SSA logo: link to Social Security Online home1806. Payment of Partial Benefit

1806.1 When do you receive a partial monthly benefit because of your excess earnings?

You may receive a partial monthly benefit when your excess earnings remaining to be charged for the year are less than the amount of your total benefit for the next month subject to charging.

1806.2 When is the partial monthly benefit paid?

The partial payment is paid only at the close of the taxable year when you file your annual report of earnings (see §1814), unless otherwise requested. Where the partial monthly benefit is not a multiple of $1, the monthly benefit amount is rounded to the next lower multiple of $1. (See the example in 1806.3 below.)

1806.3 What is the partial monthly benefit amount if there is only one beneficiary involved?

If you are the only beneficiary involved, the partial benefit paid is the difference between the monthly benefit amount and the excess earnings charged to the month.

Ms. Ridgely has a monthly benefit amount of $288.20. She had excess earnings of $700 that are charged against her benefits beginning with January. This results in the loss of her entire benefit for January and February plus $123.60 of the March payment ((2 x $288.20) plus $123.60 = $700). She receives a partial monthly benefit of $164.00 for March ($288.20 minus $123.60 = $164.60 rounded to the next lower multiple of $1).

1806.4 What is the partial monthly benefit amount if there is more than one beneficiary involved?

Where excess earnings are charged against the family benefits of a retirement insurance beneficiary and one or more persons entitled to benefits on the worker's earnings record, the partial benefit is allocated to each person entitled to benefits. The partial benefit is allocated in the proportion to the "original entitlement rate" of beneficiary on the worker's earnings record. However, a beneficiary's prorated share of the partial benefit may not be more than the benefit amount that would have been paid if there were no work deductions.

1806.5 What is the original entitlement rate?

The “original entitlement rate” means the respective benefit rate as figured without:

  1. Adjustment for the family maximum;

  2. Adjustment for entitlement before FRA; and

  3. Any reduction because of an auxiliary's entitlement to a retirement or disability insurance benefit.

Mr. Star, his wife, and two children are entitled to benefits. After charging Mr. Star's excess earnings against the total monthly family benefit, a partial benefit of $100 is payable to the family. The chart below shows the amount each family member will receive.

Family Member

Original Benefit Amounts

Proportionate Part of Original Benefit

Actual Benefits Under Family Maximum

Prorated Share of Partial Benefit

Mr. Star

$194.00

(2/5)

$194.00

$ 40 (2/5 x 100)

Wife

97.00

(1/5)

32.40

20 (1/5 x 100)

Child

97.00

(1/5)

32.40

20 (1/5 x 100)

Child

97.00

(1/5)

32.40

20 (1/5 x 100)

Total

$485.00

-

$291.20

$100

Last Revised: Jan. 17, 2003