TN 25 (09-11)

RS 02501.155 Adjustment for the Maximum Involving the Annual Earnings Test (AET)

A. Policy for adjusting the family maximum because of excess earnings

1. Maximum involved

Charge excess earnings to auxiliary or survivor benefits after adjusting the benefits for the maximum and after any other necessary adjustment as described in RS 02501.095.

2. Two or more auxiliary workers

If excess earnings are involved because of the work of two or more auxiliaries or survivors for the same month, charge each auxiliary's or survivor's excess earnings against his or her own benefit. If a deduction other than for the earnings test is present for a different beneficiary on the same ER for the same month see RS 02501.130.

3. Full deduction month

Once an auxiliary's or survivor's excess earnings are charged to a month in an amount equal to their full-adjusted benefit, treat the beneficiary as not being on the benefit rolls in applying the maximum provisions to the other auxiliaries or survivors (on the same ER) not subject to deductions for that month. For information on deduction before reduction, see GN 02603.020.

4. Partial deduction month

If the amount of excess earnings charged to a month is less than the auxiliary's or survivor's full-adjusted benefit for that month, consider the beneficiary entitled to the partial benefit resulting from the charging. Reduce the maximum applicable to the other beneficiaries by the amount of the partial benefit due the beneficiary.

B. Applying deductions for situations listed below

1. Beneficiaries subject to deduction in the same month, annual earnings test (AET) and other type of deduction

If an auxiliary or survivor is subject to vocational rehabilitation, foreign work test, or in-care deduction, consider the beneficiary not entitled to benefits for the month and readjust the benefit to any other beneficiary (on the same ER) under the maximum provisions. Use the new rate for the beneficiary subject to deduction under the annual earnings test (AET).

2. Auxiliaries or survivors in separate households

For all monthly benefits payable, impose deductions against beneficiaries without regard to the total payable to a household. Increase benefits to all other auxiliaries or survivors as applicable. The only relevance to households is that auxiliaries or survivors in other households can only receive the increase for a permanent deduction.

3. Both the number holder (NH) and auxiliary work

a. Months with NH excess fully charged

Do not charge the earnings of the auxiliary to months that his or her adjusted benefit when the excess earnings of the retired beneficiary are fully charged.

b. NH months without excess charged

Charge the excess earnings of the auxiliary to the months that no excess earnings of the retired beneficiary are charged. Readjust the other auxiliary benefits according to rules in RS 02501.095.

c. NH has partial month

Charge the remaining excess earnings of an auxiliary to his or her share of the partial monthly benefit after charging the NH's earnings. The partial benefits of other auxiliaries cannot be readjusted except to the extent to which we charge the auxiliary's excess earnings against the benefits to which the auxiliary otherwise was eligible.

4. Disability maximum

Consider the 1980 disability maximum (DMAX) as a family maximum for benefits payable.

To Link to this section - Use this URL:
RS 02501.155 - Adjustment for the Maximum Involving the Annual Earnings Test (AET) - 09/28/2011
Batch run: 07/09/2013