TN 3 (02-95)
GN 01703.260 How to Process Life-to-Death Conversions
The death termination program terminates entitled totalization beneficiaries but does not convert auxiliary benefits to survivor benefits or pay the LSDP. Therefore, manual action must be taken.
These instructions only apply to cases in which the United States is paying totalization benefits.
B. Procedure - benefit authorizer
When processing life-to-death conversions:
Convert auxiliary benefits to survivor benefits via MADCAP using the same pro rata PIA used to compute the life benefits.
If there are surviving entitled children or a LSDP of less than $255 is payable, route the case to a CA to determine if currently insured status based only on U.S. coverage is met.
Note: In most instances a higher benefit is payable when currently insured status is met based on U.S. coverage alone. This is because the benefit is not pro rated.
Send a notice informing the survivor(s) of the new benefit. Most agreement countries do not pay life auxiliary benefits; therefore, include a paragraph to inform the beneficiaries that survivor benefits may be payable in the foreign country. (They may apply through a local SSA field office or directly with the foreign country.)
C. Procedure - claims authorizer
Consider the following when evaluating fully or currently insured status.
1. Possibility of fully or currently insured status
Review or develop for proof of lag earnings through the quarter of death if there is an indication they may exist.
Request a current U.S. earnings record which includes the proven lag.
When the earnings record is received, determine whether fully or currently insured status is met.
Proceed as in 2 or 3 below.
2. Currently insured status is met
If currently insured status is met based on U.S. coverage only, calculate the nontotalization survivor benefit.
If the nontotalization survivor benefit is higher than the totalization benefit
If the non-totalization benefit is lower than the totalization benefit, no further action is necessary.
3. Fully or currently insured status not met
If fully or currently insured status is not met:
Annotate the earnings record that insured status is not met even with additional lag wages.
Recompute the pro rata PIA to include any additional earnings.
Prepare an amended award if the pro rata PIA increases.
Request a BA to process the amended award through MADCAP.