Some Civil Service annuitants will choose to establish their HI entitlement by filing
under the provisions explained in HI 00801.022
C., HI 00801.027 A., and HI 00801.032, wherein they will establish their eligibility for social security benefits but will
restrict the application to “HI only.” Their entitlement to HI will be established on the spouse's work, but the award will
be made on their own social security number, using the “T” BIC. Use of this procedure, particularly with the “T” BIC, will permit the Office of Personnel Management to effect deductions of the SMI
premium from the Civil Service annuity check.
Individuals who are already entitled to auxiliary benefits, but subject to government
pension offset, may withdraw the monthly benefit portion of their application and
continue their entitlement to “HI only.” Where a withdrawal of the social security benefit portion of the application occurs,
the PSC will prepare the award to establish entitlement to “HI only” on the individual's own social security number, with a BIC of “T.”
In processing an action to withdraw the monthly benefit portion of a claim, and making
a “T” award on the annuitant's own social security number, the PSC will check the current
premium due amount (PDA) to see what premiums are owed. The month from which premiums
are currently due will be the new TEDS on the “T” award. If premiums are currently paid into the future, the PSC will diary to post
the PBC 700 and TEDS when appropriate.
Not all Civil Service annuitants may wish to take advantage of the “HI only” procedure. Those whose pension offset amount is close to the amount of their suspended
monthly social security benefits may choose to file for (or remain entitled to) social
security benefits in the expectation that the amount of the social security benefits
will eventually exceed the offset amount. Some annuitants may also wish to establish
social security benefit entitlement in case there is a change in the law regarding
the Government pension offset. Nevertheless, all Civil Service annuitants who are
eligible for monthly social security benefits that will be subject to full offset
should be made aware that they have the right to choose the HI-only procedure as a
means of simplifying payment for SMI premiums.