SSR 80-14: TITLE II: EFFECTIVE DATE OF REDUCTION IN DISABILITY INSURANCE BENEFITS WHEN WORKMEN'S COMPENSATION BENEFITS ARE INCREASED

(PPS-50)

SSR 80-14

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.