TN 7 (12-11)

GN 02603.100 Facility of Payment Examples

A. Examples of full deductions

1. Full deduction and same household

The primary insurance amount (PIA) is $300.40 and the family maximum is $548.40. All beneficiaries live together in the same household. E's deduction is equal to her adjusted benefit.

 

BIC

BENEFIT

ADJUSTED

FOR FMAX

ADJUSTED BENEFIT

READJUSTED RATE

E

137.10

0 .00

137.10

C3

137.10

182.80

137.10

C2

137.10

182.80

137.10

C1

137.10

182.80

137.10

 

548.40

548.40

548.40

The total amount payable to the family remains the same based on the readjusted rates. Under the facility-of-payment provision, E continues to receive a readjusted benefit of $137.10 on behalf of the children because the deduction does not affect the total payable The children continue to receive their adjusted benefit of $137.10 each.

2. Full deduction, same household and the maximum is not payable after deductions

The PIA is $300.40 and the family maximum is $548.40. All beneficiaries live together in the same household. E's deduction is equal to her adjusted benefit. After applying deduction before reduction, each child is entitled to an original benefit for the month.

 

BIC

BENEFIT

ADJUSTED

FOE FMAX

ADJUSTED BENEFIT

READJUSTED RATE

E

182.80

 

   85.00

C2

182.80

225.30

182.80

C1

182.80

225.30

182.80

 

548.40

450.60

450.60

The total amount payable to the family decreases $97.80 based on the readjusted rates. Facility-of-payment requires that we impose the deduction only to the extent that it reduces the total payable. E will therefore receive a readjusted benefit of $85.00 and the children continue to receive their adjusted benefit of $182.80 each.

3. Full deductions and different households

The PIA is $300.40 and the family maximum is $548.40. E and three children are entitled to benefits. C1, a disabled child, refuses vocational rehabilitation for the month and his or her benefit is subject to a deduction.

a. C1 is in a separate household:

 

BIC

BENEFIT

ADJUSTED

FOR

FMAX

ADJUSTED BENEFIT

READJUSTED RATE

E

137.10

182.80

182.80

C3

137.10

182.80

182.80

C2

137.10

182.80

182.80

C1

137.10

548.40

0 .00

548.40

0 .00

548.40

Because C1 is in a different household, impose the deduction. Under facility of payment provision, C1 does not receive any readjusted benefit.

b. C2 is in a separate household:

 

BIC

BENEFIT

ADJUSTED FOR

FMAX

ADJUSTED BENEFIT

READJUSTED RATE

E

137.10

182.80

137.10

C3

137.10

182.80

137.10

C1

137.10

0.00

   91.40

 

411.30

365.60

365.60

C2

137.10

182.80

182.80

The amount payable to the first household based on the readjusted rates is $365.60 (a decrease of $45.70). C1 receives a benefit of $91.40 ($137.10 - $45.70) which when added to the 137.10 for E and C3 totals $365.60. Because C2 is in a separate household, he or she receives the full-readjusted rate of $182.80.

B. Example of partial deductions

1. Partial deduction

The PIA is $300.40 and the family maximum is $548.40. All beneficiaries live together. When E files an annual report, her excess earnings are $99.00.

BIC

BENEFIT

ADJUSTED

FOR FMAX

ADJUSTED BENEFIT

READJUSTED RATE

E

137.10

   38.10

137.10

C3

137.10

170.10

137.10

C2

137.10

170.10

137.10

C1

137.10

170.10

137.10

 

548.40

548.40

548.40

The total amount payable to the family remains the same based on the readjusted rates. Under the facility-of-payment provision, E continues to receive $137.10, which represents her readjusted rate of $37.20 plus $99.90 on behalf of the children. The children continue to receive their adjusted benefit of $137.10 each


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202603100
GN 02603.100 - Facility of Payment Examples - 12/16/2011
Batch run: 12/19/2011
Rev:12/16/2011