HI 01001.185 Termination of CSC Deductions
A. Events Causing Termination of CSC Deductions
The following events are cause for cessation of deduction of the premium from a civil service annuity:
1. ENTITLEMENT TO SS BENEFIT OR TO BENEFIT UNDER RR ACT
In such cases, the first premium deducted from SS benefits will generally be the premium for the month in which the first check is issued. Premiums will be deducted from railroad annuities beginning with the effective month of entitlement unless RRB is aware that CSC has deducted premiums. In the latter case, the first premium deduction by RRB will be for the month in which it issues the first check. CSC will, after notification by BSS, refund to the individual any premiums deducted from an annuity which duplicate premiums deducted from the SS or RR benefits. Under normal operating procedures, the refund is reflected in the second annuity check after receipt of the premium refund notice by CSC.
2. COVERAGE UNDER STATE BUY-IN AGREEMENTS
If an individual becomes covered under a State buy-in agreement, deduction of premiums from his annuity is inappropriate beginning with the effective month of coverage under the agreement. Any excess premiums deducted from the annuity will be refunded by CSC upon notification by BSS.
3. VOLUNTARY TERMINATION OF SMI COVERAGE
Should an individual voluntarily terminate his SMI, deduction of premiums from his annuity for months after the last month of coverage is inappropriate. Any premiums deducted for such months will be refunded by CSC upon notification of the termination action by BSS.
4. WITHDRAWAL OF CONSENT FOR DEDUCTIONS FROM ANNUITY TO PAY SPOUSE"S PREMIUMS
The annuitant who has consented to have his spouse"s SMI premiums deducted from his annuity may withdraw his consent at any time by giving written notice of withdrawal. Such withdrawal will be effective with the third month after the month in which the notice is received. If the annuitant wishes to withdraw his consent, obtain a signed statement reflecting the intent to withdraw consent, and forward the statement to the PSC. The PSC will prepare proper input to the EDP system to initiate direct billing to the spouse and to process a deletion to CSC.
5. DEATH OF ANNUITANT
Where deductions have been made for two enrollees from an annuity and the annuitant dies, CSC will continue premium deductions under the survivor"s new annuity number if a civil service survivor"s annuity is to be awarded to the spouse. DO"s should be sure to use the survivor"s number when corresponding with Central Office or the processing center. A survivor"s number has the prefix CSF. If a survivor"s annuity will not be awarded to the spouse, CSC will notify SSA and the SSA-EDP system will initiate premium billing.
6. DEATH OF SPOUSE
CSC terminates deductions for a spouse"s premium when advised by the annuitant or SSA of the spouse"s death.
B. Processing of Complaints
In the case of (3) above where the voluntary termination is not indicated on the MBR, send the problem case to the Health Insurance and Inquiries Examiner in the appropriate PSC module. All other complaints regarding cessation of premium deductions from civil service annuities should be directed on an overprinted SSA-5002 HB to CMS, BDMS, Group Premium Audit and Billing Section, DRABS, P.O. Box 11977, Baltimore, MD 21207.