DI 52150.075 Work Deductions and Offset of Auxiliary Benefits
Social Security Act, Section 203(a)
The order to apply offset and auxiliary work deductions depends on whether the 1980 disability maximum (DMAX) is involved and the date benefits are payable. See RS 00615.740 - 1980 Disability Maximum.
A. DMAX not involved
If a DMAX is not involved, compute workers’ compensation/public disability benefit (WC/PDB) offset before applying auxiliary work deductions.
NOTE: The WC offset amount is taxable for the worker and reported on the SSA-1099 even if full work deductions apply to the auxiliary benefits.
B. DMAX involved
1. Benefits payable 07/1980 — 12/1986
Where a DMAX was involved, the law stated SSA should impose work deductions before applying WC/PDB. (See GN 02603.040.)
2. Benefits payable 01/1987 – and later
If a DMAX is involved, compute WC/PDB offset before applying auxiliary deductions. (NOTE: In order to prevent delays in processing, SSA revised the above policy.) It is not necessary to obtain work deduction information before applying offset as of 01/01/1987.
C. How work deductions affect the total family benefit (TFB)
The TFB is the total of the benefits payable to HA and all entitled auxiliaries before work deductions. Changes in auxiliary rates due to work deductions do not affect the TFB. See DI 52150.005 - Total Family Benefits (TFB).
D. Related Reference
GN 02603.055 - Deductions When WC/PDB Offset Applies