TN 40 (11-23)

RS 02501.130 Preclude Charging Excess Earnings When Individual Not Entitled to Benefits

A. Policy when we deem an individual not entitled to benefits

1. Individual subject to another deduction

Deem an individual not entitled to benefits for the month if they are subject to a deduction for that month because of:

  • The foreign work test;

  • Failure to have a child-in-care (where eligibility depends on having a child-in-care);

  • Disabled auxiliary refused to accept Vocational Rehabilitation (VR) services. This occurs when a beneficiary receiving retirement benefits has excess earnings but is subject to deductions for refusal to accept VR services; or

  • Disability beneficiary refused to accept VR services. This occurs when an auxiliary, entitled on the ER of a disability insurance beneficiary, has excess earnings but is subject to a deduction because of the disabled beneficiary’s refusal to accept VR.

2. Charging excess earnings with the family maximum

Below are steps for charging excess earnings when the family maximum is involved.

  • Readjust auxiliary benefit rates up to the family maximum when an individual is deemed not entitled to benefits for a month; and

  • Charge excess earnings for other workers against the new benefit rate. For the effect of deductions on government pension offset (GPO) cases, see GN 02608.401.

B. Example of excess earnings and the family maximum

A beneficiary receiving retirement benefits has excess earnings of $5,120 and works for more than $800 in all months. Their spouse (age 55) does not have a child-in-care in months November and December.

The original rates

A - $242.30

B, C2, and C1 - $121.20 each

The benefit rates adjusted for the maximum for January – October

A - $242.30

B, C2, and C1 - $55.70 each

Total Family Benefit (TFB) = $409.40

Excess Earnings Charged January - October (rate x 10 months)

A - $2,423

B, C2, C1 - $557 each = $4,094

Benefit rates that apply November and December readjusted because B had no child in care

A - $242.30

C2, C1 - $83.50 each.

Excess Charged November and December (readjusted rate x 2 months)

A - $484.60

C2, C1 - $167 each = $818.60


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302501130
RS 02501.130 - Preclude Charging Excess Earnings When Individual Not Entitled to Benefits - 11/09/2023
Batch run: 11/09/2023
Rev:11/09/2023