TN 1 (07-97)
HI 01015.025 Premium Deductions
All premium deductions are applied to the appropriate collection account. Distribution of deductions to the aged and disabled collection accounts is based solely on age and has no relationship to the benefit trust fund from which the beneficiary is being paid. For example, a primary beneficiary over age 64, receiving a retirement benefit, also has a wife (over age 64) and a disabled child (under age 65) receiving benefits on his record. All are having premiums deducted from their benefit checks (for the sake of this example, we will use a premium rate of $7.20). A total of $21.60 would have been deducted from the RSI benefit payments; fourteen dollars and forty cents ($14.40) would have been deducted because the beneficiaries (A &B) were over age 64 and $7.20 would have been deducted because the child beneficiary (C) was under 65 (considered disabled). The transfer in this case would be:
|Charged from:||28-20 ×8006 =||$14.40 |
| || || 7.20|
| || ||$21.60 |
|Credited to:||20 ×8004.5 =||$14.40 |
| ||20 ×8004.7 =|| 7.20|
NOTE: When the form SSA-666 is used to notify the Fiscal Control and Audit Branch of such a transfer, two Forms SSA-666 are necessary.
If the disabled child reaches age 65, he or she will no longer be considered disabled for premium deduction purposes (even though benefits may be continued as a disabled child). Any premiums deducted after age 64; i.e., age 65 and over, will be deducted because of age.