TN 88 (02-02)

A. Policy

1. Retirement, Survivors, and Disability Insurance (RSDI) Monthly Benefits

Retirement, survivors, and disability insurance (RSDI) monthly benefits are unearned income. (See SI 00830.545 for treatment of lump-sum death payments.)

2. Reductions, Deductions, and Rounding

The amount of Title II after reductions, certain deductions, and dollar rounding, but before the collection of any obligations of the beneficiary (e.g., supplementary medical insurance (SMI) premium, Medicare Part D premium or prior overpayment) is unearned income for SSI purposes.

3. Workers' Compensation Offset

If a monthly benefit payment has been reduced because of a workers compensation offset, the net amount of the benefit received (plus any SMI/Medicare Part D premium withheld) is unearned income.

4. Prior Overpayment

• If all or part of a Title II benefit is being withheld to recover an overpayment, the amount of Title II before deduction for the overpayment is unearned income unless the exception in SI 00830.110B.2. applies.

• If the exception applies (i.e., the overpayment occurred when the individual was receiving SSI and the overpaid amount was included in unearned income at that time), the amount deducted for an overpayment is not included in calculating chargeable Title II income.

• Refund of monies based on a waiver approval is not income if:

  • the money was previously withheld to recover a Title II overpayment;

  • both SSI and Title II benefits were received at the time the Title II overpayment occurred, and

  • the overpaid amount was included in figuring the SSI payment at that time.

5. SMI/Medicare Part D Premiums

The amount of premiums deducted from RSDI benefits for SMI under Medicare or Medicare Part D is unearned income. Refunded SMI/Medicare Part D premiums are not income.

EXAMPLE: An individual's Title II benefits for January 2001 through May 2001 are withheld because of expected work and earnings. He reports in June 2001 that he quit working in February 2001 after sending the annual earnings report. He paid SMI premiums for January - March 2001, April - June 2001, and July - September 2001. A Title II check sent in July 2001 includes full benefits for January - June 2001 and refunds SMI premiums for August - September 2001, which will be withheld from future checks. For SSI purposes, the part of the check, which represents full benefits for January - June 2001 is unearned income in July 2001 and the refunded SMI premiums for August - September 2001 are not income.

6. Facility of Payment Provision – Prior to 01/01/96

When an auxiliary or survivor beneficiary who is subject to work deductions continues to receive benefits under the facility of payment provision (GN 02603.075), those benefits remain the unearned income of the beneficiaries for whom they are actually due.

NOTE: The facility of payment provision was repealed effective January 1, 1996.

7. Garnishment of Title II Benefits

If a monthly Title II benefit payment has been reduced because of a garnishment, the gross amount of the benefit received (plus any SMI premium withheld) is unearned income.

B. Procedure

1. Verifying Title II Income — General

Use information provided by the individual (e.g., claim number) to verify whether he/she is receiving RSDI.

2. Initial Claims or Title II Income Is Not on the Record

For initial claims or situations where Title II income is not recorded on the SSR (see SM 01005.190 for recently filed claims), either request an MBR, a Payment History Update System (PHUS) query (SM 00545.001), or compute the correct amount of Title II for SSI purposes from available information.

NOTE: Examine the MBR carefully. Generally the amount of chargeable Title II income will be shown in the Monthly Benefit Credited (MBC) field displayed in the HISTORY segment. However, be alert to situations where the recipient has received a current month accrual (CMA) check due to the payment of additional Title II benefits. (The CMA amount is displayed in the SCH PAY segment; see SM 00510.115.) The CMA amount posted to the MBR will be the actual amount of money paid to the recipient after any deductions, including deductions for overpayments or SMI premiums. Use this amount to compute chargeable Title II income (adding the deductions, if necessary).

3. Actual Payment History Data Needed

If actual payment history data is needed, use the PHUS.

4. Other Means of Verification

Use evidence an individual may have with him/her (e.g., check, award letter, adjustment letter).

5. Retroactive State Buy-In

If State buy-in applies for a retroactive period, do not develop for a Title XVI overpayment or underpayment based on a possible adjustment in the amount of Title II income due to rounding.

6. Facility of Payment Provision – Prior to 01/01/96

a. Determine if the Facility of Payment Provision Applies (Prior to 01/01/96)

• Check the “TYPE OF MAXIMUM (TOM)” field in RADR (line B) on the MBR to see if the family maximum is involved. (See SM 00505.050.)

• If the family maximum is involved, determine if the auxiliary or survivor beneficiary is working by looking at the work indicator code (WIC) in the HISTORY segment and the current year estimated earnings code (CUR EST) in the ARDATA segment.

  NOTE: If the facility of payment provisions apply, the correct Title II amounts for SSI purposes will be higher or lower than the amount shown on the MBR for each beneficiary involved.

b. Computing Title II Benefits When the Facility of Payment Provision Applies

• Contact the program service center (PSC) for an explanation of the correct benefit amounts.

• Record the information provided by the PSC on the appropriate MSSICS screen or on a Report of Contact for inclusion in the SSI file.

• Use the correct benefit amounts and resulting countable income as the basis for determining the SSI payment.

• Force-pay these cases to assure correct SSI payments.

  NOTE: If the correct Title II amount is input, the interface will overlay the amount input with the amount shown on the MBR and compute SSI payments incorrectly.

NOTE: Effective January 1, 1996, the facility of payment provision was eliminated.

7. Garnishment of Title II Benefits

If a monthly Title II benefit payment has been reduced due to a garnishment, charge the gross benefit payment as income. Use the deductions fields on the ISSA screen to record the garnishment amount (MSOM MSSICS 015.013).

NOTE: Effective 3/7/06, the MBR/SSR interface posts the correct gross Title II benefit amount, deduction indicator, and the garnished amount to the ISSA screen in MSSICS and posts the correct Title II amount to the SSR.

C. References

• Counting retroactive RSDI benefits, SI 00830.010B.

• Force due/force pay, SM 01701.001

• Initial claims input of Type A unearned income, SM 01005.190

• MBR/SSR interface, SM 02001.001

• Posteligibility input of Type A income, SM 01305.280

• Rounding of Benefits, RS 00601.020

• Treatment of reissued Title II monies in change-of-payee situations, SI 01120.022