20 C.F.R. § 404.440   Partial monthly benefits; pro-rated share of partial payment exceeds the benefit before deduction for excess earnings.


Title 20 - Employees' Benefits


Title 20: Employees' Benefits
PART 404—FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950– )
Subpart E—Deductions; Reductions; and Nonpayments of Benefits

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§ 404.440   Partial monthly benefits; pro-rated share of partial payment exceeds the benefit before deduction for excess earnings.

Where, under the apportionment described in §404.439, a person's prorated share of the partial benefit exceeds the benefit rate to which he was entitled before excess earnings of the insured individual were charged, such person's share of the partial benefit is reduced to the amount he would have been paid had there been no deduction for excess earnings (see example). The remainder of the partial benefit is then paid to other persons eligible to receive benefits in the proportion that the benefit of each such other person bears to the total of the benefits to which all such other persons are entitled (before reduction for the family maximum). Thus, if only two beneficiaries are involved, payment is made to one as if no deduction had been imposed; and the balance of the partial benefit is paid to the other. If three or more beneficiaries are involved, however, reapportionment of the excess of the beneficiary's share of the partial benefit over the amount he would have been paid without the deduction is made in proportion to his original entitlement rate (before reduction for the family maximum). If the excess amount involved at any point totals less than $1, it is not reapportioned; instead, each beneficiary is paid on the basis of the last calculation.

Example:  Family maximum is $150. Insured individual's excess earnings charged to the month are $25. The remaining $125 is prorated as partial payment.

 --------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                             Benefit after                                                                                             deductions for     Benefit reduced for     Benefit payable                                                              Original     Fraction of      excess earnings     maximum but without        after both                                                              benefit     original total       but before      deductions for excess     deductions and                                                                             benefit         reduction for            earnings          reductions (and                                                                                             family maximum                                 rounded)--------------------------------------------------------------------------------------------------------------------------------------------------------Insured Individual.........................................       $100              \2/5\                 50                   100.00                 75Wife.......................................................         50              \1/5\                 25                    16.60                 16Child......................................................         50              \1/5\                 25                    16.60                 16Child......................................................         50              \1/5\                 25                    16.60                 16--------------------------------------------------------------------------------------------------------------------------------------------------------

[32 FR 19159, Dec. 20, 1967, as amended at 48 FR 46149, Oct. 11, 1983]

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