42 U.S.C. § 424a : US Code - Section 424A: Reduction of disability benefits

Search 42 U.S.C. § 424a : US Code - Section 424A: Reduction of disability benefits

(a) Conditions for reduction; computation
If for any month prior to the month in which an individual
attains the age of 65 -
(1) such individual is entitled to benefits under section 423
of this title, and
(2) such individual is entitled for such month to -
(A) periodic benefits on account of his or her total or
partial disability (whether or not permanent) under a workmen's
compensation law or plan of the United States or a State, or
(B) periodic benefits on account of his or her total or
partial disability (whether or not permanent) under any other
law or plan of the United States, a State, a political
subdivision (as that term is used in section 418(b)(2) of this
title), or an instrumentality of two or more States (as that
term is used in section 418(g) of this title), other than (i)
benefits payable under title 38, (ii) benefits payable under a
program of assistance which is based on need, (iii) benefits
based on service all or substantially all of which was included
under an agreement entered into by a State and the Commissioner
of Social Security under section 418 of this title, and (iv)
benefits under a law or plan of the United States based on
service all or substantially all of which is employment as
defined in section 410 of this title,
the total of his benefits under section 423 of this title for such
month and of any benefits under section 402 of this title for such
month based on his wages and self-employment income shall be
reduced (but not below zero) by the amount by which the sum of -
(3) such total of benefits under sections 423 and 402 of this
title for such month, and
(4) such periodic benefits payable (and actually paid) for such
month to such individual under such laws or plans,
exceeds the higher of -
(5) 80 per centum of his "average current earnings", or
(6) the total of such individual's disability insurance
benefits under section 423 of this title for such month and of
any monthly insurance benefits under section 402 of this title
for such month based on his wages and self-employment income,
prior to reduction under this section.
In no case shall the reduction in the total of such benefits under
sections 423 and 402 of this title for a month (in a continuous
period of months) reduce such total below the sum of -
(7) the total of the benefits under sections 423 and 402 of
this title, after reduction under this section, with respect to
all persons entitled to benefits on the basis of such
individual's wages and self-employment income for such month
which were determined for such individual and such persons for
the first month for which reduction under this section was made
(or which would have been so determined if all of them had been
so entitled in such first month), and
(8) any increase in such benefits with respect to such
individual and such persons, before reduction under this section,
which is made effective for months after the first month for
which reduction under this section is made.
For purposes of clause (5), an individual's average current
earnings means the largest of (A) the average monthly wage
(determined under section 415(b) of this title as in effect prior
to January 1979) used for purposes of computing his benefits under
section 423 of this title, (B) one-sixtieth of the total of his
wages and self-employment income (computed without regard to the
limitations specified in sections 409(a)(1) and 411(b)(1) of this
title) for the five consecutive calendar years after 1950 for which
such wages and self-employment income were highest, or (C) one-
twelfth of the total of his wages and self-employment income
(computed without regard to the limitations specified in sections
409(a)(1) and 411(b)(1) of this title) for the calendar year in
which he had the highest such wages and income during the period
consisting of the calendar year in which he became disabled (as
defined in section 423(d) of this title) and the five years
preceding that year.
(b) Reduction where benefits payable on other than monthly basis
If any periodic benefit for a total or partial disability under a
law or plan described in subsection (a)(2) of this section is
payable on other than a monthly basis (excluding a benefit payable
as a lump sum except to the extent that it is a commutation of, or
a substitute for, periodic payments), the reduction under this
section shall be made at such time or times and in such amounts as
the Commissioner of Social Security finds will approximate as
nearly as practicable the reduction prescribed by subsection (a) of
this section.
(c) Reductions and deductions under other provisions
Reduction of benefits under this section shall be made after any
reduction under subsection (a) of section 403 of this title, but
before deductions under such section and under section 422(b) (!1)
of this title.
(d) Exception
The reduction of benefits required by this section shall not be
made if the law or plan described in subsection (a)(2) of this
section under which a periodic benefit is payable provides for the
reduction thereof when anyone is entitled to benefits under this
subchapter on the basis of the wages and self-employment income of
an individual entitled to benefits under section 423 of this title,
and such law or plan so provided on February 18, 1981.
(e) Conditions for payment
If it appears to the Commissioner of Social Security that an
individual may be eligible for periodic benefits under a law or
plan which would give rise to reduction under this section, the
Commissioner may require, as a condition of certification for
payment of any benefits under section 423 of this title to any
individual for any month and of any benefits under section 402 of
this title for such month based on such individual's wages and self-
employment income, that such individual certify (i) whether he has
filed or intends to file any claim for such periodic benefits, and
(ii) if he has so filed, whether there has been a decision on such
claim. The Commissioner of Social Security may, in the absence of
evidence to the contrary, rely upon such a certification by such
individual that he has not filed and does not intend to file such a
claim, or that he has so filed and no final decision thereon has
been made, in certifying benefits for payment pursuant to section
405(i) of this title.
(f) Redetermination of reduction
(1) In the second calendar year after the year in which reduction
under this section in the total of an individual's benefits under
section 423 of this title and any benefits under section 402 of
this title based on his wages and self-employment income was first
required (in a continuous period of months), and in each third year
thereafter, the Commissioner of Social Security shall redetermine
the amount of such benefits which are still subject to reduction
under this section; but such redetermination shall not result in
any decrease in the total amount of benefits payable under this
subchapter on the basis of such individual's wages and self-
employment income. Such redetermined benefit shall be determined
as of, and shall become effective with, the January following the
year in which such redetermination was made.
(2) In making the redetermination required by paragraph (1), the
individual's average current earnings (as defined in subsection (a)
of this section) shall be deemed to be the product of -
(A) his average current earnings as initially determined under
subsection (a) of this section; and
(B) the ratio of (i) the national average wage index (as
defined in section 409(k)(1) of this title) for the calendar year
before the year in which such redetermination is made to (ii) the
national average wage index (as so defined) for the calendar year
before the year in which the reduction was first computed (but
not counting any reduction made in benefits for a previous period
of disability).
Any amount determined under this paragraph which is not a multiple
of $1 shall be reduced to the next lower multiple of $1.
(g) Proportionate reduction; application of excess
Whenever a reduction in the total of benefits for any month based
on an individual's wages and self-employment income is made under
this section, each benefit, except the disability insurance
benefit, shall first be proportionately decreased, and any excess
of such reduction over the sum of all such benefits other than the
disability insurance benefits shall then be applied to such
disability insurance benefit.
(h) Furnishing of information
(1) Notwithstanding any other provision of law, the head of any
Federal agency shall provide such information within its possession
as the Commissioner of Social Security may require for purposes of
making a timely determination of the amount of the reduction, if
any, required by this section in benefits payable under this
subchapter, or verifying other information necessary in carrying
out the provisions of this section.
(2) The Commissioner of Social Security is authorized to enter
into agreements with States, political subdivisions, and other
organizations that administer a law or plan subject to the
provisions of this section, in order to obtain such information as
the Commissioner may require to carry out the provisions of this
section.