TN 51 (01-24)

RS 02501.125 Computing Prorated Work Suspensions

A. Procedure for computing prorated work suspensions

Use the following steps to determine the amount of benefits to withhold each month when prorating work suspensions:

  1. 1. 

    Determine the amount of excess earnings that would eliminate all benefits for the current year.

  2. 2. 

    Determine the actual excess earnings for the current year.

  3. 3. 

    Subtract amount of any benefits already withheld for the current year from the lesser of steps 1. & 2.

  4. 4. 

    Divide remaining excess withholding by the number of months in the prorating period (beginning with the month of the request and ending no later than June of the following year).

  5. 5. 

    Subtract result from the monthly benefit amount (MBA) for each month (before supplementary medical insurance) beginning with the month of the request.

B. Example

A beneficiary’s monthly benefit amount (MBA) is $400. The excess earnings are $2,400, which requires full withholding of six months' benefits. However, the beneficiary states that because of their living expenses, they cannot afford to be without their entire Social Security check for 6 months. They request partial withholding. In this case, we can apply partial withholding. Based on the excess earnings of $2,400, prorate them at the rate of $200 per month. Based on an MBA of $400, the beneficiary may receive $200 per month for all months of the year.

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RS 02501.125 - Computing Prorated Work Suspensions - 01/19/2024
Batch run: 01/19/2024