Effective Dates: 11/07/2023 - Present Previous | Next

TN 36 (11-23)

RS 02501.105 Encouraging Beneficiaries to use High Earnings Estimates

A. Background for encouraging beneficiaries to use high earnings estimates

Base the amount of Social Security benefits paid to an individual during the year on that individual's estimate of earnings for the year. If the individual underestimates the amount of expected yearly earnings, they will be overpaid.

B. Procedure for encouraging beneficiaries to use high earnings estimates

1. Encourage high estimates

  1. a. 

    To avoid overpayments, encourage high estimates unless the beneficiary is reasonably certain of their earnings for the year.

  2. b. 

    Question earnings estimates and assist beneficiaries, where necessary, to arrive at a reasonably correct amount. Unless the beneficiary has reason to know the exact amount of their current year earnings (such as complete wage stubs or a W-2), help the beneficiary arrive at an approximation of the maximum amount which could be anticipated considering past earnings patterns, present work, and possible future work.

2. Questions to insure inclusion of all anticipated earnings

  1. a. 

    Have you counted gross wages rather than take home pay? (Use 4 and 1/3 weeks to arrive at a monthly amount.)

  2. b. 

    How often is the beneficiary paid? (i.e. on a bimonthly or every other week basis) (Every other week results in 2 extra paychecks per year.)

  3. c. 

    Will the retiree receive any special payments at or after retirement such as a bonus, vacation pay, or any type of deferred compensation? (For Special Wage Payment, see RS 02505.025)

  4. d. 

    Does the beneficiary plan to do any part-time work after retirement?

 

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302501105
RS 02501.105 - Encouraging Beneficiaries to use High Earnings Estimates - 11/07/2023
Batch run: 11/07/2023
Rev:11/07/2023