TN 6 (09-11)

GN 02603.040 Events Subject to Deduction before Reduction

A. Deduction events

The following deductions, listed in order of priority, are subject to the deduction-before-reduction provision:

  • Deduction because of entitlement to a benefit on another record if the case meets the requirements. For information on dual entitlement deductions, see GN 02603.045;

  • Suspension because of failure to file a certificate of election when a spouse under full retirement age is converted to a widow(er);

  • Deduction because of suspension of an auxiliary or survivor benefit under the prisoner suspension provision (For prisoner suspension, see GN 02607.000; and for fugitive felon suspension refer to the note under GN 02613.001A);

  • Deduction because of suspension of an auxiliary or survivor benefit for noncompliance with the drug addiction and alcoholism treatment provisions of P.L. 103-296;

  • Foreign work test deduction for an auxiliary or survivor;

  • No child-in-care deduction;

  • Annual earnings test deduction for an auxiliary or survivor;

  • Unpaid maritime tax deduction; and

  • Penalty deduction for any beneficiary.

B. Policy exceptions

Deductions not listed in GN 02603.040A do not qualify for deduction before reduction. Some of the deductions that do not qualify, are:

  • Government Pension Offset;

  • Age reduction;

  • Workers' Compensation or Public Disability Benefit Offset (see DI 52150.075 for an exception to this rule);

  • Disabled adult child or disabled widow suspended for performing substantial gainful activity (SGA) during an extended period of eligibility (EPE);

  • Work deductions for the number holder that apply to the auxiliaries;

  • Supplementary Medical Insurance premium (SMI) deductions; and

  • Deductions because of suspension for failure to meet lawful presence requirements.

In addition, deduction before reduction does not apply to benefits withheld because of the non-payment provisions. The non-payment provisions are:

  • Deportation;

  • Alien non-payment; and

  • Conviction for subversive activities.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202603040
GN 02603.040 - Events Subject to Deduction before Reduction - 03/24/2015
Batch run: 03/24/2015
Rev:03/24/2015