Joe and Sue Smith are entitled to title II and title XVI benefits. Joe's offset amount
is $1250.00. Sue's offset amount is $400.00. Joe's retroactive title II benefits in
the offset period are $1000.00. Total retroactive title II benefits due Joe are $1100.00.
The $1250.00 in offset is first subtracted from the title II due in the offset period,
reducing it to zero. He has no NCI. The remaining $250.00 reduces the retroactive
title II due outside the offset period to zero leaving a balance of $150.00 offset
to be collected.
Sue is due $500.00 total retroactive benefits, $200.00 in the offset period and $300.00
outside the offset period. Her offset amount is $400.00. The $400.00 reduces the title
II due in the offset period to 0, and the title II due outside the offset period to
$100.00. This $100.00 is then reduced by the $150.00 remaining offset from Joe, reducing
Sue's NC1 to 0. The $50.00 remaining offset is excess offset and is not collected
as an overpayment.