Claims

1
AFC
PFC
Claims Consolidation
KFC
SFC
June 2006
2
Background

• In an effort to streamline work, various Claims
  activities will be consolidated in Regional
  Operations (RO).
• This effort will accomplish economies of scale
  and potential reduction in equipment needs.

3
Background (contd)

• A workgroup was formed with representatives from
  each of the four Regional Financial Centers (RFC)
  and Washington office.
• The purpose of the group was to identify, review,
  analyze key action items or issues, and
  substantiate a recommendation to consolidate
  specific claims activities.

4
Parameters

• The RFC Regional Directors established the
  following set of parameters for the work group
• There should be no degradation of service to
  customer agencies
• Priority should be given to linking the
  accountability back to the original RFC of
  disbursement
• All four RFCs retain some capability to accept
  and deposit miscellaneous receipts

5
Workload Distribution

• RO Management looked at three distinct and
  geography-independent functions
• Returned Payments
• ACH non-receipt trace requests
• EFT Reclamations
• These tasks will be realigned so that each is
  carried out in no more than two RFCs.

6
Workload Distribution (contd)

• The consolidation of Claims activities will occur
  within the Claims Branches at each of the four
  RFCs
• Austin Financial Center (AFC)
• Kansas City Financial Center (KFC)
• Philadelphia Financial Center (PFC)
• San Francisco Financial Center (SFC)

7
Workload Distribution (contd)

• The Claims work will be consolidated as follows
• Returned Payments KFC and PFC
• EFT Reclamations AFC and SFC
• ACH non-receipts PFC and KFC

8
Returned Payment activities

• Cancellation Schedules (1098, 145, 1185)
• Daily Check EFT reconciliations
• FRB Deposit ticket Debit voucher processing
• Limited Payability checks
• Returned Checks
• Unidentified remittances
• Mailing Notice of Change (NOC) forms
• Contested Dishonored items

9
EFT Reclamation activities

• Mailing Notice of Reclamations (FMS-133)
• Analyze 133 responses from banks
• FMS-135 Debits
• Reclaims for agencies
• Mailing Follow-up notices (FMS-2942)
• 120-day protest letters
• Non-Entitlement Death Report (NEDs)
• Unprocessed Reclamation remittances

10
ACH non-receipt activities

• Teletrace (SSA/SSI)
• Miscellaneous agency trace requests
• 150.2 and 150.1 paper traces
• (OPM, VA, and IRS)

11
Rationale for the Movement of Work

• From a big picture perspective, this
  consolidation scenario moves FTEs and some
  equipment from historically larger RFCs to
  smaller ones culminating in four RFCs that are
  more evenly balanced across the board.
• Consolidation of claims work will help eliminate
  very small work tasks that are presently being
  performed by all RFCs thus helping to capitalize
  on scale of economy processing.
• Consolidating each primary claims activity into
  two RFCs will help to achieve a higher level of
  expertise for those activities.

12
Phone Inquiries

• In addition to the physical work moving, phone
  inquiries from agencies, financial institutions
  and the general public will move to remain
  aligned with the RFC processing the work.
• Teletrace inquiries will be directed to our toll
  free number (1-888-681-4304)
• Agency miscellaneous trace requests and returned
  payment inquiries will be directed to our
  Customer Service Help Desk Unit (816-414-2100)

13
Business Contingency Planning

• The consolidation of Claims work will further
  accommodate a clean transfer of work workload if
  contingency processing becomes necessary.
• In the event a situation arises, the RFC that
  performs the same work will assume responsibility
  for the work of the RFC in crisis.

14
Implementation October 1st, 2006

• Due to work volumes and resources available at
  each RFC, the Claims consolidation effort will
  take place concurrently at all RFCs for Claims
  activities.
• We are targeting to implement the Claims
  Consolidation on October 1, 2006 and all work
  will transition on that date

15
Impact on the Kansas City Regional Financial
Center

• KFC will be picking up the following work from
  SFC
• All returned payments (check and EFT)
• SSA Western Service Center Teletrace
• OPM 150.2 and 150.1 paper traces
• SFC will be picking up the following work from
  KFC
• SSA/SSI Reclamation activity

16
RFC Points of Contact

• Francie Abbott
• Financial Services and Support Branch Manager
• Kansas City Regional Financial Center
• [phone]
• Debbie Price
• Claims Branch Manager
• San Francisco Regional Financial Center
• [phone]