Dear Member, Retirement Benefits Service Division NARFE

Transcription

1 Dear Member, As you requested enclosed are the procedures from the Social Security internal procedural manual that provides the legal authority and the instructions for SSA to have Medicare Part B premiums withheld from monthly civil service annuity payments. Take this with you when you go to your local Social Security Office in the event the SSA Rep is not aware of how to process your request to have Medicare premiums withheld from your monthly annuity. Retirement Benefits Service Division NARFE

2 SSA - POMS: HI Civil Service Annuitants and Spouses - 12/ of 1 2/7/ :20 AM Social Security Online POMS Section: HI Previous Next Effective Dates: 12/06/ Present HI Civil Service Annuitants and Spouses This section describes how SSA notifies the Civil Service Commission to deduct premiums from annuities, and how to handle inquiries. Premium collection by the Commission for an annuitant"s spouse is explained in HI C. SMI enrollment for civil service annuitants, their spouses, and preparation of awards for them is discussed in HI The law provides that all uninsured (T or M) claimants who are receiving a civil service annuity, and have enrolled for SMI will have their premiums deducted from the civil service annuity. The annuitant may also authorize the deduction of a spouse"s premiums from the annuity check. This provision also applies to special age 72 claimants for whom social security payments are not payable due to a government pension offset. A. Notice to CSC Each month SSA certifies new uninsured annuitant and spouse data to the Civil Service Commission. This information flows from the DO through the central processing operations to DP (via the EDP systems), and then to CSC. In general, a minimum of four months may elapse from the time of filing the application for SMI to the initial deduction of the premium from the annuity check. This includes processing time in the DO, PSC, BSS, and CSC. B. Referral of Inquiries About Civil Service Commission Deductions SSA"s arrangement with the Civil Service Commission provides for central coordination and exchange of data. DO"s and PSC"s should not communicate directly with CSC. If the MBR shows that CSC has already been requested to deduct premiums from the annuity, and this is inconsistent with the statements in the inquiry, the DO sends an overprinted form SSA-5002 along with a current MBR printout and any related materials to CMS, BSS, Premium Processing Branch, P.O. Box 11977, Baltimore, Md Remember to furnish the annuitant"s name and correct Civil Service annuity number. (See HI B. and D. for a detailed explanation of the use of the overprinted RC and CSC inquiries.) To Link to this section - Use this URL: HI Civil Service Annuitants and Spouses - 12/06/2001 Batch run: 01/27/2009 Rev:12/06/2001 Privacy Policy Website Policies & Other Important Information

3 1 of 3 2/7/ :21 AM Social Security Online POMS Section: HI Previous Next Effective Dates: 06/20/ Present TN 19 (03-93) HI Development for SMI Enrollment of Civil Service Annuitants and Their Spouses A. Policy - Interviewing 1. Annuitants During the course of obtaining an application for SMI from an individual who is: not entitled to monthly benefits under SS, not entitled to an annuity or pension under RR, and not eligible for coverage under a State buy-in agreement, the DO should ask whether or not the applicant is a Civil Service annuitant or the spouse of an annuitant who has SMI. If a person enrolling is an annuitant, this information and the civil service annuity number should be shown in the file. The claim should not be sent to the PSC until the correct annuity number is obtained. Otherwise, incorrect premium collection or delay in collection for several months will occur. 2. Spouse of Annuitant Where an annuitant is enrolled in SMI and subject to SMI premium deductions from the annuity, his or her spouse may also have SMI premiums withheld from the annuitant's monthly check if the annuitant consents in writing and the spouse is: enrolled in SMI; not entitled to a civil service annuity or any RSDI or RR benefits, and not subject to State buy-in. This arrangement is optional for the convenience of the annuitant and the spouse. NOTE: OPM will not deduct for the spouse alone. The annuitant must consent in writing to OPM's deduction of the spouse's SMI premiums from the annuitant's monthly check. The written authorization from the annuitant may be similar to the following: I agree that the $ monthly premium to cover medical insurance for my wife (husband), (name), be deducted from my civil service annuity check.

4 2 of 3 2/7/ :21 AM 3. CSC Annuity Number The exact annuity number including the designation CSA (retired annuitant) or CSF (survivor annuitant) must be provided by the claimant. Annuity numbers are assigned in numeric sequence as awarded. NOTE: Both CSA and CSF numbers recently entered the seven-digit category although the majority of valid annuity numbers at the present time consists of six-digits. A few annuitants with five-digit numbers are still living and on the annuity rolls. Annuity numbers of five or fewer digits should be questioned and validated. Two minor annuity designations, LSF and CZC, exist and may contain three and four-digit numbers, but these cases are rare. (See SM , SM , SM , SM and SM for coding of the various award forms.) Because of the critical timing of the SSA ADP system of SMI premium certification and the unique requirements of the OPM system, neither OPM premium deductions nor cessation of OPM premium deductions can begin until after the month for which it is effective. A delay of 4 months may be expected with full retroactive adjustment by the OPM. 4. RSI Beneficiary, Benefits Suspended Certification for SMI premium deductions from the civil service annuity applies to beneficiaries who are entitled to Medicare only. These are: insured and age 65 or older (BIC-T) ESRD (BIC-T) deemed insured for Medicare only (BIC-T) insured based on Medicare Qualified Government Employment (BIC-TA) and uninsured age 65 or older (BIC- M). The policy also applies to special age-72 claimants (BIC-J or K) who are entitled to SMI and are in total suspense because of Government pension offset, or whose monthly benefit payment is less than the SMI premium. (See SM for information on BICs and type of payment). RSDI beneficiaries are subject to SMI premium withholding from their monthly benefit. During periods of suspense, for work or other reasons, the beneficiary makes direct premium payments. If a Civil Service annuitant, entitled to a social security benefit, but not receiving payment because of, e.g., government pension offset, wants the Part B premium deducted from the Civil Service annuity, he or she may wish to withdraw the monthly benefits portion of the application and be entitled to HI only. (This procedure is explained further in HI C. and HI B.) B. Policy - Independent Federal Systems Certification for SMI premium deductions cannot be made from an annuity that is payable by an independent Federal retirement system other than OPM. C. List of Independent Federal Systems The following is a list of independent Federal civilian retirement systems (some of which are quite limited in the scope of their coverage):

5 3 of 3 2/7/ :21 AM Federal Employees' Compensation - Federal employees or their survivors may be entitled to employees' compensation which, in some cases, may be received in lieu of a CSC annuity. Employee compensation benefits are administered by the Bureau of Employees' Compensation, Department of Labor. Foreign Service Retirement and Disability System - This system for foreign service employees is administered by the Department of State. Federal Reserve Board Retirement System. Judicial Survivor Annuity System - This system, administered by the Administrative Office of the U.S. Courts, provides survivor's benefits for the widows of Federal judges. NOTE: The judges themselves are continued in a salary status when retired. Other Federal court employees and their survivors are covered under regular civil service retirement. Lighthouse Service Retirement System - The U.S. Coast Guard administers this system for lighthouse keepers and ancillary personnel. NOTE: Upon the annuitant's death, jurisdiction over a survivor claim is transferred to OPM. Tennessee Valley Authority Retirement System. District of Columbia Policemen and Firemens' Retirement System. District of Columbia Public Schoolteachers' Retirement System. NOTE: Any District of Columbia employee not covered by either of the two special District of Columbia systems is covered by regular Federal civil service retirement. Except for the benefits and annuities listed above, and for retirement from the Armed Forces, all other Federal retirement systems are administered by OPM. If a claimant says that he or she is receiving a benefit or annuity from one of the independent systems, this information should be included in the file to explain why the premium deductions will not be made from a CSC annuity. To Link to this section - Use this URL: HI Development for SMI Enrollment of Civil Service Annuitants and Their Spouses - 06/20/2011 Batch run: 06/20/2011 Rev:06/20/2011 Privacy Policy Website Policies & Other Important Information