TN 1 (05-09)
DI 23555.001 Lump Sum Death Payment (LSDP) – Disability Determination Needed
Social Security Act § 202(i)
P.L. 97-35 § 2202(a)(i)(A)
A. Overview – payment of LSDP if WE dies on or after September, 1, 1981
Effective September 1, 1981, the provisions of P.L. 97-35 (enacted August 13, 1981) redefine who can be paid the LSDP if a fully or currently insured wage earner (WE) dies on or after September 1, 1981. Under priority 2 and 3 (see below), a disability determination may be needed to establish eligibility to benefits only, so a survivor can collect the LSDP. The priority of payment is:
The surviving spouse of the deceased who was living in the same household as the deceased at the time of death.
A person (other than a surviving divorced spouse) who is entitled to (or was eligible for) benefits as a widow(er), mother, or father, on the deceased's record for the month the WE died.
A child of the WE who is entitled to (or was eligible for) benefits based on the deceased's record for the month the WE died.
B. Exceptions – alien nonpayment and removal
A LSDP is not payable if the Number Holder (NH) was in alien nonpayment for the month before death because of his/her absence from the U.S. When the LSDP is not payable because of the alien nonpayment provisions, disallow the claim.
Do not discourage potential claimants from filing an application where it appears that the 5 year U.S. residency requirement or an alien exception may not be met.
If extensive development is necessary for entitlement of the dependent/survivor, even though payment outside the U.S. would not occur, explain fully to the claimant the effect of his/her filing. If the claimant decides not to file an application:
The LSDP is not payable on the record of a WE who dies in or after the month SSA receives notice of his or her removal under conditions requiring the suspension of title II retirement or disability benefits.
NOTE: The LSDP can be made if the WE was granted Lawfully Admitted for Permanent Residency (LAPR) status at any time after the removal through the month of death.
GN 00204.010 – Protective Filing
GN 00202.020 – Processing Leads
RS 02635.005 – Removal Notices – SSA Receipt and Maintenance
RS 02635.001 – Effects of Removal (Deportation) on Retirement or Disability Beneficiaries
C. Jurisdiction – disability determination needed
If a disability determination is necessary for a Disabled Widow(er) Benefits (DWB) or Childhood Disability Benefits (CDB) under the 1981 Amendments to establish eligibility to a disability benefit only so the survivor can collect the LSDP, the Disability Determination Service (DDS) of the State in which the DWB or CDB resides has jurisdiction. These cases can be identified by the remark “For LSDP only. WE's date of death (date)” in item 5 of the SSA-3367 (Disability Report – Field Office).
D. DWB determination needed for payment of LSDP
When a case is received because a DWB determination is required to determine entitlement to payment of a LSDP, it will be evaluated under the same criteria used for other DWB claims. In order to pay the LSDP to a DWB, the established onset date must be on or before the first day of the fifth month preceding the month of death of the worker. Such an onset date is necessary because a disabled widow(er) would be entitled to or eligible for a benefit for the month of the WE's death only if the 5-month waiting period had ended prior to the month of death. The date of death of the worker will appear in the remark the Field Office (FO) entered in item 5 of the SSA-3367 (Disability Report – Field Office). For complete DWB instructions, see DI 10110.000 – Disabled Widow(er)’s Benefits (DWB).
E. CDB determination needed for payment of LSDP
When a case is received because CDB determination is required to determine entitlement to payment of a LSDP it will be evaluated, and onset established, under the same criteria used for a regular CDB case. For complete CDB instructions, see DI 10115.000 – Childhood