Effective Dates: 11/29/2023 - Present Previous | Next

TN 49 (11-23)

RS 02501.150 Beneficiary Entitled on Two Earnings Records (E/Rs) Both Beneficiaries with Simultaneous Entitlement and Other Number Holder (NH) Have Excess Earnings

A. Policy for charging excess earnings

1. Full month withholding

When a beneficiary has entitlement to both auxiliary benefits and retirement insurance benefits (RIB), charge the excess earnings against their auxiliary benefit to the extent that the auxiliary benefit is not subject to deductions because of the other NH's work. Charge the excess earnings to the RIB without regard to the other NH's excess earnings.

2. Partial month withholding

If a beneficiary has entitlement on their own and their spouse's ER and has excess earnings chargeable to a month in which they share a partial benefit on the spouse's ER, charge their excess for the month to the combined amount of their RIB and their share of the partial benefit.

If their excess earnings for the month in question is less than the combined amount, we must apportion the earnings. If two trust funds are involved or there is entitlement with an additional beneficiary (other than the two spouses) on either ER, make the required apportionment under the rules in RS 02501.145.

For purposes of the initial apportionment of the beneficiary's excess to their spouse's benefit, consider the amount due to them without any deduction because of their own or their spouse's work. Regardless of this apportionment, only charge the beneficiary's excess earnings to the spouse's ER up to the amount paid to them after charging the spouse's excess earnings. The amount charged to the beneficiary's own ER will be the difference between the total of their excess chargeable to the month and the lesser of:

  • •

    The apportioned amount of the excess charged to the spouse's ER on the basis of benefits payable; or

  • •

    An amount equal to the beneficiary's share of the partial benefit on the spouse's ER after charging the spouse's excess.

B. Example when both spouses have excess earnings

John had excess earnings of $720 and their spouse, Ada, had excess earnings of $150. Ada was also entitled on their own ER.

Original rates on John's ER

A(John)

$240 (2/4)

B(Ada)

$120 (1/4)

C

$120 (1/4)

Total

$480

Benefits on Ada's ER

A(Ada)

$110

Benefits payable on John's ER

A(John)

$240

B(Ada)

$ 10

 

($120-110)

C

$120

Total

$370

Amount of John's excess charged to January benefits

A(John)

$240

B(Ada)

$ 10

C

$120

Total

$370

Partial benefits for February after charging John's remaining excess of $350

A

$10

B

$ 5

C

$ 5

Total

$20

($370 minus 350 = $20 prorated on the basis of 4 shares)

How to charge Ada's excess earnings from January-February

Charge Ada's total excess of $150 against their own monthly rate of $110 for January because John and the family are subject to a deduction because of John's work. In February, because of John's fully charged excess and there is money left to pay, charge Ada's excess against the total of their A and B benefit of $115 (their benefit of $110 plus the $5 payable to them on John's account). Ada's remaining excess is $35. Since there is another beneficiary besides the two workers, apportion the amount for February. For information on a beneficiary entitled on two earnings records and only the beneficiary with simultaneous entitlement has excess earnings, see RS 02501.145.

B (ADA)

January 0 plus February $3.30 payable

 

5/115 x $40 = $1.70

$5.00-$1.70 = $3.30

(ADA) February $110 plus $36.70 = $150

Partial benefit payable for February

A (John) $10

B (Ada) $1 ($1.70 rounded down to the nearest dollar)

A (Ada) $73 rounded ($73.30 rounded)

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302501150
RS 02501.150 - Beneficiary Entitled on Two Earnings Records (E/Rs) Both Beneficiaries with Simultaneous Entitlement and Other Number Holder (NH) Have Excess Earnings - 11/29/2023
Batch run: 11/29/2023
Rev:11/29/2023