SSA benefits and IRMMA calculations

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SSA benefits and IRMMA calculations

Postby dwhisenant » Tue Dec 03, 2019 1:50 pm

For those of you who received a lump sum for your Supplemental Pension from the bankruptcy of Avaya, you may have received your 2020 SSA calculation letter. In my letter my Part B went up $57.80 per month. This increase was based on my IRMMA taxable income increasing which was the result of the lump sum payout. It says in the letter that I can appeal the decision based on "You or your spouse experienced a cheduled cessation, termination or reorganization of an employer's pension plan. I am pursuing this and will keep you updated. They may turn it down because it was a Supplemental Pension, we will see!

Don
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Re: SSA benefits and IRMMA calculations

Postby tfelix » Tue Dec 03, 2019 10:19 pm

Don,

I had this problem last year with IRMMA, and I filled out a form, sent it to Social Security, and they corrected my part B withholdings.
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Re: SSA benefits and IRMMA calculations

Postby rpuckett23 » Sat Dec 07, 2019 12:46 pm

guys

just got into this as well.....my 2020 was not impacted as I am still under 65 but they bash my wife since we file joint. they hit her up for 300 but the appeal could bring it down to 57...

what a mess....they want a letter stating this is my payout but while I have a huge file of stuff not sure they have docs needed.

just more BS

merry christmas to all
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Re: SSA benefits and IRMMA calculations

Postby dwhisenant » Mon Jan 13, 2020 2:15 pm

Still waiting on SSA to respond. In the letter I received it said what they wanted for proof, however it was vague except for the 1040, so I went to the nearest SSA office and took the letter, 1040 and all the other documentation I had. There was a line formed outside waiting to get in so I left after talking to the receptionist who said I should call the contact for appointment. In the letter it said if I wanted to make an appointment to see the person assigned the claim to call the office and request an appointment time. I called and left voice mail messages clearly stating that I wanted an appointment to followup on the letter. After leaving a voice mail every day for 3 straight weeks, I gave up and mailed in everything I had for proof. Still waiting for a followup to see if it is approved or not. So frustrating working with the SSA, they say one thing but reality is different.

Don
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Re: SSA benefits and IRMMA calculations

Postby tfelix » Tue Jan 14, 2020 9:57 pm

Don, I'm guessing you already found this out, but I dug thru old correspondence about the same problem I experienced in 2018. I did all my transactions on the phone and fax with SSA. First, called the SSA office to discuss and I was told to file an SSA-44 form "Medicare Income-Related Adjustment Amount-Life Changing Event". I followed up about a week later to SSA and found that they had assigned my claim to someone. I managed to talk to the rep assigned. The rep advised me that I needed to provide other documentation about the stoppage of payments for my "Non-Qualified Pension Plan", a letter from Avaya that showed that Avaya terminated the plan, and that PBGC would assume payments for my "Qualified Pension Plan". All of this was done to prove that my forward going "Modified Adjusted Gross Income" was going to be a lot lower than the year when I received the large one time payout for my Non-Qualified Pension". It was very helpful that I got the name and direct number for the rep assigned to my claim. They adjusted my IRMMA
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Re: SSA benefits and IRMMA calculations

Postby dwhisenant » Wed Jan 15, 2020 12:26 pm

Tim,

I have been following the same path as you, except that the contact person with the SSA has never returned my many, many, many calls to her voice mail. Still waiting to see what happens with the documents I finally mailed to her. Hoping for the best outcome, in the meantime they are deducting the higher amount from my January check. If they approve my claim I will get the money back, as will my wife. It is just so frustrating not having my calls returned.

Don
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Re: SSA benefits and IRMMA calculations

Postby dwhisenant » Tue Feb 04, 2020 1:54 pm

It's a good day. I talked to SSA today and they tell me they will correct the IRMMA calculations and lower my Part B monthly payment in March, and issue a refund check for the over payment in Jan and Feb. This was a frustrating ordeal, but now it is resolved to my satisfaction. Saved me and wife over $1200 in Part B payments.

Don
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Re: SSA benefits and IRMMA calculations

Postby ckatz01 » Tue Mar 10, 2020 8:27 pm

I am in the process of applying for the "life changing event" for the supplemental pension lump sum. In pulling together "evidence" (whatever that may be), I have located the statement attached to the check stub for the lump sum dated 10/19/2018. At the bottom of the statement, it says "Please note your 2018 W2 tax form for this payment will be issued from Alight Solutions PBX in early 2019. Despite being an excellent record keeper, I cannot find a copy of the W2 with the copy of my tax returns.
Can someone confirm that in fact a W2 was sent?
Additionally, if anyone received any "specific" calculations for your payout--- where did this come from (Alright Solutions? What is the title of the document).
Lastly, anyone who was successful with this process, if you can clue me in on the specific documents you used for your evidence, that would be a bonus.
I have contacted Alright solutions for any W2 and Avaya for an employer letter but am waiting...... Your insights for the above would be greatly appreciated.

CRK
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Re: SSA benefits and IRMMA calculations

Postby ckatz01 » Tue May 26, 2020 9:06 pm

Applying for medicare in 2020 and received a settlement for the termination of your supplemental pension from Avaya? This info is for you. Medicare will look back two years, so 2018 for your modified adjusted gross income (MAGI). This income level will inclued the settlement and inflate your income, thereby, causing an increased IRMA (or adjustment) to you medicare premium. For me it was a couple of "level" up or hundreds of dollars extra each month! Yes, they will send you information on how you can appeal and you may have 2-3 months (in my case it was 1 month after medicare would take effect.) But you can go another route first (so if that's denied, then appeal.) Go to the social security website and search for the from SSA-44. This form specifically lays out 8 reasons that can exempt you from some (or all) of the IRMA charges. The 8th reason is a pension settlement from a bankruptcy. Bingo. It's an easy form. The application tells you what kinds of evidence you need, including a letter from the employer (and what it should specify). I emailed James Kobar, Benefits Manager at Avaya (jkobar@avaya.com; 678-421-5312). He provided me with exactly what I needed within 1 day. That, copies of tax returns, and W2 for 2018 vs. 2019 were mailed in and approved within 2 weeks. (My local SS office in Raleigh was far more responsive than the central number. Go local! Even during Covid, with the office closed to the public, the office was staffed, answering phones, etc.) I should be getting a refund from my first payment shortly. I never needed to appeal... that would have been the next step. Good luck!
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