TN 21 (01-98)
RS 01402.210 Disabled Beneficiary Payments
Act, Sec. 209(a)(13);
20 CFR 404.1059(g)
Beginning January 1, 1973, employer payments to the employee are excluded from wages if the employee at the time of such payments:
was entitled to Disability Insurance Benefits (DIB); and
the DIB entitlement began (first year for which the DIB is paid) before the calendar year in which the employer's payment is made; and
the employee does not perform any services for the employer in the pay period for which the payments are made.
NOTE: This provision is effective only during the period an individual is entitled to DIB. It ceases to be effective when the DIB beneficiary is converted to a retirement and survivors insurance (RSI) beneficiary.