# SSR 70-3: SSR 70-3: SECTIONS 204 and 216. -- UNDERPAYMENT -- PRIORITY OF PAYMENT TO STEPCHILDREN OF DECEDENT > Federal · Rulings · In force URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_3 ## Section - **Citation:** SSR 70-3 - **Heading:** SSR 70-3: SECTIONS 204 and 216. -- UNDERPAYMENT -- PRIORITY OF PAYMENT TO STEPCHILDREN OF DECEDENT - **Jurisdiction:** Federal - **Kind:** Rulings - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Social Security Rulings / OASI / Overpayments and Underpayments / SSR 70-3 ## Text 20 CFR 404.503 SSR 70-3 J, a beneficiary under title II of the Social Security Act, died before social security benefits due her were paid. Under section 204 of the Act, the amount unpaid at the time of her death became an underpayment. She was survived by her parents as well as her two stepchildren were entitled to social security benefits for the month of her death. A request for payment of the underpayment to J's two minor stepchildren has been filed on their behalf. J's parents have also requested the underpayment, contending that the relationship between J and her two stepchildren ended upon J's death and therefore the underpayment should be paid to them. Section 204(d) of the Social Security Act provides that amounts due to deceased beneficiary under the retirement, survivors, and disability insurance programs, will be paid to individuals according to the following order of priority: The deceased beneficiary's (1) spouse either living in the same household at the time of his death, or entitled to a monthly benefit on the same earnings record for the month of his death; (2) child or children entitled to a monthly benefit on the same earnings record for the month of his death; (3) parent or parents entitled to a monthly benefit on the same earnings record for the month of his death; (4) spouse not falling within the provisions of (1) above; (5) child or children not falling within the provisions of (2) above; or (6) parent or parents not falling within the provisions of (3) above, payment will be made to the "legal representative" of the estate of the deceased beneficiary. At issue here is whether the stepchildren or the parents are entitled to receive the underpayment. This depends on whether the term "child or children" in (5) above includes stepchild or stepchildren of the deceased beneficiary. Section 216(e) of the Act makes clear that it does, as follows: * * * * * * * be made to the "legal representative" of the estate of the deceased beneficiary. At issue here is whether the stepchildren or the parents are entitled to receive the underpayment. This depends on whether the term "child or children" in (5) above includes stepchild or stepchildren of the deceased beneficiary. Section 216(e) of the Act makes clear that it does, as follows: * * * * * * * Since section 216 defines "child or children" for the purposes of title II, it is reasonable to assume that Congress had that definition in mind when they enacted section 204(d) and intended to include a "stepchild" within the meaning of "child." However, even if section 216(e) did not so clearly include "stepchild" in the definition of "child," a stepchild of the decedent could not, for the reasons outlined below, be accorded a lower priority than a parent with respect to receiving an underpayment under section 204(d). Section 202(d) of the Act, providing for children's benefits, permits an insured individual's stepchildren to qualify for monthly benefits on his earnings record while he is living as well as when he is deceased. A parent, on the other hand, may qualify for monthly benefits under section 202(h) of the Act on an insured's earnings record only when the insured is deceased. Thus, Congress did not consider it anomalous (with respect to the more significant monthly benefits) to accord an insured's stepchildren more favorable treatment with respect to the payment of benefits than his parents. deceased. A parent, on the other hand, may qualify for monthly benefits under section 202(h) of the Act on an insured's earnings record only when the insured is deceased. Thus, Congress did not consider it anomalous (with respect to the more significant monthly benefits) to accord an insured's stepchildren more favorable treatment with respect to the payment of benefits than his parents. Monthly benefit payments to a stepchild are not terminated upon the death of the worker, i.e., the steprelationship on which benefit rights are predicated is not considered terminated by the worker's death. Thus, as indicated in section 216(e) above, the term "child" includes a "stepchild" if the insured individual is deceased. Nor does the death of a spouse end the parent-step-child relationship. [1] Therefore, in the absence of statutory language to the contrary, an insured worker's death does not terminate a steprelationship for purposes of the right to receive a title II underpayment. Accordingly, the term "child" or "children" in section 204(d) (5) includes a stepchild or stepchildren. Therefore, it is held that J's stepchildren have a higher priority of entitlement (5) than that of her parents, who could qualify under priority (6) above. [1] See SSR 69-66, C.B. 1969, p. 168, for a discussion of the effect of death on step relationship in a title XVIII situation. ## Nearby sections - [SSR 64-2 SSR 64-2: SECTIONS 202(a) and 204(b). -- FINALITY OF DECISION -- REOPENING FOR FRAUD OR SIMILAR FAULT -- RECOVERY OF ERRONEOUS PAYMENTS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_2.md) - [SSR 64-7 SSR 64-7: SECTION 204(a) and (b). -- OVERPAYMENTS -- LIABILITY WHERE THERE IS A REPRESENTATIVE PAYEE -- WAIVER OF ADJUSTMENT OR RECOVERY](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_7.md) - [SSR 65-24c SSR 65-24c: SECTIONS 204(a) and (b). -- OVERPAYMENT -- RECOVERY OR ADJUSTMENT -- "DEFEAT THE PURPOSE OF TITLE II" -- "AGAINST EQUITY AND GOOD CONSCIENCE"](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_65_24c.md) - [SSR 68-7c SSR 68-7c: Rescinded 1986](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_68_7c.md) - [SSR 68-31 SSR 68-31: SECTIONS 204(a) and 204(d). -- UNDERPAYMENT -- GOOD ACQUITTANCE FOR PAYMENT TO CANADIAN ADMINISTRATOR OF INDIAN ESTATES AS LEGAL REPRESENTATIVE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_68_31.md) - [SSR 68-72 SSR 68-72: SECTION 204(d)(7). -- UNDERPAYMENT -- PAYMENT TO DISTRIBUTEE OF DECEDENTS ESTATE AS LEGAL REPRESENTATIVE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_68_72.md) - [SSR 70-3 SSR 70-3: SECTIONS 204 and 216. -- UNDERPAYMENT -- PRIORITY OF PAYMENT TO STEPCHILDREN OF DECEDENT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_3.md) - [SSR 70-4 SSR 70-4: SECTION 204(d)(7). -- UNDERPAYMENT -- PAYMENT TO RESIDUARY LEGATEE OF DECEASED BENEFICIARY'S STATE AS "LEGAL REPRESENTATIVE"](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_4.md) - [SSR 70-9 SSR 70-9: SECTION 204(d)(7). -- UNDERPAYMENT -- STATUS OF COUNTY WELFARE AGENCY UNDER INDIANA'S SMALL ESTATE STATUTE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_9.md) - [SSR 70-30 SSR 70-30: SECTION 204(d)(7). -- UNDERPAYMENT -- LEGAL REPRESENTATIVE -- ORDER GRANTED UNDER "SMALL ESTATE" STATUTE OF STATE OTHER THAN STATE OF DOMICILE OF DECEDENT AT TIME OF DEATH](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_30.md) - [SSR 70-54 SSR 70-54: SECTION 204(a). -- OVERPAYMENT -- ADJUSTMENT OR RECOVERY -- LIMITED TO BENEFITS PAYABLE ON RECORD OF DECEASED OVERPAID INDIVIDUAL OR FROM HIS ESTATE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_54.md) - [SSR 72-28c SSR 72-28c: SECTIONS 204(a) and (b) -- (42 U.S.C. 404(a) and (b)). -- DISABILITY INSURANCE BENEFITS -- RECOVERY OF OVERPAYMENT -- FAILURE TO REPORT WORK ACTIVITY AS CONSTITUTING FAULT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_72_28c.md) - [SSR 73-4c SSR 73-4c: Rescinded 1986](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_73_4c.md) - [SSR 73-5c SSR 73-5c: Rescinded 1986](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_73_5c.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_70_3. 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