How Convictions for Subversive Activities Can Impact Social Security and Medicare Benefits, § 404.465

In the United States, certain criminal convictions can have a significant impact on an individual’s Social Security and Medicare benefits.

This blog post will discuss the specific provisions under § 404.465 of the Social Security Administration (SSA) regulations, which outline the consequences for individuals convicted of subversive activities. We will break down the key points of this regulation and explore its implications on monthly benefits and hospital insurance entitlements.

1. Types of convictions that can affect benefits:

An individual convicted of offenses committed after August 1, 1956, under the following chapters of Title 18 U.S.C. or the Internal Security Act of 1950 may face consequences on their benefits:

• Chapter 37 (Espionage and Censorship)
• Chapter 105 (Sabotage)
• Chapter 115 (Treason, Sedition, and Subversive Activities)
• Section 4, 112, or 113 of the Internal Security Act of 1950

2. Additional penalties:

In addition to other penalties provided by law, the court may order the exclusion of the following from the calculation of the individual’s benefits:

• Wages paid to the individual, or any other individual, in the calendar quarter of the conviction or any prior quarter.
• Net earnings from self-employment derived by the individual, or any other individual, during the taxable year of the conviction or any prior taxable year.

3. Recalculation of benefits:

Upon receiving notification from the Attorney General about the imposition of additional penalties, the SSA will recalculate the individual’s benefits, excluding the applicable wages and net earnings as ordered by the court.

4. Pardon’s effect on penalties:

If an individual receives a presidential pardon for the offense, the additional penalties will not be applied to their benefits. The individual’s entitlement to benefits and the amount of such benefits will be determined without considering the additional penalties for any month beginning after the date of the pardon.

Example: The Impact of a Conviction on Jane’s Social Security and Medicare Benefits

Jane, a 65-year-old retiree, was recently convicted of an offense under Chapter 115 (Treason, Sedition, and Subversive Activities) of Title 18 U.S.C. As a result of her conviction, the court decided to impose additional penalties under § 404.465 on Jane’s Social Security and Medicare benefits.

Before her conviction, Jane was receiving monthly Social Security benefits based on her lifetime earnings, which included both wages and self-employment income. She was also entitled to hospital insurance benefits under Medicare Part A.

Due to the additional penalties, the Social Security Administration (SSA) recalculates Jane’s benefits. They exclude the wages paid to her in the calendar quarter of her conviction and any prior quarters, as well as any net earnings from self-employment derived during the taxable year of her conviction and any prior taxable years.

As a result, Jane’s recalculated Social Security benefits are significantly lower than what she was receiving before her conviction. Additionally, her entitlement to hospital insurance benefits under Medicare Part A may also be affected.

However, two years later, Jane is granted a presidential pardon for her offense. Following the pardon, the SSA will no longer apply the additional penalties to her benefits. Jane’s entitlement to Social Security and Medicare benefits will be restored to their original levels, starting from the month after the date the pardon was granted.

Conclusion: Convictions for subversive activities can have far-reaching consequences on an individual’s Social Security and Medicare benefits. Under § 404.465, the court may impose additional penalties that affect the calculation of an individual’s entitlement to monthly benefits and hospital insurance. However, a presidential pardon can reverse these additional penalties, allowing the individual to regain their full benefits.

https://www.ssa.gov/OP_Home/cfr20/404/404-0465.htm