The Section 301 provision allows continued benefits (including Medicare and Medicaid) to the beneficiary and any auxiliaries on the record following medical cessation until the beneficiary stops participating in the vocational program, or ODO determines that continued participation will not increase the likelihood of permanent removal from the disability rolls. ODO annotates the decision in the special message field of the MBR. The FO checks eView and EP for the Section 301 decision and updates the 301DEC tickle accordingly when the 301DEC tickle on the DCF Continuing Disability Review Worksheet (CDRW) matures.

The FO receives Title XVI and concurrent Section 301 payment continuation cases with the Section 301 flag from ODO by email (accessing the Detailed Office/Organization Resource System (DOORS) to identify the appropriate email address) with the subject line “Action: Section 301 VP Diary Update Needed.” The FO takes the following actions:

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  Input or update the Vocational Rehabilitation Plan (VP) diary using the diaries (UDIA) function in Direct SSR Update. The VP diary prevents the case from updating to an N07/N08 payment status;

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  Update the 301DEC issue on the DCF and Development Worksheet; and

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  Annotate the SSR remarks with “Section 301 payment continuation. Program participation expected to end MM/YY.”

ODO reviews the SSR for the updated VP diary. ODO will follow up by email if the FO has not updated the VP diary within 15 days.

NOTE: If N07/N08 termination occurred, reinstate benefits effective with the N07/N08 month. If N07/N08 termination has not occurred, the FO removes the N07/N08 future action.

ODO processes the termination action, sends the closed period notice, and annotates the decision in the special message field of the MBR. The FO checks eView and EP for the Section 301 decision, and receipts in the 301DEC tickle when the 301DEC tickle on the DCF CDRW matures.

ODO sends the closed period notice and emails the FO advising them to:

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  Delete the VP diary;

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  Receipt in the 301 Issue on the DCF and Development Worksheet;

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  Input N07/N08, effective with the month after the month shown in item 9C of the SSA-832 (Cessation Or Continuance of Disability or Blindness Determination and Transmittal - Title XVI); and

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  Annotate the SSR remarks with “Section 301 closed period MM/YY-MM/YY.”

ODO reviews the SSR for the N07/N08 input. ODO will follow up by email if the FO has not updated the diary within 15 days.

ODO processes the termination action, sends the denial notice, and annotates the decision in the special message field of the MBR. The FO checks eView and EP for the Section 301 decision and receipts in the 301DEC tickle when the 301DEC tickle on the DCF CDRW matures.

ODO sends the denial notice and emails the FO advising them to:

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  Delete the VP diary;

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  Receipt-in the 301 Issue on the DCF and Development Worksheet;

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  Input N07/N08, effective with the month after the month shown in item 9C of the SSA-832; and

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  Annotate the SSR remarks with “Section 301 denial.”

ODO reviews the SSR for the N07/N08 input. ODO follow up by email if the FO has not updated the diary within 15 days.

Do not create a work review in eWork.

Do not process a work CDR or a substantial gainful activity (SGA) determination for beneficiaries receiving Section 301 payments. Such beneficiaries are not entitled to a Trial Work Period (TWP), or Extended Period of Eligibility (EPE).

If the beneficiary files an appeal of the medical cessation with payment continuation, the FO suspends Section 301 development.

If the suspension of Section 301 development is due to statutory benefit continuation (SBC), the FO refers to DI 12027.050. The FO determines if the TWP has been completed and if the claimant would be placed in S9 if there is SGA in the EPE.

Non-disability provisions, such as income counting and resource limits, continue to apply to beneficiaries receiving Section 301 payments. Apply the earned and unearned income exclusions to the work and earnings of these beneficiaries as appropriate. This includes Impairment-Related Work Expenses (IRWE), Blind Work Expenses (BWE), Student Earned Income Exclusions (SEIE), and the Plan to Achieve Self-Support (PASS). We can modify a PASS while a beneficiary is receiving Section 301 payments; however, we cannot approve a new PASS after we determine that the beneficiary is no longer disabled.

ODO sends the required notices, updates the remarks on the MBR and terminates benefits. If ODO does not receipt the DCF tickle, the FO will complete this action.

ODO releases the termination notice, annotates the DCF, and sends an email to the FO requesting immediate action to terminate benefits with the effective date.

The FO processes the termination with a two-day action:

Day 1 - Use MSSICS Direct SSR Update:

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  Delete the VP diary;

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  Transmit the MG code of T with the disability cessation date (if not already on the record) using the Continuing Disability Review (UDCR) Screen;

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  Input a Remark indicating the period of Section 301 eligibility and termination date; and

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  Suppress all notices per SM 01301.675.

Input ensures the correct cessation date shows on the record.

Day 2 - Use SSI Data Inputs – SPE1 (PE Single Input):

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  Input N07/N08 per SM 01305.001 or an SZ code of N per SM 01301.450 for the month benefits terminate per ODO's instructions (See also SM 01305.005 to determine the code, message, and action required for each payment status (PS) field reject and alert); and

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  Suppress all notices.

Input ensures the correct months of payment after cessation are shown on the record.

NOTE: Check all inputs for the proper C01 and N07 months to ensure the overpayment or the underpayment is correct.

ODO reviews the SSR for the N07/N08 input. ODO will follow up by email if the FO has not updated the diary within 15 days.

During any PE discussions, if the MBR has a 301 indicator or 301 payment remarks, ask the beneficiary or representative payee if thebeneficiary is participating in VR or a similar program. If the beneficiary stopped participating or the program ended, accept the allegation and:

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  Obtain a statement from the beneficiary on an SSA-5002 (Report of Contact) showing the date the program ended or the date participation ceased and fax it into eView or EP;

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  Send a manual due process notice. Follow the instructions in DI 14510.007H.3;

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  Wait 15 days for a response to the due process notice;

If there is no response or the information you receive does not change the decision to suspend benefits, input an S9 suspension the month after participation ended and:

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  Input a 60-day diary (301DEC) using the CDRW on the DCF for case control;

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  Transmit the Potential Section 301 Case Flag and SSA-5002 to ODO using the EP's 4290 Barcode. Select the "Yes" on the Document Information screen, to make the transmission actionable when PC involvement is required;

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  Check the block “Case S9.” Provide the effective S9 date and the date participation stopped or the program ended;

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  Update the remarks on the MBR, “Section 301 participation ended. Sent to ODO MM/DD/YY.”

During an RZ or any other PE event, if the case has a VP diary, ask the beneficiary or representative payee if they are participating in VR or a similar program. If the beneficiary states that the program ended for any reason, accept the beneficiary’s allegation, and:

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  Obtain a statement from the claimant on an SSA-5002 or on the Person Statement page in the Consolidated Claims Experience (CCE) Supplemental Security Income pages, showing the date the program ended or the date participation ceased and fax it into eView or EP;

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  Send a manual due process notice. Follow instructions in DI 14510.007H3; and

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  Wait 15 days for a response to the due process notice.

If you receive no response, or the information you receive does not change the decision to suspend benefits:

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  Input payment status N05 with the next Current Operating Month (COM) to avoid multiple overpayments;

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  Establish a tickle on the DCF or the Development Worksheet page for case control;

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  Suppress the systems-generated notice;

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  Add the Remark, "N05 due to pending 301 determination, participation ended MM/YY” to the SSR;

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  Transmit the Potential 301 Flag and SSA-5002 to ODO using the EP's 4290 Barcode. Select the "Yes" on the Document Information screen, to make the transmission actionable when PC involvement is required;

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  Check the block “Case N05.” Provide the effective N05 date and the date participation stopped or the program ended.

For Title II cases, send the SSA-L951-U2 (Social Security Notice Letterhead). For Title XVI cases, send an SSA-8165-U2 (Important Information) notice to the beneficiary and the representative payee using the following language:

“We plan to suspend your benefits, effective MM/YYYY, because you told us that you are no longer participating in your approved program of vocational rehabilitation, employment training, educational, or other support services.

On <fill in date of previous notice>, we notified you that your disability had ended, but we would continue to pay you because you were participating in an appropriate program of vocational rehabilitation, employment training, or educational or other services.

You told us that you stopped participating in your program in MM/YYYY.

Another office will make the special decision about whether you are eligible for payments for the month your disability ended through the month your participation in the program ended. We will notify you of their decision in another letter.

If you have any questions, you may contact your local Social Security office. The address and telephone number are printed at the top of this notice. If you call or visit a Social Security office, please have this notice with you. It will help us answer your questions.”