TN 11 (09-89)

A. Operating Policy

1. TITLE II OFFSET CRITERIA - TITLE II OP

If we release SSI and title II benefits without imposing offset, but the title II offset criteria are met (see GN 02610.005 ff.), the offset amount is a title II OP.

2. INCOME FOR SSI PURPOSES

The retroactive title II income due in the offset period is not income when received. (See SI 00830.015.)

3. OFFSET COMPUTATION

The title II offset must be computed as if the retroactive title II income due in the offset period had not been received.

B. Operating Procedures

1. IDENTIFY SITUATIONS REQUIRING CORRECTION

1. In most cases, if an SSI recipient receives a retroactive title II payment in July 1981 or later, title II offset does not apply or the retroactive payment represents benefits due after application of the offset. However, the retroactive title II payment may have been made because we should have applied title II offset, but did not.

2. You may discover this when you receive:

   • An alert that an SSI recipient received a title II payment greater than $1,500; or

   • An OP diary caused by a retroactive title II payment (see SM 01320.030).

3. If you cannot determinethat the conditions for title II offset are met without contacting the PC, send the PC a Report of Contact (SSA-5002):

   • Briefly describe the nature of the referral.

   • Attach an MBR query and an SSI query.

   • Request the PC to contact the FO for the offset computation.

2. CORRECT THE INCOME

Remove from the SSR the amount of the title II retroactive benefit that we should not have considered countable income when received (the retroactive title II income due in the offset period).

3. IMPOSE THE OFFSET

Trigger an automated offset computation per SM 01320.200. Advise the PC of the offset amount.

C. Example

1. FACTS

• SSI DOE = April 1989;

• SSI received in April = $368;

• SSI received in May = $368.

• Retroactive title II received in June 1986 = $800;

• The $800 represents title II income of $200 per month that was due in March through June;

• First regular monthly title II benefit is paid in July.

2. CONCLUSIONS

• Title II offset criteria are met;

• Offset period = April through August;

• Retroactive title II income due in the offset period = $600—the title II income due in April, May, and June.

• Title II income remaining in June = $200—the title II income due in March, because March is outside the offset period.