Board Resolution 1967-6943

Meeting room

Topic: Retirement Benefit
Subtopic: Benefit Payments: Replacement Checks
Date: 10/27/1967
Status: Active

WHEREAS, some checks issued by the Fund in payment of annuities or other benefits are reported lost or destroyed each month, thereby making it necessary to stop payment and issue replacement checks, and

WHEREAS, the Fund has experienced two cases recently where the payee has endorsed and negotiated both checks, thereby making the Fund liable to holders in due course of said checks, despite the stop payment orders, and

WHEREAS, the Fund can recover overpayments in instances of this type if regular monthly annuities or disability benefits are being paid, but cannot recover when the check is a lump sum, single payment refund or death benefit, therefore be it

a.That replacement checks be issued to annuitants or disability beneficiaries as soon as possible after receipt of a sworn affidavit of the payee to the effect that the last check was not endorsed by him, so as to make the check negotiable, and

b.That replacement checks be issued to all other payees after receipt of the same sworn affidavit, but not earlier than 40 days after the original check was mailed, thereby assuring that the original check has become stale and the Fund is no longer legally liable to holders thereof in due course.