Once a substantial gainful activity (SGA) cessation has been determined, beneficiaries
participating in the Benefit Offset Pilot Demonstration (BOPD) will have monthly benefits
reduced by $1.00 for every $2.00 of earnings above the SGA amount for months in the
offset period. The offset period will begin with the later of:
The month after the month of enrollment in the BOPD, or
The month after the grace period.
The offset period will end with:
The month the extended BOPD EPE ends, or
The close of the month in which the beneficiary elects to withdraw from the project
or ceases to be eligible for the project.
Months outside of the offset period are subject to usual program rules. Auxiliary
benefits are not subject to offset and auxiliaries will continue to receive their
full monthly benefit amount during the offset period under the BOPD project, even
if number holder (NH)’s are in complete offset.
The amount of the offset for the NH will be determined based on an estimate of earnings
minus an estimate of any IRWE/Subsidy (or other amounts not attributable to the individual’s
own productivity). If the participant is subject to offset for the entire year, the
offset will be based on estimates of earnings and any applicable work incentives for
the entire calendar year. If participant is subject to offset for only part of the
year, the offset will be based on estimates for only that portion of the current calendar
year consisting of months in the offset period.
EPE Monthly payment determinations after an SGA cessation, will not be made once the
offset period has begun. An end of year reconciliation will be made when the year
is closed and exact figures for earnings and all applicable work incentives are known,
much like the annual earnings test for retirement beneficiaries. Follow these procedures
to determine the amount of the monthly offset for BOPD participants.