Social Security Act — Section 1127

Regulations 20 CFR 404.408b and 20 CFR 416.1123(d)

TN 13 (09-95)

SI 02006.001 The Windfall Offset Provision

A. Definitions

1. Title II

A reduction of retroactive title II benefits by the amount of supplemental security income (SSI) benefits that would not have been due if we had paid the title II income on time.

2. Title XVI Offset

A reduction of SSI benefits by counting retroactive title II benefits as if we had paid them on time.

B. Policy Principle — The Title II Offset Computation

1. SSI Due

Includes federally administered State supplementary payment.

2. SSI Would Have Been Due

What would have been due if the retroactive title II income were paid in the months it was regularly due.

3. Formula

a. Step 1

  SSI due
- SSI would have been due
  Offset amount

b. Step 2

  Retroactive title II
- Offset amount
  Balance paid to recipient

C. Description of Retroactive Title II Benefits in the Title II Offset

The chart below describes the disposition of retroactive title II benefits in title II offset.







Title II

Offset Amount—
Federal SSI









Offset Amount—
Federally Administered
State Supplement













D. References

Basic Policies and Procedures, GN 02610.005 ff.

System Instructions, SM 01320.005 and SM 01320.001 ff.

Applying Title II Offset to Concurrent Cases, GN 02610.018C

Income Counting Rules, SI 00830.015; SI 02005.090

SSI Computations, 4/82 On, SI 02005.001 ff.

SSI Computations, Before 4/82, SI 02005.001

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SI 02006.001 - The Windfall Offset Provision - 05/14/2013
Batch run: 05/14/2013