TN 17 (07-92)

A. Policy

When initial DIB entitlement is 7/80 or later, the number of dropout years used to compute DIB is determined under the 1-for-5 rule.

If there was ever DIB entitlement prior to 7/80 the 1-for-5 rule will not apply - regardless of whether an exclusion or non-exclusion computation is used.

In RIB freeze cases where the prior DIB entitlement was 7/80 or later and 1-for-5 drop-out applied to the DIB for any part of the 12 months preceding the attainment of age 62, the 1-for-5 rule is used for the RIB freeze computation as well. The RIB non-freeze computation will use the full 5-year drop out.

In survivor computations, the full 5-year dropout applies, including situations where the deceased NH was entitled to DIB based on the 1-for-5 rule.

B. Procedure

1. Calculating 1-for-5 Dropout

To calculate a 1-for-5 dropout:

1. Determine the number of elapsed years (RS 00605.220 or RS 00605.225).

2. Divide the number by five, dropping any remainder.

3. Select the smaller of: the result in b. or 5. This is the DIB dropout years.

4. Subtract the number of dropout years from the elapsed years to equal the computation years.

NOTE: the minimum number of computation years is two.

2. Freeze and Non-Freeze Requirements Met

Make a separate determination of the 1-for-5 rule when the requirements for a freeze and a non-freeze computation are met.