Due to a miscalculation of the consumer price index (CPI) used to determine cost of living adjustments for calendar year 2000, a number of recipients of Federal payments were underpaid during 2000 and 2001. The Social Security Administration (SSA) will issue special payments to all SSA recipients (approximately 30 million ACH) and Supplemental Security Income (SSI) recipients (approximately 3 million ACH) to cover the amount of the underpayments.

The ACH payments are scheduled to settle Monday, July 16, 2001. The SSA payment file will reflect a July 16 payment date and settlement date. The SSI payments will reflect a July 2, 2001 payment date, but they are not to settle until July 16. Therefore, the Treasury Department will release the SSI ACH Payments on Friday, July 13. In accordance with FEDACH processing rules, these payments will settle on the next business day, Monday July 16.

These payments will be originated using a series of new RTN's for Kansas City, Philadelphia and San Francisco in field 12 of the Company/Batch Header Record. If you subsequently return any of these payments, you should use the Originating RTN in the payment record. For SSA returns, use the date of July 16, 2001. For SSI payments, use the date of July 2, 2001.

If you have any questions on either of these items, please call the Kansas City RFC's Customer Assistance Staff at (816) 414-2100, or Philadelphia RFC's Customer Assistance Staff at 215-516-8015, or the San Francisco RFC's Customer Assistance Staff at 415-817-7300.