDFI believes an ACH Credit containing invalid

account information was initiated under questionable circumstances. This use of R17 is optional at

the discretion of the RDFI. Those RDFIs that elect to use R17 for this purpose are required to use the

description “QUESTIONABLE” in the Addenda Information field of the return. This description in an

R17 return differentiates returns that appear to be suspicious to the RDFI from those due to routine

account number issues.

Note: The existing Nacha-coordinated opt-in programs with federal and state tax agencies that allow

RDFIs to return questionable tax refund ACH credits using R17 will continue unchanged. These

programs will not be impacted by this additional optional use of the R17 Return Reason Code. Fiscal

Service and the IRS participate with Nacha in this program for IRS tax refund credit entries returned

as questionable. The Return Reason Code R17 will also continue to be used in its standard form for

returns involving required field errors. For more information-

https://www.nacha.org/content/irs-

refund-return-opt-program

Death Notification Entry

The Death Notification Entry (DNE) allows federal agencies to notify financial institutions of a

benefit recipient’s death. Only an agency of the federal government may originate a DNE. Currently,

SSA, OPM, and RRB originate DNEs. Other federal benefit agencies may originate DNEs at a future

date. The DNE is a zero-dollar entry with an addenda record. The addenda record contains the date

of death, the deceased individual’s SSN, and the amount of the next scheduled benefit payment.

Upon receipt of a DNE, the financial institution is encouraged to “flag” the deceased recipient’s

account to prevent accepting further post-death federal benefit payments. See below form common

errors with flagging.

Example: F

lagging Joint Accounts

A married couple own a joint account. One spouse dies. A DNE is sent from the federal benefit

agency to the RDFI. The RDFI receives the DNE and the account is “flagged”. The surviving spouse

becomes eligible for surviving spousal’s benefits, and a benefit payment is sent to the joint account.

Since the account is “flagged,” the RDFI improperly returns the surviving spousal’s benefits with a

reason code of R15 (beneficiary or account holder deceased). The agency receives the returned

benefit and processes an improper death termination for the surviving spouse. The agency also

sends an improper DNE for the surviving spouse to the RDFI.

Solution: To protect joint account holders, the account should be “flagged” with another piece of

identifying information (i.e., deceased name, SSN). This allows the joint account holder to continue

receiving their own payments. If this is not possible, a new account with a new Direct Deposit

authorization should be established.

Example: Flagging Erroneous Report of Death

A recipient is receiving benefits. An erroneous report of death is received by the federal benefit

agency for the recipient. A DNE is sent from the agency to the RDFI and the account is “flagged”. The

recipient discovers the problem and presents proof to the agency and the RDFI of the error in the

fact of death. The RDFI fails to remove the flagging from the account. The agency resends the

benefit payment to the recipient’s account, which is still “flagged”. The RDFI returns benefits with a

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4-4

reason code for death of R15 (beneficiary or account holder deceased) to the agency based on the

erroneous flagging. The agency receives the returned benefit and re-processes the death

termination. The agency sends an improper DNE once again to the RDFI.

Solution: Always remember to remove any “flagging” on an account when a report of death proves to

be erroneous.

Note: If a financial institution needs to correct errors in their use of return reason codes when

returning funds, they should contact the agency receiving the return. Please see Chapter 7, Contacts,

for major paying agency contact information.

Effect of Returning a Payment

Any returned payment automatically revokes the Direct Deposit authorization and may stop further

payments from the federal agency to a recipient’s account. The recipient should contact the

authorizing federal agency to resume payments.

Notice of Misdirected Payment

In accordance with 31 CFR part 210, if an RDFI becomes aware that an agency has originated an

ACH credit entry to an account that is not owned by the payee whose name appears in the ACH

payment information, the RDFI shall promptly notify the agency. An RDFI that originates a NOC

entry with the correct account and/or RTN information or returns the original ACH credit entry to

the agency with the appropriate return reason code, shall be deemed to have satisfied this

requirement.

Manual Posting of Payments

Financial institutions may conduct a manual search of their unpostable ACH payments to determine

if the payment can be posted.

RDFIs may be held liable for ACH payments not processed timely or correctly. If the federal

government sustains a loss as a result of a financial institution’s improper handling of an entry, the

financial institution is liable to the federal government for the loss, up to the amount of the entry.

No Holding of Payments in Suspense Accounts

Under no circumstances should a financial institution hold unpostable incoming payments

indefinitely in a suspense account, or by any other means, nor should payments otherwise be held if

any of the conditions apply on when to return a payment. Holding payments may constitute a

breach of the financial institution’s warranty for the handling of federal government ACH payments

under regulations codified in 31 CFR part 210.

Recipients Without Current Accounts

Under normal circumstances a financial institution should not open a new account in response to an

unpostable payment. If the recipient closes the account and opens a new account, the recipient must

establish a new Direct Deposit authorization. If a recipient’s account has been closed, the financial

institution must return any subsequent payments made by the federal agency to the account. However,

when an account is closed due to fraud and a new account is opened at the same financial institution to

replace the account with fraudulent activity, then only an NOC is required."

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A Guide to Federal Government ACH Payments

B: Returning Payments Through the ACH

ACH Correct Preparation of Returns

It is essential that RDFI employees preparing returns have access to data in the original item

originated by the government disbursing office. If a processor is used, RDFIs should be sure that the

return entry is properly formatted to include the data from the original entry.

“When a Return Entry is prepared, the original Company/Batch Header Record, the original Entry

Detail Record, and the Company/Batch Control Record are copied for return to the Originator”

(Nacha Operating Rules & Guidelines). If accurate data is not provided in the return entry, the

government disbursing office will dishonor the return.

The following four fields must be identical to the original payment data:

Trace number (provided in the entry detail record),

Effective entry date,

Amount of payment, and

Individual ID number (i.e., claim number. See the Claim Number Structure Table below).

Note: Financial institutions using data processors could receive reformatted data which may contain

errors or omissions. The original payment information must be used in its exact format to avoid

rejections.

Financial institutions should carefully track returned benefit payments to ensure that the returns

are not dishonored. This could create an additional liability for the financial institution in a

reclamation case.

Claim Number Structure Table

The following table represents correct claim number structures used in formatting returns.

AGENCY

CLAIM NUMBER STRUCTURE

EXAMPLE

Social Security Administration 999999999XX

999999999X

999999999

123456789C1

123456789A

123456789

Office of Personnel Management Xb9999999bXb

Xb9999999b9b

F_1234567_W_

A_1234567_0_

Department of Veterans Affairs 999999999b99b99

99999999b99b99

162306890_10_01

12345678_00_06

Railroad Retirement Board

Retirement/Annuity

Unemployment/Sickness

XXX999999999b9b

Xbb999999bbbb9b

XXbZZZZZ9bbbb9b

bbb999999999

WCA123456789_7_

A 123456 1_

WD_000006 8_

123456789

Department of Labor 999999999XXbXXb 123456789LW_MB_

Key: X = alphanumeric, 9 = numeric, b = blank, Z = zero filled, _ = space

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C: Returning Partial Payments in Response to Notices of

Reclamation

Payments should be returned by ACH except in limited circumstances. If a partial payment is being

returned in response to a Notice of Reclamation (FS Form 133), a financial institution can elect to

either have their account debited for the partial payment, or, alternatively, returned by check. In no

other case should ACH returns be made by check, except as described in the Note below. Please

refer to Chapter 5, Reclamations, for more information including how to request an ACH debit

authorization.

Note: If the original payment data is not available, a financial institution may be forced to return an

ACH payment by check. The financial institution will receive credit. However, in these cases, credit will

be delayed due to manual processing. Note that under Nacha Operating Rules & Guidelines, records of

all entries including return and adjustment entries must be retained for six years from the date the

entry was transmitted.

If the financial institution is returning a payment that is beyond 6 years, the financial institution

may do so by mailing the check and related correspondence to the following address:

.S. Department of the Treasury

Bureau of the Fiscal Service

National Payment Integrity and Resolution Center

P.O. Box 51318

Philadelphia, PA 19115

The table below shows how to return a partial payment by check in response to a Notice of

Reclamation.

STEP

ACTION

1 Send the government disbursing office a check payable as indicated on item C-3b on the Notice of

Reclamation.

DO NOT SEND THE CHECK TO THE ORIGINATING FEDERAL AGENCY.

2 Attach a cover letter listing the following information for each payment subject to return:

• effective entry date,

• amount of payment,

• individual identification number (i.e., SSN/claim number), and

• reason for return.

If the above payment information is not available, provide the following information:

• recipient’s name,

• recipient’s SSN or other applicable federal government identification number,

• date of death, and

• name of originating federal agency.

The cover letter must always include:

• recipient’s name, and

• name of originating federal agency.

Provide the name, address, and telephone number of the financial institution contact.

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A Guide to Federal Government ACH Payments

D: Dishonored Returns

ACH return entries will be dishonored by the government disbursing office if discrepancies exist

between the data on the return item and the data on the original payment.

Most Common Errors

For Treasury-disbursed payments, four fields are read on return items. If any one of these four

fields are not identical to the original payment data, Treasury will dishonor the return.

The following four fields must be identical to the original payment data:

Original Entry Trace Number (provide in the addenda record),

Effective entry date (i.e., payment date),

Amount of payment, and

Individual ID number (i.e., claim number).

The discretionary data field on the return item should be left blank ONLY if it was blank in the

original ACH entry. If the field contains data in the original entry, the exact same data must be

included in the return entry.

Note that a VA claim number may be an 8-digit number with a blank in the leading space of the

individual ID field. If the space is ignored, and the number is left-justified, the return will be

dishonored. (See the claim number structure table on page 4-5.)

If a financial institution receives a dishonored return, the financial institution should correct the

information in the return and originate a contested return in accordance with Nacha Operating

Rules & Guidelines.

Dishonored Return Codes:

•

R61 - Misrouted Return

•

R67 - Duplicate Return

•

R68 - Untimely Return

•

R69 - Field Errors (the error(s) will be identified in the Addenda Information field on the

dishonored file positions 59-79. The two-digit code, separated by an asterisk, will be written

for each error found.)

01 - Re

turn Contains Incorrect DFI Account Number

02 - Return Contains Incorrect Original Entry Trace Number

03 - Return Contains Incorrect Dollar Amount

04 - Return Contains Incorrect Individual Identification Number/Identification Number

05 - Return Contains Incorrect Transaction Code

06 - Return Contains Incorrect Company Identification Number

07 - Return Contains an Invalid Effective Entry Date

•

R70 - Permissible Return Entry Not Accepted

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E: Payments Returned in Error; Obtaining a Refund due from

the Government

If a financial institution needs to correct errors in their use of reason codes when returning funds,

they should contact the agency receiving the return. Please see Chapter 7, Contacts, for major

paying agency contact information. Any payment returned for “death” will cancel both the Direct

Deposit authorization and the recipient’s entitlement to that payment.

If you are due a refund from the government under ACH, regardless of whether you have returned

too much, returned the wrong item(s), or the government debited you too much (e.g., on an ACH

reclamation), follow these instructions to claim your refund.

Please note that the RDFI is not required to advance credit to the recipient for a payment returned

in error. However, if the RDFI did advance credit, it should state this in any communication with the

federal agency.

What to do if a Payment was Returned in Error

ACTION STEPS

1. Contact the federal agency that authorized the payment. Do not contact the government

disbursing office.

Payment Type

Contact

OPM Annuity

(formerly Civil Service Retirement)

“CIVIL SERV”

U.S. Office of Personnel Management

P.O. Box 45

Boyers, PA 16017

(724) 794-2005

Social Security

“SOC SEC”

SSA Program Service Center (Refer to SSA Program Service

Centers section in this chapter for appropriate addresses).

Supplemental Social Security Income

“SUPP SEC”

Social Security Administration

Certification and Accounting Branch, Analyst

Room 3-A-2 East High Rise Building

6401 Security Boulevard

Baltimore, MD 21235

(410) 966-5353

Fiscal Service

“TreasuryDirect”

Bureau of the Fiscal Service

Treasury Retail Securities Services

P.O. Box 9150

Minneapolis, MN 55480-9150

(844) 284-2676

Note: Include with your letter a debit advice, Return Item- Credit Form, and any other documents that

confirm the duplicate or erroneous return.

VA Compensation or Pension

“VA BENEFIT”

None.

Note: Payments returned to the VA in error cannot be recalled. They will be reissued to the recipient’s

home address.

Railroad Retirement Board Railroad Retirement Board Direct Deposit Coordinator

(312) 751-4704

For all other payment types The federal agency’s local office listed in the telephone

directory.

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A Guide to Federal Government ACH Payments

Promptly notify the recipient of the error.

If you erroneously reported death on the ACH return, advise the recipient to contact the

riginating federal agency immediately to reactivate payments.

Advise the recipient that the returned payment may be sent via check to their home. Th

ecipient should contact the federal agency to ensure their current home address is on recor

and that payments are handled properly.

Be aware that your incorrect notification of death to a federal authorizing agency (OPM,

SSA, RRB) may result in a DNE being sent by the agency.

If a DNE is received, be sure to remove any electronic indicator or flag that would automatically

return future payments to the account.

Initiate a new enrollment to reactivate ACH payments. Please see Chapter 1, Enrollments,

for more information.

Note: A copy of the financial institution’s original enrollment form may be sent to the federal agency if all the

information is still correct.

Additional Information on TreasuryDirect Payments made in

Error/Duplicate

If a payment is made in error, or if a duplicate payment is made, the financial institution will receive

either a written or electronic notice from TreasuryDirect that will include the following:

•

deposit account name,

•

deposit account number,

•

date of the improper payment, and

•

amount of the improper payment.

SSA Program Service Centers

The Social Security Administration provides a listing of their regional Program Service Centers,

which includes each service centers telephone number at this link:

www.ssa.gov/representation/pct_contact_info_54older.htm.

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What to do if there are Duplicate Returns

The table below shows what to do if there are duplicate returns.

IF . . .

THEN . . .

AND . . .

two identical ACH returns are

made for the same payment

the government disbursing office will

automatically return the duplicate return

no further action is required

by the financial institution.

an ACH return was sent, and the

same payment was returned by

check

the financial institution should promptly write a

letter of explanation to the federal agency that

authorized the payment and include copies of

the following:

• financial institution’s claim for a refund

• debit advice

• other documentation that confirms the

duplicate return/debit action

the financial institution awaits

further notification from the

authorizing federal agency.

Note: Only the federal agency

that authorized the payment

can make a refund.

the financial institution has been

debited (TFS, Notice of Debit) for

a payment that was already

returned

Restoring Funds

The authorizing federal agency will restore the funds after researching and verifying the request.

The restoration will be made by the method agreed upon by the federal agency, the financial

institution, and the recipient, with ACH being the preferred method.

5. Reclamations

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A Guide to Federal Government ACH Payments

Reclamations

Overview

In this chapter…

Section 1: Background ......................................................................................................................................

Payments Subject to Reclamation ........................................................................................................................

Section 2: Liability of a Receiving Depository Financial Institution (RDFI) ...................................

A: Full

Liability

.............................................................................................................................................................

B: Limiting Liability ...................................................................................................................................................

C: Calculating the Limited Liability Amount ....................................................................................................

Table 2-A: Calculating the Limited Liability Amount .....................................................................................

Section 3: Reclamation Procedures ..............................................................................................................

A: Notification of Death ............................................................................................................................................

Title 31 CFR part 210 ....................................................................................................................................................

What to do upon Notification of Death with Payments Already Posted and Subsequent Payments

.................................................................................................................................................................................................

No Holding of Payments ...............................................................................................................................................

Repayment by Survivors ...............................................................................................................................................

Handling Survivor Requests not to Return Post-death Benefit Payments .............................................

B: Notice of Reclamation .........................................................................................................................................

Table 3-A: Notice of Reclamation (FS Form 133) .............................................................................................

Sample of Notice of Reclamation (FS Form 133) ..............................................................................................

Table 3-B: How to Respond to the Notice of Reclamation .............................................................................

ACH Debit A

uthorizations ............................................................................................................................................

Incomplete or Inadequate RDFI Replies ...............................................................................................................

Section 1 defines reclamation and provides some background information on the subject.

Section 2 covers an RDFI’s liability in the reclamation process. Topics include full and limited

liability, calculating the limited liability amount, and exceptions to the liability rule.

Section 3 gives RDFI’s guidance on processing reclamations using the Automated Reclamation

Processing System (ARPS) utilizing Pay.gov and provides an updated contact list for individuals

needing additional information assistance with reclamations.

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Time Limits for Federal Reclamations. ............................................................................................................... 5-

Follow-up to the Notice of Reclamation (Fiscal Service-

2942)

................................................................. 5-

Federal Agency Collection from Withdrawers ................................................................................................ 5-

Debit of the RDFI’s

Account

..................................................................................................................................... 5-

Table 3-C: Debit of the RDFI’s Account ............................................................................................................... 5-

How to Identify Debits using the Reclamation Ticket Number ................................................................ 5-

Table 3-D: Transaction Codes for ACH Reclamations .................................................................................. 5-

C: Errors in Death ...................................................................................................................................... 5-

If the Person did not Die ........................................................................................................................................... 5-

Types of Evidence ....................................................................................................................................................... 5-

Table 3-E: Accepting the Proof ...............................................................................................................................5-

Table 3-F: Rejecting the Proof ............................................................................................................................... 5-

Restarting

Payments

.................................................................................................................................................. 5-

If the Date of Death is Wrong .................................................................................................................................. 5-

Learning of an Error After Completing a

Reclamation

.............................................................................. 5-

Table 3-G: Worksheet for Adjusting the Outstanding Total if the Date of Death is Wrong ....... 5-

D: Subsequent Notice of Reclamation ..................................................................................................... 5-

What to do .............................................................................................................................................................. 5-

Previous debit ....................................................................................................................................................... 5-

E: Contacts ...................................................................................................................................................... 5-

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Section 1: Background

Reclamation is a procedure used by the federal government (government) to recover benefit

payments made through the ACH to the account of a recipient who died or became legally

incapacitated or a beneficiary who died before the date of the payment(s).

The government’s right to reclaim funds is established in the United States Code, including at 31

U.S.C. § 3720 and implemented in Title 31 of the Code of Federal Regulations part 210, subpart B,

and section 210.10(a). The government’s reclamation process is found in 31 CFR 210.9 through

210.14. The reclamation provisions of 31 CFR part 210 completely preempt the reclamation

provisions of the Nacha Operating Rules & Guidelines with respect to federal benefit payments.

Effective January 1, 2023

• All reclamation responses must be submitted through the Automated Reclamation Processing

System (ARPS) located in Treasury’s Pay.gov web portal (except for responses by DFAS and any

Treasury-approved exceptions). Note: We will no longer accept remittances related to

reclamation responses.

• Exceptions: All exceptions must be approved on a case-by-case basis by Bureau of the Fiscal

Service and requests may be sent to: pfc-reclamations@fiscal.treasury.gov

By accepting a recurring benefit payment from the government, an RDFI agrees to the provisions of

31 CFR part 210, including the reclamation and debiting of the RDFI’s FRB master account for any

reclamation for which it is liable. The RDFI also agrees to the liability provisions of the federal

reclamation regulations found in 31 CFR part 210, subpart B, and affirms this agreement each time

the RDFI accepts and credits an ACH payment on behalf of a depositor.

Note: In this chapter, “death” always means the death or legal incapacity of a recipient or the death of

a beneficiary. And “government” always means the federal government.

Payments Subject to Reclamation

Only government benefit payments are subject to reclamation.

Payments Subject to Reclamations Payments not Subject to Reclamations

Social Security benefit or disability (SSA)

Supplemental Security Income (SSI)

Black Lung disability (Dept. of Labor)

Military and Coast Guard retirement, including

allotments from military retired pay (DoD)

ivil Service annuity (OPM)

Veterans Administration benefits (VA)

Railroad Retirement Board (RRB) annuity

US Coast Guard

Worker's compensation (FECA)

DC Pensions

Compensation Act (Dept. of Labor)

Any other federal retirement or annuity

Federal salary, allotments, and travel payments

U.S. savings bond payments

Vendor/miscellaneous payments

IRS tax refunds

Discretionary allotments

Public debt payments (TreasuryDirect)

Other types of federal ACH payments

Note:. For post-death payments not affected by

reclamation, adjustments must be made between

the authorizing federal agency and the

recipient’s survivors or estate.

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Section 2: Liability of a Receiving Depository Financial

Institution (RDFI)

A: Full Liability

An RDFI is liable for ALL benefit payments received after the death or legal incapacity of a recipient

or death of a beneficiary, unless the RDFI meets the qualifications for limiting its liability (see B.

Limiting Liability below).

If the RDFI fails to meet the qualifications for limiting its liability, the RDFI will be held liable for all

post-death benefit payments received after the death or legal incapacity of a recipient or death of a

beneficiary. The RDFI will be debited for the full amount of the reclamation. This debit action will

be final, with the exception of a valid protest.

Note: If no post-death benefit payment has been received at the time the RDFI learns of the death, the

RDFI may also contact the paying agency (see Contacts, Chapter 7).

B: Limiting Liability

An RDFI may qualify to limit its liability if it:

•

certifies it did not have actual or constructive knowledge* of the recipient’s death or incapacity

at the time of the deposit of any post-death benefit payments,

•

returns all post-death benefit payments it receives after it learns of the recipient’s death (but

not post-death benefit payments it received before it learned of the death), and

•

adequately responds to the Fiscal Service Form FS Form 133, “Notice of Reclamation,” within

60 calendar days from the date of the notice by using the Automated Reclamation Processing

System (ARPS).

Exception: Only reclamation responses by DFAS and any Treasury-approved exceptions

(evaluated on a case-by-case basis) are not required to respond using ARPS. Note that these

responses must meet all other requirements for limiting liability, including receipt by Fiscal

Service within 60 days.

*Not

e: In this chapter “constructive knowledge” of the death means that the RDFI would have learne

f the death if it had followed commercially reasonable business practices. “Actual or constructive

knowledge” is defined in Treasury’s regulations at 31 CFR § 210.2(b).

Exception to Liability Rule

An RDFI will not be held liable for post-death benefit payments sent to a recipient acting as a

representative payee or fiduciary on behalf of a beneficiary in the event that the beneficiary dies. In

this situation, the paying agency will not initiate a reclamation but will instead pursue recovery of

any post-death benefit payments from the representative payee.

Requirement to Return Post-Death Benefit Payments

It is important to understand that once a payment has been credited to payee’s account, it becomes

the property of the account holder. In the case of post-death payments, the payments become

property of the joint account holder or decedent’s estate. The government cannot legally authorize

or direct an RDFI to take funds already credited to an account and return them to the government.

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This is the reason that RDFIs are directed only to return post-death payments that they receive

after they become aware of the payee’s death, using an R14 or R15 return reason code. Such returns

are legally permissible because the payments have not been credited to the recipient’s account and

therefore have not become property of the joint account holder or decedent’s estate.

It is up to each RDFI to consider its policy as an institution as to what steps it may wish to take, if

any, upon learning of the death of a recipient in order to preserve funds in the account pending

receipt of a Notice of Reclamation. Some RDFIs, upon becoming aware of an account holder’s death,

perform an account analysis before receiving an NOR and voluntarily return post-death payments

that were credited to the account before the RDFI learned of the death. RDFIs are cautioned that

Fiscal Service does not authorize or direct RDFIs to debit or otherwise affect the account of a

recipient, including to return post-death payments already credited to an account. However, Fiscal

Service will accept pre-NOR returns of post-death payments provided that they are made

electronically using an R14 or R15 code.

C: Calculating the Limited Liability Amount

If an RDFI qualifies for limited liability, the RDFI will only be debited for the ACH 45-day amount.

The ACH 45-day amount is the dollar amount of the post-death benefit payments received within

45 calendar days following the death.

Note: The limited liability amount may not exceed the outstanding total on the Notice of Reclamation.

The outstanding total is the total amount of all the post-death benefit payments.

Table 2-A: Calculating the Limited Liability Amount

Example 1: Four payments of $200 each were received after death. The first benefit payment

was received within 45 days after the date of death (i.e., ACH 45-day amount = $200). The RDFI had no

actual or constructive knowledge at the time the post-death benefit payments were received or

withdrawn.

No additional benefit payments were received after the RDFI had knowledge

of Reclamation

Scenarios 1-5 Scen.1

Scen.2

Scen.3

Scen.4

Scen.5

Total Amount of post-death payments on the Notice of Reclamation $800 $800 $800 $800 $800

Amount of the Account Balance paid by RDFI in response to the Notice

$300

$300 $750 $0 $800

Amount due from withdrawers $500 $500 $50 $800 $0

Amount collected by government from withdrawers $250 $500 $0 $0 $0

Outstanding total $250 $0 $50 $800 $0

Amount to be debited from the RDFI's federal reserve account = $200

(lesser of Outstanding Total or ACH 45-day amount)

$0 $50 $200 $0

RDFI had no actual or constructive knowledge of the death at the time of deposit or withdrawal of any post-death

benefit payments.

RDFI accurately responds to the Notice of Reclamation so that the appropriate amount is received by the

government disbursing office within 60 calendar days of the date on the Notice.

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Example 2: Four payments of $200 each were received after death. Three of the benefit

payments were received before the RDFI had actual or constructive knowledge of the death. The 4th

benefit payment was received by the RDFI after it had received a DNE and the RDFI promptly returned

the payment using an R15 return reason code.

The 1st and 2nd benefit payments were received within

45 days following the date of death (4th benefit payment will not be listed on the Notice of

Reclamation since it was promptly returned by the RDFI).

of Reclamation

(lesser of Outstanding Total or ACH 45-day amount)

RDFI is obligated to return any post-death benefit payments that the RDFI receives after becoming aware of the

recipient’s death. RDFI is not obligated or authorized to return post-death benefit payments that the RDFI received before

becoming aware of the recipient’s death.

RDFI accurately responds to the Notice of Reclamation so that the appropriate amount is received by the government

disbursing office within 60 calendar days of the date on the Notice.

Section 3: Reclamation Procedures

A: Notification of Death

An RDFI must immediately return any post-death benefit payments received after the RDFI

becomes aware of the death or legal incapacity of a recipient (but not post-death benefit payments

that the RDFI received before becoming aware of the recipient’s death). If the RDFI learns of the

death or legal incapacity of a recipient from a source other than the federal agency, the RDFI must

notify the sending agency of the recipient’s death. An ACH return using return reason code R15 or

R14 constitutes proper notification to the federal agency. When returning payments, the RDFI

should ensure that the date of death in the addenda record be in YYMMDD format. The RDFI should

also provide notification to the account owners, as a courtesy.

Scenarios 1-5 Scen.1

Scen.2

Scen.3

Scen.4

Scen.5

Total Amount of post-death payments on the Notice of Reclamation $600 $600 $600 $600 $600

Amount of the Account Balance paid by RDFI in response to the Notice

$300

$300 $550 $0 $600

Amount due from withdrawers $300 $300 $50 $600 $0

Amount collected by government from withdrawers $50 $300 $0 $0 $0

Outstanding total $250 $0 $50 $600 $0

Amount to be debited from the RDFI's federal reserve account =

$250

$0 $50 $400 $0

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

Notification of death of a recipient by any source constitutes notification for all federal benefit

payments received by that recipient. The following are some examples of ways that the RDFI may

learn of the death of their account holders:

•

Receipt of a Death Notification Entry (DNE) - A DNE is a notification of a benefit recipients

death sent from an originating government agency (e.g., SSA, RRB, or OPM) to the RDFI,

•

Receipt of a federal government Notice of Reclamation, (FS Form 133),

•

Any contact or request to withdraw funds from an Estate, Executor, Administrator, Public

Administrator, Personal Representative, Conservator or other representative of such Estate.

Note: Any release to an executor or other party clearly acting on behalf of the deceased

person or their estate will be deemed by the government to have demonstrated the RDFI’s

knowledge of the death,

•

A pertinent reference to or from a Probate Court, a funeral home, or Letters Testamentary.

•

Credible oral or written report of death,

•

Credible death information obtained by the RDFI’s inquiry into a dormant account, or

through other RDFI internal screening processes,

•

Credible personal awareness of the death by the RDFI’s staff, or

•

Credible death notice received in the mail from any source.

Not

e: If at the time the RDFI first receives information of death, all or part of the post-death benefit

payments have already been withdrawn from the account, the government does not authorize or

direct the RDFI to try to recover the funds from the withdrawer. If the RDFI does so, it acts under its

own authority in terms of its contract with its depositor or under state law.

Title 31 CFR part 210

This regulation defines when a federal agency as well as an RDFI has actual or constructive

knowledge of the death:

A federal agency or RDFI has actual knowledge of the death or legal incapacity of a recipient, or the

death of a beneficiary, when it receives information, by whatever means, of the death or legal

incapacity and has had a reasonable opportunity to act on such information or that the federal

agency or RDFI would have learned of the death or legal incapacity if it had followed commercially

reasonable business practices. See 31 CFR § 210.2(b).

The p

hrase “commercially reasonable business practices” is a flexible concept since, for

example, what is a commercially reasonable practice for a large bank may not be

commercially reasonable for a small rural bank, and vice versa.

In March 2020, Fiscal Service revised this definition to include parameters for when an agency is

presumed to have constructive knowledge of a death or legal incapacity. Specifically, a federal

agency is presumed to have constructive knowledge of a death or legal incapacity at the time it

stops certifying recurring payments to a recipient if the agency (1) does not re-initiate payments to

the recipient and (2) subsequently initiates a reclamation for one or more payments made to the

recipient. See 31 CFR § Part 210.2(b) This presumption is rebuttable in cases where an agency can

demonstrate that it stopped certifying recurring payments to a recipient for a reason other than

death.

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

What to do upon Notification of Death with Payments Already Posted and Subsequent

Payments

When an RDFI receives actual or constructive knowledge of the death of a recipient, it must return

all subsequent post-death benefit payments, meaning all post-death payments received after the FI

learns of the death, to the government disbursing office using return reason code R15 or R14. The

RDFI must also notify the sending agency of the recipient’s death. An ACH return using return

reason code R15 or R14 constitutes proper notification to the federal agency of the recipient’s

death. An RDFI can, if they so choose, return by ACH any post-death benefit payments that were

already posted to the recipient’s account before the RDFI received actual or constructive

knowledge of death, by ACH, without waiting for a Notice of Reclamation, but the RDFI is not

required or directed to do so.

15 Beneficiary Deceased

The beneficiary is the person entitled to the benefits. In this case, there is no representative payee

or guardian involved.

14 Representative Payee (or Guardian) Deceased or Incapacitated

The representative payee (or guardian) is the person who receives benefit payments on behalf of

the (under aged or incapacitated) beneficiary. E.g., payment is payable to “John Doe, for [another

person]”.

Any information of the death of a representative payee that is received by the RDFI or any of its

employees, from whatever source, establishes the full legal liability for ALL SUBSEQUENT post-

death federal benefit payments from all agencies, as well as any post-death benefits in the account,

which the RDFI then allows to be withdrawn.

Note: Recipients may be receiving multiple benefit payments from the same or different federal

agencies. An RDFI should ensure that they are returning all federal benefit payments subject to

Reclamation. If a Financial Institution needs to correct errors in their use of reason codes when

returning funds, they should contact the agency receiving the return. Please see Chapter 7, Contacts,

for major paying agency contact information.

No Holding of Payments

Under no circumstances should an RDFI hold benefit payments indefinitely in a suspense account,

or by any other means, nor should benefit payments otherwise be held if any of the conditions

apply on when to return a benefit payment. Holding benefit payments may constitute a breach of

the RDFI’s warranty for the handling of federal government ACH payments under 31 CFR part 210

and could result in an RDFI’s inability to limit its liability.

Repayment by Survivors

If the survivors or other withdrawers state that the withdrawn post-death benefit payments have

already been repaid to the federal agency, the RDFI should obtain a front and back copy of the

check(s) and/or a receipt from the federal agency.

If all post-death benefit payments have been repaid by the survivor(s), the RDFI should not receive

a Notice of Reclamation. However, if a Notice of Reclamation is received, the RDFI must complete

the electronic FS-133 in ARPS within 60 calendar days. The RDFI is not liable for any post-death

benefit payments that have already been repaid to the originating agency.

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

Handling Survivor Requests not to Return Post-death Benefit Payments

The RDFI may be asked by the survivor(s) not to return post-death benefit payments because the

survivor believes he or she is entitled to all or part of the payment(s). In such cases, the RDFI should

still return the benefit payment and advise the survivor(s) to contact the appropriate federal

benefit agency (see Chapter 7, Contacts) to determine whether a final survivor payment is due.

B: Notice of Reclamation

The Notice of Reclamation (FS Form 133) initiates the recovery of post-death benefit payments that

have not been returned to the government, for which the RDFI may be liable.

The Notice of Reclamation is mailed or emailed to the RDFI by the government disbursing office

upon instructions from the authorizing federal agency. The RDFI’s address and routing number are

derived from the FOMF maintained by Treasury. Each RDFI is responsible for updating the FRB ACD

(see Chapter 2, FOMF). RDFIs should also provide updated email addresses as needed, to ensure

the timely receipt of Notices of Reclamation sent electronically.

Note: If the full amount listed on the reclamation is returned to the Disbursing Office, the RDFI does

NOT need to complete and return the FS Form 133.

Table 3-A: Notice of Reclamation (FS Form 133)

The Notice of Reclamation advises the RDFI of the following:

•

the date of death or legal incapacity,

•

the amount of post-death benefit payment(s) for which the RDFI may be liable, and

•

the identity of each benefit payment in question, including:

1. name of the recipient,

2. individual ID or claim #,

3. reclamation ticket #,

4. date of the payment(s),

5. Federal agency that authorized the payment(s)

and the type of payment(s),

6. payment trace number(s),

7. type of account (checking/savings) to which th

payment(s) was made,

8. depositor account number, and

9. amount of the payment(s).

The FS Form 133 consists of six parts (RDFI will receive Parts 1 through 5):

• Part 1- Program Agency Copy,

• Part 2- Program Agency File Copy,

• Part 3- RDFI Copy,

• Part 4- Disbursing Office Copy,

• Part 5- Notice to Account Owners Copy, and

• Part 6- Disbursing Office Pending Copy (RDF

does not receive Part 6).

Note: The reclamation ticket number is located in the top right box of the form to the right of the date

(see sample FS Form 133). It is important the RDFI retains a copy of the reclamation form submitted

via ARPS for a minimum of three years or until the associated case is closed. The RDFI should file the

notice using the reclamation ticket number. In the event that a debit is processed, the RDFI will need to

locate the Notice of Reclamation using the ticket number provided on the FRB Statement of Account

(see How to Identify Debits using the Reclamation Ticket Number).

Sample of Notice of Reclamation (FS Form 133)

A sample of the Notice of Reclamation form (FS Form 133) is available in Chapter 9, Forms. The

sample is the same for the Program Agency Copy, Program Agency File Copy, RDFI Copy and

Disbursing Office Copy.

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

Table 3-B: How to Respond to the Notice of Reclamation

Steps to take Under Limited Liability

If funds are available, but not sufficient to satisfy the full reclamation, a partial payment should be

remitted to the government disbursing office that issued the reclamation. When returning less

than the full amount, the RDFI must authorize a debit by using the Automated Reclamation

Processing System (ARPS) located in Treasury’s Pay.gov web portal.

Promptly mail the notice to the account owners * last known address(es) and notify the account

owner(s) of any action that the RDFI has taken or plans to take against the account.

When the RDFI is returning less than the outstanding total listed on the Notice of Reclamation,

the RDFI must complete and sign Certification No. 1*** and if the RDFI had no knowledge of the

death at the time the benefit payment(s) was received or withdrawn, also sign Certification No.

2**** on the back of the Disbursing Office copy of the Notice of Reclamation. The RDFI must

provide name, address and phone number of persons who withdrew from the account or if it is a

sole owner account the RDFI MUST complete all applicable fields in ARPS when limiting their

liability or retuning less than the total amount.

If the outstanding total** was previously repaid to the federal government. The RDFI's obligation

to the federal government (e.g., by the beneficiary's survivor) has been satisfied and the RDFI

must return the Notice of Reclamation, attaching proof of the repayment, so that it is received by

the government disbursing office within 60 calendar days of the date on the Notice. (See Types

of Evidence).

The signature in Certification No. 1*** and 2**** must be completed. The original signature

must include the signer's first name and last name. The signer's title and phone number must

be provided. If the Notice of Reclamation is incorrect due to error in fact or date of death, (see

Learning of an Error).

* Some withdrawers may wish to restore all or part of the withdrawn post-death benefit payments to the

ccount upon receipt of a Notice of Reclamation to Account Owners. Repayment to the account by th

ithdrawer upon receipt of the Notice of Reclamation is not required or requested by the government.

** The Outstanding Total is the sum of all federal benefit payments received after death or legal incapacity,

minus any amount returned to or recovered by the government.

***

Certification No. 1 on the back of the Disbursing Office copy of the Notice of Reclamation certifies that: the

Notice to Account Owners was sent; account owners were notified of any action the RDFI has taken or plans

to take against the account; and the RDFI took proper corrective action regarding any error in date of or

fact of death.

**** Certification No. 2 on the back of the Disbursing Office copy of the Notice of Reclamation, certifies that the RDFI

had no actual or constructive knowledge of the death at the time of deposit or withdrawal of any of the post-death

benefit payments; and, that the RDFI has returned the amount of the account balance to the government.

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

ACH Debit

ACH Debit Authorization provided via Pay.gov permits Treasury to debit a financial institution’s

Federal Reserve account. A payment made by ACH debit will appear on the financial institution’s

Federal Reserve statement with an IAS transaction code of “57180 – Treasury ACH Reclamation FI

Auth”. There will also be a reclamation tracking number listed, which will aid a financial institution

when researching debit transactions. ACH debits are received the same day and are posted within

one (1) to two (2) business days of receipt.

utomated Reclamation Processing System (ARPS):

The Bureau of Fiscal Service has developed an electronic version of the current FS-133 process. This

process allows financial institutions to submit a response to the Notice of Reclamation (NOR)

electronically through the Department of the Treasury’s Pay.gov web portal.

How to electronically respond to an ACH Reclamation:

Electronic responses should be made through Pay.gov

, a web-b

ased application operated by the

Department of the Treasury that allows users to submit responses to a Notice of Reclamation. It also

allows the Financial Institution to make payments to government agencies by electronic means by

authorizing a debit.

1. When the FMS 133, Notice of Reclamation is received, the financial institution will continue to

follow its current procedures as stated in the Green Book (Chapter 5, Section 3, Reclamation

Procedures)

2. O

nce the FI is prepared to respond to the Notice of Reclamation; this response will be submitted

through the Pay.Gov web portal. This electronic version of the form requires the same informatio

s the paper version.

3. Responding through Pay.gov allows the financial institution to limit liability as well submit full or

partial payment(s) via a debit authorization.

complete or Inadequate RDFI Replies

If the RDFI’s response is inadequate, the government will send the RDFI a rejection via email,

indicating the reason for the disapproval. If no adequate response is received from the RDFI within

the allotted timeframe, the government will initiate a debit action for the outstanding amount.

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

Time Limits for Federal Reclamations

1. INITIATION OF RECLAMATION (120-Day Protest): The authorizing federal agency must initiate the

eclamation within 120 calendar days after the date that the agency first has actual or constructive

knowledge of the death or legal incapacity of a benefit recipient or the death of a beneficiary.

An RDFI has the right to protest a Notice of Reclamation if it believes the agency did not meet th

eadline for initiating the reclamation.

A 120-day protest is filed by checking the appropriate box on the electronic form 133 in Automated

Reclamation Processing System (ARPS).

Upon receipt of the protest, the Fiscal Service will work with the authorizing federal agency to determin

hether or not the agency met the 120-day deadline. If the RDFI’s protest is valid, then the RDFI will be

notified via email within 45 days and the reclamation action will be withdrawn. If the protest is denied,

and the RDFI qualifies for limited liability, the Disbursing Office will notify the RDFI via email within 45

days and the RDFI will only be debited for the ACH 45-day amount.

2. SCOPE OF RECLAMATION: An RDFI is not liable for any post-death benefit payments made more than

six years prior to the date of the notice of reclamation, except under the following circumstance: “If th

count balance at the time the RDFI receives the notice of reclamation exceeds the total amount of all

post-death or post-incapacity payments made by the agency during such six-year period, this limitation

shall not apply and the RDFI shall be liable for the total amount of all payments made, up to the amoun

n the account at the time the RDFI receives the Notice of Reclamation and has had a reasonabl

portunity (not to exceed one business day) to act on the notice.” [31 CFR part 210.10(d)]

3. COINCIDING WITH DATE OF DEATH: An RDFI is not liable for any benefit payment dated where

the effective date is the same as the date of death.

4. RDFI REACTION TIME: The RDFI, upon receipt of the government’s Notice of Reclamation, has UP TO

ONE BUSINESS DAY to react to that reclamation by determining the account balance, and by preventin

any further withdrawals of post-death government benefit payments from the account, if possible, under

the terms of the contract with the account holder.

RDFI RESPONSE DEADLINE: The RDFI has up to 60 calendar days from the issue date of the reclamation to

provide a full and accurate response to the proper government disbursing office. Failure to respond timely

may result in a debit to the RDFI’s FRB account or the account of its correspondent for the total amount of

the reclamation. This debit action will be final.

ollow-up to the Notice of Reclamation (Fiscal Service-2942)

A Follow-Up Notice is sent if the government disbursing office does not receive a response within

30 days of the FS Form 133, Notice of Reclamation; or if the RDFI’s response to the Notice of

Reclamation was incomplete or inaccurate.

A Follow-Up

Notice is a reminder to the RDFI that a response to the Notice of Reclamation (FS Form

133) must be received by the government disbursing office within 30 days of the date of the

Follow-Up Notice, or the RDFI will forfeit the right to limit its liability. The Follow-Up to the Notice

of Reclamation Form (FS Form 2942) is available in Chapter 9, Forms.

A copy of the original Notice of Reclamation is attached to the Follow-Up Notice

Responses to a Follow-Up Notice must be completed in ARPS (except for approved exceptions) in the

same manner as an original Notice of Reclamation.

Any questions regarding this matter should be directed to the government disbursing office shown

in the upper right corner of the Notice of Reclamation.

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

Federal Agency Collection from Withdrawers

If all or part of the post-death benefit payments have been withdrawn from the account before the

RDFI learns of the death, and the RDFI properly responds to the Notice of Reclamation and is

qualified to limit its liability, then the Reclamation process will be temporarily suspended, and the

authorizing federal agency will attempt to collect the outstanding total from the withdrawer(s).

If the authorizing federal agency is unsuccessful in collecting the outstanding total from the

withdrawer(s), the RDFI or its correspondent’s FRB account will be debited (for the ACH 45-day

amount) not to exceed the outstanding total.

Debit of the RDFI’s Account

If the RDFI fails to respond completely and accurately to a Notice of Reclamation by the due date,

the government disbursing office will debit the RDFI’s FRB account or that of its correspondent

account for the full amount of its outstanding liability. This action is final.

If the RDFI responds completely and accurately to a Notice of Reclamation by the due date, and the

federal agency is unable to collect the balance on the FS Form 133, the RDFI will be debited for the

limited liability ACH 45-day amount.

he table below shows when the authorizing federal agency can exercise its authority to have an

RDFI’s FRB account debited.

Table 3-C: Debit of the RDFI’s Account

If the RDFI: Then the RDFI (or its correspondent's) FRB Account

Fails to respond accurately and completely to

the Notice of Reclamation.

Fails to respond within the 60-day time limit of

the Notice of Reclamation.

Responds accurately, completely, and timely,

(i.e., limited its liability) but the authorizing

federal agency can no longer collect the

outstanding total from the withdrawers.

will be debited for the outstanding total.

will be debited for the ACH 45-day amount not to exceed the

outstanding total.

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

How to Identify Debits using the Reclamation Ticket Number

When there is a liability for an ACH reclamation payment by an RDFI, the RDFI will receive a charge

to their FRB account. The reclamation ticket number will appear on the FI’s Statement of Account.

This ticket number is the same number as identified on the original FS Form 133, Notice of

Reclamation.

The FS Form 133, Notice of Reclamation form provides the reclamation ticket number in the top

right box of the form to the right of the date. This ticket number should be used to identify debits

for reclamations. Coordination between the ACH reclamation area and the RDFI accounting

department is critical to the reconcilement of the RDFI’s Statement of Account.

Provided below is an example of how the debit for ACH reclamations will appear on an FRB

Statement of Account:

Explanation of the Debit:

1) The number 9914 indicates an entry processed by FRB Philadelphia to an out of district bank,

2) The phone number of the payment center that initiated the debit will be provided - e.g., (510) 594-7183.

The phone number is also provided in the upper right-hand corner of the reclamation notice,

3) The number 57170 is the transaction code representing an automated debit on ACH reclamations from

e National Payment Center of Excellence (NPCE).is transaction code number will be unique for each

RFC (See Table 3-D),

4) The number 03884 represents a batch number,

5) The number 7502 represents a reference number,

6) The number 051000033 is the FRB Philadelphia routing number,

7) The number 21234456 is the Reclamation Ticket number. This will be unique for each reclamation and

is the same number as assigned on the original Notice of Reclamation form (FS Form 133), and

8) The dollar amount of the debit is indicated in the far-right hand column- e.g., 500.00.

Table 3-D: Transaction Codes for ACH Reclamations

The table below shows the unique transaction codes numbers for each Fiscal Service Portfolios.

Transaction

Code\Description

Definition Daylight Overdraft

Posting Times

57170

Treas ACH REC Auto

Debits for reclamation payments authorized by the Treasury

to post to a financial institution. These payments are

After close of

Fedwire

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

57190

Treas ACH REC Auto

initiated to FRB Philadelphia by the Kansas City Federal

Disbursement Services Includes adjustments to such

entries.

Debits for reclamation payments authorized by the Treasury

to post to a financial Institution. These reclamation debits

are initiated to FRB Philadelphia by the Modernization,

Innovation, and Payment Resolution. Includes adjustments

to such entries.

After close of

Fedwire

C: Errors in Death

If the Person did not Die

If the RDFI obtains satisfactory proof that the benefit recipient or beneficiary is alive, the RDFI is

still required to respond to the Notice of Reclamation in the Automated Reclamation Processing

System. Failure to respond to the Notice of Reclamation will result in a debit to the RDFI or its

correspondent’s FRB account for the outstanding total. In this case, a debit can only be restored

after a verification process by the authorizing federal agency.

Types of Evidence

The following are acceptable types of proof for verifying that the person did not die:

•

Driver’s license, picture ID or other evidence similar to that required for cashing a check, if the

recipient or beneficiary appears at the RDFI,

•

A signed, dated, and notarized statement attesting to the fact that the recipient or beneficiary is

alive if, he/she is unable to appear at the RDFI, and

•

A written statement from the authorizing federal agency verifying that the recipient or

beneficiary is alive.

The RDFI is not obligated to accept the proof or to contact the authorizing federal agency if any

disagreements or questions arise with the person presenting the proof. Prudence is required, as the

action taken by the RDFI may impact its liability. Disagreements will be adjudicated by the

authorizing federal agency after it has been contacted by the person presenting the proof.

Note: If a Financial Institution needs to correct errors in their use of reason codes when returning

funds, they should contact the agency receiving the return. Please see Chapter 7, Contacts, for major

paying agency contact information.

Table 3-E: Accepting the Proof

The table below shows what actions the RDFI must take if it accepts the proof that the person did

not die.

Step Action

1. Within ARPS, select payee alive.

2. Digitally sign Certification #1 and Certification #2.

3. A signed, dated notarized statement attesting the fact that the payee is alive

DNE removal request

4. Written letter from agency (which we will confirm) stating payee is alive.

5. Reclamations

Green Book

A Guide to Federal Government ACH Payments

5. Advise the recipient to contact the authorizing federal agency to restart payments.

Table 3-F: Re

jecting the Proof

The table below shows the actions the RDFI must take if it rejects the proof that the person did not

die.

Step Action

1. Continue to process the Notice of Reclamation, which includes sending the Notice of Reclamation t

ccount owner(s).

2. Refer the person presenting the proof to the federal agency.

3. Notify the account owner(s) to provide a written statement from the federal agency verifying that the

ecipient or beneficiary is alive, or the reclamation process will continue.

Restarting Payments

Once a reclamation has been processed, all further benefit payments will be stopped. Presenting

acceptable proof that the death report was in error (and stopping the reclamation process) does

not restart the monthly benefit payments. The recipient or beneficiary must contact the authorizing

federal agency to re-enroll in Direct Deposit.

If the Date of Death is Wrong

The RDFI is authorized to adjust the outstanding total, provided it obtains acceptable proof that the

date of death (DOD) shown on the Notice of Reclamation is wrong. When correcting a date of death

error, the RDFI should always check the appropriate box in ARPS, provide the correct DOD and

submit a death certificate via email to PFC-[email protected]sury.gov

Learning of an Error After Completing a Reclamation

If the RDFI learns of an error in the date of death after returning a completed Notice of Reclamation

and it has already satisfied its liability, it MUST contact the authorizing federal agency (based on the

payment type listed on the Notice of Reclamation) to make the appropriate adjustment.

If the RDFI is due a refund, the RDFI must provide supporting documentation to the authorizing

federal agency.

Note: Only the authorizing federal agency can make adjustments after the debit action has been

processed.

5-17

A Guide to Federal Government ACH Payments

5. Reclamations

Green Book

Table 3-G: Worksheet for Adjusting the Outstanding Total if the Date of Death is Wrong

The worksheet below may be used by the RDFI to calculate the adjusted total if there is an error in the

date of death.

PMT 1

PMT 2

PMT 3

PMT 4

List the month/day/year of each payment shown on the

Reclamation form.

For each payment (shown on the Reclamation) did the person die

before the date of the payment? (Enter "yes" or "no")

For each "yes", enter the dollar amount of the payment.

(Do not enter the dollar amount if "no.")

Total all "yes" payments $

(This is the adjusted outstanding total to use on the Notice of Reclamation).

Subsequent Notice of Reclamation

The government may issue a subsequent Notice of Reclamation if the original Notice of Reclamation

did not list all post-death benefit payments.

A subsequent Reclamation may be issued if any of the following apply; the date of death was earlier than

shown on the original Notice of Reclamation, the account number changed, and/or the routing number

changed.

Wha

t to do if the RDFI receives a subsequent reclamation.

n RDFI receiving a subsequent Notice of Reclamation should respond as the RDFI would respond to an original

Notice of Reclamation.”

Previous debit

If the RDFI has already limited its liability and has been debited for the ACH 45-day amount on the

original reclamation case, it will not be debited again on a subsequent Reclamation for the same case.

However, in order to maintain its limited liability status, the RDFI must respond to all Notice of

Reclamations received to prevent a debit to the RDFI or its correspondent’s FRB account.

E: Contacts

For Pay.gov technical issues please contact: 800-624-1373 (Toll free, Option #2), 216-579-2112

(Option #2), pay.gov.cle[email protected], Hours 8:00am to 7:00pm Monday – F

riday.

or questions related to a Notice of Reclamation or general Notice of Reclamation inquiries, please

contact: (855) 868-0151

ny supporting documentation related to the Notice of Reclamation response (payee alive, incorrect

date of death, etc.) must be emailed to PFC-[email protected]

within 15 business days.

5-17

6-1

A Guide to Federal Government ACH Payments

Notification of

Change

In this chapter…

A: Introduction to Notification of Change .............................................................................................. 6-2

When to use NOCs ...................................................................................................................................................... 6-2

Benefit Payments ............................................................................................................................................................. 6-2

Other Payment Types ..................................................................................................................................................... 6-2

When to use NOCs, ENRs, or Other Ways to Change Recipient Information ...................................... 6-2

Processing Timeframes ............................................................................................................................................ 6-3

What to do if an agency does not respond to a NOC within two payment cycles: ............................ 6-3

Change Reason Codes ............................................................................................................................................... 6-3

Claim Number Structure .......................................................................................................................................... 6-4

Claim Number Structure Table ............................................................................................................................. 6-4

B: Other Change Methods ............................................................................................................................ 6-4

Financial Institution Actions .................................................................................................................................. 6-5

C: Refused Notification of Change ............................................................................................................. 6-7

Federal Agencies Using Refused NOCs ............................................................................................................... 6-7

Proc

essing Timeframes ............................................................................................................................................ 6-7

Refused NOC Codes .................................................................................................................................................... 6-7

6-2

A Guide to Federal Government ACH Payments

6. Notification of Change

Green Book

A: Introduction to Notification of Change

Notification of Change (NOC), which is the name for Nacha’s Standard Entry Class (SEC) code COR, is

a method used by a financial institution to notify a federal agency to correct or change account

information in an entry the federal agency processed through the ACH. Refer to current Nacha

Operating Rules & Guidelines for formats and instructions.

Note: ENRs should not be used in place of NOCs to correct account information. Please see Chapter 1,

Section F, Enrollment Guidance, for more information about when ENRs can be used.

When to use NOCs

NOCs are used for federal government (both civil and military) payments that are made on a

recurring basis. Examples are:

Benefit Payments

•

Benefit payments issued by Department of Veterans Affairs,

•

Civil service retirement payments issued by Office of Personnel Management,

•

Benefit payments issued by Railroad Retirement Board,

•

Social Security benefit payments, and

•

Supplemental Security Income payments.

Other Payment Types

•

Federal salary,

•

TreasuryDirect, and

•

Vendor and miscellaneous.

When to use CORs, ENRs, or Other Ways to Change Recipient Information

To change

Recipient would

Title/ownership of account

Interest of the recipient or beneficiary in the account

Complete a new enrollment

From one financial institution to another

New bank account number at the existing financial

institution

Submit ENR or COR

Name of recipient or change of mailing address Contact the federal agency that authorized the

payment

Account information for one-time payments One-time payments require a new authorization

6. Notification of Change

Green Book

6-3

A Guide to Federal Government ACH Payments

Processing Timeframes

Generally, CORs will be processed for the next ACH transaction. Due to operational limitations, it

may take two payment cycles for some CORs to be processed.

What to do if an agency does not respond to a COR within two payment

cycles:

•

Verify that the COR was properly formatted. Make sure that the COR contained the correct

original RDFI routing number.

•

If the COR was correctly formatted, contact Fiscal Service. See Contact information below. Fiscal

Service will work with the agency for resolution.

•

Make sure that rejected CORs are acknowledged and resolved (See below).

If you have any questions, contact the Fiscal Service Payment Management Call Center, at

855-868-0151, Option 1.

Change Reason Codes

The federal government’s disbursing systems are only able to process the following six authorized

COR/Change codes: C01, C02, C03, C05, C06, and C07. The federal agencies will not process any

others.

The following table shows when to use the Change Reason Codes.

Change Reason Code

When to Use

C01 - Incorrect Account Number Correct data entry errors in the account information.

Issue a new number to an existing account.

Modify the account numbering system (e.g. to drop a branch code).

C02 - Incorrect RTN Accommodate a merger or system consolidation.

Change the RTN to the preferred RTN for the financial institution.

C03 - Incorrect RTN and Incorrect

Account Number

Accommodate a merger or system consolidation.

C05 - Incorrect Transaction Code Change from checking to savings or savings to checking.

C06 - Incorrect Account Number

and Incorrect Transaction

Code

Correct a data entry error in the account information and change

from checking to savings or savings to checking.

Issue a new account number and transaction code.

C07 - Incorrect RTN, Incorrect

Account Number and

Incorrect Transaction Code

Accommodate a merger or system consolidation.

Note: The only Transaction Codes recognized by the federal government for CORs are:

For checking (demand)

For savings

For General Ledger

22 (credit)

27 (debit)

32 (credit)

37 (debit)

42 (credit)

6. Notification of Change

Green Book

6-4

A Guide to Federal Government ACH Payments

Claim Number Structure

Federal agencies have special structures for their claim numbers (Individual ID number). The claim

number is important to identifying the payment recipient whose payment information must be

changed.

Accurate formatting of the claim number is critical for processing changes. Note that pattern

differences exist between federal agencies. These claim numbers must include all spaces, hyphens,

prefixes, suffixes, alphanumeric characters, and trailing or leading zeros that accompanied the

original payment information.

Claim Number Structure Table

The following table represents correct claim number structures used in formatting CORs.

Agency

Claim Number Structure

Example

Social Security Administration 999999999XX

999999999X

999999999

123456789C1

123456789A

123456789

Office of Personnel Management Xb9999999bXb

Xb9999999b9b

F_1234567_W_

A_1234567_0_

Department of Veterans Affairs

999999999b99b99

99999999b99b99

162306890_10_01

12345678_00_06

Railroad Retirement Board

Retirement/Annuity

Unemployment/Sickness

XXX999999999b9b

Xbb999999bbbb9b

XXbZZZZZ9bbbb9b

bbb999999999

WCA123456789_7_

A 123456 1_

WD_000006 8_

123456789

Department of Labor 999999999XXbXXb 123456789LW_MB_

Key: X = alphanumeric, 9 = numeric, b = blank, Z = zero filled, _ = space

B: Other Change Methods

Financial institutions not using CORs may continue to submit:

•

corrected Direct Deposit Sign-Up Forms (FS Form 1199As) to federal agencies, or

•

letters to federal agencies requesting changes.

6. Notification of Change

Green Book

6-5

A Guide to Federal Government ACH Payments

Financial Institution Actions

The table below contains instructions for financial institutions not using CORs.

Type of Payment

Fewer than 100 payments

(mail corrected SF119As or letters)

More than 100

payments (call)

Air Force

Active Duty Reserve

Air National Guard

Active Duty Allotments

Defense Finance and Accounting Service

6760 E. Irvington Place

Building 444/JMS

Denver, CO 80279-3000

(303) 676-4326

(303) 676-7213

Army

Active Duty Reserve

Active Duty Allotments

DFAS - Indianapolis Center

8899 E. 56th Street

Indianapolis, IN 46249-2801

(888) 332-7411

Coast Guard

Active Duty (Code PS)

Reserves (Code RES)

Retired (Code RPD)

Commanding Officer (Code )

US Coast Guard

Pay and Personnel Center

444 SE Quincy Street

Topeka, KS 66683-3591

(785) 339-3506

Department of Veterans Affairs

Veterans Compensation, Pension or Education

(MGIB)

Veterans Life Insurance

VA Regional Office that maintains the

veteran’s records

(877) 838-2778

(215) 842-2000

ext. 14270

Fiscal Service

Federal Housing Administration

Debenture Payments

State and Local Government Series Securities

Payments

United States Mortgage Guaranty Insurance

Company and Tax Loss Bonds Payments

Bureau of the Fiscal Service

Special Investments Branch Warehouse

and Operations Center, Dock 1

257 Bosley Industrial Park Drive

Parkersburg, WV 26101

(304) 480-5299

TreasuryDirect

Bureau of the Fiscal Service

Treasury Retail Securities Services

P.O. Box 9150

Minneapolis, MN 55480-9150

(844) 284-2676

Note: Financial institutions should submit systemwide changes to TreasuryDirect with the understanding that they agree to

pay the Treasury and security owners for any losses resulting from errors made by the institution. (31 CFR part 370.12)

Savings Bonds

Federal Reserve

Bank of Pittsburgh

P.O. Box 299

Pittsburgh, PA 15230-0299

(800) 322-1909

Federal Salary and Allotment payments

Federal salary and Allotment payments

(including payments by the military to civilian

employees) (FED SALARY)

Federal employing agency authorizing the payment (address

where original FS Form 1199As were mailed). If address is

unknown, contact recipient/member.

Marine Corps

DFAS - Kansas City Center

(888) 332-7411

6. Notification of Change

Green Book

6-6

A Guide to Federal Government ACH Payments

Type of Payment

Fewer than 100 payments

(mail corrected SF119As or letters)

More than 100

payments (call)

Active Duty/Reserve

Active Duty Allotment

1500 E. 95th Street

Kansas City, MO 64197-0001

Military Retirement Pay

Army, Air Force, Navy and Marine Corps

DFAS - Cleveland Center Retired Pay

Operations

P.O. Box 99191

Cleveland, OH 44199-1126

(800) 321-1081

fax: (800) 469-6559

DC Metro Area ONLY:

(202) 606-0500

Navy

Active Duty

Reserve

DFAS - Cleveland Center/JFECA

1240 East Ninth Street

Cleveland, OH 44199-2055

(216) 522-5855

Office of Personnel Management

Civil Service Retirement

(Annuity)

(CIVIL SERVE)

Office of Personnel Management

Retirement Operations Center

P.O. Box 45

Boyers, PA 16017

(888) 767-6738

fax: (724) 794-6633

Railroad Retirement Board

Railroad Retirement

(RR RET)

Railroad Retirement Board

Direct Deposit Coordinator

844 North Rush Street

Chicago, IL 60611

(312) 751-4704

6. Notification of Change

Green Book

6-7

A Guide to Federal Government ACH Payments

C: Refused Notification of Change

Refused Notification of Change is an automated method used by a federal agency to notify the

originating financial institution that the COR information initiated cannot be processed.

Federal Agencies Using Refused CORs

The Social Security Administration (SSA), the Railroad Retirement Board (RRB), and the Office of

Personnel Management (OMB) are the only federal agencies processing Refused CORs at this time.

Processing Timeframes

CORs that cannot be processed are usually refused to the financial institution before the next

payment is submitted.

Refused COR Codes

There are six refused COR codes authorized for federal government ACH entries:

Code

Reason

C64 Incorrect individual identification

C65

Incorrectly formatted corrected data

C66

Incorrect discretionary data

C67 Routing Transit Number not from original Entry Detail Record

C68 DFI Account Number not from original Entry Detail Record

C69

Incorrect Transaction Code

7-1

A Guide to Federal Government ACH Payments

Contacts

Overview

In this chapter…

A: Fiscal Service Payment Management Call Center .......................................................................... 7-2

B: EFTPS Assistance....................................................................................................................................... 7-2

C: Major Paying Agency Contacts .............................................................................................................. 7-2

D: Defense Finance and Accounting Service (DFAS) Contacts ........................................................ 7-3

E: Go Direct Contact Information .............................................................................................................. 7-3

F: Treasury Offset Program ........................................................................................................................ 7-3

This chapter includes addresses and/or phone numbers of ACH contacts. These contacts are

provided to handle any problems or questions that you may have concerning ACH payments and

collections.

7-2

A Guide to Federal Government ACH Payments

7. Contacts

Green Book

A: Fiscal Service Payment Management Call Center

For assistance with a payment issued by Treasury, please contact the Fiscal Service Payment

Management Call Center at: 1 (855) 868-0151 or email us at Payments@fiscal.treasury.gov.

For payments issued by the Department of Defense, please see the Defense Finance and Accounting

Service (DFAS) Contacts section.

B: EFTPS Assistance

If a taxpayer is initiating federal tax payments using EFTPS—through a financial institution (ACH

credit) see below for the appropriate customer service helplines.

Routing Transit Number

061036000

Account Number 23401009

Taxpayer Enrollment/Helpline 1 (800) 555-4477 (Businesses)

1 (800) 316-6541 (Individuals)

Financial Institution Helpline 1 (800) 605-9876

C: Major Paying Agency Contacts

Agency

Contact

Website

Social Security Administration (800) SSA-1213 www.socialsecurity.gov

Office of Personnel Management www.opm.gov/retire

Railroad Retirement Board (877) 772-5772 www.rrb.gov

Department of Veterans Affairs (800) 827-1000 www.va.gov

Veterans Compensation, Pension & Education (800) 827-1000 www.benefits.va.gov/benefits

Veterans Life Insurance (800) 669-8477 www.insurance.va.gov

Bureau of the Fiscal Service (855) 868-0151 www.fiscal.treasury.gov

TreasuryDirect (844) 284-2676 www.treasurydirect.gov

Internal Revenue Service (800) 829-1040 www.irs.gov

Department of Labor

Black Lung (800) 638-7072 www.dol.gov/owcp/dcmwc

Division of Energy Employees

Occupational Illness Compensation

(866) 888-3322 www.dol.gov/owcp/energy

Division of Federal Employees’ Compensation (202) 693-0040 www.dol.gov/owcp/dfec

Longshore and Harbor Workers' Compensation (202) 693-0925 www.dol.gov/owcp/dlhwc

7. Contacts

Green Book

7-3

A Guide to Federal Government ACH Payments

D: Defense Finance and Accounting Service (DFAS) Contacts

For information about military retirement and annuitant payments, please contact 1-800-321-

1080. For additional information about payments disbursed by the military, please visit

www.dfas.mil.

E: Go Direct Contact Information

For information about Go Direct, please contact the U.S. Treasury Electronic Payment Solution

Center at 1 (877) 874-6347 or visit www.GoDirect.gov.

F: Treasury Offset Program

For information about the Treasury Offset Program, visit www.fiscal.treasury.gov/top/ .

9. Forms

Green Book

8-1

A Guide to Federal Government ACH Payments

Glossary

Actual or Constructive Knowledge

Under Title 31 CFR part 210, both agencies and RDFIs have obligations, rights and liabilities that

are triggered by actual or constructive knowledge of the death or incapacity of a recipient or death

of a beneficiary.

Actual or constructive knowledge, when used in reference to a federal agency’s or RDFI’s

knowledge of the death or legal incapacity of a recipient or death of a beneﬁciary, occurs when it

receives information, by whatever means, of the death or incapacity and has had a reasonable

opportunity to act on such information, or that the federal agency or RDFI would have learned of

the death if it had followed commercially reasonable business practices.

A federal agency is presumed to have constructive knowledge of a death or legal incapacity at the

time it stops certifying recurring payments to a recipient if the agency (1) does not re-initiate

payments to the recipient and (2) subsequently initiates a reclamation for one or more benefit

payments made to the recipient.

Agency

As defined in Title 31 CFR part 210, an agency is any department, agency, or instrumentality of the

United States Government, or a corporation owned or controlled by the Government of the United

States. The term agency does not include a Federal Reserve Bank (FRB).

Annuitant

An annuitant is a retired federal employee or their survivor who is receiving payments from the

Ofﬁce of Personnel Management; a retired railroad employee, their spouse, or their survivor who is

receiving payments from the Railroad Retirement Board; a retired military service person, their

spouse or their survivor who is receiving payments from a military service.

Annuity

An annuity is a recurring payment made to a retired individual, their survivor or spouse.

Automated Clearing House (ACH)

As defined in Title 31 CFR part 210, ACH is a funds transfer system governed by Nacha, formerly

NACHA – The Electronic Payments Association, Operating Rules and Guidelines which provides for

the interbank clearing of electronic entries for participating ﬁnancial institutions.

8. Glossary

Green Book

8-2

A Guide to Federal Government ACH Payments

ACH Non-Receipt Claim

An Automated Clearing House (ACH) non-receipt claim is a research method where a government

disbursing ofﬁce representative will contact a ﬁnancial institution, by telephone, email or facsimile

to resolve a payee’s claim that they did not receive an ACH payment.

Automated Clearing House (ACH) Rules

As defined in Title 31 CFR part 210, the Automated Clearing House (ACH) rules are the Operating

Rules and the Operating Guidelines published by Nacha, formerly NACHA – The Electronic

Payments Association, a national association of regional member clearing house associations, ACH

Operators and participating ﬁnancial institutions located in the United States.

Automated Clearing House (ACH) 45-Day Amount

The Automated Clearing House (ACH) 45-day amount is the dollar amount of all the ACH payments

received within 45 calendar days following the death or legal incapacity of a recipient or the death

of a beneﬁciary.

Automated Enrollment (ENR)

An Automated Enrollment (ENR) is a non-monetary entry sent through the ACH by any Receiving

Depository Financial Institution (RDFI) to a federal government agency participating in the ENR

program for the purpose of transmitting Direct Deposit enrollment information.

Automated Standard Application for Payments (ASAP)

The Automated Standard Application for Payments (ASAP) is a recipient-initialized payment and

information system, designed to provide a single point of contact for the request and delivery of

federal funds.

Authorizing Agency

An authorizing agency is the federal agency that authorized the initiation of the payment.

Banking Day

With reference to a ﬁnancial institution, a banking day is any day on which such ﬁnancial institution

is open to the public during any part of such day for carrying on substantially all of its banking

functions, and, with reference to an Automated Clearing House (ACH) Operator, any day on which

the appropriate facility of such ACH Operator is being operated.

Beneficiary

As defined in Title 31 CFR part 210, a beneficiary is a natural person other than a recipient who is

entitled to receive the beneﬁt of all or part of a benefit payment. To illustrate, in a situation where

there’s a representative payee, the representative payee is the recipient and the beneficiary is the

person on whose behalf the representative payee is managing the payment.

Benefit Payment

As defined in Title 31 CFR part 210, a benefit payment is a payment for a federal entitlement

program or for an annuity, including, but not limited to, payments for Social Security, Supplemental

Security Income, Black Lung, Civil Service Retirement, Railroad Retirement annuity and Railroad

8-3

A Guide to Federal Government ACH Payments

8. Glossary

Green Book

Unemployment and Sickness beneﬁts, Department of Veterans Affairs Compensation and Pension,

and Worker’s Compensation.

Business Day

A business day is a calendar day other than a Saturday, Sunday, or a federal holiday.

Claim Number

A claim number is a number which identiﬁes the recipient’s or beneﬁciary’s records at the federal

agency that authorizes the payment; often a SSN or an equivalent identiﬁcation number.

Claim Number Prefix

A claim number prefix is a one or more alpha character(s) that precedes a claim number. These

letters indicate the type of claim for which beneﬁts are being paid.

Claim Number Suffix

A claim number suffix is a one or two alphanumeric character that follows the claim number. These

characters indicate the type of claim for which beneﬁts are being paid.

Corporate Credit or Debit Entry (CCD)

Corporate Credit or Debit Entry (CCD) is a corporate Automated Clearing House (ACH) format

consisting of one detailed payment record and one addenda record. The Fiscal Service uses this

format primarily to process vendor payments.

Corporate Trade Exchange (CTX)

A Corporate Trade Exchange (CTX) is a corporate Automated Clearing House (ACH) format

consisting of one detailed payment record with up to 9,999 addenda records. The CTX format is

used to transmit information in the American National Standards Institute (ANSI) X12 electronic

data interchange (EDI) syntax.

Death Notification Entry (DNE)

A Death Notification Entry (DNE) is a notice to a Receiving Depository Financial Institution (RDFI)

of the death of a Receiver. Only a federal government agency may originate a DNE entry.

Direct Deposit

Direct deposit is an electronic funds transfer made through an ACH credit entry to a checking or

savings account.

Discretionary Allotment

A discretionary allotment is an amount permitted by the employing federal agency to be deducted

from a federal government employee’s net salary amount and paid to a recipient. The amount of

discretionary allotments may not exceed the net pay due the employee for each pay period after all

deductions required by law are subtracted.

8. Glossary

Green Book

8-4

A Guide to Federal Government ACH Payments

Effective Entry Date

An effective entry date is the date speciﬁed by the originator (authorizing agency) on which it

intends a batch of entries to be settled. For debit entries, the effective entry date is one banking day

following the processing date.

Electronic Federal Tax Payment System (EFTPS)

The Electronic Federal Tax Payment System (EFTPS) is a system through which taxpayers remit

federal tax payments electronically.

FastStart

FastStart is an abbreviated Standard Form (SF) 1199A form used to enroll and/or make changes to

Direct Deposit information.

Federal Payment

As defined in Title 31 CFR part 210, a federal payment is any payment made by an agency. The term

includes, but is not limited to:

(1)

federal wage, salary, and retirement payments;

(2)

vendor and expense reimbursement payments;

(3)

beneﬁt payments; and

(4)

miscellaneous payments including, but not limited to, interagency payments; grants; loans; fees;

principal, interest, and other payments related to United States marketable and nonmarketable

securities, overpayment reimbursements; and payments under federal insurance or guarantee

programs for loans.

Federal Reserve Bank (FRB)

A Federal Reserve Bank (FRB) is a regional bank of the Federal Reserve System, which serves as the

nation’s central bank. FRBs serve as fiscal agents of the federal government’s ﬁscal agent, process

electronic payments for the federal government, and handle federal government deposits and

checks.

Financial Institution

As defined in Title 31 CFR part 210, a financial institution is a bank, savings bank, saving and loan

association, credit union or similar institution.

Flagging

Flagging is the automated marker on an account indicating that one or more account holders is

deceased, and that all future federal payments for that account should be returned.

Financial Organization Master File (FOMF)

A Financial Organization Master File (FOMF) is a master list of ﬁnancial institutions receiving

federal government Automated Clearing House (ACH) payments. It contains routing numbers

(RTNs) and a single ﬁnancial institution name and mailing address for each RTN.

Government Entry

A defined in Title 31 CFR part 210, a government entry is an Automated Clearing House (ACH)

credit or debit entry or entry data originated or received by an agency.

8-5

A Guide to Federal Government ACH Payments

8. Glossary

Green Book

Government Disbursing Office

A government disbursing office is a federal government ofﬁce that disburses payments on behalf of

an authorizing federal agency.

Legal Incapacity

Legal Incapacity is a legal declaration that an individual is unable to manage their affairs properly.

Limited Liability Amount

The sum of the account balance and the Automated Clearing House (ACH) 45-day amount. The

limited liability amount is the ﬁnancial institution’s liability for beneﬁt payments if funds have been

withdrawn from the account after the death or legal incapacity of a recipient or death of a

beneﬁciary, and the ﬁnancial institution meets all requirements for limiting its liability. This

amount may not exceed the outstanding total.

Lockbox

A lockbox is a collection and processing service provided by a financial agent that accelerates the

flow of funds to Treasury's General Account, and processes associated data. This service includes

collecting the agency's mail from a specified post office box; opening envelopes, extracting, sorting,

and batching the envelope contents; scanning and capturing required data from payment

instruments and remittance documents; balancing and totaling batches; recording the payments;

processing the items; making the deposit; and transferring the funds. Agencies receive remittance

data either in hard copy or via electronic format.

Misdirected Payment

A misdirected payment occurs when an agency has originated an ACH credit entry to an account that is

not owned by the payee whose name appears in the ACH payment information.

acha

Nacha is a membership association (previously known as the "NACHA – The Electronic Payments

Association") which manages the development, administration, and governance of the Automated

Clearing House (ACH) network used by ﬁnancial institutions nationwide.

Notice of Reclamation

As defined in Title 31 CFR part 210, a notice of reclamation is a notice sent by electronic, paper, or

other means by the federal government to a Receiving Depository Financial Institution (RDFI)

which identiﬁes the beneﬁt payments that an agency originated after death or legal incapacity of a

recipient or death of a beneﬁciary, and for which the financial institution may be wholly or partially

liable.

Originating Depository Financial Institution (ODFI)

The Originating Depository Financial Institution (ODFI) is the ﬁnancial institution which delivers

Automated Clearing House (ACH) entries directly or indirectly through a third party to its ACH

Operator.

Outstanding Total

As defined in Title 31 CFR part 210, an outstanding total is the sum of all beneﬁt payments received

by a Receiving Depository Financial Institution (RDFI) from an agency after the death or legal

incapacity of a recipient or the death of a beneﬁciary, minus any amount returned to, or recovered

by, the federal government.

8. Glossary

Green Book

8-6

A Guide to Federal Government ACH Payments

Prearranged Payment and Deposit (PPD)

Prearranged Payment and Deposit (PPD) is the Automated Clearing House (ACH) format used by

the federal government for consumer payments.

Reclamation

A reclamation is a procedure to recover from a financial institution the amount of federal

government recurring beneﬁt payments that were paid to a financial institution’s customer through

the automated clearing house (ACH) after the death or legal incapacity of a recipient or the death of

a beneﬁciary.

Receiving Depository Financial Institution (RDFI)

For the purposes of the Green Book, Receiving Depository Financial Institution (RDFI) is the

ﬁnancial institution that receives the payment.

Recipient

As defined in Title 31 CFR part 210, a recipient is a natural person, corporation, or other public or

private entity that is authorized to receive a federal payment from an agency.

Representative Payee

A representative payee is a person or institution authorized by an authorizing federal agency to

accept payments for the beneﬁt of one or more other persons, such as legally incapacitated adults

or dependent children.

Third-Party Processor/Third-Party Service Provider

A third-party processor or third-party service provider is a company that receives and processes

Automated Clearing House (ACH) transaction data for a ﬁnancial institution.

Trace Number

A trace number is a ﬁfteen-digit number assigned by the Originating Depositary Financial

Institution (ODFI) to uniquely identify an Automated Clearing House (ACH) entry. The ﬁrst eight

digits are the ODFI’s routing number, and the last seven digits are the unique item number. The

trace number is part of the original payment data forwarded to the ﬁnancial institution and is

included in each Entry Detail, Corporate Entry Detail, and Entry Detail Addenda Record.

Trace Request (FS Form 150.1)

A trace request is a form sent by the government disbursing ofﬁce to a ﬁnancial institution

reporting a n

on-receipt claim by a payee for an Automated Clearing House (ACH) payment.

TreasuryDirect

TreasuryDirect is a book-entry securities system in which investors’ accounts of book-entry

Treasury marketable securities are maintained. It is designed for investors who purchase Treasury

securities and intend to hold them until maturity.

8-7

A Guide to Federal Government ACH Payments

8. Glossary

Green Book

easury Financial Manual

As d

efined in Title 31 CFR part 210, the Treasury Financial Manual (TFM) is a manual issued by the

Fiscal Service containing procedures to be observed by all agencies, Federal Reserve Banks (FRB),

and ﬁnancial institutions with respect to payments, collections, central accounting, ﬁnancial

reporting, and other government-wide ﬁscal responsibilities of the Treasury.

Vend

or Payment

A vendor payment is the electronic transfer of funds and payment-related information used by the

federal government for payments to businesses that provide goods and services.

9-1

A Guide to Federal Government ACH Payments

Forms

This Chapter includes all Green Book forms.

Appendix #

Form

Title

1. FS Form 133 Notice of Reclamation Form

2. FS Form 150.1 Payment Trace Request Form

3. FS Form 1199A Direct Deposit Sign-Up Form

4. FS Form 1200 Direct Deposit Sign-Up Form

5. FS Form 2942 Follow-Up To Notice of Reclamation

6. SF 3881 ACH Vendor/Miscellaneous Payment Enrollment Form