TN 25 (09-11)

RS 02501.145 Beneficiary Entitled on Two Earnings Records (ERs) Only Beneficiary with Simultaneous Entitlement Has Excess Earnings

A. Policy for beneficiary with entitlement on two earnings records

If a beneficiary with excess earnings has entitlement to both retirement insurance benefits (RIB) and auxiliary/survivor benefits, charge the excess to the total of all benefits.

B. Procedure for charging the excess earnings

1. Charging excess earnings

When charging excess earnings to a beneficiary entitled on two ERs, total the following amounts:

  • The auxiliary or survivor benefit payable to the beneficiary;

  • The beneficiary's RIB; and

  • Any other benefits payable on the beneficiary's own ER.

Charge the excess earnings to the total benefit amount payable.

2. Excess earnings are less than the benefit total

If the excess earnings are less than the total benefits subject to charging:

  1. Calculate the amount chargeable to each respective benefit in proportion to the amounts payable on each ER.

  2. Charge the first proportion to the beneficiary's auxiliary or survivor benefit.

  3. Charge a portion of the excess earnings to the beneficiary’s auxiliary or survivor benefit so that is equals the total benefit amount payable.

  4. Subtract the amount from the total chargeable excess for the month to figure the proportionate share charged to the beneficiary's own ER. (Do not round to multiple of $.10 when calculating the proportionate shares.)

  5. If the resulting benefit is not a multiple of $.10, round down to the next, lower $.10.

  6. If a partial benefit is not a multiple of $1 after distribution to the family, round to the next lower multiple of $1 to calculate the benefit payable.

C. Example of entitlement with parent’s earnings

A number holder (NH) has excess earnings of $400. He also receives parent's benefits.

Entitlement of NH and child on NH's own ER

NH - $132.30 (2/4)

Child - $66.20 (1/4)
NH's entitlement to parent's benefits on another SSN
Parent - $66.20
How NH's excess charged to January Benefits

NH - $132.30

Child - $66.20

Parent - $66.20

Total - $264.70
How NH's remaining excess of $135.30 charged to February

NH and Child - $101.50 (3 shares)

Parent - $33.80 (1 share)

Total - $135.30

(Parent benefit = proportionate share of the excess rounded to the next lower multiple of $.10 1/4 x $135.30 = $33.82 rounded to $33.80.)
The total amount to be charged to the NH's ER for the month less the amount to be charged to parent's benefits ($135.30 minus $33.80 = $101.50).
Partial benefits payable for February

NH and child - $97.00 ($198.50 minus $101.50)

Parent - $32.40 ($66.20 minus $33.80)

Total - $129.40

(Total partial benefit of $97 for the NH and child prorated in the ratio of 2:1.)
Proportion of family benefits for February

NH - $64.70 (2/3)

Child - $32.40 (1/3)
(Round the benefits down to the next lower dollar.)


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302501145
RS 02501.145 - Beneficiary Entitled on Two Earnings Records (ERs) Only Beneficiary with Simultaneous Entitlement Has Excess Earnings - 09/28/2011
Batch run: 09/28/2011
Rev:09/28/2011