SSR 68-44: Rescinded 1984

20 CFR 404.357, 404.361, and 404.363

SSR 68-44

Where the burial expenses of a worker who died fully insured, and not

survived by an eligible spouse, are paid to the funeral home by a union

pursuant to a plan contained in the union's constitution, and where any

amount remaining under the plan after payment of the burial expenses was

payable to beneficiaries designated by the deceased, held, the named

beneficiaries, rather than the union or the worker's estate, are equitably

entitled to the lump-sum death payment based on the worker's earnings

record.

R died fully insured on July 10, 1966. He was not survived by a widow. X

Union, of which he was a member in good standing, provided, pursuant to

its constitution, a plan for payment of the burial expenses upon the death

of each member in good standing. The amount of the benefit is based on

years of membership. A member may name one or more beneficiaries; however,

the proceeds of the benefit go first to the person who paid the burial

expenses of the deceased, or to the funeral home upon authorization of the

beneficiary. Any amount remaining after payment of such expense is paid to

the named beneficiaries.

In this case, R had designated Y and Z as beneficiaries. Upon their

authorization, the union paid the burial expenses directly to the funeral

director and paid the remaining balance of the amount payable under the

plan to the designated beneficiaries, Y and Z.

me upon authorization of the

beneficiary. Any amount remaining after payment of such expense is paid to

the named beneficiaries.

In this case, R had designated Y and Z as beneficiaries. Upon their

authorization, the union paid the burial expenses directly to the funeral

director and paid the remaining balance of the amount payable under the

plan to the designated beneficiaries, Y and Z.

Under section 202(i) of the Social Security Act, as pertinent here, upon

the death of a fully or currently insured worker, a lump-sum death payment

of $225 or three times the worker's primary insurance amount, whichever is

less, may be paid to the worker's surviving spouse if the latter was

living in the same household with the worker when he died. If there is no

such spouse and if all burial expenses incurred by or through a funeral

home have been paid, payment of the lump sum may be made to any person or

persons equitably entitled thereto, to the extent and in the proportions

that they paid such burial expenses. Section 404.363(c) of Social Security

Administration Regulations No. 4 (20 CFR 404.363(c)). Under section

404.361 of Regulations No. 4 (20 CFR 404.361), an estate of a deceased

worker may be a "person equitably entitled" to a lump-sum death payment.

However, the term "person or persons equitably entitled" does not include,

among others, any of the following:

* * * an organization paying the expenses of burial of a member * * * to

the extent that the payment by such * * * organization is pursuant to a

plan, system, or general practice of such * * * organization; * * *.

Section 404.306(d)(3) of Regulations No. 4 (20 CFR 404.360(d)(3)).

Since the organization which actually paid the burial expenses pursuant

to its plan is ineligible under the above regulation to be equitably

entitled to a lump-sum death payment, and since there is no surviving

spouse, the question presented is who may be considered equitably entitled

to the lump-sum death payment.

* * *.

Section 404.306(d)(3) of Regulations No. 4 (20 CFR 404.360(d)(3)).

Since the organization which actually paid the burial expenses pursuant

to its plan is ineligible under the above regulation to be equitably

entitled to a lump-sum death payment, and since there is no surviving

spouse, the question presented is who may be considered equitably entitled

to the lump-sum death payment.

Where no equitable entitlement can be established by an organization

which makes payment of the burial expenses of a member under a plan,

system, or general practice, as in this case, payment of the burial

expenses is presumed to have been made on behalf of and in recognition of

the right of the named beneficiary or beneficiaries and, in the absence of

named beneficiaries, of the worker's estate, to the funds used to pay the

burial expenses. Accordingly, the named beneficiary or beneficiaries or,

in the absence of a named beneficiary, the worker's estate may be deemed

equitably entitled.

Since Y and Z were named by R as beneficiaries under the union plan for

payment of burial expenses, it is held they are equitably entitled

to the lump-sum death payment.