TN 7 (09-17)

DI 60099.050 Benefit Offset National Demonstration (BOND) Stand-Alone System (BSAS)

The BSAS is an Intranet system that accepts database files from Abt Associate’s (Abt’s) BOND Operations Data System (BODS). It contains the beneficiary’s estimate of gross earnings for the calendar year and his or her estimate of allowable deductions under work incentives (impairment related work expenses (IRWE) and subsidy) provisions. It also contains the beneficiary’s estimate of any income that should not count as payment for work activity (sick pay, vacation pay, insurance payments, and any earnings earned prior to the first month of eligibility for the offset).

A. How the BSAS works

BSAS works in the following ways:

  1. deducts the offset amount from the number holder (HA) only, childhood disability benefits (CDB) only, or disabled widow’s benefit (DWB) only record;(NOTE: In dual entitlement situations (HA and CDB, or HA and DWB), the BSAS deducts the offset amount from the primary HA record first);

  2. creates a manual adjustment credit and award process (MADCAP) action that updates the Master Beneficiary Record (MBR);

  3. provides universal text indicator (UTI) information as part of the MADCAP action;

  4. creates (after the previous action) a special message on the MBR indicating that this is a BOND beneficiary as well as adds the “DD” demonstration code and the start and ending dates of offset to the MBR; and

  5. calculates the offset amount, when receiving an earnings estimate from BODS; retrieves information from the MBR, and determines if it can process the case automatically through MADCAP.

If BSAS cannot process the case, it generates processing exceptions, processing limitations and alerts that L5R and the centralized unit in the Office of Central Operations (OCO) will process. If a case cannot be retriggered, the BSAS database will be updated with offset information, monthly benefit amounts, and other data needed to perform the offset calculation so automated processing can occur in the future.

B. BSAS automated cases

BSAS can automatically process the following cases:

  • Social Security Disability Insurance (SSDI) benefit only (BIC = HA),

  • Suspending SSDI benefit and auxiliaries. (NOTE: Auxiliaries are paid full benefits until the SSDI beneficiary goes into full benefit offset with a ledger account file (LAF) code of SQ);

  • Childhood disability benefits (CDB) only, (BIC = C);

  • Disabled widow and widower benefits (DWB) only, (BIC = W) including widow indexing (WINDEX), but excluding delayed retirement credits (DRC);

  • Disability insurance benefits (DIB) and any dual entitlement that is not based on disability (i.e., HA/D, HA/B, etc.) NOTE: Offset will not apply to the non-disability related benefit;

  • T2 Dual entitlement involving CDB and HA benefits, if SGA cessation dates for both entitlements are prior to random assignment or SGA cessation dates are the same on both entitlements;

  • T2 Dual entitlement involving DWB and HA benefits, if SGA cessation dates for both entitlements are prior to random assignment or SGA cessation dates are the same on both entitlements;

  • Expedited reinstatement (EXR) cases after the beneficiary completes the 24-month initial reinstatement period (IRP), TWP, SGA cessation, the grace period, and Concurrent entitlement (DIB and SSI); and

  • Concurrent cases. The offset will apply only to the SSDI portion. (NOTE: Changes to the monthly benefit amount (MBA) generates an alert to the supplemental security income display (SSID), which changes the SSI amount).

C. BSAS processing logic

1. Monthly offset amount is greater than monthly benefit amount (MBA)

If the monthly offset amount is greater than the MBA, BSAS:

  • suspends benefits to the CDB, DWB, and Concurrent (SSI and HA) beneficiary and auxiliaries receiving benefits on this record, and

  • issues automated notices to the BOND beneficiary and auxiliaries explaining the reason for suspension.

2. Monthly offset amount is less than the MBA

If the monthly offset amount is less than the MBA, BSAS:

  • reduces benefits under the BOND rules, and

  • issues an automated notice to BOND beneficiaries.

If the first month of offset is in the past, MADCAP:

  • automatically recovers any incorrect payments in full prior to paying the offset MBA for the current year, and

  • generates an overpayment notice for any prior years and automatically recovers any incorrect payments in full prior to paying the current year offset MBA.

D. BSAS processing limitations

The BSAS suspends processing if the BOND beneficiary’s own account number (BOAN) does not match the BOAN on the BSAS participant list, or there is no applicant disability cessation (ADC) date on the Master Beneficiary Record (MBR). BSAS performs a processing limitations check each time it takes action on a case.

If any of the following characteristics apply, the BSAS cannot complete the action and creates a processing limitation:

  1. Deductions and reductions that apply to the MBA:

    • worker’s compensation (WC), and

    • government pension offset (GPO).

  2. Overpayments when:

    • partial recovery (PARREC) is greater than or equal to the MBA after offset is applied;

    • the incoming action creates an overpayment, and there is an existing overpayment in due process (i.e., beneficiary overpayment and underpayment date (BOUD) line on the recovery of overpayment accounting and reporting (ROAR)); and

    • the incoming action places the MBR into full suspension (LAF SQ) and partial recovery is on the MBR.

  3. Medicare, when the monthly benefit rate after offset is less than the SMI Medicare premium amount and requires a dictated notice.

  4. Child Disability Benefits (CDB), when the Monthly Benefit Amount (MBA) does not:

    • equal 75 percent of the primary insurance amount (PIA) survivor rate,

    • equal 50 percent of the PIA life rate.

  5. DWB, when the monthly benefit amount does not equal 71.5 percent of the PIA.

  6. Triple Entitlement; and

  7. Dual Entitlement, if the beneficiary receives a combined check. If we separate the checks, automated processing can occur.

E. BSAS processing limitation alert process

BSAS sends all processing limitations through the Processing Time Tracker (PTT) loader to load an alert in the processing center action control system (PCACS). The centralized unit in the OCO is responsible for processing a manual adjustment credit and award date entry (MACADE) action to adjust the monthly benefits.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0460099050
DI 60099.050 - Benefit Offset National Demonstration (BOND) Stand-Alone System (BSAS) - 09/29/2017
Batch run: 10/02/2017
Rev:09/29/2017