PURPOSE: To state policy regarding the effective date of a reduction in Disability Insurance (DI) Benefits when workmen's compensation (WC) benefits are increased.
CITATIONS (AUTHORITY): Section 224(a) of the Social Security Act; Regulations No. 4, section 404.408(a).
PERTINENT HISTORY: Section 224(a) of the Social Security Act (the Act) provides that when a DI beneficiary under age 62 also receives WC benefits, the DI benefit is reduced so that the total benefits the beneficiary and his or her family receive under the two programs do not exceed 80 percent of his or her average pre-disability current earnings or the maximum family benefits payable on the basis of his or her earnings. Although the Act and regulations (§ 404.408(a)) provide an effective date for a reduction due to entitlement to WC benefits -- the month after the month the Social Security Administration (SSA) receives notice of a beneficiary's entitlement to WC benefits -- the Act and regulations are silent regarding the effective date for an offset due to an increase in the WC benefit amount after the offset for the initial WC award is applicable. The Social Security Administration's past policy was to make this reduction effective with the actual month of the WC increase. For purposes of uniformity, however, SSA is revising this policy so that the effective date for a reduction of DI benefits because of an increase in WC benefits is the same as that provided by statute for a reduction because of an initial award of WC benefits.
POLICY STATEMENT: Reductions in DI benefits resulting from WC increases are effective in the month after the month SSA receives notice of the increase.
EFFECTIVE DATE: This policy applies to notices of WC increases received by SSA on or after February 1, 1978.
CROSS-REFERENCES: Claims Manual section 6029.
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