TN 7 (09-17)
DI 60099.065 Benefit Offset National Demonstration (BOND) End of Year Reconciliation (EOYR)
During the year, the BOND stand-alone system (BSAS) calculates the BOND offset amount based on estimated earnings. In the following year, the BSAS performs an EOYR to compare the earnings estimates to actual earnings on the master earnings file (MEF), taking into consideration any proven deductions for work incentive provisions. For more information on non-countable income determinations, see DI 60099.045C. If the earnings on the MEF do not match the last countable earnings estimate, BSAS calculates an underpayment (U/P) or overpayment (O/P). BSAS automatically handles U/Ps and O/Ps via a manual adjustment credit and award date entry (MACADE) action. The MACADE action properly codes the offset MBA for the reconciliation year, and generates a notice explaining the U/P or O/P.
The BOND EOYR does not change current year estimates for BOND beneficiaries. The BSAS EOYR performs partial year computations for those participants who began the offset period after January, or whose last month of offset is prior to December. Currently the BSAS can only perform the EOYR process for single entitled beneficiaries. Dual entitlement is a processing limitation.
A. MEF EOYR
The EOYR process compares estimated earnings with actual earnings derived from the MEF in August of every year. BOND beneficiaries that have a monthly benefit amount (MBA) offset and BOND participants that have an applicant’s disability cessation (ADC) date on the MBR due to work (whether an estimate was previously submitted or not) will be included in this process.
B. Beneficiary initiated EOYR (BIR)
Any BOND beneficiary may request a reconciliation based on evidence submitted through Abt, per instructions in DI 60099.005D. If a beneficiary requests a reconciliation prior to the scheduled MEF run in August, Abt obtains proof of earnings such as a W-2 or tax returns, proof of any non-countable income deductions, and a brief statement on an SSA-795 that the beneficiary would like SSA to perform an end of year reconciliation. We will not accept beneficiary initiated reconciliation requests after the MEF EOYR process. This does not preclude them from the MEF EOYR process. If the final decision matches the BIR, no action is taken on the record.
C. Final reconciliation
The BSAS performs a final reconciliation for beneficiaries and participants in August of the year following the last month of participation or offset. In addition, BSAS notifies BOND participants or beneficiaries when they are approaching the end of the demonstration period to advise them of what they can expect after the transition from BOND to normal processing rules.