TN 23 (05-13)
GN 02610.035 Computing Manual Windfall Offset Amount
A. When the system cannot compute the offset amounts
The system automates the windfall offset computation for most cases. However, the field office (FO) must manually compute the offset amount for cases where the system cannot automate the computation.
1. Situations that require the FO to manually compute the offset amount
We require the FO to manually compute the offset amount when:
The Processing Center (PC) sends an SSA-e4345, Record of Manual Title II Offset Computation to the FO, or the FO receives a system diary for an offset computation and the FO cannot trigger an automated computation due to one of the limitations described in SM 01320.120. For additional information on how to trigger an automated title II offset computation, see SM 01320.100.
Dual entitlement exists and the FO cannot trigger an automated computation. For additional information on 7W diaries associated with dual entitlement cases, see SM 01320.013B.
A recomputation of the offset applies. For additional information on the recomputation of title II offset, see GN 02610.016, SI 02006.200, and SM 01320.400.
Reference information the FO needs to compute manual offset
For information about:
How to process windfall offset, see GN 02610.016 and SM 01320.005.
Computing benefits for title XVI, see SI 02005.001.
Determining the offset period, see GN 02610.022.
eComputations, see SSI eComputations User Guide.
Using the SSA-4968, Retrospective Monthly Accounting (RMA) Payment Worksheet, see SI 02005.090.
Using the SSA-4346, Supplemental Security Income (SSI) Offset Summary Form to compute the offset amount, see GN 02610.045.
The meaning and resolution of windfall offset diaries and alerts, see SM 01320.010C.
Situations where the FO initiates the record of manual title II offset computation, SSA-e4345, see GN 02610.010C.
Windfall offset data on the Master Beneficiary Record (MBR), see SM 00510.150.
How to post results of a manual title II offset computations to the Supplemental Security Record (SSR), see SM 01320.201.
How to process cases when we release the title II retroactive benefits erroneously before applying windfall offset, see GN 02610.050.
How to compute manual title II offset for both members of an SSI couple simultaneously, see GN 02610.040.
How to post a manual title II offset result to a couple’s record, see SM 01320.204.
How to process a negative or excess manual title II offset computation, see SM 01320.206.
2. Reference information the PC needs to compute manual offset
For information about how to:
Read offset data on the SSR, see SM 01601.820.
Post offset data to MBR, see SM 00815.001 and SM 00815.500.
Complete the SSA-e4345, see GN 02610.047 and GN 02610.049.
Process Administrative Law Judge (ALJ) decisions when windfall offset is involved, see GN 02610.055.
Processing offset with representative fees involved, see GN 02610.053.
Process offset with a collectible title XVI overpayment, see SI 02220.021.
Process complex windfall offset situations, see GN 02610.050.
B. How to compute the windfall offset amounts manually
The FO must take the following steps to compute title II offset amounts:
Determine the offset period following the instructions in GN 02610.022. If the PC sends an SSA-e4345 requesting a manual computation by the FO:
NOTE: When processing a manual computation, the PC and FO exchange windfall offset results using the SSA-e4345.
Identify the title II benefits due in each month of the offset period using information on the SSA-e4345 or obtained from an AACT or PHUS query.
Enter monthly title II benefits due in the offset period using eComputation (eComps) or an SSA-4968-U2 or equivalent to compute the title XVI amount that is due for each month counting title II benefits, as if paid when due.
NOTE: eComps is an intranet application that will perform manual computations for title XVI records in situations where the automated system cannot complete the computation.
Subtract the results of step 3 from the title XVI amount that was due on the SSR SSID FAM for each month. Review the Federal Amount Due (FAM) field in the Computation History (CMPH) segment of the SSID query for each month.
RESULT: This amount is the windfall federal offset amount (WFO).
Enter the WFO on the SSAe4345, as follows:
If the title II benefit is a disability benefit, use column 2, “DIB.”
If the title II benefit is a retirement or survivors benefit, use column 3, “RSI.”
If there is State supplementation involved, follow steps 4 and 5 to compute the windfall state offset amount (WSO).
Enter the WFO and WSO results in Columns 4 or 5 on the SSA-4346-U2 following rules in step 5.
Total all WFO and WSO amounts and enter in the “Total” blocks on the SSA-4346-U2. Also, enter those amounts in section II. of the SSA-e4345.
If the total WFO and WSO is greater than the title II benefit due, enter the title II amount in section II.
Subtract results of step 8 from retroactive the title II benefits due in the offset period.
RESULT: This amount is the non-countable income (NCI). NCI does not count as income in the month of receipt for title XVI.
Record the NCI in section II.C. of the SSA-e4345. Fax copies of the SSA-4346-U2 and SSA-e4345 to the Electronic Folder (EF) or the Non Disability Repository for Evidentiary Documents (NDRed).
Post offset data to the SSR following the instructions in SM 01320.201B. If you are unable to post offset results to the record establishment date (RCRD) segment of the current SSR for the complete windfall period, send an SSA-e4345 to the PC with computation results. Also, provide the offset results on the e4345 if the PC established an e4345 to provide the pending offset information.
Posts data from Section II on the SSA-e4345 to the MBR. For more information on posting data to the MBR, see SM 00815.500.
Subtracts the offset amount from the retroactive title II benefits.
Subtracts any collectible title XVI overpayment. For more information on cross-program recovery of title XVI overpayments from title II underpayments, see SI 02220.021.
Releases any remaining title II benefits to the beneficiary.
Transfers the offset amount from the appropriate trust fund to the general fund.