Effective Dates: 09/27/2011 - Present Previous | Next

TN 6 (09-11)

GN 02603.020 Deduction before Reduction and Facility of Payment

A. Introduction to deduction before reduction

The purpose of this provision is to permit the payment of the original benefit or the full family maximum benefit to the other beneficiaries on the record who are not subject to a deduction. Although a beneficiary may be subject to a deduction, the total amount payable to the family as a whole may stay the same. Any benefit rates changed due to the deduction-before-reduction provisions are readjusted rates.

B. Policy for applying the deduction

Take the reduction for the family maximum after making the deductions listed on GN 02603.040. The deduction-before-reduction provision applies:

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    to auxiliaries or survivors whose benefits are subject to the family maximum and to a deduction event as listed in GN 02603.040, or

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    when the number holder is subject to penalty deductions or unpaid maritime tax deductions.

NOTE: When any auxiliary or survivor is entitled to benefits that are not subject to the family maximum; i.e., a divorced spouse or surviving divorced spouse, consider only the auxiliaries or survivors who are subject to the maximum in calculating a benefit readjustment.

C. Benefit amount definitions

1. Original benefit

An original benefit is a full benefit amount from the percentage of the primary insurance amount (PIA) due the auxiliary or survivor.

2. Adjusted benefit

An adjusted benefit is a benefit amount after adjusting the original benefit for the family maximum. Derive the adjusted benefit by proportionately dividing the family maximum based on the auxiliary or survivor's original benefit.

3. Readjusted rate

A readjusted rate is a benefit amount after applying the deduction before reduction provision. The amount ranges from zero for the beneficiary subject to a full deduction to the original benefit for an auxiliary or survivor not subject to a deduction.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202603020
GN 02603.020 - Deduction before Reduction and Facility of Payment - 09/27/2011
Batch run: 09/15/2025
Rev:09/27/2011