TN 46 (10-11)

The Court may impose a penalty (in addition to the ones established under applicable U.S. laws) against an individual convicted of espionage, sabotage, treason, sedition, or subversive activities after 8/1/56.

A. Policy for imposing a penalty due to a conviction

1. Effective date of penalty

The penalty is effective with the month of the conviction and continues until the individual receives a pardon.

2. Entitlement to title II benefits

This penalty affects the entitlement and benefit amount of the convicted person and any auxiliary on the account.

• Lump sum death payment

  This penalty does not affect the convicted person's entitlement to a lump sum (LS) payment based on another person's earnings record (ER); nor does it affect an auxiliary's entitlement to a LS payment based on the convicted person's credited earnings before or after the conviction.

• Health insurance benefit (HIB) eligibility

  For information on how the conviction of a crime against the U.S. affects eligibility for HI benefits, refer to HI 00801.086.

• Supplemental medical insurance benefit (SMIB) enrollment

  For information on eligibility for SMI benefits, refer to HI 00805.005

3. Presidential pardon

If the President pardons the individual, remove the penalty effective with the month after the month of the pardon. Recalculate entitlement of benefits, and determine the amount of benefits to pay as if there had been no conviction.

B. Procedure for determining entitlement to benefits

NOTE: The following will only apply to a conviction for subversive activities when an additional court-imposed penalty excludes earnings for determining entitlement and benefits.

Exclude the following when determining an individual’s entitlement to a monthly benefit and the amount of that benefit:

1. Prior to 1/1/1978

• any wages paid in or before the quarter in which the conviction occurred; and

• any net earnings (NE) from self-employment (SE) derived in or before the taxable year in which the conviction occurred.

2. After 12/31/1977

• any wages paid in or before the calendar year in which the conviction occurred; and

• any NE for SE derived in or before the taxable year in which the conviction occurred.

3. Procedure for Field Office (FO) and Processing Center (PC)

The U.S. Attorney General will notify the Commissioner of Social Security about individuals convicted of subversive activities. If the FO or PC receives notification, scan the documents into the Non-Disability Repository for Evidentiary Documents (NDRED), see GN 00301.310. Refer the case to the Office of Income Security Programs (OISP) via email, at ^OISP OSSIPIP Controls, before taking any action. Type “Convicted for Subversive Activities” in the subject line of the email.