TN 80 (04-99)

SI 00830.160 Annuities, Pensions, Retirement, or Disability Payments

Citations:

Social Security Act, as amended, section 1612(a)(2)(B);

20 CFR416.1121(a);

Currency Converter (for SSI resources): http://www.oanda.com/converter/classic

A. Definitions

1. Annuity

An annuity is a sum paid yearly or at other specific times in return for the payment of a fixed sum. Annuities may be purchased by an individual or by an employer.

2. Pensions and retirement benefits

Pensions and retirement benefits are payments to a worker after retirement from employment. These payments may be paid directly by a former employer, by a trust fund, an insurance company, or other entity.

3. Disability benefits

Disability benefits are payments made because of injury or other disability.

B. Policy

1. General rule

Annuities, pensions, retirement benefits, and disability benefits are unearned income.

2. Exception

Certain accident disability benefits paid within the first 6 months after the month an employee last worked are earned income. For a further explanation of sickness and accident disability payments, see SI 00820.005.

C. List of payments

The following provides a list of instructions that address particular payments:

Foreign PaymentsSI 00830.105
German Reparations PaymentsSI 00830.710
Military PensionsSI 00830.240
Office of Personnel Management (Civil Service and Federal Employee Retirement System) PaymentsSI 00830.220
Railroad Retirement PaymentsSI 00830.225
State Disability Insurance PaymentsSI 00830.250
Title II PaymentsSI 00830.210
VA PaymentsSI 00830.300
Workers' Compensation PaymentsSI 00830.235

D. Procedure

1. Initial claims

In initial claims, be alert for clues which may indicate receipt of or potential eligibility for an annuity, pension, or similar payment; e.g., long employment with a particular industry or a government agency, military service, or membership in a union.

2. Check specific instructions

Check for specific POMS instructions pertaining to the payment involved. (See SI 00830.160C.)

3. Overpayment question

Ask if any benefits otherwise due are being withheld to recover an overpayment. If the answer is yes, see SI 00830.110.

4. Verification/General

If there are no specific POMS instructions for the payment, use award letters or other documents in the individual's possession or contact the source to verify:

  • the type, source, and amount of payment; and

  • if necessary, the frequency of payment.

5. Verification/Frequency

It is not necessary to verify the frequency of the payment if you are familiar with the type of payment involved either through direct experience