DI 52125.010 Determining When a Public Disability Benefit (PDB) is Based on Covered Service
Certain public disability benefits (PDBs) are excluded from offset if the benefits are based on "covered" employment, (or covered service, or covered wages), i.e., employment on which FICA taxes are paid - see DI 52125.001A. Types of PDBs excluded from offset are listed in DI 52125.001B.3. Use the following instructions to determine if a PDB meets one of the covered service exclusions. These exclusions do not apply to State or local PDBs based on private employment.
See DI 52125.005 for a list of benefits not considered a PDB for offset purposes.
A. Identifying covered service
Identify the possibility that a PDB is based on covered service using information in the claims file, including:
Develop each case individually because work histories and dates of covered service will vary.
NOTE: If the PDB plan is based on one period of service to establish eligibility and a different period of service to compute the amount of the PDB, either period can exclude the PDB from offset if at least 85 percent of the period used is covered. (See DI 52125.010H Example 3 below.) In these situations:
Evaluate the first period of service. If the 85 percent test is met, the PDB is excluded from offset.
If the first period of service does not satisfy the 85 percent test, look at the second period of service.
If the second period of service (evaluated on its own and without regard to the first period) satisfies the 85 percent test, the PDB is excluded from offset.
If the second period also does not satisfy the 85 percent test (i.e., neither period satisfies the 85 percent test), the PDB is offset.
B. Alleged amount of covered service precludes offset
If the alleged amount of covered service precludes offset:
Verify covered service.
NOTE: Do not accept the NH’s allegation.
Do not offset if verification shows the covered exclusion is met.
Verify the amount of the PDB and impose offset if the exclusion is not met.
C. Alleged amount of covered service does not preclude offset
If the alleged amount of covered service does not preclude offset:
Accept the NH’s allegation.
Verify the amount of the PDB and impose offset.
Verify post-adjudicatively; and
Remove offset if verification shows exclusion met.
D. Amount of covered service unknown
If the NH does not know the amount of covered service and verification is not readily available:
Verify post-adjudicatively; and
Remove offset, if verification shows exclusion met.
E. Verification of covered service
The following may contain acceptable verification of covered service:
Summaries of State Agreements which establish periods of State and local coverage. See DI 52125.015 - Determining Public Disability Benefit (PDB) for State and Local Employment.
Document the file with a photocopy of the page from the Summaries or use an SSA-795 (Statement of Claimant or Other Person) to explain where the verification came from.
Responses to questions 10 and 11 on the SSA-1709 (Request for Workers' Compensation/Public Disability Benefit Information).
Statements from employers, or the Office of Personnel Management (OPM) regarding periods of employment on which the PDB is based.
A copy of the PDB plan that shows how entitlement to PDB and the amount of PDB are determined. Obtain a Detail Earnings Query (DEQY) for employment after 1977.