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 pro