BASIC (09-08)

Citations:

Social Security Act, Section 202(d)

The 1981 amendments provided for the gradual phaseout of benefits to post-secondary school students. Students who qualified under the phaseout provision were not entitled to receive benefits for the months of May, June, July or August of 1982-1985. The child original benefit was zero during these months.

Beginning each September of 1982, 1983 and 1984, phaseout students were entitled to receive benefits. However, the student child beneficiary original benefit (SCBOB) was used instead of the normal child original benefit of 50 or 75 percent of the number holder’s PIA for a life or survivor claim, respectively.

A. Computing Workers’ Compensation (WC) offset involving phaseout students

1. Offset for months other than May through August

Compute offset, including Total Family Benefit (TFB), as if the phaseout student received a normal share of the maximum. Follow the instructions in DI 52170.045B. or DI 52170.045C. in this section depending on the family composition.

Compute the amount payable to the phaseout student and the other auxiliaries. NOTE: Using the manual computation forms, the total auxiliary amount after offset is the total auxiliary benefits from line 3.D. of the SSA-2455, line L of the SSA-3643, or line 2.F. of the SSA-2454.

2. Offset for phaseout student suspension period - May through August

Compute the amount payable after offset and distribute as if the phaseout student were not entitled. The student suspension does not change the TFB.

3. Adjusting benefits when phaseout student suspension causes max to non-max situation

Recompute offset for the remaining auxiliaries from the first possible month of offset. The student suspension does not change the TFB.

4. Adjustment in September - Phaseout student out of suspense

Compute as in DI 52170.045A.1. in this section.

B. Calculating amounts payable after offset - family maximum not involved or post-secondary student is the only auxiliary

Whenever offset needs to be computed (e.g., when the SCBOB decreases in 09/1983 and 09/1984 and when there is a WC change), compare the SCBOB and the amount payable after offset for the phaseout student and pay whichever is less per the procedures below:

1. Compute the normal amount payable after offset but do not include any cost-of-living increases for the phaseout student after 05/1982.

2. Determine the SCBOB for the month in question.

3. Pay the phaseout student either the amount payable after offset or the SCBOB, whichever is less.

4. Pay the other auxiliaries their normal amount payable after offset.

C. Calculating Amounts Payable After Offset – Family Maximum Involved

To compute the phaseout student’s amount payable:

• Use a modified version of the phaseout student formula.

• Multiply the total amount payable to auxiliaries after offset times the SCBOB and divide by the Total Original Benefit (TOTOB). The TOTOB is the total of all the original benefits for all the auxiliaries or survivors (including the phaseout student).

To compute benefits payable to the phaseout student, use the following formula:

To compute the remaining auxiliaries’ benefits payable after offset, substitute their original benefit for the SCBOB in the above formula as shown in the table below.

D. Example

HA, HB2, HC1 and HC2 are entitled to benefits. HC2 is a phaseout student. HA began receiving WC of $100 per month in 07/1981. The 80 percent ACE is $330. The TFB is $337.50 and is the applicable limit.

The benefit rates in 08/1981 are:

The amounts payable after offset are:

C2 suspended in 05/1982. Rates for B2, C1 changed per DI 52170.045A.2. in this section. The family maximum is involved.

The 06/1982 COLA increase is 7.4 percent.

In 09/1982 the phaseout student is reinstated. The 09/1982 SCBOB is 75 percent of the 08/1981 OB.

Figure the 09/1982 TOTOB.

Compute HC2 09/1982 benefit after offset using the formula in DI 52170.045C.1. in this section. To figure the total auxiliary amount payable after offset, multiply the $10.40 HB2, HC1 06/1982 benefit rate times 2.

Calculate the 09/1982 HB2 and HC1 benefit amounts after offset using the formula in DI 52170.045C.2. in this section.

In 09/1983, the SCBOB is reduced to 50 percent of the 08/1981 OB. Compute the SCBOB. (NOTE: There was no COLA increase in 06/1983.)

The TOTOB decreases as well.

Compute the amount payable to HC2 beginning 09/1983.

Compute the amounts payable to HB2 and HC1.