Identification Number:
DI 52170 TN 4
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Manual Computations for Workers Compensation/Public Disability Benefit (WC/PDB) Offset
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part DI – Disability Insurance
Chapter 521 – Workers' Compensation/Public Disability Benefit (WC/PDB) Offset
Subchapter 70 – Manual Computations for Workers' Compensation/Public Disability Benefit (WC/PDB) Offset
Transmittal No. 4, 11/23/2020

Audience

PSC: BA, CA, DS, IES, PETE, RECONR, SCPS;
OCO-OEIO: BIES, BTE, CR, CTE, ERE, FCR, PETL, RECONE, RECONR, RECOVR;
OCO-ODO: BTE, CR, CST, CTE, CTE TE, PAS, PETE, PETL, RCOVTA, RECONE, RECOVR;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, OA, OS, TA, TSC-CSR;

Originating Component

OISP

Effective Date

Upon Receipt

Background

When manually computing workers' compensation/public disability benefits (WC/PDB) offset due to systems limitations, the Form SSA-2454 is used to assist users in calculating the benefit amount. We have added an example under worker's current MBA to increase clarity.

Summary of Changes

DI 52170.020 Form SSA-2454 (Offset Worksheet – Triennial Redetermination Previously Applied)

A. Purpose of the Form SSA-2454

Updated links to e2454+ tool.

C. SSA-2454 versus SSA-2455

Updated the difference of the SSA-2454 and SSA-2455.

D. Form SSA-2454 exhibit

Updated link to SSA-2454 Exhibit updated 05/2020.

F. Completing the SSA-2454

1. Part 1 - Offset calculation

h. - Worker's current MBA - added an Example

Also broke out each Part and Line of the Form.

G. References

Added references.

DI 52170.020 Form SSA-2454 (Offset Worksheet – Triennial Redetermination Previously Applied)

A. Purpose of the Form SSA-2454

Use the Form SSA-2454 to compute the amounts payable to the number holder and auxiliaries when the WC/PDB rate changes after a redetermination increase. You may use the e2455+ a new tool for calculating amounts payable after WC/PDB offset, instead of the paper Form SSA-2454. The e2455+ can propagate offset rates into OREO (see DI 52165.020).

B. When to complete a paper SSA-2454

Complete a paper SSA-2454 only when you cannot use an Interactive Computation Facility (ICF) program or e2455+ due to systems limitations.

C. SSA-2454 versus SSA-2455

Use Form SSA-2455 for WC rate change computations and family composition changes as long as a triennial redetermination of the ACE does NOT yield an increase in benefits payable to any beneficiary on the account. If a triennial redetermination of the ACE DOES yield an increase for any beneficiary on the account; any subsequent WC rate change must be computed using Form SSA-2454. Any subsequent family composition change resulting in a change in the maximum must be computed using the Form SSA-2454. .

D. Form SSA-2454 exhibit

.Click here for an example.

E. Disposition of the SSA-2454

If the SSA-2454 cannot be stored or recorded in the Modernized Claims System (MCS), Modernized SSI Claims System (MSSICS), or the ICF, fax the form into the Non-Disability Repository for Evidentiary Documents (NDRED) or the electronic disability (eDIB) folder, as appropriate.

NOTE: If processing center (PC) action is required, the FO will also fax the form to the PC’s paperless fax number.

F. Completing the SSA-2454

Completing this form requires jumping from Part 1 to Part 2, and then back to Part 1. Enter the worker’s Social Security number.

1. Part 1 – Offset calculation

a. Period covered by this worksheet

Enter the period of time for which the computation is applicable, (e.g., 06/1995-05/1997, 07/1996 only, 06/1998 on).

b. Family benefit computation

Enter the total family benefit (TFB) that was effective in the first possible month of offset.

c. Redetermined Average Current Earnings (ACE)

Enter the redetermined 100 percent ACE rounded down to the nearest dollar. Do not use an old ACE.

d. 80 percent of redetermined ACE

Enter 80 percent of the redetermined ACE.

e. Applicable limit

Enter the higher of TFB or 80 percent redetermined ACE.

f. Monthly WC/PDB

Enter the new amount of WC/PDB.

g. Total benefits payable after offset

  • Subtract the new WC/PDB rate (line F) from the applicable limit (line E) and enter the amount. Do not enter an amount less than zero.

  • If this amount is equal to or higher than the insured number holder's monthly benefit amount (MBA), the insured number holder receives their full MBA.

  • If this amount is higher than the TFB, do not offset and do not complete the rest of form.

h. Worker's current MBA

Enter the insured number holder's MBA (the PIA unless DIB is reduced for age) in the month of the last triennial redetermination with the month of the change in the WC/PDB rate (i.e., the last January REDET MBA before the current WC rate change).

Example: WC rate change in 10/2007

WC Rate Changes in 10/2007

Effective Date

MBA

02/2003

$1,071.80 Offset Effective Date

12/2003

$1081.00

12/2004

$1,100.70

12/2005

$1,145.80

01/2006

$1,160.00 REDET

12/2006

$1,183.60

12/2007

$1,210.80

12/2008

$1,281.00

01/2009

$1,295.00 REDET

12/2009

$1,295.00

The last REDET MBA with the month of change in WC rate is $1,160.00 (MBA from 01/06).

Go to Part 2 (lines I. and J. are completed later).

2. Part 2 – Increases not subject to offset

In order to complete Part 2, it will require jumping back to certain lines in Part 1.

Part 2 - Line A - Claims symbols

Enter the auxiliaries symbols (BICS) in the columns.

Part 2 - Line B - Protected increases

Enter all HA and auxiliary increases effective after the month offset was first imposed.

NOTE: The amount entered in the block for the redetermination increase is the difference between the amount payable in the month before the month of the redetermination (i.e., after all statutory and recomputation increases) and the amount payable after the redetermination.

NOTE: The last increase entered on line B must be the redetermination increase. Do not show increases effective after the redetermination here.

3. Example

HA is in total offset 06/1996 ($0.00 payable).

HA $33.10 payable - Due to 12/1998 statutory (COLA) increase.

36.10 payable - Due to 01/1999 redetermination increase.

3.00 difference - Enter this amount on the line 2B, along with the COLA of 33.10

Enter the total increase of 36.10 in Part 1, line I.

Go back to Part 1 Line I.

Part 1 Line I. - Sum of all protected increases in Part 2

Enter in Line I only those protected increases shown in Part 2 (line B) including protected increases for HA and all auxiliaries (made prior to, and including the latest redetermination).

Part 1 Line J. - Unprotected balance payable

Subtract line I (protected increases) from line G (total benefits payable after offset) and enter this amount. Do not enter an amount less than zero.

Return to Part 2 line C.

Part 2 Line C. Total (HA increases only)

Enter the total of all HA increases (statutory and redetermined).

Part 2 Line D. Total of Part 1 Line J and Part 2 - Line C.

Add the total of unprotected balance payable (1.J.) and HA increases (2.C.) and enter that amount in Part 2, line D.

Part 2 Line E. - Amount payable to HA

Part 1 line H is the number holder’s PIA. If the amount in line H equals or exceeds Part 2 line D, pay amount in 2D to HA, otherwise pay amount in 1H to HA (the lower of 1H or 2D will be the HA payable). This amount is the sum computed before protected increases occurring after the redetermination. If there were protected increases after the last redetermination, add the increases after the redetermination and before the change in WC/PDB. This brings the rate up to the rate payable at that point.

Part 2 Line F. - Amount payable to the auxiliary

Subtract line E from line D and enter the difference in line 2F. Do not enter an amount less than zero.

Part 2 Line G. - Divide by number of auxiliaries

  • Enter the number of auxiliaries in the first column.

  • Divide line F by the number of auxiliaries.

  • Enter this amount under the Part 2 line G columns for all auxiliaries (whose BICs are listed).

Part 2 Line H. - Total to auxiliaries

  • Add all protected increases in Part 2, line B and Part 2, line G for each auxiliary. Do not include HA increases.

  • Enter this total for each auxiliary BIC that is listed. This sum is the amount before protected increases occurring after the redetermination. If there were protected increases after the last redetermination, add the increases after the redetermination and before the change in WC/PDB. This brings the rate up to the rate payable at that point.

Signature and date

Sign and date the form. Then, scan or fax into the claims folder.

Completing the back of the SSA-2454

Use the back of the SSA-2454 to manually prorate lump sum settlement awards or other calculations (e.g., WC/PDB mid-month adjustments, etc.).

G. References

  • DI 52150.080 Triennial Redetermination (REDET) of the Average Current Earnings (ACE)

  • DI 52150.005 Total Family Benefits (TFB)


DI 52170 TN 4 - Manual Computations for Workers Compensation/Public Disability Benefit (WC/PDB) Offset - 11/23/2020