Social Security DIB may be reduced, or totally offset, if the disabled worker is also
entitled to:
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Federal or State WC payments;
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Federal, State, or local government PDB payments; or
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Both Federal or State WC payments, and Federal, State, or local government PDB payments.
Offset only applies if the number holder (NH) is receiving WC/PDB. Do not consider
offset if the only recipient of WC/PDB is an auxiliary beneficiary.
NOTE: For WC/PDB offset purposes, “State” includes the District of Columbia, American Samoa,
Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
1. When offset is applied
Apply offset when total benefits payable to the worker and any entitled auxiliaries,
plus WC/PDB, exceed the higher of either:
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80 percent of the worker’s ACE; or
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total family benefits (TFB) payable to the worker and any auxiliaries in the first
possible month of offset.
The combined WC/PDB and DIB payments (after the reduction) can never be less than
the amount of the total DIB payments before the reduction.
Reduction of DIB for receipt of WC/PDB stops when one or more of these occur:
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the NH is no longer disabled;
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the NH’s benefits are suspended for SGA;
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a high ACE precludes offset (due to a triennial redetermination or a reduction in
the WC/PDB payment);
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the NH elects reduced retirement insurance benefits (RIB). For information, see DI 52150.030; or
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Reduction of DIB for receipt of WC/PDB also stops when the NH attains:
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full retirement age (FRA) for individuals who attain age 65 on 12/19/15 or later (based
on the new law in the 2015 Amendment);
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age 65 for individuals covered by the 1981 Amendments and who attain age 65 prior
to 12/19/15 ; or
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age 62 (in pre-1981 Amendment cases).
NOTE: For information regarding all amendments, see DI 52101.005.
3. Order of payment after offset
Follow this order:
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1.
If any benefits are payable after offset is applied, they are first paid to the NH;
and
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2.
If the amount payable after offset exceeds the NH’s benefit, we distribute the excess
proportionately to any auxiliaries.
NOTE: Certain divorced spouses are not subject to deduction due to the NH's WC/PDB
offset. Please see RS
00202.035C.2. for clarification.