How many days do Federal agencies have to initiate Reclamations after receiving notification of death?

How many days do Federal agencies have to initiate Reclamations after receiving notification of death?

• A. 90 calendar days
• B. 120 calendar days
• C. 150 calendar days
• D. 180 calendar days

Answer: (B)

Federal agencies have 120 calendar days to initiate Reclamations after receiving notification of death, and this timeframe is significant for maintaining compliance with regulations governing ACH transactions. The Reclamation process allows for the return of funds associated with automatic payments made to a deceased individual, thus protecting financial interests and ensuring proper handling of accounts affected by such sensitive events. This 120-day window provides agencies sufficient time to verify the death, confirm eligibility, and process any necessary administrative actions to reclaim funds, aligning with federal guidelines and ensuring responsible management of taxpayer dollars. Understanding this timeframe is crucial for professionals in the ACH network as it directly affects how they manage payments and account adjustments in relation to deceased individuals.

Federal agencies have 120 calendar days to initiate Reclamations after receiving notification of death, and this timeframe is significant for maintaining compliance with regulations governing ACH transactions. The Reclamation process allows for the return of funds associated with automatic payments made to a deceased individual, thus protecting financial interests and ensuring proper handling of accounts affected by such sensitive events.

This 120-day window provides agencies sufficient time to verify the death, confirm eligibility, and process any necessary administrative actions to reclaim funds, aligning with federal guidelines and ensuring responsible management of taxpayer dollars. Understanding this timeframe is crucial for professionals in the ACH network as it directly affects how they manage payments and account adjustments in relation to deceased individuals.