SSR 85-24a: SECTION 202(i) (42 U.S.C. 402(i) LUMP-SUM DEATH PAYMENT --DETERMINING ENTITLEMENT -- WORKER DIED AFTER AUGUST 1981

20 CFR 404.392

SSR 85-24a

The sole issue before the Appeals Council (AC) was whether a lump-sum

death payment (LSDP) was payable on the worker's earnings record.

The worker, who was receiving disability insurance benefits, died on

November 29, 1982. On December 3, 1982, his widow applied for the LSDP on

his earnings record, but she died on December 8, 1982, before receiving

payment. Their son was appointed administrator of the widow's estate on

December 21, 1982; completed an SSA-1724, Claim for Amounts Due in the

Case of a Deceased Beneficiary, on January 7, 1983; and paid the worker's

funeral expenses on August 10, 1983. On the basis of this evidence, an

administrative law judge (ALJ) determined that the LSDP on the worker's

earnings record was payable to the son on behalf of the widow's estate.

Section 202(i) of the Social Security Act (the Act), as amended by Public

Law 97-35, provides, in pertinent part, that, for deaths occurring after

August 1981, the LSDP shall be paid in the following order of priority:

(1) The widow or widower of the deceased worker who was living in the

same household as the deceased worker at the time of death. If there is no

such person, or if such person dies before receiving payment, then such

amount shall be paid to ...

(2) The widow (as defined in section 216(c)) or widower (as defined in

section 216(g)) who is entitled (or would have been so entitled had a

timely application been filed) to benefits based on the deceased workers'

earnings record for the month of death; or if no person qualifies under

paragraph (1) or (2) or if such person dies before receiving payment;

such

amount shall be paid to ...

(2) The widow (as defined in section 216(c)) or widower (as defined in

section 216(g)) who is entitled (or would have been so entitled had a

timely application been filed) to benefits based on the deceased workers'

earnings record for the month of death; or if no person qualifies under

paragraph (1) or (2) or if such person dies before receiving payment;

(3) In equal shares to each child who is entitled (or would have been so

entitled had a timely application been filed) to benefits based on the

deceased worker's earnings record for the month of death.

The AC disagreed with the ALJ's decision. For deaths occurring after

August 1981, section 202(i) of the Act, as amended by Public Law 97-35, no

longer provides for the payment of a LSDP to the person who paid the

deceased worker's funeral expenses. There is no dispute that the worker

died after August 1981 and that he and his widow were living in the same

household at the time of his death. Although the widow applied for the

LSDP on the worker's earnings record, she died before receiving payment.

In addition, no one was entitled to or eligible for benefits as the

worker's widow or child for the month of his death. Accordingly, the AC

determined, under section 202(i) of the Act, that no LSDP was payable on

the worker's earnings record.