Civil service accretions are usually processed during the establishment of an initial
award. The preparation of the SSA-101 U3 award form will include the civil service
annuity number (taken from the claimant's application) and an SMI option code of “A.” These awards are processed with a billing code of 700 which will prevent premium
bills being sent to the individual from SSA.
When the 700 billing code reaches the master beneficiary record, it is passed to the
third party master record and the health insurance system. Internal systems processing
generates a listing of the civil service records which is furnished to the Civil Service
Commission on a monthly basis. These listings comprise approximately 400 records a
month and are delivered to the Civil Service Commission between the 10th and the 15th
of each month.
The Civil Service Commission obtains a printout of the civil service record for each
claim on the listing to verify the data (name, civil service number, etc.) and prepares
a notice to the annuitant stating that SMI premiums will be deducted from the civil
service annuity check and that deductions will begin the following month. (The Civil
Service Commission releases a check tape to the Treasury Department before the 10th
of the month for checks to be issued the following month; i.e., on or before July
10th, Treasury receives the check tape for the August 1 checks. Because the Civil
Service Commission does not receive the accretion listing from SSA until after the
10th of the month, deductions are made retroactively to the date of the accretion.)
The spouse of an annuitant may have premiums deducted from the annuitant's check only
if the annuitant:
is having premiums deducted from the annuity, and
has provided written consent for the deduction of the spouse's premiums.
If the annuitant no longer wishes to have the spouse's premiums deducted from the
annuity, written notification must be provided by the annuitant. This notification
must be furnished to CMS (see SM 03040.275) either by the district office or the Civil
Service Commission. Upon receipt, CMS will process a civil service deletion for the
spouse effective with the third month after the month in which the request is received
and the spouse will then be placed in direct billing status.