TN 12 (08-11)

RS 00210.015 Amount of Lump-Sum Death Payment (LSDP)

A. Policy for LSDP payment amount after 1981

For deaths after August 1981, the Lump-Sum Death Payment (LSDP) is always $255 based solely on U.S. coverage for the insured deceased. If foreign coverage and totalization are involved, the LSDP may be less than $255.

B. Field Office and Program Service Center procedure for calculating proportional shares of the LSDP

  1. If more than one spouse is entitled to the LSDP under the same priority category of payment, divide the LSDP.

  2. If more than one child is eligible for a share of the LSDP, divide the LSDP by the number of eligible children. Carry the quotient to 3 decimal places and round to the nearest penny (round up for one-half penny or more).

  3. If, after rounding, the sum of the shares exceeds $255, reduce the share of the last (or youngest) claimant(s) by a penny to make the total LSDP equal to $255.

For LSDP in Totalization Claims see GN 01701.220.

EXAMPLES: 

  • Five children are eligible for a share of the LSDP. Each child may receive $51 (i.e., $255 divided by 5).

  • Seven eligible children apply concurrently for the LSDP. To compute the share due each child, divide $255 by 7; round the quotient, $36.428, to the nearest penny, $36.43. However, seven times $36.43 exceeds $255 by one cent; therefore, the youngest child would receive $36.42. The other six children would receive $36.43 each.

  • Eight eligible children apply concurrently for the LSDP. To compute the share due each child, divide $255 by 8; the quotient, $31.875, calculate to the nearest penny, $31.88. However, eight times $31.88 exceeds $255 by four cents; therefore, the four youngest children would receive $31.87. The other four children would receive $31.88 each.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0300210015
RS 00210.015 - Amount of Lump-Sum Death Payment (LSDP) - 07/25/2012
Batch run: 07/25/2012
Rev:07/25/2012