Effective Dates: 05/21/2013 - Present Previous | Next

TN 22 (04-12)

GN 02610.016 When Title II/Title XVI Windfall Offset Applies

A. When windfall offset applies

  • •

    The beneficiary is entitled to both title II and title XVI benefits for the same month;

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    title II benefits are due retroactively;

  • •

    title XVI benefits would be less if the title II had been paid when due; title II claim is adjudicated after 06/30/81.

For cases affected by Dion and Fagner rulings, see GN 02610.061. For information about complex windfall offset situations with case examples, see GN 02610.050. For information about negative cases, see SI 02006.201.

NOTE: Windfall offset does not apply to the lump sum death payment.

 

B. Specific windfall offset situations

 

If the event is

then...

an initial claim

apply offset if the case meets the conditions in GN 02610.016A.

a subsequent award

apply offset if additional title II benefits become due because of an application for:

  • •

    dual entitlement;

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    retirement insurance benefits (RIB) to disability insurance benefits (DIB);

  • •

    widow insurance benefits (WIB) to RIB;

  • •

    child benefits (C1) to disability insurance benefits (HA).

a reinstatement
  • •

    apply offset when an auxiliary is reinstated and the auxiliary is entitled to title XVI benefits (e.g., the SSI eligible child becomes entitled as a disabled adult child (DAC));

  • •

    apply offset to expedited reinstatement cases. For policy on title II and title XVI expedited reinstatement cases, see DI 13050.025 and DI 13050.030.

  • •

    do not apply offset for reinstatements from S7 PRISON, MENTAL or PREDTR prisoner suspensions and fugitive felon S9 FUGFEL suspensions.

NOTE: Beginning 07/85, every reinstatement following a disability related suspension or termination is a potential offset case. Title II offset does not apply to reinstatement from LAF S6 (address) or S8 (payee). In these cases, title XVI offset will automatically apply because the Supplemental Security Income (SSI) system will continue to post the title II income in the suspended months.

a reentitlement

(effective 12/95 or later)

apply offset if there is a new period of entitlement or a new type of entitlement other than a resumption of benefits, e.g., a child beneficiary being reentitled as a student.

a conversion

apply offset if a conversion is beneficiary identification code (BIC) B to D and is part of the original award.

NOTE: Offset does not apply if retroactive retirement, survivor, disability (RSDI) benefits are from an automatic conversion processed after an initial award is adjudicated even if the conversion event occurs during the offset period. Benefit conversions requiring an application are subject to offset. The SSA-25 Certificate of Election for Reduced Spouse’s Benefits is not an application.

a title II
postentitlement
event within the offset period (e.g., an amended award)

  • •

    apply offset if the title II date of entitlement (DOE) is changing to a month earlier than the MBR DOE, and the title II benefit amount (MBA) used in a prior offset computation increases, decreases, or stays the same. For more information when the title II DOE changes to an earlier month, see GN 02610.050B.2.

  • •

    apply offset if the title II DOE is changing to a month later than the MBR DOE and the title II benefit amount (MBA) used in a prior offset computation increases, decreases, or stays the same. For more information when the title II DOE changes to a later month, see GN 02610.050B.1.

  • •

    apply offset if the title II DOE does not change and the title II benefit amount (MBA) used in a prior computation decreases. For more information when the title II DOE does not change, see GN 02610.050B.3.

NOTE: If the title II DOE does not change, no recomputation is required when the title II MBA increases or stays the same. For additional information about processing recomputations of title II offset, see GN 02610.050B.
To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202610016
GN 02610.016 - When Title II/Title XVI Windfall Offset Applies - 05/21/2013
Batch run: 05/21/2013
Rev:05/21/2013