TN 21 (01-98)

Citations:

Act, Sec. 209(a)(13);

20 CFR 404.1059(g)

A. POLICY

Beginning January 1, 1973, employer payments to the employee are excluded from wages if the employee at the time of such payments:

• was entitled to Disability Insurance Benefits (DIB); and

• the DIB entitlement began (first year for which the DIB is paid) before the calendar year in which the employer's payment is made; and

• the employee does not perform any services for the employer in the pay period for which the payments are made.

NOTE: This provision is effective only during the period an individual is entitled to DIB. It ceases to be effective when the DIB beneficiary is converted to a retirement and survivors insurance (RSI) beneficiary.

B. REFERENCES

• Section 209(a)(13) of the Act

• 20 CFR 404.1059(g)